Newsletter
April 2010, Issue 3
In this Issue:
A Special Offer
A Consumer Advocate’s advice to Corporate America
Limited Time Offer
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A Consumer Advocate’s advice to Corporate America.
At times like these, when consumers are watching their spending very closely, companies need to rededicate themselves to improving their levels of service. While American consumers claw their way out of a protracted recession that has witnessed some of the lowest levels of consumer confidence and spending in decades, companies are searching for innovative ways to stand out and expand their customer base.
Innovation has been central to this approach; the launch of Apple’s new ipad is a good example of how a company will try to jumpstart sales in a down economy. Other more traditional interventions include bundling new products, offering incentive deals, lowering prices, tacking on added features and bonus, etc. These solutions demonstrate a predictable reaction to hard times and certainly look better than doing nothing but they can also negatively impact the bottom line by reducing net margins, even when volume sales increase. Trying to navigate a large or small company successfully out of a recession can be tricky, no doubt. However, there is one approach that often ends up on the boardroom floor in the panic to reduce costs; namely, safeguard your existing customer base.
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