The Serial Ditchers

Yesterday I was reading this article "Five Rules For Retailing in a Recession" published in Harvard Business Review. The very first rule talked about going for the Headroom whch they defined as market share you don't have minus market share you won't get.So for retailers, customers who are loyal to their competitors represent market share they don't have and will likely not get. Customers who are loyal to them represents market share they already have and hence holding on to these loyal customers is a high priority job in a downturn. But if they start spending 25% less, it will directly affect retailer's sale. So the headroom lies with the customers who are loyal neither to a particular retail store nor to their competitors and such customers are called switchers. But I would rather prefer to call such customers "serial ditchers". Read on to find out why.

The romance kindles with the proposal(read ads) issued by retailer through different channels. This particular type of customer accepts the proposal and comes singing to the store Tumne pukara aur hum chale aaye re (You called me and I am here). So both retailer and customer are happy and the affair begins. The customer visits the store frequently and the retailer can't help singing Hame tumse pyaar kitna yeh hum nahi jaante, magar jee nahi sakte tumhare bina(I don't know how much I love you but I can't live without you). This running around the tree(read store) and singing(read purchasing) continues for a month or two and then customer feels disenchanted(or disillusioned) from the spell of the retailer. The retailer realises that something is wrong with customer's behavior but poor fellow don't know what is in store for his store. And one fine day the customer walks out of the store singing Teri Galiyon mein naa rakhenge kadam aaj ke baad(I won't step into your neihbourhood (read store) in future) and leaving retailer sad and gloomy searching for the reasons of this unexpected betrayal.

But the (ex-) customer looks for new proposals and has an affair with almost all the competitors of the retailer with assurance given to each one of them that Hum bane tum bane ek dooje ke liye( We two are made for each other). Then she went on ditching them all one after another. The customer has no remorse at all because for her change is the only constant. The customer wants honeymoon but no marriage. And what happens to those retailers she ditched?? well in business you can't afford to be Devdas because Paro gayi toh kya hua he has to concentrate on Chandramukhis(read loyal customers). But would it be wise for him to close his store's door for Paro?? I would say no because this attitude will ruin his business. So I would picture him singing this another bollywood oldie Koi jab tumhara hriday tod de, tadapta hua jab koi chod de, tab tum mere paas aana priye, mera dar khula hai khula hi rahega, tumhare liye( When someone breaks your heart leaving you in agony and pain then you can always come back to me, my (store's) doors are always open for you).

So my dear retailers wait for the right opportunity to hit the nail on the head(read headroom).

Regards,

Ravi