Tuesday, January 20, 2009

Circuit City eMail Marketing Faux Pas

One of the definitions for insanity is repeating a process and expecting a new result. That's what Circuit City did with its email coupons and web sales.

Obviously, every coupon has fine print, but Circuit City's email marketing dropped the ball with its lackluster web "specials" featuring 10-15% discounts.  Most consumers can find comparable deals at Best Buy (NYSE: BBY) and Wal-Mart (NYSE: WMT) every day, without even using an internet coupon.
Upon further review, many of Circuit City's sales were over-hyped, even for online specials.

Here are some examples of Circuit City's email marketing:


When you're trying to sell feature items off the shelves, 10% off on Black Friday is practically an insult to the customer's intelligence. There's a reason it's the busiest shopping day of the year. Customers expect drastic cuts on every item, and 10% isn't enough to turn heads.

Wow, $15 dollars off a purchase at least $100, so at the most I'll be saving a whopping 15%, and that's only if I plan to make a large purchase.

20% off on "select" home theater systems. They're already limiting the sale's appeal when it's only 20% off to begin with. Why would I even proceed to the next page?

$100 off an HDTV over $1,000, again, Circuit City doesn't even break the 10% margin. How do you expect to entice customers if you never offer a discount comparable to your main competitor?
I'm not claiming the email marketing campaigns are the main factor in Circuit City's collapse, but they certainly failed to get my interest.
 

By Matt O'Hern at 10:40 AM | Comments (2)

(2) Thoughts on Circuit City eMail Marketing Faux Pas

Amazing scoop there. What you fail to mention is that the coupons are a discount IN ADDITION to the sale price in the store. For instance, the %10 coupon made for a sweet deal for my friend. He got a 46" 1080P Samsung LCD (regular price $1699, on sale for $1099 PLUS the 10% = $989). It is clear the Circuit City screwed him over by giving him 42% off.

Comments by Steve-O : Tuesday, January 20, 2009 at 08:28 PM

I don't see why this article is here complaining about coupons. I never see better coupons offered by competitors. And if a competitor had a better price Circuit City always beat it for me. So it's Jan. 20, 2009 and Circuit City is in liquidation and they don't even accept coupons anymore. Way to beat a dead horse with a pointless and no longer applicable article.

Comments by Kevan : Tuesday, January 20, 2009 at 09:33 PM

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