EkaLore has highlighted how challenging times are changing the tactics of enterprises as they adjust to new economic and marketspace conditions. This release focuses on a shift in tactics to address recent interest rate increases, inflation, and inventory costs.
Customer-facing enterprises are using “discounts for money now” as a competitive tactic. The tactic is to do three things: entice customers to use a new mechanism (such as online), vacuum up cash from competitors (with market resolutions harder), and bring in cash now.
Many retail and online enterprises use discounting and couponing focused on a targeted group of customers. Now a broader approach to revenue generation is becoming popular.
Discounted gift cards (aka cash vacuums), follow the simple principle of “Get the cash before customers send the it to the competition.” More important to consider is the discounting of 5%, or more including customer acquisition costs to retailer, informing us all of the costs of cash flow in the enterprises.
Enterprise projects and initiatives can gain attention and support if they: increase the velocity of money into the enterprise by increasing collected sales, increase margins by focusing customer spend on high margin purchases, or reducing inventory and financing costs.
Ekalore will be looking at how inventory practices are being evaluated due to the current shocks to the economy.
You can read this post and others at www.ekalore.com/ars
Comments