Three Simple Things All Extremely Savvy Marketers Can Learn From Radioshack’s Bankruptcy Filing!
So did you hear or read about the recent bankruptcy filing by Radioshack? That retailer had been solvent and or nearly so for the last 94 years.
Turns out they finally conceded that their current business model is just not (completely) in sync with their ever changing (and oh so) demanding, tech savvy
customer base.It most certainly happens. But even though they were trailblazers initially, (way back when), fast forward to today and their smartphone savvy,
tech enthused bred of brand new potential long term repeat customer base, simply had no need for connectors, cables and and (old school) CB radio gadgetry etc.
Instead, while once being considered a trailblazing pioneer within it’s own industry. It’s now being ceremonially rolled and just another casualty of the digital revolution
and in e-commerce in general.
However, what makes their (semi) anticipated demise rather interesting is, upon closer examination, all extremely savvy marketers can see a form battlefield tested marketing leverage at it’s best!
So What Exactly Are These Three Potentially Profitable Lessons All Extremely Savvy Entrepreneurs Can And Should Learn From Radioshack’s Bankruptcy Filing?
First of all, without getting too deep into the weeds (and way) too far off the main topic at hand. Just in case you may not currently be aware. There are (for all) intensive practical purposes, at least three separate forms of major legally recognized bankruptcy filings.
There’s chapters 7, 11 & 13. And Radioshack opted for chapter 11 of the bankruptcy code. Which is basically a kind of court approved re- organization of debt and payout plan.(Just thought you might wanna know.)
Anyway, in the wake of that happening, it was also announced that Sprint will begin operating certain portions of it’s mobile selling operations, within at least 60% of 2,400 plus nationwide Radioshack locations.
Entrepreneur, did you happen to catch that incredibly brilliant guerrilla marketing style maneuver by Sprint? (And or extremely marketing savvy company X!) Because that savvy marketing ploy can and should apply to any all marketing opportunistic business owners.Large, medium or small.
Which brings brings us to these three potentially profitable marketing lessons, that can and should be (not only learned), but applied by any and all extremely marketing savvy, profit seeking entrepreneurs!
First of all, imagine if Sprint (and or company/service X) was starting literally from scratch to build their customer/client base. Just depending on “how” deep their corporate pockets were, they would in all likelihood be spending tens of millions of dollars (if not) hundreds of millions on various forms of outrageously expensive traditional – on or offline- advertising mediums. Agreed?
You know, the usual suspects, such as local and or national display ads,local or national radio and TV ads, PPC (Pay Per Click) ad campaigns etc. Make no mistake! Those mediums, in order to (at least) be semi effective, are rather expensive.
On the other hand:
1.) Potential hidden marketing lesson # one: Since (in this particular case only) Sprint is merely going to leverage Radioshack’s currently well placed, physical locations. They don’t have to spend tens of millions of dollars on first applying (and waiting to be approved commercial zoning permits. Or millions more on building brand new state of the art commercial locations, do they? Nope!
And they also don’t have to enter into rigorous-not to mention- rather time consuming negotiations with commercial property owners, in order to get the best terms available for prime commercial real estate locations, do they? Nada!
A Lot Of Times A Bankruptcy Filing Can And Should Be The Very Start OF A Potentially Lucrative Sales Funnel!
(Don’t You Agree?)
Does that save them a few dollars and potential headaches, both now and in the immediate for see able future. You’d better believe it.
2.) Potential hidden marketing lesson # two: Next; since Radioshack already has anywhere from a half a million to a million or more opt in email subscribers.Cool!
Sprint (and or) extremely marketing savvy company X, merely has Radioshack send periodic VIP email alert to all their loyal subscribers and direct them to one of Sprints “VIP” new customer only webpages.(And or to their state of the art WordPress blog.)
And alert them to simply text a certain number (for their potential mobile) engaged customers and or to print out or write down a certain (super time sensitive) discount coupon number and come into the store on or before a certain date to take advantage of their 50% of their first three (or X number) of purchases, “new VIP customers only sale!”
3.) Potential hidden marketing lesson # three: And finally: Because this is Sprint and they have extremely deep corporate pockets. Agreed? And since they’re saving a proverbial fortune on traditional start up cost. They can either use one of the top paid email autoresponder service providers.( And yes that’s definitely my affiliate link.)
And or they can simply hire the smartest tech geeks walking the planet to build a state of the art one from scratch, that will do any and everything they need it to do! But strictly for marketing example purposes.
Here’s what they track and reward. Every time they notice as their diligently studying their email analytics stats. Whenever a subscriber forwards one of Sprints (or company X’s) super time sensitive sales promo emails.
They automatically get rewarded a certain amount of points and these points allow them to purchase additional products or services at extremely advantageous discounts! And they’ll automatically receive a “thank you” email alert, the very first time they forward an email.
And be made aware that each week (and or month) the top 25 (or X) number of VIP subscribers that have the most email forwards of any kind, they will receive double points!
And the top three automatically receive a $500 gas card, $300 gas card and a $150 dollar gas card respectively. Plus, they will also get a $100 dollar, $50 dollar and $25 dollar gift certificate-respectively- to either a local Applebees, Olive Garden restaurant and or a top barbecue and or popular steakhouse restaurant of their choice!
And of course, special time sensitive saving coupons from Sprint as well. So the point is Sprint will ethically bribe them to regularly forward those promotional emails! So you see, even though a corporate bankruptcy filing is obviously not the best economic news for their immediate employees and vendors that service the business.
There can still be quite a few potentially hidden, long term money making possibilities, in the mix as well? Don’t you agree? Now then, as is customary during this part of our show.
Please share your extremely valuable comments (in the comments section below) that you can apply to your business, product or service in the next 30 days or less!
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Fascinating and informative as always Mark. I can certainly see the potential benefits for Sprint, but (strictly speaking as a consumer) in my neck of the woods (or sandbar) neither of these companies have a great reputation. I dumped Sprint 4 years ago and don’t even remember the last time I stepped foot into our local Radioshack. It really will be interesting to see how all of this plays out.
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M you’re too funny!
If I had the time I could tell you a funny experience a company had with Sprint,
that I used to work for many years ago.
Needless to say, the experience was not very good.
And to me the really odd thing about Radioshack’s (all too) predictable demise is, they sort
of became and evolved into the Kmart of the pre-digital age.
Meaning, initially they were a truly cutting edge company, then they sort of just got comfortable and complacent
and as their market place along with the demographics kept changing and their target markets needs changed and
evolved with it.
They didn’t!Until it was obvious they were behind the marketing curve, instead of in front of it. And suddenly
there was a relatively younger and far more tech savvy and information hungry and driven customer base,
that they really didn’t know to adequately accommodate!
And their bankruptcy filing is a direct result of being completely out of touch with their current market places,
ever growing changing needs, wants and desires!
Thanks for stopping by and adding nicely to the conversation M!I always appreciate your contributions!
how to adapt to
Mark Newsome recently posted…Three Simple Things All Extremely Savvy Marketers Can Learn From Radioshack’s Bankruptcy Filing!