Myer debacle – the ‘system’ in full flight

I feel sorry for Myer shareholders; but even more so for their customers and staff!

I want to give you my take on this unfolding corporate disaster.

First, here is an extract from my 2013 marketing manual – “The Raw Sugar Phenomenon” [click here to download a free copy]…

Myer in 2010 had a new perfume for sale. The in-store advertising banner said it was on special, reduced by $41.

My dear friend, Mrs M, thought all her Christmases had come at once!

But there were no bottles left on the stand, so she called an assistant to enquire about availability.

The young lady looked somewhat puzzled saying simply, ‘We don’t have any left.’

Not to be outdone, the customer asked, ‘Then why is the sale banner still there?’

The assistant [whose job I presume is to sell and look after the customers] retorted, ‘But we sold them all’ (and no doubt thinking, I’ve already told her, she must be deaf).

There was absolutely no desire to serve with a ‘Sorry, we don’t have any at moment but would you like me to try another store, Madam?’

…Or, ‘We will have more stock in on Thursday, and if it’s convenient I could give you a call.’

But no such luck.

The sales assistant stuck to her position; in effect, ‘it’s not my fault, so don’t blame me!’

This organisation is basically hopeless, full of the wrong culture that allows this kind of sales interaction to occur.

And the Myer board and CEO wonder why customers are going elsewhere in droves.

Put simply it’s not the range of stock; it’s not even the prices they charge; it’s the uncaring attitude of the managers and staff towards the people who come into their stores.

Roll forward to 2018: Nothing has changed; only it’s worse now. Myer is on its knees and could go broke.

The Myer board’s primary concern is to restore profitability and shareholder value, not to serve customers.  Even though their mission acknowledges how important customers are, they are just adhering to the letter of the law.  The truth is, customers are being used to make money.

This is not the marketing spirit.

GOOD NEWS:

This is a powerful lesson in how NOT to act. Myer stopped serving and caring for people like Mrs M a long time ago and are now paying a terrible price.

Hopefully with this modicum of understanding you won’t follow them!

 

 

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