This weekend I received some coupons from Home Depot in the mail. One coupon offered $10 off $100 of purchases this month. The other coupon offered $10 off $100 of purchases next month. Now this seemed like good timing since I needed a bunch of stuff from Home Depot. However money is tight. And my schedule is also pretty tight so I have been putting off the Home Depot trip for a couple weeks. The coupon was just the incentive I needed to get to the store.
I thought I would review the effectiveness of the coupon and the Home Depot experience here as a business case study. I ended up spending $336 on Home Depot goods this weekend. After applying my $10 discount, my total bill came to $326. But the funny thing is that I actually felt good after the Home Depot trip. I got the stuff I needed anyway. The $10 discount seemed good. It also helped me get out and finally take care of some business I needed to take care of anyway.
The other great tactic Home Depot used was that it gave me a coupon that is valid next month. Do you know what? I am going to return to Home Depot in a month. And I will probably spend a couple hundred more dollars on Home Depot goods then too. The trick here is not that Home Depot created a need with that $10 coupon. I already have the needs. And Home Depot already sells the solution to that need. However they got me past my worries about the economy and my habitual procrastination by adding a little more value with the discount.
The other real coup from Home Depot is that they just have to get me in the store. I thought initially that I could spend $100 to maximize the savings percentage. However once I was in the store, I realized that I might as well pick up all the things I needed from my list. The only challenge for them was to get me in the store. And I also felt happy when I left. I did not think I was part of some bait and switch and got robbed.
Due to the overall bad economy, as well as the morbid housing market, I believe Home Depot as a company has been hurting. If Home Depot could reach more people like it reached me this weekend, they might be able to turn the tables on the bad times. I want to learn from them. I wonder if their marketing department knew in advance how their coupon would spur me on to big spending. I will give them the benefit of the doubt and assume they did. I hope they are analyzing my coupon usage, spending habits, and return on investment. Even if they are not, I myself need to learn from them and apply this to my own software business. I have what I consider some good products. The trick is to get the customer to make that move and buy. The rest is taken care of.
Teamwork Challenges - One of the newer guys on the team asked our project manager for some info. He needed to figure out how to get his scripts logging in to run unattended. Th...