Posts Tagged ‘Radio Shack’

DIY Shoppers…..RadioShack is Sorry!

November 23, 2011

TakeAway: RadioShack’s emphasis on  mobility products (aka. cell phones) turned away their core customers – parts & gadget buyers. Now, RadioShack is trying to get these customers back.

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Excerpt from AdAge: “RadioShack’s Journey to Bring Back a Forgotten Customer”

In a candid presentation, RadioShack’s CMO Lee Applbaum described how the marketer abandoned its core do-it-yourself customer, in a bid to embrace mobility.

As the mobility business grew, the “signature” business, which includes things like accessories and power products suffered, falling from 38% of the business in 2009 to 32% in 2010.

Shareholders and analysts took note of decline, considering the category has very high margins, drives frequency and encourages loyalty.

Initially, RadioShack told itself that people just weren’t buying those products anymore.

But, as evidenced by the Wired article and a slew of blog posts, it quickly became clear that wasn’t the case. 

“For all the work around the rebranding, we didn’t spend ample time understanding our customers.”

Once RadioShack acknowledged the problem, it moved quickly to re-establish connections with the DIY shopper.

RadioShack began asking those consumers what they wanted, reaching out via its blog and social media. The response was swift.

A program called “The Great Create” leveraged RadioShack’s roots and attracted 110 million impressions in the first 30 to 45 days.

Edit by ARK

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