Tuesday, March 24, 2009

Will Home Depot's new slogan work or backfire?

I was reading an article about Home Depot’s latest advertising slogan. Here it is – “More savings. More doing.” According to their spokesperson, the philosophy behind it is, “barebones, do it yourself and bargain prices.” They are shouting from the rooftops that price is king. Their current view is customers want value only.

If your definition of value is price-based only then your long term future may not be too bright. That definition assumes there is no value in customer service. We all know the old adage of how price will get a customer however it will not keep the customer.

I have always been a fan of Home Depot. I live in Atlanta and Home Depot is a very generous corporate citizen. I want to remain one of their customers. However if “more savings, more doing” translates to fewer employees with fewer answers then my business is at risk. My guess is this will be the case.

In this economy, value may have a limited definition. Your business will be caught short if you don’t think long term. Value means a competitive price AND value means customer service, developing relationships, creating difference and a memorable experience that will keep customers loyal.

Make something good happen today.