Blockbuster is a Big Dumb Company.
It's been a year since I rented a movie from a Blockbuster store. I used to rent a couple of movies every weekend. What changed? I became less interested in movies and more interested in the internet…especially blogging and fotography…
If Blockbuster were a Big Smart Company they would have been sending me coupons or other enticements during this past year. They would have been trying to retain me as a customer. They would have been smart. And, I would have been VERY tempted to take them up on those offers.
They have my address on file. They know the types of movies I used to rent. They know how often I used to rent. They SHOULD know that I have NOT been renting lately. If they were SMART, they would notice my rental activity has changed.
I doubt I'm alone in this. Between the increased time spent on the Internet and the ease/convenience of NetFlix (which I hear is great), I have a feeling a lot of people have walked away from Blockbuster.
But, here's the sad part…it is ALWAYS easier and less expensive to RETAIN customers than to gain/procure/conquest/add new customers. Those million dollar commercials on network TV are ALWAYS going to be more expensive than a piece of mail with a coupon.
Companies that fail to retain their existing customers are just DUMB.