After analyzing the impact of losing my employee discount, I now offer Target Corporation and all other companies with executive lay offs a multi-million dollar sales and profit opportunity.
An employee discount has many benefits for both the employer and employee. For example, the employer
creates brand advocates for its merchandise, is privy to candid and fast feedback loop on products, drives sales, spurs brand loyalty, and more. In return, the employee
gets a “deal” on their purchases to the tune of a percentage off that ranges by company policy; for example, it’s common knowledge that employees of Target Corporation got 10% off their consumption.
Having been laid off a year ago, any sort of job perk that I used to receive is long gone… I now pay 100% of my bill, not 90% (due to the 10% discount). For the record, I did ask for continued usage of my discount upon exit, but was denied; well, they can’t blame me for asking! Now that time has passed, I caught myself wondering … How have my shopping patterns changed due to the loss of an employee discount?
To learn, I dove into a flurry of research to defend my hypothesis that my dollars shifted elsewhere.
Merch math proves I was onto something. Over the past 2mo, my REDcard statement and cash outlay lowered by $1,351, which if extrapolated totals an annual $14,226 gone or -64%.
Where did it go, you ask? In short - Amazon (for Household), Trader Joe’s / Lunds (for Groceries), Creative Kid Stuff (for Toys), and the Southdale Mall (for Clothes). And, this wasn’t even a conscious thought on my part; I just didn’t feel obliged to support or incentivized to use “Targhee”. I caveat with the fact that many of my friends/family do have some ill-will on my behalf and “buycott” Target; that’s nice, but not necessary as I’m still routing for my local economy and past colleagues to succeed.
So, why bother with all this analysis? I noticed that Target’s annual earnings last year dropped from $74 to $69 billion, and I wanted to help. If all ~3,000 individuals from recent years' job cutting efforts at Target had similar post-layoff shopping habits to mine that makes an annual $42.7 million sales gap along with profit loss for Target (according to my simplified P&L tables). So, my charge is the following strategy: If you want our money, then please hook us past-Targeteers back up with a discount card.
[And, I suppose a bonus paid out to lil'ole me for offering up this winning idea would also be appreciated.] To include not only current team members but also past ones in this appreciation tool would be good for business and the ultimate fringe benefit!