The Real Reason Why Toys “R” Us Went Bankrupt
When your customers stop caring whether your business stays or goes, you’re done for
I’m very excited about the fact that my book, Winning Digital Customers: The Antidote to Irrelevance, is coming out in a few months. And I thought it would be fun to share with you a little story that I have at the beginning of the book about the real reason that Toys “R” Us went out of business. Here’s how it goes:
My 7-year-old son Joseph likes to text our family group, chat with news stories that he thinks we need to know about, such as the recent sightings of giant squids off the coast of Japan. One evening last year, my phone dinged with a group text from Joseph, sharing the announcement that very soon every single Toys “R” Us in America would be closing. “FOREVER!” Joe added with emphasis in a follow up text (using one of those little emojis of a RIP tombstone).
I was well aware of the problems that the company faced. In fact, Toys “R” Us executives had recently been in my office to discuss bringing my firm in to help improve their customer experience. But time just ran out.
I was disappointed that I wasn’t going to be consulting on a Toys “R” Us turnaround. But Little Joe’s text prompted me to think about how truly devastated I would have been if Toys “R” Us had gone out of business when I was his age.
I figured I ought to check in. I headed downstairs and approached Joe, who is still sitting at the kitchen computer. I asked how he was feeling about the chain’s closure.
He thought for a second that answered with a cheerful shrug, “I don’t care!”
Seeing my surprised reaction, he gestured back at the screen and reassured me, “Dad, don’t worry. We can just order whatever we need from Amazon!”
Some say Toys “R” Us went under because they had too much leveraged debt, and it’s true, that was a real problem. Others say that downloadable video games reduced the demand for physical toys, and they have — a bit. But Toys “R” Us died from something more profound — a lack of love. They just no longer mattered as they once did. If 7-year-old boys don’t care if your toy store goes out of business, you’re done for.
At Joe’s age. I did love Toys “R” Us. I also loved my Kodak camera with its flash bulbs, Speed Racer, my Timex digital watch, my Atari and IHOP. A few decades later in life. I loved Borders Bookstores, Melrose Place and my BlackBerry.
Today, I love my Mac, Google Slides, Alexa, and Game of Thrones. And, I’m back to loving IHOP again. How about you? What do you love? Disney World? Chipotle? Fortnite? Lululemon? Snapchat?
More importantly, do your customers love your business?
This book is a blueprint for earning love from today’s customers, who I like to call “digital customers,” and it’s a treatise on the idea that obtaining customer love is the single most important factor in the success of your business.
So, that’s a little bit of the opening chapter to my book. If you’d like to read the whole first chapter, it’s actually available for FREE. You can download it at https://WDC.HT/Chapter
#consumerbehavior #userexperience #customerjourney
