Augustin could have approached his strategy shift in the pricing model much differently. For one, he did nothing to build empathy with his customers. He did not understand who his customers were, why they shopped at Emilia, and what they valued. If Augustin took more time to understand his customer base deeply, he could have foreseen that getting rid of discounts would hurt his business.
If I were consulted to advise Augustin, I would lead an intensive need-finding study. This would involve many hours of observation (i.e., watching customers go to Emilia, watching what they buy, how long they spend there, how much they typically spend, etc.) Then, I would conduct many interviews with customers. I’d ask them about their background, how they heard about Emilia, why do they shop there, how often they come, and more. This will give me a better understanding of who the customers are and what they value from Emilia. Then, I would create user journey maps to build a strong user persona of a typical customer to present to Augustin. I would illustrate why this customer cares about certain values and emphasize how changing his pricing model could hurt his business. Instead, I would find different opportunities to shift the pricing model that still aligns with what the customers care about.
