We know that shoppers seek out experiences that deliver the best value to meet their needs.
However, shoppers are not the same today as they were even a year ago – promotions need to evolve to catch up with them.
I recently joined a podcast session with two of my colleagues to discuss the issues that retailers have faced throughout 2020 and how to guard against future disruptions. We discussed several topics in the episode and one of those topics was the effectiveness of promotions on today’s shoppers.
Since that conversation, the eBook, Rise and Thrive: Retail imperatives for 2021 and beyond has been released and offers a deeper look into the same topics we explored on the podcast. In this post, I’ll review a few of the points made about promotions.
It’s not all about price. The key is to personalize promotions across all touchpoints to drive greater loyalty
Retailers spend an average of 2% of sales on promotions. Industry-wide, this equates to billions of dollars per year. Additionally, we’ve seen indications that up to 40% of revenue comes from promotions – yet 30-40% of those promotions are ineffective.
To maximize the value of the customer relationship, retailers must not only understand buying behavior and preferences, but be agile enough to use that understanding to design and execute the most relevant promotional offers that satisfy and capitalize on consumers’ needs.
A recent survey, conducted by RSR Research, also reveals that a large number of retailers, across all verticals, are focused on improving promotional capabilities.
We know that promotions are a loyalty driver and important to shoppers. We know that retailers need a better method for determining promotional spending. And we know that retailers have identified the need for better planning and execution enablement. So, the question then becomes, how do retailers solve for these goals and ensure that they are putting offers in front of consumers at just the right moment and in a way that maximizes the effectiveness of those offers?
Download a copy of the paper to learn why you can no longer rely on historical approaches and the key to developing more customer-centric promotion plans that will drive greater relevancy, loyalty, basket size, and share of wallet. You’ll also find insights and information about other topics such as:
- Why omnichannel optimization is no longer ‘nice to have’
- The importance of customer-centric assortments in-store and online
- How retailers can eliminate ‘blind spots’ in inventory visibility
- Creating a future-proof supply chain that is unified from end-to-end
Read part 1 of this series: What are the FMCG retail imperatives for success in 2021 and beyond?
Read part 2 of this series: Customer-centric assortments, connected to the supply chain, are vital for in-store and online success