Are your customers engaged in your retail promotions or are they losing interest?
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Are your customers engaged in your retail promotions or are they losing interest?
New global study investigates what types of retail promotions deliver results – and which are leaving shoppers annoyed and likely to shop elsewhere.
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Photo by stevepb
A recent global study has uncovered some surprising disconnects in retail promotions, including the fact that 52 per cent of weekly or monthly retail promotions go to customers who would happily have paid full price.
Revionics, a cloud-based software provider for global retailers, decided to find out what types of retail promotions are meaningful and impactful – and which are leaving shoppers annoyed and less likely to shop at a retailer.
The survey collated data from shoppers in the US, UK, France, Germany and Brazil and found that retailers who do not effectively analyse their promotion performance tend to use easy but unproductive offers that may have unintended negative effects.
For example, 37 per cent of respondents who received offers on items they would have paid full price for said the offer had neutral or negative impact. More than half of those said they were annoyed or less likely to shop that store or brand in the future.
Revionics’ chief marketing and strategy officer, Cheryl Sullivan, emphasised the importance of the channel used to make an offer. “It is interesting that many of these unproductive offers come via email, a medium which retailers may find easy or inexpensive to use especially when delivering personalized offers, but which still carries risk if used indiscriminately,” she said. “We clearly see in the study results that unfocused offers fail to elevate a brand, and can even be damaging.”
The research revealed that an item’s category is also an important consideration, finding that promotional offers were better received if they were in line with how often a purchase was made. In other words, more frequently purchased items – such as groceries, household essentials, personal care products, and convenience products – are the most likely to benefit from daily or weekly offers.
The research, “Indiscriminate promotions cost retailers”, was conducted by Forrester Consulting on behalf of Revionics.
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