- The main message around discounting from retailers was a warning to abandon cynical discounting. The success of luxury brands versus negative sentiment around additional discount events, such as Black Friday or Amazon Prime Day, for example, calls for retailers to develop more sophisticated pricing and promotional strategies that can capitalise on customer and Big Data analysis.
- Increased focus on making the most of customer data should be directed towards employing discounting in a more personalised way. The Waitrose top ten discounts of choice is a recent interesting example of this approach. On a practical level, real-time intelligence on customers, sales and inventory can promote more intelligent buying to maximise margins and minimise markdowns.
- Apply customer data analysis alongside pricing optimisation tools to improve the markdown process itself and reduce margin erosion. Aligning category and range reviews with KVI analysis can speed up and support more effective merchandising and marketing processes, for better execution on optimal pricing and discounting strategies for both the business and brand.
Practical Strategies for Escaping the Promotions Death Spiral: World Retail Congress Panelists Share Insights Driving SuccessWednesday, 21 October 2015 00:00
By: Karen Dutch, Senior Vice President, Marketing
World Retail Congress is always a high-energy event and this year’s conference in Rome was no exception. With a variety of insightful break-out sessions to choose from, the panel titled “Kicking the Discounting Habit” stood out as one of the most well-attended and engaging sessions of the conference. And it’s no surprise – everyone knows this is a hot topic for retailers and shoppers alike. Price is top of mind for shoppers today and a retailer’s biggest margin lever. It’s incredibly critical to get every shopper the right offer, at the right time, via the right channel. WRC retailers were hungry to hear from their peers on pricing and promotion strategies and tactics that build shopper loyalty, enable them to compete more profitably and support their brand image while escaping the ‘race to the bottom’ death spiral.
Two of Revionics’ European customers, Argos and METRO Cash & Carry, participated on the panel, as did our Chief Science Officer Jeff Moore. Forrester Research VP and Principal Analyst George Lawrie moderated the panel asking incisive questions and keeping the conversation relevant and engaging.