However, in today’s omni-channel environment, unpredictable consumers and multiple promotional vehicles have led to much change and disruption in the way retailers must adapt their promotion management process in order to achieve promotional effectiveness. Incorporating key customer insights into the process can provide retailers with a way in which they can analyze promotions before and after they are executed, but many have been unable to adequately analyze customer data due to outdated processes and systems.
Using Customer Insights for Promotion Effectiveness
Gaining more insight into customer shopping and buying behavior is great, but taking action on those insights can truly improve promotional effectiveness. Building this insight enables retailers to gain an understanding about their customers and help them answer key questions including:
- Which customers are reacting to specific promotions?
- Which promotions lead to cherry-pickers and which ones lead to more loyal customers?
- What promotions do your best customers react to?
- Which promotions increase market basket size?
- How are in-store promotions performing vs. online coupons?
With this deep level of customer insights, retailers can better plan their promotional activities to avoid overstocks, understocks and excessive markdowns, all of which will help improve the bottom line. They can also use this information to target customers with marketing campaigns that are more personal and relevant.
By conducting impact assessments businesses can gain insight into how its promotional activities affect its customers´ behavior allowing them to simplify decision making about future actions. It can also identify opportunities to cross-sell and up-sell that may not have been previously considered.
JustEnough for Promotion Effectiveness
By integrating JustEnough Promotion Management with our Customer Insights module you can gain actionable insights to easily and quickly improve the effectiveness of your promotional activities.
JustEnough Promotion Management
JustEnough Management is a robust end-to-end promotion management suite including features which create new promotion forecasts based on past performance, develop “what if” scenarios to support innovation and creativity in future campaigns and facilitate the analysis of category impact.
The primary post-event features of JustEnough’s Promotion Management include:
- Category Impact of Promotions - Enables departments to identify any cannibalization of the overall category that may have occurred due to each promotional offer.
- Media Mix Analysis - Analyses results from individual advertising and marketing pursuits across print, online and social media channels.
- Event Page Analysis - Calculates the return on investment of each page in order to better allocate space in the future.
- Promotion Effectiveness - Calculates the true margin of promotional goods and services once advertising and marketing spend has been taken into account.
The use of JustEnough’s Promotion Management can lead to increased revenues, lower costs and enhanced margins, as departments work together to maximize the return from vendor marketing budgets, improve promotional item selection and reduce advertising costs.