Promotion Effectiveness

The Path Towards Promotion Effectiveness

Incorporating analytics into the promotion management process is now a key priority for most retailers seeking to gain true promotional effectiveness. Promotion management is nothing new as most retailers incorporate promotions into their merchandising strategy to some degree. But better understanding how these promotions work or don’t work and why is increasingly important.

Before eCommerce and mobile shopping were the norm, promotion management was much simpler. Planning and executing a promotion was a straightforward process that involved deciding what goods or services were to be promoted, making sure that the resources were in place to launch the promotion and buying advertising space in relevant media.

Promotion Effectiveness

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promotions before and after they are executed, but many have been unable to adequately analyze customer data due to outdated processes and systems.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.

Benefits of JustEnough’s Promotion Management

  • Strengthen existing brand loyalty and attract new customers
  • Create buying personas based on customers’ location, demographics and interests
  • Take advantage of these personas to get appropriate promotions in front of the right customers
  • Interact with customers using the communication channels they prefer
  • Maximize returns from your promotional spend
  • Streamline the analysis of promotions between departments to increase operational efficiency and reduce costs

JustEnough Customer Insights

JustEnough Customer Insights helps retailers to quickly identify trends, causal relationships and opportunities inside large volumes of customer data and then quickly action those insights to improve planning and localize and personalize offers. This transformation from traditional product-centric planning to truly customer-centric planning is critical for retailers hoping to compete for today’s demanding consumers.

With intuitive, rich data visualization, you’ll have the right level of information needed to make decisions fast – all without having to hire your own data scientists. The simplicity and power of JustEnough’s Customer Insights does all the math so you can focus on your business. Developed by industry experts, our analytics software allows retailers to optimize their planning today to get an edge in tomorrow´s marketplace.

To find out more about how to harness your customer data and gain actionable insights, please contact us to speak with our team. We’re happy to answer any questions you may have about how Customer Insights enables the integration of customer insights into merchandise, assortment, price and promotion planning and how it can benefit your business.

Benefits of JustEnough Customer Insights

  • Analyze customer behavior to understand which customers are most important to your business
  • Segment and cluster customers to localize and personalize assortments
  • Identify which promotions mobilize your best customers and which are cherry-picked
  • Manage different segmentations for each area of the business
  • Use customer insights to drive improved assortment, space, promotion and pricing decisions

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