How Disjointed Promotions Affect Shoppers
In the past 10 years of honing our pricing & promotions software, consulting, and more – Revionics has been delving deep into the emotional psyche of shoppers to learn what type of promotions are most impactful. Our research has found that over half of retail promotions go to customers who would happily have paid full price. On top of uncovering this – Revionics’ has also uncovered what promotions and price points leave shoppers annoyed and/or less likely to shop at all.
One of the biggest findings in reports commissioned by Revionics is that indiscriminate promotions cost retailers. Shoppers globally prefer promotions that are personalized, thought out, and productive. In fact, retailers prefer no promotion to poorly thought out promotions.
There are some interesting statistics surrounding retailer promotions and on which sources shoppers would pay full price versus which mediums they prefer to wait for promotions.\
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,
In addition to promotions from specific channels – 47% of shoppers said they would be aggravated to know that another shopper had received a better price point than them. Shoppers in 2020 are being careful and want to know that product price points are not arbitrary—59% say they would refuse to purchase an item if they perceived it as such and consistent with findings from earlier studies, they accept price increases or decreases that remain within the “fair” range if they are based on data science – that is, driven logically and not arbitrarily. One of the main ways that merchandising, and pricing teams can accomplish this is by utilizing artificial intelligence and machine learning pricing software.
With these tools, Merchandisers can increase performance and better serve shoppers with carefully crafted pricing and promotions.