At NRF this year, Cheryl Sullivan, Senior Vice President of Product Strategy for Revionics, spoke with Retail TouchPoints’ Alicia Fiorletta about how retailers can avoid margin erosion by taking a more data-driven approach to pricing and promotions. She stated that it’s critical for retailers to take advantage of the latest responsive merchandising science and technology innovations available in the market and to:
- Align their pricing policies against a strategic objective
- Understand which products they should be giving promotional offers and deals to
- Maximize the funds retailers obtain from their suppliers to help offset some of these promotions, so they aren’t doing these at the expense of their margins
Cheryl goes on to explain that it’s important to leverage the right promotional vehicles and how retailers can optimize the use of these different vehicles by using data and analytics to understand which products to promote, at what price, and in what vehicle, to generate strong demand, improve margins and strengthen customer loyalty. In short, bring your pricing and promotion strategies to life with an informed data-driven implementation approach.