Indiscriminate offers ‘damaging retailers’
Written by Chris Lemmon
Retailers who neglect effective analysis of their promotional campaigns risk losing their customers, according to new research.
The survey by Revionics, which quizzed shoppers in the US, UK, France, Germany and Brazil, found that 37 per cent of respondents who received offers on items they would have paid full price for said the offer had neutral or negative impact. More than half of those consumers said they would be less likely to shop that store or brand in the future or that they reacted with annoyance.
Furthermore, respondents said they prefer promotional offers synchronised with the frequency of their purchasing. Two thirds of shoppers appreciate personalised prices; however 47 per cent stated that they would be angry if someone else received a better price.
Six in 10 respondents also reported that they would refuse to purchase an item if they perceived the price as arbitrary. According to the study, tech-savvy shoppers now believe that retailers should be utilising technology and data analytics to provide targeted, relevant pricing and offers.
“Retailers who leverage machine-learning based price and promotion capabilities have a clear advantage in delighting their customers with meaningful, carefully crafted prices and promotions,” said Cheryl Sullivan, chief marketing and strategy officer of Revionics.
“Conversely, retailers who fail to utilise these capabilities risk alienating shoppers, squandering scarce resources and undermining their brand – costly mis-steps that can prove fatal in an increasingly unforgiving retail landscape.”