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In days gone by, getting customers into stores revolved around blunderbuss techniques like loss leaders or cut-price essentials. While they drive the top line, promotion strategies need to be more sustainable from a profitability point of view. In the digital age, personalisation adds a new dimension to pricing and promotions. A typical blanket offer affects customers in three different ways. An offer of £5 off a £50 basket will be wasted on a customer who normally spends £25. If they usually spend £50 this offer simply rewards them for their normal behaviour, but to a customer who usually spends £40 it’s likely to drive £10 of extra sales. Continue reading Tim Mason’s article in The Grocer, in which he advises on the opportunities for data insight and how this can lead to hyper-personalised promotions, rather than irrelevant blanket offers. Tim also talks about changing consumer behaviour to your advantage, and touches on the bursting potential for hyper-personalised pricing to give brands and retailers a competitive advantage.
As continued pressure to keep pace with tech-enabled consumers builds, one of the key attributes of future winners will be those who successfully integrate digital into their businesses. The importance of shifting to digital to satisfy consumer expectations and win in the digital age has never been clearer.
It is essential to digitally transform a retail business and deliver a consistent customer experience instore and online. But what are the most fundamental strategic steps you should take?
Among the recent news about leading UK retailer John Lewis, you couldn’t miss the Partnership rebrand and bringing together of its ‘My John Lewis’ and ‘myWaitrose’ loyalty schemes. John Lewis chairman Sir Charlie Mayfield confirmed plans to trial a combined loyalty scheme across its two retail banners as part of its move towards an integrated corporate brand identity.