Sunday, August 28, 2011

Are you getting your Promotions right!!!!

Majority of Retail Promotions do not yield the expected returns. A recent discussion on my Linkedin group - Retail consulting guide posted by one of the members says - “60%(of retailers) had inconsistency across in-store and online promotions". Some of the reasons listed in this discussion why cross channel coordination is one critical piece of retail profits:

1. Enhances Brand Reliability
2. Makes Marketing Promos More Effective
3. Increases Reliability of Marketing Metrics & Decisionmaking
4. Reduces in-Store Customer Service
5. Creates Coordinated Marketing  
6. Enables Effective Localization
Key Parameters to measure Promotion Performance are Returns on Promotional Investment and the Lift that the promotion generates in terms of Sales, Margin and Transaction.

Check list to consider while designing a Retail Promotion which can ensure success may be
1. What is the overall strategy the promotion must support and what specific goals do we want to achieve?
2. What is the best platform for the promotion - which categories, brands and products?
3. What is the best offer (e.g., price discount, “two for one,” etc. for the promotion?
4. Where should we run the promotion – in all stores, in some stores, in some departments in some stores?
5. When, and how often, should we promote?
6. What is the best way to communicate the promotion? What is the right combination of media, shelf
location,external signage, in-store displays, etc.?
7. How can we ensure the promotion generates a return? Is the minimum expected lift in sales realistic? Do we need vendor support? Are there longer-term benefits that outweigh shorter-term metrics and if so, what are they?
8. How will we monitor performance so that we can refine and improve future promotions?


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