ANALYTICALWAYS
Retail promotions are brutal sales strategies! They seek to encourage the purchase of products in a given period of time, which can be hours, days, or even weeks. This generates in customers a sense of opportunity and increases the value they perceive on those products.
To develop a successful promotional strategy, you must first stop for a while to think about your objectives and the means at your disposal:
Steps to designing a retail promotions strategy
Know your target or ideal buyer persona
It is essential to understand who you are targeting and what needs your customers have. Not all your promotions may interest all your customers, so you must segment your assortment for each audience. This will allow you to design promotions that are attractive and relevant to them.
Choose the right type of promotion
There are different types of promotions you can use (we’ll talk about them below), such as % off, price reduction, 2 for 1, quantity discounts, free shipping, among others. Choose the option that best suits your business needs.
Plan your promotions
It is important to have a detailed plan for your promotions, including dates, duration, communication channels and specific objectives.
Optimize your presence:
Both online and physical, make sure your website and social media profiles are up to date and attractive to your customers. Take care of the Visual Merchandising of your points of sale so that it stands out from the outside…
Personalize your promotions
Use the information you have about your customers to offer personalized and relevant promotions. This will increase the likelihood that customers will take advantage of your offers. For example, if you know your customers’ birthdays, you can offer them exclusive discounts on that special day.
Measure and analyze results
Use analytics tools (below we will explain how to optimize this phase with Artificial Intelligence) to measure the impact of your promotions on your sales and margins. This will allow you to identify which strategies work best and readjust your commercial strategy.
Types of retail promotions
Now that you know the steps to prepare your retail promotions strategy, here are the main types of promotions you can offer to your customers:
Mainly promotions will focus on two aspects:
Retail price promotions
Modify the price with a percentage discount or by including free units for taking X quantity of a given product. Promotions of this type are:
- Percentage discount
- Price reduction
- 2×1
- Quantity discounts
Retail promotions with added value
In this case, promotions do not in themselves offer a discount on the price of the product, but offer another type of consideration or advantage. Examples include:
- Free shipping
- Free gift
- Merchandising
- Exchange social media mentions for discounts.
- Sweepstakes
- “Bring a friend and win a discount.”
Depending on whether your strategy is based on product launch, market positioning, attracting new customers or loyalty, you should choose one or another type of promotion. There are many more types of promotions in addition to those mentioned above, so you should know your target audience better and offer them the one that best suits their needs.
How AI helps you to manage your retail promotions
Managing your promotions and discounts during peak sales can be a nightmare, so Analyticalways recommends planning well in advance, and what better way to anticipate future demand than with the power of Artificial Intelligence and its predictive algorithm.
To save you time and effort in analysis, ROIvolution’s AI allows you to identify the products with the highest margin of success in promotion, imputing the percentage of expected growth to ensure the correct supply of merchandise and taking into account this effect on future demand to avoid generating overstock.
You will avoid overloading your stores with stock that will not sell, offering only what is expected to sell. In addition, the algorithm takes into account the profit margins of each product, assortment or category, and offers recommendations for profitable discounts, always oriented to keep the maximum possible margin by increasing sales.
In addition, ROIvolution has a comparative history of other promotional campaigns, offering you instant performance analysis so that you can make the best decision and avoid past mistakes.
Another very interesting feature it offers for points of sale is the possibility of segmenting your stores by consumption patterns, so the AI will be able to offer you recommendations oriented to specific targets in specific stores.
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