how to make discounting work!

OMNI-CHANNEL RETAIL SOLUTIONS

How to make discounting work!


Challenges in executing discounting in retail

Discount based promotions are a popular crowd puller but in the modern day retail,planning and executing discounts the right way can be a huge challenge.

Retailers need to make sure that customersare finding their offers better than the others.

Retailers also need to ensure that they are notincurring a loss while offering markdowns or freeof charge products.


Simple tips that retail businesses can use to make discounting work

Defining objectives: Retail owners need to clearly define the purpose of running a sale or apromotion, ensuring that it is aligned with the overall business objective, such as, lookingfor new customers, encouraging repeat purchases, selling off old stock.

Based on the purpose, retailers can decide what kind of offers theyneed to plan and execute, when to run the promotion campaignsoffering the discounts and which products should they be offeringdiscounts on. Further, the performance of the promotion can betracked and measured effectively when the purpose is clear.



Segment right: Once the purpose is defined, next is to identify the target audience to whomthe discounts would be offered. This includes segmenting shoppers in to different bucketsso that more relevant and attractive discounts can be offered to each.

Shoppers can be segmented based on their purchase history, theirbuying preferences, their budgets, demographics and more. Shopperswould be more eager to receive offers that are most appealing tothem.



Mindful of margins: Retail business owners need to be mindful of their margins whilerunning offers and discounts.

Based on the objectives and customer segments, they need to set anacceptable margin so that they don’t end up giving away too muchand running into losses.



Creatively strategize: Once retailers define their objectives, customer segments andacceptable range of margins they should then draw up strategies and define the businessrules for running the promotions.

Retail owners should get creative through techniques such as cleverpricing, highlighting new products, offering different discounts forvaried set of customers.



Execute and monitor: Next, it is time to get your promotions engine running and track itsperformance against set KPIs that have been predefined keeping in mind the objectives,margin, customer segments and plans.

Retail owners should get creative through techniques such as cleverpricing, highlighting new products, offering different discounts forvaried set of customers.


Every year, 50,000 retail associates use ETP to serve 150,000,000 consumers, selling USD

5,000,000,000 of merchandise. More than 300 brands in over 20 countries, across 10 time-

zones, in 200 cities, at 25,000+ stores, in 5 languages run on ETP.

Australia, Bahrain, China, Egypt, Hong Kong & Macau, India, Indonesia, Iraq, Jordan, Kingdom of Saudi Arabia, Kuwait, Malaysia, Oman, Qatar, Singapore, Thailand, The Philippines, Tunisia, U.A.E., Uzbekistan, Vietnam and Yemen

www.etpgroup.com

http://www.etpgroup.com/