This article was first published in the Summer 2014 issue of Speak
JustEnough's Dan Pahomi explains four strategies for achieving holistic, omni-channel promotional success
In the ever-changing retail landscape, promotions have risen to the top of retailers’ strategic initiatives to drive market share and profits. And it’s no surprise that managing promotions has become increasingly complex due to new sales channels, more customer and promotional data, increased competition and a lack of true performance measures.
All too often, retailers don't have the ability to manage this complexity and struggle with planning and executing promotions that effectively drive in-store and online traffic, attract new customers, reduce excess inventory and keep shoppers coming back for more. Many retailers have taken an approach to promotions in which they increase advertising or price change activity, but fail to incorporate customer insights, demand forecasting and performance measurements. While some promotions may turn out to be successful, others miss the mark. This won’t cut it anymore. The ability to predict, as well as measure performance is key to ensuring that promotional goals are achieved.
Here are four strategies retailers can leverage to achieve improved promotional effectiveness, enhanced productivity, increased efficiency and overall decreased promotional costs.
1. Centralise – get back to basics
Centralising the process of promotion planning and execution is the first step to advanced promotions management. Today’s most successful retailers are replacing legacy systems and processes in order to integrate and automate the planning, execution and analysis of promotions. By linking all departments, activities and channels across the enterprise and replacing the silo, or ‘swim lane’ approach, retailers can increase productivity, make better decisions, improve collaboration and fully reach their objectives.
2. Analyse – find out what works or doesn’t
After getting back to the basics and integrating operations and channels, the next step is figuring out if your promotions made the impact intended. By having the data centralised and the necessary tools to accurately analyse the promotions implemented across different channels and campaigns, retailers can gain insight into their entire promotions process and outcomes, resulting in better promotional planning and results.
3. Act – eliminate the guessing game
By analysing promotional performance, retailers have the information necessary to both make better decisions about current promotions to maximise their impact and to plan better future promotions.
4. Adjust – shift gears to maximise performance
Effective end-to-end promotion planning and execution requires centralisation, analysis and the ability to make the right decisions for planning and forecasting campaigns, events and promotions. Additionally, the ability to adjust the plan based on ongoing analysis makes sure that the promotion tracks to plan.
JustEnough can help, as we are one of the first solution providers to offer a truly integrated, holistic solution for promotion management from campaign setup, to promotion planning and forecasting, to promotion execution, social and mobile publishing and promotion analysis.
Dan Pahomi is vice president of product strategy at JustEnough
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