Covid-19 has crystallized consumer preferences when it comes to promotions with shoppers citing value as the primary driver for uptake, with an overwhelming majority (78%) saying money off a product would make them more likely to purchase.
Original research of 2,000 UK consumers in the Promotions at the Speed of Demand report from the leading omni-channel promotion solutions provider, XCCommerce, reveals more than half of shoppers (55%) say added value in the form of access to free shipping would encourage them to purchase, reflecting the accelerated uptake of online purchasing during the pandemic.
Access to a cheaper unit price when purchasing multiple items was cited as the third most popular type of offer, with 46% indicating this would motivate them to buy.
With retail sales falling by 1.9% in 20201 consumers are prioritising immediate value, driven by ongoing financial uncertainty, with the promise of future discounts or exclusive content less of a purchasing motivation. Only one fifth (20%) of respondents say promotions offering access to free services would encourage them to purchase. Just 9% of respondents indicated exclusive content would provide enough of a pull to purchase with a similar number (10%) of shoppers saying they wanted access to subscription where they could get money off future purchases.
46% of respondents said they felt grocery supermarkets offered the best promotions, perhaps unsurprisingly given they have been one of a small number of retail outlets to remain consistently open during the past year. In second place, 24% of respondents felt the grocery discounters offered the best promotions, followed by fashion retailers at just 8%.
Consumer anxiety around the long-term implications of the pandemic has made consumers increasingly sensitive to pricing and promotions, meaning retailers and brands must have the ability to swiftly adapt their promotions to satisfy fluctuating consumer preferences, explains Robin Coles, EMEA MD of XCCommerce:
“Promotions are typically planned around stock levels and sell through rates rather than customer insight and then executed channel by channel, which results in inconsistency, lost revenue and unnecessary cost. Moreover, retailers are unable to respond quickly enough to emerging customer and competitive demands for promotions, loyalty rewards and e-offers.”
“Retailers need to build promotions around the needs of the customer and react quickly based on customer insights and preferences, to increase retention and loyalty. However, while the insight may be available most often retailers lack the tools to manage these promotions consistently cross-channel. The solution is to automate these processes so that marketing and trading teams can implement promotions that drive customer loyalty and margin without the need for complex, lengthy and costly changes to their legacy systems.”
Download the Promotions at the Speed of Demand report to learn more about how technology can enable retailers to deliver consistent, timely and targeted omni-channel promotions, that promote customer loyalty whilst protecting margins.