Forget running promotions that focus on heavy discounting. There are better ways, according to a white paper published by demandware, a company specializing in e-commerce.
Using tools and technology available today, demandware contends, “multi-channel retailers can create customized promotion plans that deliver offers to consumers based on the segmentation of their preferences and shopping behaviors.”
The experts at demandware suggest following several steps. First, they say, segment your customers into groups. “By collecting customer data, merchandisers can better understand the triggers that make a consumer react to a specific type of promotion.” By doing this, the experts say, a retailer can make offers that are relevant to particular consumers.
The next suggestion from demandware is to “get creative.” After all, the experts say, “The goal of promotions is to cut through the noise created by the market, and ultimately get a consumer to make a purchase.”
Think beyond discounts, they say. Some ideas: first customer, every nth customer, every x order, payment method and rebates, to name a few.
And a word to wise retailers: “Be sure to have rules in place for managing promotions to avoid pitfalls such as giving away double offers or unintentionally not providing a consumer with the best available promotion.”
These seem like fine ideas. We’ll look at a few more tomorrow.