STUDY: ONLY 16% OF RETAILERS SAY THEIR PROMOTIONAL PLANS ARE HIGHLY STRATEGIC

In What's New, Industry News by Accessories Staff

If you’re a retailer, how does your promotions strategy stack up to the rest of the industry?
RetailMeNot, Inc., a digital savings destination connecting consumers with retailers, restaurants and brands both online and in-store, has launched the retail industry’s first-ever Promotions Index to help you find out. The RetailMeNot Promotions Index leverages the largest promotions database and measures two key areas:
  • The average retail promotions from the top 500 U.S. retailers across 19 retail categories
  • The level at which consumers are engaging with retail promotions

Two key findings:

  • 98% of retailers say having deeper insights and data would improve the effectiveness of their promotional strategy
  • Only 16% of retail marketers say their promotional plans are highly strategic

Access the RetailMeNot Promotions Index at https://www.retailmenot.com/corp/index/.

“Many retailers’ promotional plans are based on a variety of factors unrelated to market indicators or competitive data,” said Marissa Tarleton, CMO, North America, RetailMeNot, Inc.  “As a strategic partner to retailers, RetailMeNot created the index to provide insights into the promotions landscape that will help retailers become more successful with their investments.”

To understand the promotional strategies of large national retailers, RetailMeNot and TechValidate surveyed 110 retail marketing decision makers among the top 750 retailers in the U.S.:

  • Only 16% of retail marketers say their promotional plans are highly strategic
  • 74% of retail marketers admit to either repeating the same promotions each year with minor adjustments or devising new plans using old performance data
  • 75% say it is just as important to be strategic with promotions as other aspects of their marketing
  • 98% say having deeper insights and data would improve the effectiveness of their promotional strategy
  • Competitive insights and category performance data rank among the top insights needed to develop promotional strategies

“The RetailMeNot Promotions Index is a starting point for retailers to become more strategic in what is now a large, sub-optimized part of their business,” said Tarleton. “We continue the conversation on a one-to-one basis between our internal retail experts and our retail partners for a deeper dive into competitive insights and category performance data. When retailers achieve an optimal promotional strategy versus customer demand, they can more effectively balance margin and growth.”

According to Sucharita Mulpuru, vice president and principal analyst at Forrester Research, “In a market where the overall size of the retail pie is stable and retailers are competing for wallet share, it is critical to know how your organization stacks up against other firms.”1

Retailers now have the ability to examine aggregated average promotions in their category over a specified amount of time, essentially helping them decide what’s competitive and how to optimize their promotions. In addition, the index provides insights into consumer engagement and whether it’s a buyer’s or seller’s market. For a deeper dive of market data and insights, retailers can have direct conversations with RetailMeNot experts to help build strategies and best-in-class practices unique to their core business goals.

Survey Methodology
TechValidate, an independent research company, conducted an online survey on behalf of RetailMeNot, Inc. from March 21 through April 15, 2016. The survey polled 110 marketing decision makers from the top 750 retailers in the U.S., including a mix of physical stores and e-commerce and e-commerce only retailers, across all retail industries except grocery and travel.

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