Follow up webinar questions: Promotions & Personalisation

Follow up webinar questions: Promotions & Personalisation

21 July 2017

Our recently hosted Promotions & Personalisation webinar generated a lot of interest from attendees who were eager to learn more about how to optimise their promotional strategies to drive growth and improve results. It was a pleasure to have such an engaged audience.  We didn't have time to cover all the questions submitted during the session, so here are some of the top issues which were raised by retailers and manufacturers who attended:

How do I personalise promotions for cash customers when the business is e-commerce structured?

The way in which you personalise does not really change, using data and science is still key. As a pure-play business you will have data through the account process to help you identify purchase behaviour of customer segments and individual customers. The principle is still the same in matching individual customers to offers. If you have a bank of offers you will need to match them to the individual customers whose behaviour you want to influence. The execution will of course change, you can serve them up directly into your e-commerce channels as well as through direct communication.


How much is too much when it comes to promoting any given SKU? Weeks on deal, volume on deal, etc. Is there a magic number in your experience?

Unfortunately there isn’t a magic number. There are a few reasons for this:

  • How the line is presented in store makes a difference, for example promoting from shelf versus ends
  • The type of customers that buy that particular line may be highly price sensitive or not price sensitive – so small price reductions could have very different effects
  • Time of week/month/year affect sales uplifts – for example it's easier to get a big uplift in the week that people get paid
  • Product maturity – bigger discounts are needed to elicit decent volume if the product is mature
  • Product quality – Apple don’t promote their products because they don’t need to

In addition to this, customer habits change across the year and trends change. Products also move in and out of ranges. These influence the choices available to consumers and the relative attractiveness of any one line or promotion. It goes back to the need to evaluate each promotion on its own merit. Understanding how much incremental volume was associated with the price reduction, the mechanic used, the fixture space and the advertising the promotion received.


How do we implement personalisation at main fixture? What would be the lowest level of investment needed to execute personalised promotions?

Investment in personalisation can actually be pretty minimal. If you have the ability to leverage retailers' investment and their ability to execute, you can trial it pretty quickly and test and learn for less than £20k. If you are building your own capability, then of course the investment is slightly different. Getting your data connected, building the right science and technology could be a much higher number, but this is all dependent on what you have already and what route you want to take.


Major retailers generally don't like only promoting certain lines, they’d rather promote the whole range. How can manufacturers get around this?

The easiest way is to provide the retailer with data. If they promote all lines in the range there will be some lines that perform well and some that don’t. It goes back to the need to evaluate each promotion on its own merit. Understanding how much incremental volume was associated with the price reduction, the mechanic used, the fixture space and advertising the promotion received. If you can clearly demonstrate that some lines don’t work, the decision becomes a lot easier for the merchant. This should lead to a more collaborative approach with the data and insight acting as the ‘middle man’.


If you couldn't make our webinar and are interested in learning more about how promotions & personalisation can drive sales sustainable sales growth for your brand, here are some useful resources:

Click here to listen to the Promotions & Personalisation webinar recording and view the presentation.

Click here to download our latest promotions report "Getting your Promotions Right".

Click here if you want to learn more about Pricing & Promotions solutions to help your business.

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Managing Director at dunnhumby Price and Promotion

Global Capability Director for Customer Engagement

North America Capability Director for Price & Promotions