Promotion Strategy

Hi to all,

How should promotions be used to boost your sales? How can you measure their efficiency to keep on optimizing the promotions strategy?

Depending on the level of discount and the category/product of a single promotion (yes, categories have different roles in your assortment), there can be different aims :

– Drive traffic to website: requires marketing, price communication and strong visibility (appear on welcome page for example)

-Convert customers: needs visibility but can be displayed to customers at any stage, price aggressiveness can be the key

-Push for cross-sell to recover margins: once your customers are satisfied after benefiting from an interesting promotion, they may be more keen on looking at the rest of your catalogue

-Drive Customer loyalty: offering regular promotions, that answer to your customers needs, will make them shortlist your platform and reduce competition automatically

-Clearance sales : time to make more space in your backroom! Older products can be quite expensive to keep

If you regularly resort to promotions, efficiency follow-up is a must. You need to make sure that your promotions really show the effect you were seeking for. If not, you’re just losing margins without boosting your business!

Therefore, there are several ways to assess the efficiency of a promotion, depending on its aim of course. Here are some options you have:

-Conversion rate of the product being promoted (number of purchases divided by number of views for instance)

-Volume uplift: sales volume increase of the product thanks to the promotions

-Influence on cross-sell: promotions effect on cross-sell

-Traffic increase: ability of a promotion to make visitors come back and check the product again

-Customer loyalty: follow customers purchases after benefiting of a promotion