Retail Promotion Strategy Consulting
Since the Recession of 2008/2009, numerous brick & mortar retailers have relied heavily on promotions to drive traffic to their stores and to entice customers into believing they are “getting a deal”.
Full-Price selling as a percent of retail sales is declining for numerous retailers and deeper discounting is eroding profitability. HRC’s Retail Promotions Strategy consultants believe strongly in the value of Price as a key lever to drive incremental traffic and sales. However, our experience is that a high percent of promotions do not deliver an acceptable ROI when they are planned, managed, executed and measured narrowly, tactically and reactively. This is typically due to the Retailers’ decisions being reactive– driven by an over reliance on historical performance and vendor funding—rather than being proactively planned based on clearly-defined goals tied to their overall strategy.
HRC’s Retail Promotions Effectiveness Assessment assesses each retail client’s promotions processes, policies, tools/analytics, quantitative goals and results within the context of their price and promotions strategy and customer price-positioning and recommends the key changes required to deliver an acceptable ROI.
HRC’s Retail Promotional Effectiveness Diagnostic Assessment evaluates:
–Strategic Goal Setting: How goals and objectives are set and how they are used to evaluate the promotional effectiveness
—Retail Benchmarking: We will benchmark each key step in the promotional process to evaluate each client’s practices versus retail best practice to achieve improved performance
–End-to-End Process: How decisions are made starting with planning/target setting all the way through to execution and post analysis that will drive improved promotional effectiveness
–Organization Structure/Roles & Accountabilities: How cross-functional decisions are made and necessary governance to create accountability for results
–Structure of In-house vs. Outsourced Functions: How to improve coordination, communication and clarity in decision- making while improving cost-effectiveness
–Data Analytics and Tools: How analytics can be used to drive retail promotions strategy and provide measurable support for strategic decision-making
The opportunities will help retailers make the right decisions to create more compelling and relevant promotions to engage customers and drive increased sales, margin and a better overall ROI.