Discounts and promotions have multiple objectives, all of which serve to increase revenue – do you want to attract new customers? Maintain existing customers but encourage them to spend more in store? Both, hopefully.
At Datamine, we offer our clients a solution known as Revenue Management – as the title suggests, the ultimate goals is to help retail and FMCG businesses maximise their profit, particularly with regards to pricing and discounts.
Product prices are typically decided by procurement, but marketing and category management often step in when discounts and promotions are involved, causing a lot of confusion. We find that there tend to be two primary components to achieving better revenue management:
- A closer relationship between procurement and marketing/category management
- A thorough knowledge of sales data and product price elasticity
Once you understand the dynamic between product prices and discounts, it’s much easier to tailor future promotions to these specifications in order to get the most out of them.
Our team is well-equipped to help organisations dive into their data to analyse customer spending behaviour in relation to product pricing. Fill out the form below to get in touch with one of our team members, or check out some of the additional information we have on this solution.