RetailMeNot has launched its Promotions Index, which aggregates average promotions data from the top 500 U.S. retailers across 19 retail categories. The Index also will report on the level of consumer engagement with retail promotions.
There’s a strong need for such data, according to a survey of 110 retail marketers conducted by RetailMeNot and TechValidate. Key findings include:
• Only 16% of retailer marketers say their promotion plans are highly strategic;
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• 74% 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; and
• Nearly all, 98%, say having deeper insights and data would improve the effectiveness of their promotional strategies.
Using the Index, retailers can examine aggregated average promotions in their category over specified amounts of time, essentially helping them decide what’s competitive and how best to optimize their promotions. The Index also provides guidance as to whether it’s a buyer’s or seller’s market.
“Many retailers’ promotional plans are based on a variety of factors unrelated to market indicators or competitive data,” said Marissa Tarleton, CMO, North America for RetailMeNot in a statement. “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. When retailers achieve an optimal promotion strategy versus customer demand, they can more effectively balance margin and growth.”
