In the world of pricing and promotions, the five most dreaded words are “a race to the bottom.” That’s a contest where the only thing worse than winning is coming in second.
It’s true that price wars and overly generous promotions can eat into retailers’ profit margins: 52% of consumers receive weekly or monthly promotions for items they would have happily paid full price for, according to Forrester Research.
The good news is that most retailers already have access to both the data and the tools to make smart pricing and promotion decisions. What they too often lack are the actions required to use them effectively. They need to:
- Sharpen demand forecasts;
- Leverage dynamic pricing and AI to speed up decision-making;
- Use machine learning and behavioral analysis to improve promotions’ structure and timing; and
- Combine product recommendations and promotions to build basket sizes and enhance customer loyalty.
This Special Report includes expert advice on optimizing price and promotion decisions in order to avoid a “race to the bottom,” from consultants at A.T. Kearney, Coresight Research, AArete and BRP Consulting.
Download the report now!