- A new study by Precima revealed 73% of consumers rely on promotions more than they did three years ago.
- In a survey of 3,000 U.S. grocery shoppers, the study showed 83% of shoppers prefer in-store promotions and 81% like steep discounts.
- The study also showed that 55% of shoppers enjoy personalized offers, with 70% of millennial shoppers saying they are of chief importance.
Promotions have long been a proven way to increase top-line sales, but not all retailers are getting the bang for the buck they had hoped to receive.
A three-year Nielsen study completed in 2015 revealed that $500 billion is spent annually on CPG trade promotions, with 59% of this spending yielding zero results. Additionally, a Boston Consulting Group survey said 20% to 50% of traditional promotions yielded no noticeable growth in sales.
According to the Precima report, personalized promotions are one of the biggest ways to improve sales, especially among the millennial demographic. Retailers may be wise to increase their loyalty programs and look at customer analytics more closely. Both strategies will help develop savvy promotion ideas targeting individual consumers.
Another study by Nielsen showed that 80% of millennials are interested in loyalty points and want the option to choose from several different types of rewards and earn bonuses, in addition to their personalized promotions. Retailers such as Whole Foods are already cashing in on personal promotions.