What Consumers Really Think about Retail Promotions

Social media, the Internet and smart phones are transforming how consumers access information. They are also transforming how consumers find and redeem retail promotions. On May 11, 2011, during a CGT Web seminar, new and unique research from Cognizant – derived directly from consumers -- was presented about their preferences and perceptions regarding retail promotions.

 

Johan Sauer, AVP Consumer Goods, Cognizant Business Consulting, explained that Cognizant set out to answer the questions: Are shifts in consumer use of new media channels impacting their promotion preferences? And, if so, in what ways and among which consumer segments? Brand new consumer insights were pulled from the answers:

 

First, digital promotions will be the de-facto choice for Gen Y by 2013. Gen Y’s are the heaviest users of digital promotions while also posting 10 to 33 point lower preference scores for coupons and BOGO offers versus their Boomer parents.

 

Next, e-mail, tailored to shopper preferences, will replace weekly circulars by 2015. Consumers of all ages and income levels prefer e-mails as a source of promotion offers. In addition, retailers look to reduce costs and improve their green efforts.

 

“This ability to do what we call mass customization, tailoring offers to particular households based on purchase behavior in a accessible ubiquitous, friendly medium we think will profoundly transform how promotions are executed in the near future,” Sauer said.

 

Finally, manufacturers should target promotional marketing directly to consumers to gain credit for their promotional investments. It was found that one in five consumers give the manufacturer credit for promotional investments.

 

Sauer also went on to explain further findings on emerging promotional vehicles, and some thoughts and actions you might take to get ahead of the change. “A knowledge layer around customers and consumers hasn’t existed before because the tools have not been in place, the data sets have not been available, analytic prowess has not been there. We’re solving for those problems and we think those will be the differentiators in the future,” he closed.

 

To listen to this event in its entirety, click here.