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* Promotions and Customer Loyalty 14/09/2009 *
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Promotions and Customer Loyalty  

Tracking shopper attitudes and behaviours towards promotions and assessing the impact on loyalty

  

The effects of the economic downturn and food price rises as well as growing concerns over food waste and the drive for healthy eating have made it increasingly important to adopt the correct promotional strategy to meet shoppers’ needs. The marketing profession has always used promotions as a way of influencing shoppers by raising awareness of and interest in products, and helping convert to purchase. A great variety of techniques are used by retailers and manufacturers.

But with an increasingly competitive market place, where price remains such a key factor, are promotions effective in differentiating retailers and helping manufacturers win new and loyal consumers? This report seeks to understand how shopper attitudes to promotions and loyalty have changed over the last two years, and identify where the opportunities lie.
 
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Promotions and Customer Loyalty will help you to:

Adapt your promotional strategy to meet the needs of shoppers in recession

Better use promotions to influence new product trial

Adopt the right measures to maximise revenue opportunities by understanding how promotions impact on loyalty

Improve point of sale and merchandising by understanding the main likes and dislikes of promotions and how they should be changed in the future

Choose the correct mix of promotional tactics for your category
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EXECUTIVE SUMMARY
  • Key findings
  • Implications
RESEARCH OBJECTIVES AND KEY QUESTIONS
  • Research methodology
PROMOTIONS AND THE RECESSION
  • How are shoppers reacting to the increased focus on promotions?
  • How are retailers’ promotional strategies changing?
  • How are suppliers’ promotional strategies changing?
PROMOTIONAL TACTICS
  • What prompts shoppers to try something new?
  • Is the impact of promotions on product trial changing?
  • How do different promotional tactics compare?
  • ‘Multi-buys’
    • ‘BOGOFs’
    • ‘3 for 2’
    • ‘Buy more for a set price’
    • Are ‘multi-buys’ suitable for all products?
  • ‘Extra free’
  • ‘Reduced prices’
    • ‘Rounded price points’
  • ‘Meal deals’
  • ‘Vouchers/Loyalty card’
  • ‘On pack offers (e.g‘free prize’)
WHAT DO SHOPPERS LIKE ABOUT PROMOTIONS?
 
WHAT DO SHOPPERS DISLIKE ABOUT PROMOTIONS?
  • Mistrust in pricing
  • Availability
    • Improving availability case study: Promotions Management Programme
  • Over purchase
  • Difficulty in shopping
  • Preference for EDLP
HOW DO SHOPPERS WANT PROMOTIONS TO IMPROVE?
  • Are shoppers still asking for the same improvements to promotions?
PROMOTIONS AND LOYALTY
  • Do promotions help to switch loyalty?
  • Brand loyalty versus switching – how do shoppers differ?
  • Brand loyalty/switching profile
HOW DOES BRAND LOYALTY DIFFER BY CATEGORY?
  • Always buy same brands regardless of promotions
  • Always buy same brands usually on promotion by category
  • Sometimes switch on promotion by category
  • Always switch on promotion by category
KEY INSIGHTS AND IMPLICATIONS
 
APPENDIX
  • Qualitative research methodology
  • Quantitative research methodology
  • National survey
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This report is available as part of ShopperVista, IGD’s online Shopper Insight subscription service. To access this research or to find out more, please log-in here
 
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