Find the right level of promotion to maximize trial while avoiding lower margins
What it does for you
The impact of promotions on buying behavior is often captured by scanner data; where the success of a promotion is measured by the uptake in volume of that product. As there are many different types and depths of promotions (e.g. percentage discount, buy more pay less, mix and match etc.), it is almost impossible to determine the “optimal promotion”, since each promotion has to be implemented in real-life before one can compare its success. In addition, the impact of external factors (e.g. competitor actions, competitive products on sale) cannot be taken out of the equation, making it very hard to compare.
Helping you answer questions like
- Which promotions are perceived as highest value for money by consumers?
- What is the best promotional proposition per channel/HH segmentation?
- Which promotion delivers the highest volume uplifts?
- What type/depth of promotion should be used to win back “disloyal shoppers” and restore the price-value equation?
How it works
SKIM’s decision behavior platform builds on over 30 years of experience in practicing and advancing choice modeling techniques. We provide an adaptive approach to each project with the appropriate blend of methodologies to fit the project and market needs. Our approach is based on survey testing with the relevant customer base away from your store or website. This enables us to test very complex future scenario space to provide you with an optimal portfolio and pricing strategy. Pricing strategies include testing various types of promotions, to determine how products or services should be promoted to yield most volume and or revenue for the total portfolio.
SKIM uses conjoint methodologies to test new market scenarios in a survey environment provide all the required insights. Choice-based conjoint allows you to test different feature/price bundles as concrete products and test which product mix works best to maximize share and revenue.
Contact us today to request a proposal or discuss your pricing and portfolio challenges!