Retail momentum continues, as consumers’ desire for discounts is fueling promotions and shopper incentives
Retailers were generally pleased with the 2010 holiday season, seeing 5.7 percent growth over 2009 and handily beating initial projections by the National Retail Federation. In fact, the NRF further says that January marks seven straight months of retail gains, demonstrating that many consumers are ready to spend after a long and difficult economic slump. It’s a winning situation for consumers – retailers are anxious to maximize this upswing and are upping their game with continued promotions and discounts.
Good news for shoppers who have come to expect some level of competition for their spending power. Their expectation of value is rock solid and increasing the pressure on retailers to deliver. For retailers it is a bit trickier though, and marketing efforts must break through the barrage of promotional activity to really get the consumers’ attention as they travel the path to purchase. Shoppers have become savvier about sifting through their options – comparing prices and demanding value as they prioritize their spendable income.
In turn, marketers are layering additional tactics onto established and successful retail marketing strategies. Capitalizing on what they already do well – such as developing incentives that demonstrate real customer understanding – marketers are raising the bar by adding underused channels such as front door marketing into the mix. Bypassing a crowded field of messages, retail marketers are in some cases exceeding a 20 percent response rate.
Are your retail marketing initiatives generating the results you need, especially as Americans seem to be stepping out of their years-long spending slump? And if not, what are you doing to expand on your campaign strategies?