Solutions by Industry

Retail Pricing and Promotional Strategies

Pricing pressure is a mainstay in today's economy. Be it threats from EDLP competition or the constant challenge to win a greater share of limited consumer dollars, most retailers struggle with pricing strategy. The challenges manifest themselves through a growing spate of promotional offerings, from temporary price reductions to BOGO offers. Many retail executives question whether they have alternatives to eroding margins by offering discounts or risk losing market share.

A handful of sophisticated retail brands are using Test & Learn™ to fully understand the impact of product promotion strategies and to leverage these insights to make strategic pricing decisions. With Test & Learn™, retailers can accurately answer such fundamental questions as:

  • How will retail price changes affect traffic, sales, and gross profit overall, by product category and by customer segment?
  • Do price increases on some items cannibalize sales of other items?
  • Are product pricing changes more effective in some regions or locations than in others?
  • Which retail promotional offers drive new traffic to stores?
  • Do promotional discounts targeted to members of a loyalty program drive incremental visits or cannibalize margin?

Click here to read about how a leading retailer used Test & Learn for Sites™ to optimize product pricing in the Product Pricing Case Study and Optimizing Fuel Pricing Case Study, or learn how Test & Learn™ was used to optimize loyalty programs in the Optimizing Customer Rewards Program Case Study.