Sea of Sameness

For years, retail sales have been flat. Intending to acquire new customers and grow basket size, retailers run promotions that inadvertently erode prices and further compress already-slim margins. These underperforming promotions put more pressure on retailers, making them reluctant to try new, untested promotions. The risk of failure is simply too high.

The result is a sea of uniform, unexciting, price-based promotions.

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Need to stop price erosion Instead of growing categories, current promotions erode prices and leave retailers with shrinking margins.

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Need promotions to drive growth Instead of attracting new customers, boosting sales, and growing the top line, current promotions serve only a small fraction of “deal-prone” buyers.

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Need more trade dollars Because so many current promotions fail to deliver sufficient growth, retailers require even more trade spend dollars from manufacturers to make up the difference.

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Need to proceed with confidence Given the hazards involved with rolling out untested promotions, retailers are understandably reluctant to try something new, preferring to stick to what they did in the past.

For years, trade promotions have been stuck in a downward spiral. Intended to grow sales, many promotions end up appealing to deal-prone buyers, and more than half don’t deliver a positive ROI. In the wake of these underperforming promotions, manufacturers have no choice but to invest even more in the same tired offers, unable to break out of the cycle.

The result is a sea of uniform, unexciting, price-based promotions.

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Need to grow Consumer goods manufacturers spend money to make money, yet are stuck with promotions that don’t attract new customers, increase basket share, or boost volume.

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Need to lower trade spend Much to sales leaders’ dismay, consumer goods manufactuers are increasing the portion of revenue that they devote to promotions — from 17% of revenue in 2012 to up to 25% by 2016.

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Need promotions to perform Because more than 50% of today’s promotions fail to deliver an ROI, the majority of manufacturers believe promotions provide little or no incremental value. Yet they are critical to the business.

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Need to proceed with confidence Since sales teams don’t have a crystal ball, they can’t predict how consumers will respond to new, untried promotions.

Offer Innovation – A radically different approach


Offer Innovation is a new, proven, low-risk way to methodically and quickly design effective promotions.

  • Combines the latest insights from behavioral economics with multivariate testing techniques, patent-pending data science algorithms, advanced data analytics, and cloud-based architecture
  • Delivers confidence with extremely high levels of statistical significance
  • Provides results — not just insights — in days instead of months
  • Uncovers unique, counterintuitive promotions that generate ROI and 20-50% sales lifts

 

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Behavioral Drivers

Offer Innovation is based on insights from modern behavioral economists, who have discovered that consumers behave in surprising and counterintuitive ways.

Over the past few decades, Nobel-Prize-winning behavioral economist Daniel Kahneman and others have uncovered dozens of heuristics, or “rules of thumb,” that help explain why consumers make the decisions they do. Some well-known heuristics include information framing, loss aversion, naive diversification, anchoring and affinity — and there are many more.

The key is that consumers, driven by a variety of subconscious social, emotional, and cognitive biases, actually make decisions that are “predictably irrational,” a term coined by behavioral economist Dan Ariely. In other words, consumers make decisions based on more than just price. To understand what consumers truly want, testing is critical. That’s where Offer Innovation comes in.

Promotion Technology Landscape

Offer Innovation allows consumer goods manufacturers and retailers to move beyond hunches and instincts, and stop trying to predict the future. Instead of guessing which promotions might grow volume and basket size, they can guarantee it. Consumer goods sales teams can revitalize stale calendars full of underperforming promotions and transform their retailer relationships.

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  • Offer
    Innovation

    Find the best promotions

    Micro-test new ideas and identify the very best promotions

  • Trade Promotion Management (TPM)

    Manage execution

    Build promotion calendars, track trade spend & simplify planning

  • Trade Promotion Optimization (TPO)

    Measure results

    Determine the impact promotions had on the business after the fact

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A $300B Opportunity

Trade rate as of 2014
Promotions that lose $

Sources: Gartner; Nielsen

Why Eversight?

In a $300 billion industry where more than half of promotions lose money, retain a competitive advantage by producing unprecedentedly-effective trade promotions with Offer Innovation.

*Blue dots in the chart on the right represent examples of unique offer variations that result in “off-the-curve” promotions, delivering more sales lift vs. traditional offers at the same or lower discount level.

 

Know which promotions will perform best before adding them to the calendar.


retail_benefits_2Eliminate risk. 
Confidently run new promotions with very little risk, knowing how they will perform ahead of time.

Make every dollar count. Get maximum ROI for each trade dollar by only running promotions that have been demonstrated to grow volume, trips, and basket size.

Get more. Grow your share of trade spend by delivering the best ROI for a manufacturer’s trade investment.

Discover unique offers that markedly outperform traditional promotions.


cg_benefits_2Uncover game-changing promotions. 
Put an end to stale promotion calendars by easily building and testing thousands of unique promotions to find the best ones, with absolutely no risk.

Exceed volume and ROI targets. Experience the impact of innovative promotions that outperform traditional offers by 20-50%.

Transform the retailer conversation. Bring retailers to the table with radically better promotions, demonstrated to work with real shoppers.

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