Should I focus on visibility or on discount?
Choosing between visibility and discounts is not an easy choice. With new products, you often mainly focus on visibility, but an attractive discount can also lead to trying out the product. With mature products, you often try to increase use among existing customers. You can do this via the Xtra promotions, but you have to let people know that your product is on promotion before they buy more of it.
Case
A manufacturer carries out many promotions throughout a year, but does not know where he should focus most: on visibility or should the focus mainly lie on a deep discount?
Should I focus on visibilty?
In this case, we assume that the supplier has a competitive offer compared to the other products in the segment. The average price level of the supplier is much higher, so we assume that he sells more premium products.
The category is already quite mature, more than 80% of customers buy the category, they buy it 9 times a year and they buy 2 products of 3.5 euros each per trip.
Source of the tables: the 'Category overview' (available in Basic and Advanced Pack), go to the ‘Category' or 'Is there potential' tab.
Yet there is still potential for the supplier, because his products are bought by only 8% of customers, and the frequency is much lower than the average of the category. When the supplier carries out a promotion, he can best focus enough on visibility and thus attract more new customers.
Which actions are the most effective?
You can analyze all your actions in the uplift report. The higher the product is, the more items were sold in uplift; the further to the right, the more effective the actions were.
Here we see that the Top Promo has generated the most uplift. However, there are actions with greater effectiveness, such as the Combi Max from vility 21, but fewer of them were sold.
Source of the tables: in the ‘Uplift Report’ (available in the Premium Pack), go to the ‘Compare promotions’ tab and select ‘insertion’.
Conclusion
It remains a difficult balance, but if the number of customers or the frequency is low, then investments in visibility are important. If you score low on the Out-of-pocket per trip, then you can strongly focus on the Out-of-pocket per trip.