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RetailMeNot Debuts Industry’s First Promotions Index

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Retailers now have access to a new data tool that measures promotions and consumer engagement.

RetailMeNot, a digital savings company, just launched the industry’s first promotions index, featuring data on market average promotions across 19 categories from the top 500 U.S. retailers as well as the consumer engagement level of promotions.

About time, too: a survey of 110 decision makers among the top 750 retailers in the U.S. discovered that only 16 percent feel their promotional plans are highly strategic. This new index could change that.

Photo: Courtesy of RetailMeNot
Photo: Courtesy of RetailMeNot

“Many retailers’ promotional plans are based on a variety of factors unrelated to market indicators or competitive data,” said Marissa Tarleton, chief marketing officer for RetailMeNot North America. “As a strategic partner to retailers, RetailMeNot created the index to provide insights into the promotions landscape that will help retailers become more successful with their investments.”

Retailers right now want to keep up with evolving consumer habits, without sacrificing financial growth. According to a recent RetailMeNot and TechValidate survey, almost all (98 percent) of retailers said that receiving deeper insights and data would heighten their promotional strategies. In order for successful promotions, retailers said that category performance and competitive insights were crucial for promotional strategy development.

“In a market where the overall size of the retail pie is stable and retailers are competing for wallet share, it is critical to know how your organization stacks up against other firms,” said Forrester Research principal analyst Sucharita Mulpuru.

For marketing, 75 percent of retailers said that having strategic promotions was just as crucial as other communicative initiatives. Although retailers may have this mindset, 74 percent of their marketing staff said that they repeated the same promotions annually or used old performance data to come up with new solutions. With the RetailMeNot Promotions Index, retailers could be savvy about their promotions, while having the ability to assess aggregated average promotions and consumer engagement at the same time.

“We continue the conversation on a one-to-one basis between our internal retail experts and our retail partners for a deeper dive into competitive insights and category performance data,” Tarleton said. “When retailers achieve an optimal promotional strategy versus customer demand, they can more effectively balance margin and growth.”