Which is the best promotional mechanic for you?
In a recent poll across the UK’s leading supermarkets, there was a plethora of special offer mechanics in use. With such a huge range available, we decided to impart some knowledge on what impact they have on shoppers and their thinking.
- Over 5,000 multi-buys (2 for… etc.)
- In excess of 4,000 discounts (save 50p, now half price etc.)
- Almost 300 BOGOFs!
After recently completing a major study into the psychological effects of all of these offers and promotions, where we combined the latest findings from neuroscience with our unique shopper research methods, we uncovered over 100 powerful new insights.
- On high priced items, shoppers regard a price reduction in £s to be more appealing than a reduction in % terms
- For low priced items, a reduction in % is more appealing than in £s
- Time limits on offers create a ‘need’ for the product
- For each syllable of a price in a supermarket, the chances of it being remembered reduces by 20%
- As humans, we are hardwired to avoid the term ‘less’ (fear of loss), whereas the word FREE is processed by the brain as impossible to lose, because when something is free, its free, and so it’s appeal is greatly increased.
Each of our 100 plus insights have been painstakingly cross-referenced with other findings and understandings about psychology, mainly within academia, and so they have been validated and tested in-store. Now that we understand the influence of offers and promotions on shopper behaviour, we are able to provide a more scientific approach by which you can tailor your promotional activity alongside strategic business approaches.
In the clip below, a shopper purchases an item from a promotion on a gondola end – but did the offer work better on end or in the aisle?
If you want to know the reasons behind why certain promotions work better than others, tap into over 20 years of knowledge and expertise within the field, and contact me – Phillip Adcock – today.