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Discounting is here to stay – or is it?
Lenta, one of Russia’s largest retail chains and retail analytics specialist emnos are tackling this subject together at this year’s World Retail Congress in Paris which starts on 29th September.
With the option to buy via several different channels, shoppers have become very aware of choosing the best price and often wait for the now inevitable – and seemingly ever present – sales. But is discounting really the most effective way to attract customers? Lenta, one of Russia’s largest retail chains and retail analytics specialist emnos are tackling this subject together at this year’s World Retail Congress in Paris which starts on 29thSeptember.
Although price led and committed to bringing customers more goods at lower prices than the competition, Lenta has adapted its strategy based on detailed customer insights and delivering a landmark experience. Herman Tinga, Lenta Commercial Director explained, “emnos has taken our customer knowledge to a whole new level and provides the behavioural data we need to grow and retain a competitive edge.”
Using in-depth segmentation analysis, emnos was able to clearly define the different types of Lenta customers and answer questions such as who are my customers? – how much do they spend? – why did they come to the store? Pricing was carefully investigated and by identifying which products matter most to which customer segments, Lenta can offer higher discounts on the items relevant to budgets and requirements.
Determined to keep ahead in a fast moving market, Lenta was also the first Russian food retailer to use direct marketing to drive customer loyalty, innovation and growth. Offering consumers customised, relevant promotions was identified as a key lever in the growth strategy. emnos therefore supported Lenta in developing a vision based on multi- channel interplay – including coupons, self-service kiosks, e-mail, SMS and traditional post. The first campaign produced impressive additional sales uplift.
An on-going process
Promotions are now developed based on precise segments and an annual Category review enables the teams to make better decisions based on customer insights. The pricing process is more efficient and more in-depth checks are made at competitors.
You can hear Herman Tinga and Dr. Meinert Mellows, Head of Insights Delivery Northern Europe, emnos in the “Discounting is here to stay – or is it?” session at 14.00 CET on Tuesday 30th September in Stream C of the conference. We hope to see you in Paris or please feel free to contact us to learn more about how emnos can help drive sales and customer loyalty.