How Retailers Should Approach Pricing This Holiday Season

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In this episode, Philip and Rob question whether retailers need to take part in holiday sales events, how retailers can craft their narrative during the holiday season plus share how to approach promotions and pricing decisions during this period. Plus the topics are being covered in our latest webinar with Cloud.IQ - register now to save your seat!

Hosts: Philip Huthwaite (CEO & Founder of BlackCurve) and Rob Horton (Product Director at BlackCurve).

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Full Episode

Podcast Summary

Owning the Narrative

One effective approach for retailers during the holiday season is to differentiate themselves from competitors by owning the narrative. By creating unique promotional events and marketing campaigns, retailers can generate excitement and engage customers. This involves strategically planning and executing a comprehensive marketing strategy that captures the attention of consumers. Retailers can position themselves as leaders in their industry by developing a distinct identity and voice that resonates with their target audience. By owning the narrative, retailers have the opportunity to shape customer perceptions and generate positive buzz around their brand during the holiday season.

Analysing Past Data

Before implementing pricing strategies for the current holiday season, it is crucial for retailers to analyze past data and evaluate the effectiveness of their pricing strategies in previous years. By reviewing sales data, customer behavior, and market trends, retailers can gain valuable insights into the impact of previous pricing decisions. This analysis helps identify patterns and trends, such as the level of cannibalization of sales or the success of discounting strategies. Retailers can use these insights to refine their pricing approach and make informed decisions for the upcoming holiday season.

Bundling Strategies

One effective pricing strategy during the holiday season is to leverage bundling. By creating product bundles that combine complementary items or offer additional value to customers, retailers can increase the average basket size and encourage customers to make larger purchases. Bundling allows retailers to create unique offers that differentiate them from competitors and provide customers with a more comprehensive solution or enhanced value. Careful consideration should be given to selecting products for bundling and determining the appropriate discount or incentive to make the offer compelling to customers.

Positive Branding and Community Building

The holiday season presents an opportunity for retailers to build a positive brand image and foster a sense of community among their customers. By creating a brand story that aligns with the holiday spirit and values, retailers can connect with customers on an emotional level. This can be achieved through engaging storytelling, themed marketing campaigns, and partnerships with charitable organizations or local communities. Retailers can also leverage social media platforms and influencers to amplify their brand message and create a sense of belonging and excitement among their customers.

Optimising Pricing Decisions

When making pricing decisions during the holiday season, retailers need to carefully consider the demand for their products and the potential impact of discounts. While offering discounts can attract customers and drive sales, it is essential to evaluate the potential trade-offs. Retailers should assess whether discounts lead to cannibalization of sales, where customers simply shift their purchase timing, or if they stimulate additional purchases that would not have occurred otherwise. Pricing decisions should be optimized to strike a balance between customer satisfaction, revenue generation, and profitability.

Conclusion

In conclusion, approaching pricing during the holiday season requires a strategic and data-driven approach. By owning the narrative, analysing past data, implementing bundling strategies, fostering positive branding, and optimizing pricing decisions, retailers can create a comprehensive pricing strategy that effectively engages customers, drives sales, and enhances their brand's position in the market during the holiday season.