Plotting promotional activities is one of the most exciting parts of a marketer’s role. It’s the thrill of seeing sales soar from your gift with purchase (GWP) idea, or catching sight of an influencer ad you strategised. Done right, these promotions unlock increased brand value, engagement and sales for your beauty brand. However, in order for campaigns to be truly successful, eTail analytics must play a vital role.
This is truer now than ever before. eCommerce sales are growing at an exponential rate, with the COVID-19 crisis and social restrictions propelling online traffic and revenue. Where just 31% of consumers shopped online at the start of the pandemic, now 82% of consumers say they will continue to shop online, even with stores fully reopened. This upward eCommerce trend puts the spotlight on digital promotions. So how, exactly, can eTail analytics optimise your future activities?
1. Identify Beauty’s Best Promotions
In isolation, sales data tells you little of how and why your competitors are winning at digital. Overlaying those figures with promotional data allows you to understand peaks and troughs in a brand’s revenue. For example, a spike in sales for a new sheet mask might be down to more than just a surge in dry skin sufferers, and eTail analytics can put those boosts into context by pinpointing key promotions.
It might be that the masks were on an introductory 10% discount, or that they came with a free jade roller to make the offering more enticing. By identifying these successful campaigns, and seeing the impact they have on sales, you can better plan your own promotions with insight on what makes your audience engage.
2. Decide When to Go Live
Part of the allure of a beauty purchase is how unique and special the product feels. Consumers want that magical moment when they discover a game-changing serum or a new signature scent. However, bad luck may mean your latest launch is similar to a competitor’s, and if you both promote on the same platform, the excitement for your product can be diluted.
As promotions are often anniversarised by brands, eTail analytics will help you see if a product similar to your own was promoted in the same period of the previous year. And, if it was? You can check with your retailer around competitors’ go-live dates or explore other promotional activities. Doing so will give that must-have moisturiser the spotlight it deserves, without the worry that competitor promotions are drawing attention away.
3. Benchmark with Your Competitors
Another reason to track competitors with analytics is to create benchmarks for your own promotions. In particular, look at their co-op ads and the share of voice they have enjoyed as a result. Having this information not only helps you refine your strategies, but allows for fact-based decision-making when negotiating ad placement for your own promotions.
4. Understand the Most Popular Promotions
Different eTailers take different approaches to promoting your products, with the depth of discounts varying – sometimes dramatically – from one store to the next. For example, in online pharmacies over 2019, 21% of products were discounted at 15% to 20% off. Over this same period, items discounted by 20% to 35% off increased four-fold in online department stores, allowing bigger savings on more prestige products.
By utilising eTail analytics, you can dig deeper into each eTailer’s promotions to figure out their most common discounts, and how they are likely to affect your sales. This is especially helpful if you’re focusing on key consumption periods, when the volume of discounts available tends to be at its highest level.
5. Monitor Campaign Performance
Finally, after planning your promotional campaign activity, you need to check it has gone live. Using eTail analytics enables quick monitoring of components – from the use of the correct assets to the promotion type agreed. This is key for ensuring the promotional activity is compliant with your eTailer agreement. Having this data in one place, on a platform like MMI’s ePricing and Promotions tool, makes checking quick, easy and frees up vital resource.