L.E.K.'s Jon Weber discusses how retailers can avoid promotional traps by using the benefit-based promotional strategy to garner higher same-store sales and more profitable and incremental sales. According to L.E.K. analysis, the use of new analytics to drive personalization and targeted promotions is the best pursuit for retailers to optimize promotional dollars, but it requires a large investment in technology and people. The alternative benefit-based promotional strategy can help retailers garner success in the interim.
Read more in our Executive Insights' "Benefit-Based Promotions: How to Capture Real Value Without Giving Away the Store".