10 for $X.XX Deals
At the grocery store the other day I noticed that it has changed the way it handles sales. Normally the grocery store puts up a random item for sale, and charges some value, such as “Cans of Chili – 3...
Introduction
At the grocery store the other day I noticed that it has changed the way it handles sales. Normally the grocery store puts up a random item for sale, and charges some value, such as “Cans of Chili – 3/$5.00.” The goal is that the company hopes you buy 3 cans of chili, though to be fair you can usually get 1 can for $1.66. The products are also chosen generally at random – or at the very least, the appearance of being at random. However, in this recent grocery store trip, the sale was different. Various items were on sale, as usual, but they also created a new sale, that worked as follows: Several different types of items and brands were put on as part of one larger sale. When you bought 10 total items – of any items that were included in these product groupings – you would get the items for a set cost that was far lower than the price of any of these items on an individual sale. You must buy ten total (or multiples of ten) as the sale price was only calculated if 10 items were added to the list. The sale itself is usually quite a deal, sometimes less than half the MSRP or more. The difference between this and a normal sale, however, is that you both need to buy 10 total items in included in the sale, and the items themselves can and were seemingly unrelated. This past trip to the store, Corn Flakes cereal was included in part of the sale, as was Hormel Chili. Neither of these companies are related in any way.
Are They Using CRM Research?
An important aspect of CRM research is product pairings – products that customers tend to buy together. Product pairings are useful from a CRM perspective for several reasons, the most common being: Product pairings increase the amount of revenue at the time of sale. Product pairings provide extra value for your customers. Product pairings are one of the most valuable ways to improve the amount of revenue your company receives from each customer. This brings up an interesting question – what is the grocery store using to decide on these sale groupings? Are they basing it on research they’ve conducted that indicates that chili and cereal are valuable items to be grouped together, or are they simply putting items on sale based on what they have available? If it’s the latter, the grocery store is missing out on a valuable opportunity. They have mountains of data about product groupings, and they should be using that data to group their sale products together in a way that improves customer purchase rate. Related Blog Part 1 Related Blog Part 2
Key Takeaways
- Introduction
- Are They Using CRM Research?
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