There are huge shifts happening in the retail industry driven by the uptake of mobile technology, the growth of social platforms and increased human-connectedness. For retailers to build their competitive advantage they need to understand the consumer, whilst finding ways to improve their price image and overall value proposition.
Price and promotion are two of the most important levers that a retailer can pull. But doing this right isn’t easy: competition is fierce as discounters and pure online retailers grow, and price transparency is greater than ever. To build loyalty, it’s crucial to strengthen customer price perception without reducing prices so low that you limit financial growth — or worse.