DISCONNECTED RETAIL

What are retailers missing?

Study highlights gaps in retailer assumptions and the reality of shopper behaviors.
WHAT RETAILERS GOT WRONG
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WHAT RETAILERS GOT RIGHT
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THE FULL STUDY
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LEARN MORE

WHAT RETAILERS GOT WRONG

Does price matching actually work?  Are retailers unnecessarily striving for the lowest price?  What are the highest performing promotions today?  Forget everything you know about shoppers and get the latest findings* below.

52%

OF SHOPPERS RECEIVE WEEKLY OR MONTHLY PROMOTIONS, BUT WOULD BE WILLING TO PAY FULL PRICE.  47% DON'T EVEN USE THE OFFERS!

furthermore,

35%

are actually annoyed, shop less often, or remain indifferent when receiving these offers.

Shoppers have made it clear that retailers haven't figured this out!

76%

OF RETAILERS PROMOTE PRICE MATCHING

while just

17%

of shoppers demand it.

This means 83% of your shoppers are at risk!

76%

OF RETAILERS BELIEVE SHOPPERS ARE LOOKING FOR THE LOWEST PRICE

but in reality just

17%

of shoppers only buy products at the cheapest price.

This misconception results in the race to the bottom and margin erosion!

77%

of shoppers want

PERSONALIZED PRICES

however,

nearly 1/2 are

ANGRY

if someone else gets a lower price.

66%

of retailers think

BOGOs are working

but in reality,

just 15%

of shoppers

actually redeem them.

71%

of retailers think shoppers are

frustrated by frequent price changes

while,

62% of shoppers

are OK with frequent price changes

as long as they are fair!

9%

of retailers believe shoppers will

wait 2+ months for a discount
 

the reality is,

nearly 1/2

of shoppers will wait

2+ months

for a discount

How many retailers think their customers will wait up to a month for a discount?

Retailers believe

90% of retailers

believe shoppers will wait up to a month.

How many shoppers actually will wait up to a month for a discount?

The reality is

less than 1/2

of shoppers will wait up to a month.

WHAT RETAILERS GOT RIGHT

Amongst retailers, 82% agree that remaining competitive, responding to mega-retailers, and dynamic pricing are the biggest challenges when it comes to pricing.  These all require AI!  Now let's take a look at which aspects retailers have a good grasp on their shoppers.

#1 FACTOR ON WHERE TO SHOP

Price!

64% of retailers and 66% of shoppers agree that price is the #1 factor when deciding where to shop.

HIGH FREQUENCY PRICING

It Works!

60% of retailers say it would have a positive impact and 62% of shoppers agree as long as it's a fair, non-arbitrary price.

AI-DRIVEN
PRICING

It's Trusted!

76% of retailers say it has a positive impact on their business and 78% of shoppers trust data science to give them a fair price.

THE FULL STUDY

Retailers need to continue embracing AI in realistic ways they can operationalize and start realizing results fast or risk falling behind.  Check out the latest study and find out what is driving your shoppers’ behavior.

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THE FULL STUDY

Do you understand the factors that drive your customers’ purchasing decisions? The introduction of artificial intelligence and machine learning into the digital price optimization space can help to increase loyalty and retention. Revionics commissioned Forrester Consulting* to investigate retailers’ views on shopper behaviors, various discounts, markdowns, and promotions.  Download the full study below!

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Fill out the form below to get more information on how Revionics can bring your AI journey from theory to reality or continue your research through our extensive Knowledge Center.

OTHER INSIGHT YOU MAY BE INTERESTED IN

Knowledge Center
Visit our Knowledge Center to learn more, grow, and be inspired.
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Check out "Top 4 Retailers Paving the Way with AI Pricing" to read great stories on retailers successfully operationalizing AI and seeing outstanding results! 
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From Theory to Reality: How AI Pricing Will Transform Retail
This webinar discusses how retailers have harnessed the value of AI to deliver quick wins that generate enhanced margins and profitability while giving shoppers prices they love on the products they care most about.
*“Retail Success Requires Personalized, AI-Driven Pricing Strategies,” October 2018, a commissioned study conducted by Forrester Consulting on behalf of Revionics.