What: The Robin Report argues that blanket discounts are counter-productive for retailers who should retain a part of the margin lost in such operations to reinvest it into a ‘marketing to one’ capability

Why it is important: The nature of the market and the game has changed, and recipes that were once taken for granted might prove limited today. In a world where shoppers are looking for purpose, durability and long-lasting quality, it is key for retailers to identify such desires customer by customer to propose them individualized deals and experiences.

According to Bluecore, a retail marketing technology firm, discounts and promotions are not the top purchasing driver for every shopper: although 57% of them say price has the greatest impact on their purchase decision, only 36% of shoppers say that discounts have the most impact on their purchasing. Instead, they value relevant product recommendations, timing of communications and engaging content.

The Robin Report stresses out the fact that, as a consequence, retailers are giving away a much-needed share of their margin for no real reason, as shoppers are more excited by getting good value (30%) than getting a good deal (25%). This also needs to be put in perspective with the new ongoing trend of shopping with a purpose and spending money on higher-quality, more durable goods. As a consequence, the Robin Report suggests avoiding blanket discounts and target to the maximum in order to share individualized offers based on customer preferences.

Here’s why retailers can stop all that discounting