How to sell more expensive products and boost profit

Good things are easy to get used to

Customers get used to buy one and the same products with the stable consumer basket cost. The retail chain profit falls when promos are the only way to incentivize customers. However there is a way to increase profit generated from one customer without considerable expenses for discounts - just offer customers to try new goods which would satisfy their demands..

Ultimately we could:

Increase profitability

Demonstrate care and attention by offering customers new experience with higher category products

Test new products and replace the existing range, if successful

Request for intelligent marketer was generated

The “intelligent marketer” function helped the system to find buying populations using the “Increase category of purchased products” scenario. Every day the regulars were selected and grouped into 4 clusters by similar purchased products of one category (in this case the 6th level of the category hierarchy tree was used)

Target population was selected

The system generated the eligible populations. The marketer generated a promo for the selected population by picking the “Increase category of purchased products” population in the RFM-analysis.

Promo was generated

The marketer selected products (e.g., “Apples” or “Natural curd products without substitutes”) for promotion using the system. The Loyalty Culture system independently offered the most cost-effective and secured delivery method of 3 existing options: mobile app, Viber/Telegram or SMS.

Result :

Only target population has got discounts on new products (296 customers) and after that 52 customers have switched to more expensive curd products.

The retail chain has tested the demand for new products. According to the test results the category managers have replaced apples because of the low demand.

The shops have managed to avoid the surplus stock provided the customers with the products of another supplier.

How to sell more expensive products and boost profit

Getting started is fast and easy

1

Collection of project information

2

Integration configuration and historical records upload

3

Design customization and mobile app publication

Free express audit of marketing