Mohive reveals shifting promotional priorities

A Mohive product story

Edited by the Marketingweek Marketplace editorial team Jul 3, 2009

A study by Mohive has revealed that Britain's retail experts are shifting promotional priorities in store this summer as classic footfall drivers fail to halt declining customer numbers.

The study, which collates the experiences and opinions of more than 100 retail marketing and promotions experts managing campaigns for Britain's leading high-street names, suggests marketers believe they have done everything possible to encourage shoppers out of their homes and into our high streets, and are now focused on leveraging communications options in store to boost conversion rates and turn browsers into transacting customers.

Lars Unneberg, chief executive officer of Mohive, said: 'The real question for retail marketers in the current climate is, what more can we do to improve the performance of the product campaigns and promotions our business depends on?
'While the vast majority taking part in our study seemed to think they had classic external factors like television advertising, PR or magazine promotions covered, nearly eight in 10 now say that internal issues such as in-store merchandising or staff ability to recommend and advise, are of growing importance in an environment where footfall is in general decline.

Sponsorship and celebrity endorsements come off particularly badly in Mohive's study, with less than five per cent of respondents saying that they considered these elements to be more important to promotional effectiveness during a recession.

Frugal spending, carefully targeted at elements that promote a good experience in store, supported by drivers such as direct marketing or web/social networks (which are stable or growing in importance) over classic ad spend or sponsorship (which seem to be losing appeal) would appear to be the emerging model of choice for retail marketers working through these current tough conditions.

The full survey will be made available to the retail marketing industry via an online webcast due to take place at 15:00 on 2 July 2009.