The rules of the Omnibus Directive, which took effect in Poland at the start of the new year, have been the topic of much discussion on the network over the past few days. There are numerous images and details of “fake promotions” that have been uncovered, in which the price was raised a few days before an announcement of a reduction of 30, 50%, or more. In fact, the starting price before the increase was lower than the promotional price.
We have already written about the obligations imposed by the directive on sellers and how to prepare for the introduction of changes in the store. Now, however, a few remarks on how monitoring the competition’s promotion can facilitate functioning within these regulations, so as not to fall into the trap of minimizing the margin, and at the same time not to lose the trust of customers by offering promotions that are not attractive.
Which competition activities are worth monitoring?
- Prices and product availability from competitors are both crucial factors to keep an eye on. Among other things, you can regulate your rates based on these two indications so that you can keep both a competitive edge and a sufficient profit margin.
- It’s critical to monitor rivals’ promotions, particularly in light of the Omnibus Directive’s restrictions. With this information, we can react by taking steps that don’t necessarily match the level of the discount but instead provide clients with alternate benefits.
- Monitoring promotions and prices from a cross-sectional perspective enables you to develop strategies for utilizing the power of promotion to boost sales while adhering to the Omnibus Directive’s criteria.
How can you optimize your promotional with competition monitoring?
First of all, promotions do not have to be associated only with price reductions. If the competition announces a price promotion, we have other tools at our disposal to offer customers equally attractive conditions while keeping the starting price of the product. Here are a just few advantages that consumers are increasingly utilizing when shopping online.:
- Multiple items – here we can not only offer a lower product price when buying a larger quantity, but it is also customary to give, for instance, one product for PLN 1 when purchasing five
- Free delivery with a minimum purchase
- Convenient installments or deferred payment
- Loyalty programs – the most effective programs must provide the customer with a real benefit within a certain period of time. Despite the general downward trend in customer loyalty, if a customer recognizes a genuine chance to win a bonus, a specific discount code, a gift, a prize, etc., they will gladly return to buying at that particular store, even if the prices are equal to the competitors.
When using promotional codes, keep in mind that they must be granted to customers individually, in accordance with rules, and not widely accessible to everyone picking a certain product in order to avoid being considered a price promotion (within the meaning of the Omnibus Directive)!
The strategy of managing promotions over time and adapting to the actions of the competitors allows the use of various types of promotions so that our products are attractive to customers at all times. Additionally, it enables the scheduling of activities so that appealing price reductions can be provided to customers without making them feel let down when compared to the lowest price from the previous 30 days during times of peak customer interest (for example, in the case of seasonal products or promotional campaigns, such as Black Friday).
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Do only prices and promotions matter?
As it turns out, the requirements of the Omnibus Directive can serve both customers and sellers. One of the important elements worth monitoring are customer reviews. Since the regulations require sellers to ensure that reviews come from real buyers of products, their credibility increases, and thus can provide valuable information about the aspects of a certain product, service, guarantee, or style of promotion that customers like the most. By tailoring the offer to their expectations, one can take advantage of the present understanding of what customers are writing about. What is equally important, you can also get rid of the mistakes that cause negative opinions!
Opportunity for the innovative and foresighted!
As the aforementioned examples demonstrate, laws that safeguard consumers need not be roadblocks for sellers. Strategic planning, based on reliable data, can provide a competitive advantage and increase sales while maintaining a margin that ensures high profitability of the business
Miłosz manages sales at Brandly360. For many years works on projects involving the implementation of software for businesses. On a daily basis, he works with trading companies, providing tools and services that improve work and follow the most recent market trends. Driven by a passion for data analysis, modern management systems, and process improvement.
