If there’s one lesson I’ve learned over the years in eCommerce, it’s that the allure of the quick discount is a powerful drug. It’s a short-term high that can leave your brand in a long-term bind. Mark Ritson hit the nail on the head with his recent article on price-promotion addiction. We all know it’s a problem, yet so many businesses just can’t resist that tempting “50% off” sticker.

“The era of price-led profit growth is coming to an end – Mark Ritson”

But let’s face it, chasing sales with endless promotions is like trying to fill a leaky bucket. The more you pour in, the more you lose. Promotions are seductive, especially when you’re trying to hit those end-of-quarter targets. However, as Ritson points out, this addiction does nothing but train your customers to expect discounts. Worse still, it erodes your brand’s value and can put you in a destructive race to the bottom.

Over the years, working with my eCommerce clients, I’ve seen first hand how they fell into the same trap—pushing out discounts like there was no tomorrow, only to realise they were eating away at their margins. It wasn’t until they started focusing on data-driven insights and smarter pricing strategies that they were able to pull themselves out of the discounting death spiral.

And that’s precisely where PromoLens comes in. We’re passionate about helping retailers break free from the tyranny of constant promotions. Our AI-driven platform doesn’t just spit out discount recommendations. It’s designed to understand the unique dynamics of your business, analysing past promo effectiveness, customer behaviour, and market trends to craft a strategy that enhances both sales and profitability.

Consider this: one of our clients, a pharmacy chain, managed to increase profit margins by 40% in just a year by optimising its discount strategy. This wasn’t about offering more discounts; it was about offering smarter ones, where they mattered most.

Ritson suggests a “detox” from the relentless price-slashing—and I couldn’t agree more. It’s time retailers focused on building value rather than constantly shaving it off. As we continue to innovate at PromoLens, our goal is to empower businesses to make data-driven decisions that not only meet sales targets but also enhance their brand value in the long run.

So, here’s to a future where promotions are strategic, not habitual. And if you’re ready to start your detox, you know where to find us.

#eCommerce #AI #RetailStrategy #BrandValue #PricingStrategy