Understanding Merchant's Loyalty System through Product Promotion

The thought process behind GudangAda Solusi promotion management tool
Period
May - June 2022
Role
Product Designer
Platform
Web
Overview
GudangAda Solusi is a store management platform that enables merchants to manage their stores and create transactions. It's available on app for a more handy access and on web, for handling more complex tasks like manage things in bulk.

We kept improving the platform functionality and usability by providing both essential and non-essential features. At the time, we saw an opportunity to build promotion management module to support our user in generating more sales as well as maintaining connection with their customers.
The Problem
Once in a while, our merchants give promotions on the item level to customers. Unfortunately, our system had no capability to give that kind of promo in a transaction. The existing system was only capable to give transaction-level promo. Thus, making it hard to have a record of item-level promotion. A workaround user can do is giving promotion by adding item manually where they can custom name and price of the item. The workaround might work, but it's not an ideal and permanent solution in the long run.

Existing Way to Give an Item Promo
To summarize, the problems were:
  • User needs to add a promo manually, meaning they need to count the final price of an item after discounted by promo manually
  • User can't keep track of promos they've been giving to customers
  • For larger stores (wholesalers) who need to plan promo in advance, they still do it manually out of the system
The Insights
I gathered some insights from our users regarding their behavior in giving promo to customers and how they manage the promo

1. Retailers are More Willing to Give Promo to Loyal Customers

Smaller stores like retailers usually have closer connection with their customers, especially the loyal ones. They give promo as an act of appreciation to the customers and to maintain good relationship. New customers usually won't get as much promo as the old and loyal ones.

2. Retailers are more Flexible when Giving Promo

It's common for customers to bargain with seller when shopping in small retailers, including bargaining how much the promo they will get in a purchase. Merchants don't always have a designated scheme for the promo, so it's flexible.

3. Wholesalers would Sometimes Plan the Promo in Advance

Bigger wholesalers plan the promo in advance, especially if applied for all customers. Seasonal promo, such as independence day promo is one example.

4. Merchants Give Various Type of Promo

There are three type of promo merchants usually give to customers. Terms and conditions could also apply.

  • Discount per item → discounted price for certain product, usually in % or Rp
  • Buy x get y → free item for every purchase of certain product. Free item can be the same or different purchased item.
  • Bundling → a bundle of product sold for a cheaper price. The bundle can consist of same or different products.
The Questions
I then segmented user's pain points and needs into HMW questions
  • How might we help user giving promo to their loyal customers?
  • How might we give user flexibility in choosing the type of promo they'd like to give?
  • How might we give user flexibility in determining the amount of promo they'd like to give?
  • How might we help user planning the promo in advance?
  • How might we help user change promo details, terms, and conditions easily?
  • How might we help user to keep in track on their promo plans and progress?
  • How might we help user get data and insights on their promo performance?
Design Phase
As the complexity of this product was high in terms of requirement, design, and engineering, we started by the web version first for MVP. Based on user's behavior, we decided there were two ways user can give promo.

1. Ad Hoc Promo

This type of promo application was intended for user who wants to have more flexibility when determining promo type and amount for an item. Ad hoc promo enables user to decide on spot the type and amount of promo they'd like to give to customers while the transaction is happening.

2. Preset Promo

Preset promo is for user who wants to plan promo in advance and don't want to bother giving promo in every transaction. The promo can be planned beforehand along with the period, promo items, promo amount, terms, and conditions. It's suitable for promo campaign and seasonal promo. The scope of preset promo on first iterations would only be on discount per item type.

The Solution
The design was implemented in several iterations due to its complexity. Finally, the brand new promotion management tool was crafted for different type of users with different needs, making it a one-for-all feature.
Add Promo on the Spot

User can add item promo right away on Point of Sales (POS) page. Even better, they can choose promo type between discount and free item. Final item price will be automatically calculated according to promo amount. No need for a calculator, we count it for you.

Plan Promo, Generate More Sales

Creating a promo has never been this advanced and specific. User can set promo period, add promo item in bulk, and add discount amount for each item. Not just that, they can specify the promo for each Unit of Measurement (UOM) and set the maximum quantity for promo stock.

Auto-Apply Promo for All Customers

Automatically apply promo for faster transaction at cashier. Just add the promo item and the discount amount will appear.

A Report for Every Promo

User can track every promo they've created, including upcoming, ongoing, and finished promo. The great part is, they can see the overview of and the detail of promo performance, which can help them in making better judgment and strategic decision in the future.

Lessons Drawn
When met by different kind of users with different needs, we need to design a solution that is inclusive and universal, with little to no sacrifice of one's needs