TRANSFORM YOUR
MASS PROMOTIONS
INTO PERSONALIZED
COMMUNICATION

Leading US Retailer Case Study

INTRODUCTION

In the retail sector, mass promotions are a common investment that undergoes weekly evolution both in-store and online. Temporary Price Reductions (TPR) strategies, such as “Dollars off” and Bonus Pack promotions, are crucial for lowering the cost per unit and engaging customers. Traditionally, these promotions lack personalization and are communicated through various channels: apps, websites, in-store displays and flyers.

To elevate beyond standard TPRs, using personalized communication, we can take it to the next level. The fundamental concept involves capitalizing on existing assets and CPGs budgets (existing TPRs and mass promotions) and personalizing them to reinforce awareness among customers about relevant offers awaiting them in the stores. This approach not only encourages more visits to the store but also enhances overall customer satisfaction.

BACKGROUND AND OBJECTIVES

Our client, a major US-based retailer, has successfully transitioned from generic promotions to personalized brochures and email campaigns. This case study delves into this innovative approach, highlighting a curated selection of relevant products. Customers are captivated with ‘weekly specials’ that are relevant to them, offers fostering not only growth but also increased engagement.

The primary objectives of this initiative are as follows:

Enhance Relevance

By personalizing the promotional content, the goal was to ensure that the customers encounter offers that are relevant to their needs and interests.

Increase Visits & Sales

Our aim was to boost customer visits and retailer sales significantly by communicating relevant offers. Through targeted promotions in emails and a dedicated app section, we seek to attract more visitors and enhance overall brand engagement.

Enhance Customer Satisfaction

The retailer aimed to ensure that customers felt that their preferences were acknowledged, which in turn would enhance their overall satisfaction with the brand.

Drive Customer Loyalty

By offering weekly deals and promotions that align with individual customer preferences, the retailer sought to boost customer loyalty.

TRANSFORMING MASS PROMOTION INTO PERSONALIZED COMMUNICATION

1. Communication Today

Non-personal mass promotions brochure/ web page

2. Edge Tomorrow

Transform mass promotions to personalized brochure based on highly relevant products selection and a personal email campaign

SOLUTION

Pre ML Software Solution

Our client has a tradition of featuring ‘weekly specials’ in their marketing initiatives. These specials, including discounts, exclusive deals, and special offers, are strategically presented both in-store and through digital channels. The goal is to attract new customers while encouraging existing ones to increase their spending.

Using the SAG ML Platform

Targeting an extensive audience of 5 million digital customers, the retailer employs ML software to select the 10 most relevant Temporary Price Reductions (TPRs) for each customer. These personalized TPRs are seamlessly delivered via email or accessible through the customer’s app. Notably, this approach maximizes the impact of existing TPR assets without incurring additional retailer or CPG budget considerations and ultimately increases sales.

RESULTS

Significant incremental sales on offered products were generated and represented a remarkable 46% year-over-year growth.

Year Over Year Continued Performance Increase

CONCLUSION

This demonstrates that digitally engaged customers are highly responsive to personalized offers. The incremental sales generated are closely tied to the number of digital customers. Importantly, implementing personalized TPRs campaigns requires minimal operational efforts while delivering substantial value to the retailer.
By tailoring promotions to each customer’s preferences, the retailer not only boosts its sales but also enhances the shopping experience, ultimately resulting in higher customer satisfaction and loyalty.

ABOUT SAGARMATHA

Sagarmatha is a leading provider of Machine Learning-based software solutions for global retailers and CPG suppliers. With over two decades of expertise, Sagarmatha’s innovative approach combines personalization and ongoing analytics to drive growth, enhance the customer experience, and elevate sales.

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