How do retailers create targeted promotions?

Targeted promotions have proven to be a game-changer for the shopping experience, impacting both customers and retailers alike.


In this article, we take you through 3 major steps to create targeted promotions.

Step 1: Identify who the target audience is

First, retailers need to identify who their target audience is. There are a variety of different options:


  1. Psychographic: Beliefs, values, lifestyle, occupation, interests
  2. Geographic: Region, city, neighborhood, area code, county, climate
  3. Demographic: Gender, age, education, religion, race, marital status
  4. Behavioral: Purchasing habits, brand interactions

Step 2: Identify the promotion medium type

Next, they need to choose the medium type. Here are a few examples:


  • Email
  • Social platforms
  • Mobile app
  • Web ads
  • Store signage
  • Store display
  • Print ads
  • Direct mail ads
  • Search engine ads
  • Product placement
  • Podcast/ Radio / streaming services ad

Step 3: Identify the segments and rules

When creating targeted promotions, retailers create specific segments and rules. Segmentation involves grouping customers based on their product preferences (ex: new visitors versus loyal shoppers, athletes versus gamers) as each segment will buy different products or react to different promotions.

Examples of targeted promotions

 Specific customer

specific customer in promotion


region in targeted promotion


store in promotion

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