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:

Psychographic: Beliefs, values, lifestyle, occupation, interests
Geographic: Region, city, neighborhood, area code, county, climate
Demographic: Gender, age, education, religion, race, marital status
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

Region

Store

Founded by experienced data scientists and retail experts, Cognira is the leading artificial intelligence solutions provider.