One of the largest food retailers in Canada was experiencing weak response rates from its direct marketing efforts. Consequently, the retailer was looking for a more effective and efficient approach to developing promotions that improved shopper loyalty, increased store traffic and improved margins.
Antuit worked with the retailer’s leadership team to develop and implement a personalization solution that aligned promotional offers with specific shopper segments. The solution integrated behavioral analytics and other purchasing variables into the retailer’s promotional strategies.
Director of Loyalty Marketing
Food Retailer
The personalization solution scored promotional offers based on targeted shopper segments and offer relevancy. Offers were also filtered to prevent cannibalization of private label products and to avoid similar offers from competing manufacturers.
The intuitive user interface easily accommodated changes to budget parameters, transactional data updates, new shopper targeting as well as revised business priorities and constraints.
In addition to personalizing offers and optimizing the mix of promoted items, the personalization solution used digital distribution to deliver the right value-based message to the right shopper at the right time. Offer personalization also featured support for transactions and loyalty-building campaigns, enabling the retailer to align spending with specific basket types and time frames.
The personalization algorithm considered budgetary parameters for each offer as well as communication vehicle constraints. Unallocated offers were backfilled using popularity scores and heuristics, ensuring that all available incentives were applied across the portfolio of promoted products.
Personalized offers and the targeting engine improved redemption rates by as much as 400%. As a result, the retailer generated $20 million in incremental revenue.