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Food Retailers: How personalized promotions are the key to customer loyalty

Personalized promotions
Author – Alejandra Remolina

During the past years, in the food retail industry, we have witnessed an increasing trend of delivering personalized promotions, due to the high demand for better shopping experiences. In addition to this, retailers are becoming more and more aware that massive promotions have very little returns of investment.

For these reasons, traditional promotions got stuck in the past and retailers are looking for new ways of engaging with their customers through personalization. 

Understanding customer background, behavior, and preferences is essential for food retailers to offer promotions according to each customer’s needs. Mapping out the customer journey helps food retailers set up strategies that cover every gap between customers and supermarkets, creating much more personal experiences.


The key driver to loyalty and retention is adopting a customer-centric strategy to deliver the best customer experience and building long-term relationships. The biggest food retailers in the world combine customer data and smart loyalty marketing platforms to analyze and optimize customer insights smartly to engage and retain customers long term. The big question for food retailers is: Are they truly offering customers what they really want?

Putting an end to massive promotions

91% of massive promotions don’t see a return on investment, meaning they usually end up having a negative ROI. The main reason for this is that customers aren’t receiving offers to purchase what they really want or need and many offers remain without being redeemed.

Herein lies an opportunity for retailers to increase sales and promotions ROI by offering hyper-personalized discounts based on customers’ historic purchases, average spend, category affinity, and individual preferences. 

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The power of Personalized promotions

There is a huge difference in the effectiveness of personalized and massive promotions. Therefore, smart investments are becoming the key for food retailers to be more competitive and profitable.

Here is an example:

If a company’s revenue is €20,000 and the company invests 10% of its revenue in promotional campaigns, the results will be the following:

  • % Increased Sales


Increased sales


  • % Return On Investment 


Return On Investment

Personalization isn’t an option, but a necessity to remain competitive

Apart from personalized promotions, personalized loyalty programs have been an important tool to enhance the customer experience. 

Each step of the customer journey represents an opportunity for the retailer to nurture and persuade customers to purchase, come back, and remain loyal to their brand.  This can be done by offering point-based loyalty programs, allowing customers to choose the redemption of their well-earned points, either in third-party rewards, discounts, customer experiences, or others. Ideally, food retailers should not only be focused on increasing revenue but on acquiring new customers and keeping them engaged.


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