Food retailers have the same objective, which is to increase sales and obtain a greater return on investment. But the question is: where and how should they invest their money to achieve these goals?
Starting from the beginning
With the objective of increasing ROI, identifying which promotions are more valuable and relevant for both customers and food retailers is key. Without a doubt, the more personalized the promotions are, the greater their effectiveness.
Mass campaigns do not have a clear target, therefore supermarkets have little to no control over these, while their return of investment ends up being too low.
Replacing mass promotions for personalized ones
Studies have shown that personalization leads to 70% of retailers having a return on investment on promotions of 200% or higher .
Personalized promotions not only help retailers to boost sales and maximize ROI but they also help retailers to get more out of their marketing efforts and reduce customer acquisition costs. The key to starting working on this is to understand customer behavior and tailor their purchase experience to their needs, encouraging them to buy more and more.
The more personalized the promotion, the higher the ROI
According to research provided by SmartFocus, personalization leads to a 300% conversion rate and a 7% annual revenue increase.
The main goal of personalized promotions should be increasing sales as well as Average Order Value and Customer Lifetime Value, this is where customer data becomes so important for retailers.
Using the right tools
By using the right technology and platforms, food retailers are able to collect customer insights and create personalized promotions across different channels. A supermarket, for example, can automate their marketing efforts, making sure that customers get the right offer at the right moment, using marketing platforms such as Loyal Guru. Click here to have an overview of our platform and discover how you can take your ROI to the next level.