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Personalization, the key to customer retention

Customization as an effective engagement strategy

 Enhancing customer experience is a challenge that food retailers are facing nowadays. As customer expectations get higher and higher, personalized offers have become a key driver to retain new customers and meet their expectations.

 Personalization is a powerful tool that allows retailers to invest in promotions strategically and achieve the best results. Therefore, customer segments not only ease the decision-making process of the purchasing and marketing departments but also allow food retailers to invest smarter and more strategically on each custom offer. But how to do that and why?

 Understanding consumer behavior first

 Leveraging big data is an important key to identifying and understanding consumer behavior by their frequent purchases, preferences, and category affinity. Once retailers have collected data, creating customer segmentation based on hundreds of attributes and launching hundreds of personalized marketing campaigns across different channels should be the next task they need to conquer. 

Retaining sporadic customers and enhancing the relationship with loyal customers

 On one hand, both sporadic and new customers expect to spend less on their frequent purchases and this is the opportunity to retain them through custom offers that make them feel special and irreplaceable. A clear example of retention campaigns that yield excellent results is increasing the purchase frequency through personalized offers and encouraging them to come back sporadic and shared customers by rewarding them with high-value offers. Another example would be encouraging their loyalty using lower-value coupons on their repeated sales. 

On the other hand, interacting with loyal customers by offering them personalized discount coupons is essential to any food retailer, with results reflected directly in the retailers’ revenue in the long term. Up-selling campaigns allow food retailers to boost their profitability by increasing the average order value of their most loyal customers.

 A loyalty marketing platform is the key

 Retailers need smart loyalty tools to segment shared and sporadic customers according to their average order value, preferences, behavior, and affinity. Some tools in the market, like Loyal Guru’s personalized offer module, allow retailers to plan, design, and launch hundreds of personalized offers in just a matter of seconds, guaranteeing better ROI results than the average campaigns. Click here to learn more

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