Win Shoppers With Personalized Omnichannel Coupons This Holiday Season

This holiday season, savvy retailers will connect with value-focused shoppers through an omnichannel coupon strategy powered by personalization. Heading into the holidays, households are keeping an eye on budgets due to ongoing inflation and, for many, the resumption of student loan repayments. Shoppers also expect seamless brand experiences across channels. To be successful, retailers must remove friction and enable savings anytime, anywhere.

Personalization Today

Personalized promotions resonate with today’s holiday shoppers who are short on time and attention. The more contextual and customized the offer, the higher the engagement and redemption rate. Personalized coupons are an opportunity for retailers to demonstrate how well they know their customers while providing them tailored savings. Our research shows 59 percent of consumers are more likely to purchase a certain brand if they receive personalized content. Examples of personalized promotions include:

• Context-based offers: Tailor the coupon type based on what resonates with customers. For example, BOGOs for stock-up items, dollars off for splurges.
• Complementary products: Issue coupons for complementary products based on purchase histories and other factors. If a shopper buys peanut butter regularly, offer a jelly coupon.
• Date offers strategically: Send coupons timed to past purchases to encourage repeat orders, such as monthly essentials.
• Use preferred channels: Determine customers’ channel preferences (e.g., email, print, SMS, app) and deliver offers accordingly.

The Omnichannel Factor

Meeting shoppers in the moments that matter most with relevant offers is only part of the equation for getting items into baskets. While consumers shop across different channels for different purposes, our research shows that 67 percent of omnichannel shoppers expect coupons to be the same/similar between in-store and online shopping.

To meet this expectation for personalized omnichannel offers, retailers must find ways to deliver personalized coupons at scale across channels. Here are four key components to scaling personalized offers in an omnichannel approach:

1. Automate coupon creation.

Use algorithms to dynamically generate coupon details such as products, values, expiration dates, etc., based on real-time data and other data, including purchase histories, to automate scaling.

2. Test channel and offer combinations.

Try various channel and coupon combinations to determine optimal matches based on engagement and redemptions. Refine them over time. An email message plus a BOGO deal could be one winning mix, for example.

3. Coordinate across teams.

Break down channel silos by having teams collaborate to harmonize marketing efforts. This ensures cohesion in delivering a personalized experience at each touchpoint.

4. Analyze performance.

Track coupon metrics across channels and by customer segment to identify new personalization and channel opportunities. Different groups may have unique needs.

With the right technology, processes and teams in place, retailers can show holiday shoppers that they know them with personalized offers in an omnichannel world. And with testing and optimization, brands and retailers can continually refine coupon targeting and provide maximum value. Coupon personalization takes a correlation of data insights and experimentation to perfect, but the effort pays dividends in customer satisfaction and loyalty.

Becky Eldredge is vice president, business development consulting, 84.51°, a retail data science, insights and media company.