🎓 Definition
A targeted offer is a commercial proposition sent to a specific customer based on her shopping preferences and behaviors.
- A targeted offer can be part of a campaign and is anyway managed like a Campaign
- A targeted offer can be initiated and financed by the Retailer.
- A targeted offer can be initiated by the Retailer and sponsored by the Suppliers
By definition, the Targeted offer is personalized.
🧪 Example of Targeted Offer
Targeted offers will usually be linked with a Targeted Audience, this could be based on age, gender, interests, or even location. For example, a Retailer planning to support the launching of a new Baby diaper brand would likely have a target audience of parents with young children. By contrast, a Retailer who wants to promote new Nutritional Supplements for the elderly might have a target audience that includes elderly people interested in staying healthy.
❓What is Targeted Offer used for
Developing deeper Customer Loyalty
The capability to stand out from competitors by reaching customers on a more direct and individual level might help you build long-lasting relationships. When clients identify your brand as unique and feel you have met their specific expectations, they're more likely to be loyal to your brand, gaining you a customer who will buy from you again and again.
Improving Customer Relations
Getting closer to your customers and building strong relationships helps them view your services and products differently. When you develop a deeper understanding of your potential customers, you focus on their needs and see how you can meet their expectations. Identify features you may include in your products and services to ensure you match your customers' needs as you improve your brand.
Focusing on a specific segment
Target marketing can enable you to be more specific about your marketing plans, the direction of brands and initiatives. Through target marketing, you can focus on your marketing goals, get everyone in the company working toward the same goal, and focus on your vision. The advantage of staying focused on target marketing is creating small groups of people that you can connect and analyze through Cohort Analysis. A focused marketing approach helps businesses to use their resources, budget, and time to create more business relationships with Loyal Customers.
How are targeted offers created and delivered to customers?
Targeted offers are typically created using customer data analytics and segmentation techniques. Retailers gather information on customers' shopping preferences, behaviors, and demographics to identify specific segments or groups of customers. Advanced marketing tools and platforms then allow retailers to design personalized offers tailored to these segments. These offers can be delivered through various channels such as email, mobile notifications, social media, or personalized advertisements on websites. The delivery method often depends on the retailer's chosen communication channels and the preferences of the targeted audience.
What are the potential challenges or drawbacks of implementing targeted offers?
While targeted offers can be highly effective in engaging customers and driving sales, there are several challenges and drawbacks to consider. One significant concern is data privacy and security, as retailers must ensure compliance with regulations and protect customers' personal information. Another challenge is the risk of alienating non-targeted customers who may feel excluded from special promotions or offers. Additionally, managing multiple targeted offer campaigns can be complex and resource-intensive, requiring careful planning, coordination, and monitoring to ensure consistent messaging and optimal results.
How can retailers measure the effectiveness of targeted offers?
Retailers can measure the effectiveness of targeted offers using various key performance indicators (KPIs) and analytics tools. Common metrics include conversion rates, sales uplift, customer engagement levels, and ROI (Return on Investment). By tracking these metrics before, during, and after the targeted offer campaigns, retailers can evaluate the impact of their promotions on customer behavior and sales performance. Advanced analytics and cohort analysis can also provide insights into customer segmentation, preferences, and lifetime value, helping retailers refine their targeting strategies and optimize future campaigns for greater success.
🖥️ Make it happen in Ulys Customer Intelligence
How to Create a Targeted Campaign in Ulys: 4 Simple Steps
Step 1: Select the Campaign Date, Campaign Name, and Targeted Campaign option under the Type of Campaign.
Step 2: Select your Customer List by selecting Customer List in ULYS or upload the Customer List file.
Step 3: Select the Store Distribution for a Campaign.
Step 4: Select Promo Products and fill in Promo Product Details. Once all fields are added, finally click on 'Create Campaign'.
