Let’s be honest — when was the last time you paid full price at your favorite store?
For me, there’s this home goods store my wife and I love. We go every few months, and without fail, we always check for a coupon before we head in. Why? Because they send coupons constantly. And it just feels wrong to pay full price when you know a 20% off code is likely sitting in your inbox.
Sound familiar?
This is how a lot of retailers operate these days — flooding inboxes with daily deals, weekly promos, and massive “everything must go” discounts. It definitely gets people to buy… but there’s a catch.
Promotions work — that’s why stores keep doing them. But there’s a dark side to this strategy. Over time, customers catch on. They start waiting for coupons before making a purchase, and retailers feel the pressure to send even more promos just to keep up.
It’s a cycle: more discounts → more shoppers waiting for discounts → more discounts needed to drive the same sales. And every time a shopper uses a coupon they didn’t really need, the retailer loses potential profit.
So how do you break the cycle?
Here’s the truth: blasting every customer with every deal isn’t the answer. What works better is sending the right promotion to the right person.
Think about it — someone who’s already likely to buy doesn’t need a coupon to be convinced. But someone on the fence? A well-timed offer might tip the scale.
That’s where segmentation comes in.
Not sure where to begin? Keep it simple. Start with just two groups:
Then, layer on more nuance. Here are a few ideas:
The goal? Only offer discounts when they really move the needle.
You might be wondering, “If I’m sending different promos to different people, won’t my website get confusing?”
Not if you personalize it.
Instead of plastering a giant “40% OFF EVERYTHING!” banner across your homepage, use dynamic content to show different offers to different visitors. First-time browsers could see one deal. VIPs might see another. And if someone clicked a promo from an email, make sure they see that same offer when they land on your site. It keeps the experience smooth and consistent.
If you’ve got the tools and the data, machine learning can take this to a whole new level.
Rather than handpicking which offers go to which groups, machine learning can automatically choose the best promo for each individual based on their behavior. One shopper might see 10% off cookware. Another might get a loyalty program reminder. A third might just see an alert for new arrivals in a category they love.
It’s not just smart — it’s scalable. And it works.
You don’t need more promotions. You need smarter ones. Focus on who you’re talking to and what will motivate them — and you’ll build stronger customer relationships, increase sales, and stop leaving money on the table.
Leave Comment