IDEAS home Printed from https://ideas.repec.org/a/spr/orspec/v46y2024i1d10.1007_s00291-022-00685-w.html
   My bibliography  Save this article

Live shopping promotions: which categories should a retailer discount to shoppers already in the store?

Author

Listed:
  • Julia Wamsler

    (University of Zurich)

  • Denis Vuckovac

    (ETH Zurich)

  • Martin Natter

    (University of Zurich)

  • Alexander Ilic

    (ETH Zurich)

Abstract

Digitalization allows retailers to target customers with personalized promotions when they enter the store. Although traditional promotional retailer objectives, such as store visit, become obsolete once the shopper is already in the store, retailers still tend to target customers based on indicators that drive store visit, such as recency, frequency, and monetary value (RFM). In order to improve promotional efficiency, the authors propose targeting shoppers based on information derived from regularity patterns in individual interpurchase times at the point of sale. When compared to RFM-based targeting, the proposed live targeting approach translates into higher redemption rates (+ 10.5 percentage points), revenues (+ 42.3 percentage points), and purchase frequencies (+ 44.2 percentage points). The findings emphasize the importance of promotional timing and of considering customers’ outside potential for dynamic in-store targeting.

Suggested Citation

  • Julia Wamsler & Denis Vuckovac & Martin Natter & Alexander Ilic, 2024. "Live shopping promotions: which categories should a retailer discount to shoppers already in the store?," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 46(1), pages 135-174, March.
    • Handle: RePEc:spr:orspec:v:46:y:2024:i:1:d:10.1007_s00291-022-00685-w
    DOI: 10.1007/s00291-022-00685-w
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s00291-022-00685-w
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s00291-022-00685-w?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:orspec:v:46:y:2024:i:1:d:10.1007_s00291-022-00685-w. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.