Personalized promotions is a powerful tool

Personalized promotions is a powerful tool to save margin in a highly competitive market

Sergey Balsin

Member of the petrol stations board

General Fueller is the chain of 23 petrol stations in Moscow, the Moscow and Tver regions. Constantly rising fuel prices and a fiercely competitive environment compel petrol stations to find new ways to fight for the customer. Moreover, petrol stations should acquire new customers and work efficiently with regular, loyal ones to retain them and find optimal solutions to increase their bills.

But customers are all different, with different needs, wallets and behaviors. Therefore the task is being built - to explore customers' behavior, communicate and promote personally. Small and medium petrol retailers have 1-5% margin and should be very attentive making promos. The secret is segmentation, you are the winner when you know to whom customer this or those promo is better to direct. Your financial risks are reduced to a minimum.

Unified marketing doesn't work - customers want a personal approach

For example, petrol cost raising always impacts retailers and many of them are intended to scale up retail prices.

Big chains have more space to maneuver, they fix prices not to lose their customers.
Small and middle ones should find out alternatives.
Personalized promo campaigns can be very useful to retain customers in this case.

When you know what customers buy, at what station, what time, with what price, basket size, and many other parameters, you do not randomly promote discounts, referrals, or bundlings. Segmenting customers according to their consumption models, we promote the right product to the right customer.

But manual segmentation takes lots of hours which means you are not fast to respond to the market needs.

With the help of Megainsight we automated segmentation. Customers' cohorts are made automatically now and it takes minutes, not hours anymore

Megainsight system analyses not only separate customers (one can always buy the same items) but takes into consideration behavioral similarities of other customers to enhance promo campaigns further. These are very complex calculations that are performed based on machine learning algorithms and applied to predict customer's desires.

Then the system automatically checks conversions of promo campaigns and retrain itself to make each promo maximum relevant to each customer cohort. If some coupons remain non-demanded they disappear from the list of coupons and are replaced by others. As a result, the customer always receives up-to-date promos. This feature is very important because customers change their consumption behavior from time to time.

«When do I recommend Megainsight platform? »

when you need a fast and powerful tool to grow revenues, retention, and LTV
when you have a strong competitive environment
when you do not have time to segment customers manually
when your current loyalty program is not enough

Related Articles