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

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 shopper is already in store, still tend based on indicators that drive recency, frequency, and monetary value (RFM). In order improve efficiency, authors propose targeting shoppers information derived from regularity patterns individual interpurchase times at point of sale. When compared RFM-based targeting, proposed live approach translates into higher redemption rates (+ 10.5 percentage points), revenues 42.3 purchase frequencies 44.2 points). The findings emphasize importance timing considering customers’ outside potential for dynamic in-store targeting.