Summary of The $70 Billion Prize in Personalized Offers

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The $70 Billion Prize in Personalized Offers summary

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There’s been a buzz around personalized offers for years, but widespread societal change brought on by the COVID-19 pandemic has intensified that buzz up to something more like a deafening crescendo. Consumers are on the brink of a new way of interacting with their favorite brands, and companies that want to capitalize on changes in the way people shop will need to offer personalized marketing. In this special report, the Boston Consulting Group describes retailers that are currently benefiting from personalized marketing, then explores the off-the-shelf technology that can help your company do the same.

About the Authors

Mark Abraham, Javier Anta Callersten, Sebastian Bak and Roelant Kalthof are professionals with the Boston Consulting Group.


Boston Consulting Group research suggests that diverting 25% of promotion spending from mass promotions to personalized offers could lead to a 200% increase in ROI.

No investment is a sure thing, but on one point, the latest statistics are clear – increasing personalized offers will be vital to retail success. The technology for such offers is available and should work off-the-shelf, but retailers will still need to experiment to create the right combination of channels and categories.

The pandemic has changed everything, and purchasing habits are no exception. This sea change has given retailers a rare chance to shift their strategies. Inflation is also up, with prices in the United States rising 5% from 2020 to 2021. Your customers have varying price sensitivity, so increasing prices...

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