8 • Promo uplift (or promo effectiveness) predicts promotion ROI (uplift) by analyzing customer behavior during promotion and no-promotion periods. • Content propensity predicts the likelihood that a customer will respond to a piece of content. Propensity scores enable the automated delivery of the best content that will encourage a customer to respond to a call to action. • Content effectiveness measures the effectiveness of content by analyzing customer response. Highly effective content can be reused or thematically replicated in future campaigns. Model outputs are then fed to a decision engine that ranks and determines the best offer and content to show a customer at a given point in time. Design Innovative design ensures that content is both engaging and relevant. A sophisticated design layer that oversees two critical workflows (offer management and content production) helps manage the process, fueling both operational excellence and agility. A tech-enabled evolution from mass discounts to targeted offers A large, established North American retailer, known for its deep discounts during sales, transformed itself to enhance pricing and promotional strategies. A few years ago, the company began to develop an incremental marketing approach to improve profit. This shift aimed to optimize the financial outcomes of marketing efforts, ensuring that each promotion was both attractive and effective. To achieve this, the company incorporated three key levers: technology, analytics, and activation. The technology team integrated the company’s legacy point-of-sale (POS) infrastructure with its marketing technology stack, creating use cases that spanned both systems. This integration allowed for seamless data sharing and a unified view of customer behavior. On the analytics side, the retailer built models that provided unique insights into the overlap between products and customers, which helped it tailor its offers more precisely and prioritize retention efforts for frequent shoppers who had stopped purchasing. To bring it all together, the company formed cross-functional teams with representation from marketing, pricing, technology, and operations to align all commercial stakeholders and launch targeted offers while scaling back on mass- market promotions. The results were dramatic. Over a single year, the company produced $400 million in value from initial pricing improvements, and an additional $150 million from gen AI–enabled targeted offers.