As featured in Retail TouchPonts | November 2026
Are Mass Promotions Doing More Harm Than Good?
Mass discounting may drive traffic and move inventory, but is it costing retailers more than they realize?
In a recent Retail TouchPoints article, Dan Surtees, VP of Strategy at XCCommerce, explores why retailers need to rethink traditional mass promotions and shift toward more targeted, personalized incentives that drive profitable growth.
XCCommerce’s 2026 Retail Promotions Shopper Study found that 75% of consumers value personalized offers, while half care less about where they receive an incentive than whether it works consistently across channels.
The article highlights three priorities for retailers:
- Treat promotions as an acquisition cost. Measure discounts with the same discipline as paid advertising, focusing on customer acquisition, retention and profitability.
- Move beyond one-size-fits-all offers. Leverage shopper data to deliver relevant incentives based on individual preferences, behaviors and purchase history.
- Modernize promotions technology. Unify data and promotions execution to manage complex offers, prevent conflicts and ensure seamless redemption across every channel.
The bottom line: Retailers don’t need to eliminate mass promotions. They need to make personalized, precisely executed incentives the foundation of their strategy to strengthen loyalty, protect margins and accelerate growth.
Read the full article in Retail TouchPoints
Frequently Asked Questions
Are mass promotions hurting retailers?
Mass promotions can drive traffic and move inventory, but excessive discounting can erode margins, contribute to promotion fatigue and reduce customer engagement. Retailers can improve profitability by balancing broad promotions with targeted, personalized incentives.
Why are personalized promotions important?
Personalized promotions help retailers deliver more relevant offers based on customer preferences, purchase history and shopping behavior. XCCommerce’s 2026 Retail Promotions Shopper Study found that 75% of consumers consider personalized offers important, highlighting the growing demand for relevant incentives.
How can retailers improve promotion effectiveness?
Retailers should treat promotions as a customer acquisition and retention investment, measuring their performance alongside other marketing channels. By leveraging customer data, modernizing promotions technology and delivering targeted incentives, retailers can improve conversion rates, strengthen loyalty and protect margins.
What role does technology play in personalized promotions?
Modern promotions technology enables retailers to manage complex offer rules, personalize incentives at scale, prevent discount conflicts and ensure accurate execution across stores, ecommerce, mobile apps and other shopping channels.
How can retailers prevent promotion failures at checkout?
Retailers need a centralized promotions engine capable of applying eligibility rules, managing offer stacking and resolving conflicts in real time. This helps ensure customers receive the correct discounts and loyalty benefits consistently across every channel, reducing checkout friction and lost sales.
Should retailers eliminate mass discounting?
No. Mass promotions remain valuable for driving traffic, clearing inventory and attracting customers. The goal is to complement broad discounts with more precise, personalized incentives that improve customer relationships and support sustainable, profitable growth.
