In their loyalty reward programs, large retailers adopt category-specific targeted promotions as an effective means to increase shoppers' basket values. However, neither the literature nor observed marketing practice provides category selection methods that maximize the promotion's...

It is standard procedure to use short-term measures for designing customized marketing campaigns and evaluating their success. We consider the integration of customer lifetime value (CLV) thinking into the category selection problem for targeted coupons. This problem involves two primary...