Nowadays, many groceries provide personalised pricing for customers. This process is done by taking one’s customer purchasing data and behavior and then producing a personalized deal that might seem good to them only. Some online retailers do this by suggesting items to buy based on past purchases, whilst bigger retailers mail personalized paper coupons. Some also offer discounts online or through mobile. This is a type of below-the-line marketing: non-media promotional activities.

The aim of this kind of promotional activity is to increase sales by increasing consumers’ number of visits to the store. The various offers and discounts act as an interest point. It encourages action (to buy more products) rather than only informing or reminding customers of a product. It enhances customer’s shopping experience as shopping will feel effortless to them. It also reduces direct price competition. Personalised pricing also sway customers away from other firms and brands. This creates customer loyalty. However, this kind of promotion might be expensive in the short run. Hence, they will need to devise a long-term strategy for the future.

Source: http://www.businessweek.com/articles/2013-11-14/2014-outlook-supermarkets-offer-personalized-pricing#r=hp-sf