Promotional programs do not work well when they lead to existing customers buying what they would buy anyway, but at a lower price. Instead, they work best when they get existing customers to buy more profitable products than they otherwise would, and when they attract competitors' customers and convert them into loyal customers. How can Urban Outfitters further improve its promotional programs to ensure they achieve these desired goals?

These days, the clothing retailer landscape looks like a war zone, littered with once-thriving mall and big box retailers now struggling to stay alive. As trends and shopping patterns have changed, few of the veteran specialty clothing retailers have escaped unaffected. But Urban Outfitters has defied the odds. The international lifestyle retailer's revenues have increased year after year, doubling between 2010 and 2020. Although Urban Outfitters has not been without challenges, the company has grown steadily by developing and maintaining deep bonds with customers. It succeeds by remaining flexible and dynamic, continually seeking innovative ways of staying relevant to its young adult customer base. Today, that means using data to personalize rewards and connect with customers through mobile channels.