As traditional retailers face tougher competition from discounters and high street budget stores on price, a greater emphasis is being placed on providing customers with unique reasons to enter their stores. Strategies range from reinvigorating a customers’ passion for food and cooking, through the supply of distinctive and exclusive product offerings to creating a frictionless shopping experience by understanding customer behaviour.
Given the excitement of new products in trending categories for retailers and suppliers alike, it is easy to understand why products and categories that are commoditised may be more likely to get overlooked, despite this being an integral part of the shopping basket.
We’ve all done it, that time when you opened the fridge and there’s no milk for breakfast, or when you’ve lovingly prepared the Bolognese sauce, only to realise you’ve run out of salt for seasoning. Not only can this be a huge frustration for customers, but for infrequently purchased products such as salt, a panic or unplanned purchase going to a competitor can have a long standing impact on sales.
Following a reduction in their shelf space and the introduction of more speciality salts, Klinge Foods, producer of reduced sodium salt ‘LoSalt’ saw a decline in their customer numbers. i2C worked with the client to devise a campaign in Sainsbury’s to stem the decline and re-engage those lapsed from the brand. The team formulated a Coupon at Till programme, whereby a customer’s salt purchasing behaviour would be analysed using 2 years’ worth of data, giving individual households an average rate of consumption of salt. Combining this data with the time since they last purchased and what product/volume of product they bought, we were able to set up a campaign predicting the window of time in which an individual household would run out of salt. This insight was then used to deliver targeted LoSalt coupons to customers just before they ran out of salt, providing a timely reminder and reward for them to purchase when they are next in store.
This enhancement to targeting yielded a great uplift; Initial results for the campaign have shown improved redemption rates compared to previous Coupon at Till strategies which did not use the predictive methodology;
• The redemption rate for lapsed customers has thus far doubled, rising from 5.9% to 11.8%.
• Acquisition customers have also seen an increase of 11%.
• 63,150 customers have purchased LoSalt since the start of the campaign, with 10.1% of these being driven to purchase by the coupon.
By putting the customer at the heart of the strategy, i2C were able to provide an improved shopping experience for customers, better results for both LoSalt and Sainsbury’s and hopefully a few less under-seasoned dinners!
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