Delivering a location-based campaign for a retail brand to restore growth and sales

Date posted: 4 Jul 2019

Posted by: Sarah Coften

Post category: Insights

The Challenge

Recently we have been working with an established high street retailer operating in the food and drinks category. They were losing market share to their main competitors and came to us with the challenge to restore growth by increasing customers and like for like sales.

Our Approach

Going through our planning process, we identified that our clients’ customers are not particularly loyal. Through research, we also learnt that our client’s product is thought to be the most premium and best quality in the category. Our approach was to drive trial by using a strong offer advertised in close proximity to store. This would not only entice customers of our competitor stores, but also encourage prospective customers, to try the product too. Given the strength of the product, we strongly believed that trial would lead to repeat purchase.

Our media strategy used proximity posters with mobile social and video geo fenced to within 100m of a store, to guide the target audience to the nearest store using a map that opened on their phone

In order to prove the concept with a limited budget initially we picked a test region with a reasonable density of stores – Manchester. The rest of the clients’ retail estate outside of Manchester would be the non-exposed control to enable us to accurately measure the effect of the test. Success in Manchester would lead to a national rollout.

The Results

Our KPIs were to increase footfall and like for like sales:

Manchester stores saw an increase of 48% in footfall and like for like sales increased by 80% vs the control. The overall campaign ROI was £1.73 (Based on 4 weeks of advertising + 4 weeks post campaign without advertising but still showing increased sales and repeat purchase)

The client has now briefed us to roll out the campaign to all major cities in the UK in Sept 2019 with a significantly increased budget.

Conclusion

Through rigour, we were able to understand our client’s product and marketplace, allowing us to develop a strategy that used proximity-based marketing on a limited budget in a test region to prove an uplift in like for like sales and footfall and deliver a positive ROI. This has given our client the confidence to spend more budget on advertising, and to roll out the campaign to more UK cities.

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