Take your brand strategy in FMCG beyond guesswork, utilising a range of available datasets to increase shopper loyalty and boost profitability.
A large FMCG chain aimed to:
- Shift from a product focus to a customer centric approach
- Improve the effectiveness of its marketing spend
- Improve its customer insight & understanding
Datamine transformed transactional data into actionable marketing knowledge by:
- Obtaining daily transactional data from over 60 stores
- Merging and analysing the data to create a customer centric view.
This was done by identifying households and their ‘shopping basket’
Using data analytics to generate critical marketing information about each household, including:
- Potential spend
- Price sensitivity
- Share of wallet
- Categories shopped
This customer insight was delivered via a secure online dashboard and key management reports were provided.
The online dashboard acts as a single data repository allowing the FMCG chain to segment its customers. Below is an example of a profile constructed from the segmentation. Each profile differs depending on the requirements and the data available.
This shows the top segment of the base with regards to spend. The customers within this segment are more likely than the base to:
- Be high income earners
- Be tertiary qualified
- Be self-employed, earn interest, dividends, or rent
- Work in professional industries
Although the top segment only accounts for 8% of the total customer base, they account for 29% of total customer spend. These are the FMCG chain’s high value customers.
The Segmentation identified high value customer groups so they could be targeted with relevant and timely communications. As these customers were already spending, the focus was not on acquisition but on providing offers that were relevant and timely to the customers. As a result, the chain achieved greater response rates and significant return on investment.
A large FMCG retailer wanted to improve its advertising effectiveness by reducing the number of circulars distributed – without impacting store revenues
Transactional and Census data was extracted to calculate the profitability of each meshblock
Unprofitable meshblocks were identified by comparing the profit from the sales in the meshblock to the cost to distribute circulars
The impact on the retailer was assessed by the use of control groups and testing the approach in similar catchment areas
Meshblocks were converted into distribution walks
Delivery to unprofitable walks was stopped
Distribution has been systematically reduced with six digit cost savings in the first year and no adverse effects on chain revenue
A major FMCG group were running full page newspaper ads showcasing discounts at one of their supermarket brands. This type of advertising is expensive and the company wanted to assess its short-term return on investment and discover whether or not the ads were actually impacting sales.
Datamine used supermarket checkout data to analyse the impact of the newspaper ads. Sales in the promotional periods were compared to before and after the promotions, and to those during the advertising period.
Datamine also assessed the effect of the product specials themselves, measuring increased sales of the advertised products and the revenue change of products within the corresponding category.
The analysis found no significant increase in sales revenue or store visits during the promotions. In line with this, there was no evidence that the newspaper ads affected customer behaviour.
This data-driven strategy has assisted the company in optimising future media planning and ensuring the best return on investment from its campaigns.