A successful 62.5% reduction in flyer distribution zone without cannibalizing sales.
When an exciting new sporting goods retailer came to Canada from the U.S., wanting to reach their desired shoppers, they called on our team for help. The retailer had initially categorized their customers based on shopping habits, and so found that these shoppers lived further from the stores than they had originally hoped.
A number of the desired shoppers were as far as 400km, and over a 4-hour drive from the nearest store location.
The retailer had initially distributed flyers across the country, based on their customer categorization. As a result, some stores received fewer flyers than others – among those their top locations – and the distribution zone spread out over 400km in certain areas.
This strategy just wasn’t sustainable. The retailer needed to be more efficient at reaching these customers who were spread out all over the country.
And that’s where we stepped in. We scrapped their initial model and began looking more closely at their shopper and customer behaviour data. We overlaid their sales data with geographical models, and we developed an index that blended this with sales per household.
We found that 80% of shoppers were coming from a closer distance than the retailer had originally thought – only 150km instead of 400km.
