Case Study 8
A leading department store chain sees double digit redemption and larger basket sizes.
Challenge:
A leading department store chain was concerned about weak sales and underperforming stores. The chain was looking for a way to reverse the sales spiral, with focus on increased basket size and incremental sales.
Solution:
The solution began with analysis of the surrounding areas of each store so as to optimize targeting capabilities. Stores in urban areas targeted employees within as little as two miles, and stores in rural areas targeted as far out as 20 miles. The strategic solution also included a mystery offer of $10 to $50 off entire purchase, which was not revealed until checkout.
Results:
Program data showed that the mystery offer drove over 17% redemption and resulted in larger basket sizes. In addition, survey results showed that the program delivered new and lapsed consumers, with over 50% of the respondents reporting that they had not shopped at the chain for over 90 days prior to the program, and 5% had never visited the brand.
