A regional grocery chain in Sacramento tried cutting costs by moving their advertising circular distribution away from Save Direct Mail and shifting to broadcast (70% TV, 30% radio) a few weeks prior to July 4. A detrimental strategy due to lost sales, the client returned to direct mail as soon as possible. Learn how they generated:
To help our client regain traction after losing sales, we placed them back in front of shoppers who rely on print ads to plan their grocery trips.
Powerful Media & Engagement
Leveraging neighborhood-level targeting around the stores, we drove higher engagement than ever. Clearly, shoppers were delighted to see the grocer’s circular inserted within their weekly direct mail package.
Compare the response. Previously, the retailer had a consistently strong circular sales performance, which fell during the broadcast month. Average sales had declined from a 153 index to 113, and average household penetration had dropped from a 124 index to 105. Fortunately, with the return to direct mail, the dollar sales index GREW to 164 and to 126 for average household penetration.
According to IRI data, cutting out direct mail had opened the door for a big box competitor to steal sales during that month.
*Source: IRI CSIA: Sacramento Dark Month IRI quad week; 153 sales/124 HH% Index based on 3 months of sales vs. YA; 113/105 Index based on one month of sales without direct mail vs YA; 164/126 index based on one month of sales vs. YA with direct mail