Grocery Retail

High visit frequency, diverse customer segments and thousands of SKUs require coherent marketing strategy that communicates superior value proposition to the customers on weekly basis. Recognising which products and product categories bring in the most profitable customers, what are the weekdays with the highest ROMI and how brand marketing affects long-term sales makes grocery retailers’ marketing activities more effective and agile.

Results from our cooperation with Stockmann Delicatessen

  • Identified +5% points margin improvement potential in promotions
  • Identified +50% improvement potential in marketing ROI
  • Helped Delicatessen to break down silos between marketing and merchandizing

Star promotions

Media items are the biggest performance driver in media ROI. Sellforte’s AI finds the best promotions and marketing messages for each channel, helping retailers to tailor their promotion assortment for different audiences.

Daily performance & seasonalities

Campaign performance varies from time to time. Finding out the best days for media investments improves the marketing ROI substantially and avoids to waste resources on inefficient campaigns.

Brand marketing

Brand perception affects customer’s pre- and post-purchase evaluations in major way. Brand campaigns shape the consumers’ perception of the company’s product variety, prices and brand image that can be measured as long-term like-for-like growth.

Star promotions. Looking at each promotion’s sales metrics during the campaign provides only a partial picture of the total promotion effectiveness. Especially in the grocery sector, retailers need to take into account how different discounts affect the normal-priced products’ sales performance within the same and across other product categories, during and after the campaign, to uncover what are the most profitable items in each campaign. Sellforte Marketing ROI -solution shows:

 

  • What is the incremental sales and margin uplift for each media item
  • What are the main drivers of effectiveness/ineffectiveness for each promotion (cannibalization, stock-up, vendor funding, waste etc.)
  • How to allocate ad space between different product categories to maximize each ad’s ROMI

Daily marketing performance & seasonalities. One of the leading factors in marketing effectiveness is the timing each campaign is rolled out. To reach the full sales potential, campaigns need to be synced with customers’ buying patterns by analyzing traffic and basket size impact during different campaign days. Additionally, specific seasons deliver multiple times higher ROMI compared to ordinary weeks, providing substantial sales levers for marketing investments. By attributing sales and margin uplifts for each channel on daily level, retailers can determine what are the best weekdays for e.g. weekly promotions, LC-campaigns or mega-campaigns for their respective media plan. Sellforte’s UI helps grocery retailers to:

 

  • Monitor how much incremental sales and margin each media investment brings on daily level
  • See if overlapping marketing activities include channel synergies, or should the resources be allocated differently
  • Recognize the most effective weekdays and seasons for different campaigns (e.g. weekly campaigns on Thursday, additional marketing investments for Holiday seasons)

Brand marketing. Customers’ perceptions about the retailer’s prices, assortment variety and the brand itself influence both the conscious and subconscious triggers in the consumers’ decision making process. Calculating the concrete impact for the branding campaigns requires advanced cleaning algorithms to exclude the tactical activities and external factors (such as weather, store openings/closings and macroeconomic changes), but it provides profound insights about consumers’ preferences. By combining qualitative data (e.g. surveys and interviews) with Sellforte’s long-term sales and margin metrics grocery retailers can:

 

  • Find out what are the key product categories driving the consumers’ brand selection
  • Compare different branding campaigns’ impact on long-term sales growth 
  • Align marketing strategy with constantly changing consumption trends

Concrete benefits for different roles in company

Marketing director

  • Holistic ROI-view of each media’s performance for incremental sales and margin
  • Understanding the sales value of brand marketing
  • Ability to recognize which products and marketing messages to include in each media

Commercial director

  • See which campaigns and new product launches increase the whole product category sales
  • Predictable sales for upcoming months when implementing media and campaign plan

Product group manager

  • See how products cannibalize each other inside a product group
  • Discover which product categories to promote to get the best traffic impact to online and offline

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