Blog

Optimisation of mass marketing draws customers to stores

One of the hot potatoes in today’s marketing is one-to-one marketing which, thanks to technological development and the multi-channel approach, is an everyday issue to an increasingly high number of advertisers. However, in the one-to-one fever we easily forget that mass marketing is still the basis of advertising – particularly when attracting new customers. We have increasingly easy-to-use tools available which help us to optimise the offering on a daily basis: when choosing special offers for print media, optimising the landing page of the website or, say, selecting products to place on store shelf ends and in display windows.

Nearly all customers have more than one loyalty card in their wallets, but the card as such does not make them loyal. As a matter of fact, around one third of regular customers are actually loyal. In Finland - the promised land of cards - we have a large churning mass of customers who are not genuinely committed to any trading group or chain. And they are the most potential target group for mass marketing. So how to make them interested in mass marketing offering and direct their steps to the desired address?

Alternatives to bargain coffee

As experience proves: coffee still remains a strong traffic builder in grocery retailing. If you add oranges on the front page to accompany the coffee, you can expect lots of customers. But is this the most optimal marketing strategy from the viewpoint of long-term sales and profit? Could marketing be implemented in another way?

Coffee works reasonably well as a traffic builder: it is a fixture in many shopping baskets. But what is the added value gained from special-price oranges next to the coffee ad – or vice versa. Will you then find both bargain coffee and bargain oranges in the same shopping baskets? If so, could you have increased customer flow and sales by choosing some other product instead of oranges? Or could a novel set of special offers have attracted completely new customers to the store.

Just for this - the basic question of mass marketing - there is an effective optimisation tool for mass marketing. It can be used to ensure that the products selected for marketing work as well as possible in the target groups concerned – while on the other hand to eliminate unnecessary special-price products that eat up profit from sales. By optimising the offering, the traditional coffee can be replaced, say, with three less margin-eating bargains and achieve the same or even higher pull percentage and sales.

Receipt data provides the basis

The optimisation of mass marketing can be implemented by using customer loyalty data or receipt data without customer identification as well, which means that it is also suitable for stores and chains which have no customer loyalty system. In such a case, the product combinations on receipts are reviewed. The receipts can be segmented for instance according to the euros, product content, special presentations, time of purchase (Christmas, Easter, first of May, Midsummer…) or according to store.

One of the features of the optimisation tools of mass marketing that generates added value is easy scalability. The tool can provide help for daily decision-making at the chain, department or store level. So the store can, on a department-specific basis, for instance, highlight the products its customers are most interested in and so activate incremental sales. Accordingly, the optimisation tool of mass marketing helps people make individual daily decisions based on facts and at a fast pace.

Besides one-to-one marketing, we are now also living the era of the optimisation of mass marketing.

Tommi Havukainen, CAO Houston Analytics

Houston Analytics is an analytics company started by experts on data-driven leadership. By linking data to business decision-making Houston Analytics is guiding its customers to market leaderships in their industries.