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Page 1: Specialty retailer’s data is leveraged effectively ... · Specialty retailer’s data is leveraged effectively; attracting more holiday shoppers and producing sweet smell of success

Specialty retailer’s data is leveraged effectively; attracting more holiday shoppers and producing sweet smell of success Fourth quarter is the make-it-or-break-it time for many retailers. This is especially true for this candle retailer given the gift-oriented nature of their product line. The client knew from experience that they could trust Valassis with their sales data, and utilize it to activate incremental purchases. Furthermore, by applying insights gleaned from their prior, holiday, shared mail program, they could make adjustments and build continuous success. Frequency and ranking geography works to enhance results The marketer decided to do a 3-time drop -- September, October and November --leading up to the Christmas holiday. Compelling results in 2012 resulted in a decision to increase total distribution over the 3 programs from 20 million pieces to 42 million. Leveraging the client’s data, the targeting methodology was built on a sales-per-household index model. The client provided a market and store list, and Valassis went to work to analyze, score and rank neighborhoods (ATZs) based on the $/HH model. Distribution was based on the index ranking, going out as far as 15 miles from their store locations to assure that the “richest” geography was being covered. An oversized insert was printed on scented 80# high quality stock and delivered via RedPlum Shared Mail. Newspaper was also used to cover high indexing solo areas. Compelling offers like “Buy 2-Get 2”, and “$15 off of $35 purchase” helped activate customers.

Bright 4th quarter due in part to intelligent media delivery The response rate for the 3-time program was 0.44% with the November event commanding 0.64% response. The cost per response came in at just under $13 against an average ticket of almost $49. This coupon-driven ticket was actually $4 higher than the non-coupon average ticket. Just over 9% of all sales were coupon sales and nearly 21% of all customers were first time buyers. The net return-on-investment over the 3 drops was $1.80 for every dollar invested. For the most critical November/December drop, the ROI was $2.54 or 254%. Thanks to illuminating insights, data-driven targeting, scented oversized inserts, high readership and response to RedPlum Shared Mail, and irresistible offers, the retailer achieved success.

Solution Story Maximizing ROI

SS225Full_roi_INS_RET

About Client • Leading specialty retailer of scented

candles

Objective • Drive incremental business profitably

during the critical 4th quarter Solution • Distribute a series of scented, oversized

Inserts via RedPlum® Shared Mail • Leverage the client’s transactional data-

base to target best neighborhoods for existing customers and look-alikes

Results Overall, three campaign events generated: • 0.44% response rate • 180% ROI • Nearly 21% of all customers were first

time buyers

254% ROI(Nov./Dec.)