Promotions, discounts and incentives are critical tools that consumer products companies and retailers use to move product off the shelf and increase revenue. Yet, the effectiveness of these marketing initiatives is often not known until after implementation—if at all.
A leading nutritional products company leveraged a robust promotional program that included price reductions, coupons and distribution of samples to health care professionals. But, when it came to measurement, the company relied on the performance of historical campaigns to select future promotions. Because they did not test promotions in market prior to full-scale roll-outs, there was limited opportunity to understand initial campaign performance before making significant investments.
Analytics-powered “Test And Learn” program measures lifts in revenue as small as 0.1% with good statistical confidence, allowing planners to project the impact of proposed programs.
The company tasked Antuit with developing an analytics-powered solution to measure the impact of promotional campaigns, planogram changes and other marketing initiatives before rolling them out nationally.
Antuit established a “Test And Learn” program to incorporate predictive analytics into the company’s decision-making processes for marketing initiatives. Using a wide range of internal and third-party data, such as demographic profiles, volume, seasonality, historical sales numbers and weather data, Antuit helped identify suitable test and control participants and regions.
Matching test and control markets was critical to yield the most accurate metrics. In cases where an appropriate control market did not exist, Antuit created a “pseudo-control” using an accurate base forecast to replicate a relevant control market.
Within the first 6 months of the initiation of the program, Antuit helped the company test more than 30 promotions across the adult nutritional products business, providing distinct profiles of the top performing test locations for each promotion.
The company now has increased visibility into promotion performance prior to full-scale rollout. By obtaining these early learnings, the company can profitably target promotions and allocate resources to drive the greatest revenue lift per store and ROI from campaigns. The organization continues to utilize Antuit’s “Test And Learn” solution to evaluate other types of marketing initiatives such as product consolidation and the addition of new products. At the same time, enthusiasm for the program is spreading across the company to replicate the success in other divisions.
Through the program, Antuit enabled the company to measure revenue lifts as small as 0.1% with good statistical confidence, an especially powerful capability for products with razor thin margins. The results have been used to make better decisions regarding when, where and how promotions should be rolled out across regions, markets and retail distributors.