ST. PETERSBURG, Fla., Aug. 10, 2015 /PRNewswire/ -- Catalina, the personalized digital media company, today announced findings of an independent Kantar Retail study benchmarking the capacity of personalized offers and customer value campaigns to drive increased shopper loyalty and incremental sales for retailers. The study measures the impact of Catalina's Customer Value Campaign (CVC) program, which enables retailers to deliver offers to shoppers personalized to meet their specific needs.
"As the shopper and retailer landscape becomes more fragmented, retailers need creative new ways to drive shopper loyalty and conversion. Personalized pricing and value is one trend that appears to be working," said John Craig, Executive Vice President of Consulting at Kantar Retail. "The results of this study demonstrate definitively that Catalina's Customer Value Campaigns effectively increase shopper loyalty by helping retailers personalize value based on specific shopper needs."
The study evaluated multiple CVC campaigns across three different sizes of retailers and 4.8 million shoppers. Results were compared to a control group of 8-10 percent of shoppers who did not receive offers. Shoppers were divided into four groups based on their shopping frequency and spending. To download the full study, please visit http://www.catalinamarketing.com/ws_download/driving-sales-from-improved-shopper-loyalty/
Among key findings:
- Sales increased by a weighted average of 1.8 percent across all four shopper groups during 17-week CVC campaigns.
- The majority of incremental sales were attributable to increased shopping trips.
- Dollar improvements ranged from an average of $10.41 to $15.16 per shopper during the campaign period across the four groups.
- Sales were also up across all four groups during the 17-week post period.
- Total sales increases ranged from $14.03 to $19.05 across the four groups during the campaign and post-campaign periods.
"Personalizing value based on the needs of every customer is a cornerstone of loyalty marketing and can help drive significant profitable growth for retailers," said Steve Prebble, Group Vice President for Catalina's Retail Solution Group. "Catalina Customer Value Campaigns get the right offers to the right customers to positively influence shopper behavior with minimal purchase subsidization. The result is a significant payback on the retailer's investment."
How Customer Value Campaigns Work
Catalina's Customer Value Campaigns have personalized tens of thousands of offers across many retailers at a scale large enough to measurably improve top-line revenue. The campaigns deliver coupons and offers to shoppers based on their specific purchasing preferences and behaviors. Each shopper is modeled into various clusters based on spending levels, shopping frequency, basket size, and consistency. Further modeling is done to establish behavior change objectives.
Based on this modeling, hundreds of individual coupon offers are designed to create a unique mix for each household. Typically over a 13- to 17-week period, each offer is distributed to shoppers via Catalina's In-Store Media Hub at point of sale. Coupon offers are redeemable on the following shopper trip, only at that retailer.
Kantar's study showed that for the typical retailer a Customer Value Campaign produces over $10 million in incremental sales across 800,000 shoppers.
Catalina's personalized digital media drives lift and loyalty for the world's leading CPG retailers and brands. Catalina personalizes the consumer's path to purchase through mobile, online and in-store networks powered by the largest shopper history database in the world. Catalina is based in St. Petersburg, FL, with operations in the United States, Europe and Japan. To learn more, please visit www.Catalinamarketing.com or follow us on Twitter @Catalina.