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Impact Survey Retail 2
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Impact Survey Retail 2

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  • Transcript

    • 1. Capturing the Full Potential of Direct Mail 360° Impact survey in Retail This report is solely for the use of client personnel. No part of it may be circulated, quoted, or reproduced for distribution outside the client organization without prior written approval from McKinsey & Company. This material was used by McKinsey & Company during an oral presentation; it is not a complete record of the discussion.
    • 2. RETAIL PILOT CAMPAIGN AND MARKET RESEARCH SETUP
        • Compare TV vs DM on coupon awareness building
        • Compare DM vs unaddressed mailing on traffic building
        • Loyalty cardholders
        • TV
        • Unaddressed mailings
        • 3000 phone interviews to loyalty cardholders
        • 560 store-exit interviews for non-cardholders
      DISGUISED CLIENT EXAMPLE IN RETAIL SECTOR Campaign goals Target customers Accompanying media Market research
    • 3. KEY MESSAGES FROM MARKET RESEARCH
        • DM is well suited to create awareness in retail sector
        • DM is a good substitute to unaddressed mailings to activate customers visits to stores (for retailers with well penetrated loyalty card)
        • Overall marginal ROI improvement of DM campaign amounts to 50%
        • Overall approach used to calculate impact of different media contributions is distinctive
    • 4. DM IS A BETTER MEDIA THAN TV TO STIMULATE AWARENESS OF RETAILER'S OFFERING Indexed units Source: Market research; Team analysis TV only DM only Unaddressed mailing considered as “ noise” for both groups Awareness created around offering about 4 times higher with DM than with TV DISGUISED CLIENT EXAMPLE IN RETAIL SECTOR 3,8 “ Do you recall having received / seen a TV ad, DM, unaddressed mail from retailer?” Do you know the retailer's offering? Total offering awareness for media Active loyalty cardholders
    • 5. BESIDES RECALL RATES, EXACT CONTENT OF DM IS BETTER REMEMBERED THAN TV AD Percent of respondents recalling medium Recall content of TV ad Recall content of DM mailing At least one None At least one None 57 Source: Market research; Team analysis Description of correct ad elements is higher for DM than for TV Number of correct elements mentioned Number of correct elements mentioned DISGUISED CLIENT EXAMPLE IN RETAIL SECTOR
    • 6. COST PER USEFUL CONTACT FOR TV AND DM Active customers Indexed units Source: Market research; Media agency; Team analysis Fraction of correct add recall % of recipients within target 138 Fraction of respondents recalling TV add Increase in respondents knowing retailer's offering Cost per useful contact of DM campaign* Fraction of recipients recalling DM Increase in recipients knowing retailer's offering from those recalling DM 100 Fraction of correct PM recall DISGUISED CLIENT EXAMPLE IN RETAIL SECTOR *Note: 100% of recipients are within target Cost per useful contact of TV campaign Cost of campaign per reacheable customer Cost of DM per customer
    • 7. INCREMENTAL PROGRESSION THROUGH FUNNEL IS BETTER FOR DM THAN FOR UNADDRESSED MAILING Percent of active respondents
        • Unaddressed mailing
        • DM only
        • Difference between DM and unaddressed mailing (percent points)
      * Customers answering "yes, certainly" or "yes, probably" ** Behavior customers who answered market research (whatever their declared intention to visit store) Source: Market research; Store statistics; Team analysis 100 100 94.3 96.9 +2.6% 59.7 68.3 +8.6% 46.9 55.3 +8.4% DM increases by 8.4 percent points the number people intending to visit stores in next 2 weeks Transition rates DISGUISED CLIENT EXAMPLE IN RETAIL SECTOR Whole population Aided awareness Consi-deration Intention to visit within 2 weeks* 94.3 63.3 78.6 Which of the following supermarkets do you know? Will you come to shop in the next 2 weeks? Which of the following supermarkets would you consider shopping at? 96.9 70.5 80.9
    • 8. A LARGE MAJORITY OF CUSTOMERS DECLARING INTENTION TO VISIT SHOP ACTUALLY VISIT SHOP WITHIN 2 WEEKS Indexed units DISGUISED CLIENT EXAMPLE IN RETAIL SECTOR Source: Market research; Store statistics; Team analysis Customers declaring the intention to visit store (based on market research) Customers effectively visiting store (based on store statistics)
    • 9. ROI OF A DM CAMPAIGN Indexed eur Additional short-term margin from DM generated sales* Margin loss Total impact * Additional margin, excluding cost for DM (design, printing, distribution) Source: Market research; Team analysis Incremental cost of DM vs. unaddressed mail 0 DISGUISED CLIENT EXAMPLE IN RETAIL SECTOR ~100 ~ 5 ~63 ~ 32 = Total impact Incremental cost of DM vs. unaddressed mail = 50% ROI Assessment of the marginal impact of DM versus unaddressed mail Cost for 1 DM campaign as compared to unaddressed

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