Anonymous Client

GROCERY
Anonymous client grows same store total sales by 2.5% while decreasing promotional ad spend.

The Canadian division of a major retail chain, ranked one of the country’s top 10 most influential brands and one of the largest employers, began working with Daisy to optimize their weekly promotional activities. The engagement focused on deploying Daisy’s AI-powered analytics capabilities to improve decision-making around the retailer’s weekly flyer.

The Challenge

The retailer was given the mandate to reduce the number of products within its promotions and the frequency of flyers to better align with the overall corporate strategy, which firmly positioned the retailer as an everyday price leader.

Although the management team believed that reducing promotions could negatively impact same-store revenue growth, it recognized the importance of smarter promotional selection. The challenge was determining how to improve promotion selection while reducing the number of flyers and changing the merchant team’s processes to execute this strategy.

Client
Anonymous

Products
Promotional Scorecarding

Industry
Grocery

Location
Canada

Total Store
400+

Daisy’s Promotional Scorecarding provides insight on which promotions will positively impact the bottom line and which ones should be re-considered to improve the effectiveness of future spend.

Solution

The retailer turned to Daisy, which enabled the retailer to increase shoppers’ trip frequency and grow individual basket size while protecting margins, using Daisy’s Scorecarding solution.

As the decision team selects products for weekly promotions, scorecarding gives them a rear-view mirror measurement on Daisy’s holistic view of the products that increase net promotional effectiveness (NPE). The historical “go or no go” helps the merchant team validate or replace their selections with items that have been historically more positive.

During the engagement, Daisy measured every flyer promotion and calculated incremental promotional sales, incremental associated sales, cannibalization, and forward buying.

With these outputs, the retailer was able to divide each promotion into three categories – representing low, medium, and high-net impact. This allowed the merchant team to quickly identify the products to keep promoting. The merchant team used these insights for the next planning period; merchandisers crafted the promotional plan based on experience and then used Daisy’s information as a sounding board based on the scorecard.

Results

Daisy Scorecarding solution eases teams into a new way of defining and measuring success, while minimizing the change management component that can arise. The net benefit to the retailer is the picking of better items for the flyer. Promotional effectiveness is measured through ROI on media — investment in flyers, stripping out other variables and measuring the lift of the products in the flyer.

Other indicators such as flyer reach, and flyer interest are also measured, however, generally speaking, flyer return on investment and sales are the main measures. To that end, through working with Daisy Intelligence to optimize their promotions the client grew their year-over-year sales per promotion by more than 32%, their net promotion effect by 22%, and their same store total sales by more than 2.5% – all while maximizing less promotional inventory.

DAISY IS THE FIRST COMPANY TO USE THE POWER OF A.I. TO SOLVE RETAIL PROMOTION CHALLENGES.

Sign up to receive our newsletter