The POWER of PERSONALIZATION: Case Study ALAN ALEXANDER FOUNDER & CEO OF RECOLETA DIGITAL MEDIA MARK PIVONKA DIRECTOR OF CUSTOMER RELATIONSHIP MARKETING AT BASHAS’
PERSONALIZATION DIGITAL DRIVERS FOR CHANGE MILLENIALS The POWER of PERSONALIZATION: The Bashas’ Case Study The POWER of PERSONALIZATION
The POWER of PERSONALIZATION: The Bashas’ Case Study
The POWER of PERSONALIZATION: The Bashas’ Case Study
The PERSONAL CIRCULAR® The 100 Most Relevant Offers From universe of 5,000+ offers The POWER of PERSONALIZATION: The Bashas’ Case Study
…AND OFFERS THROUGHOUT THE STORE THREE TYPES OF OFFERS* …AND OFFERS THROUGHOUT THE STORE The POWER of PERSONALIZATION: The Bashas’ Case Study
WHAT IS A PERSONAL DEAL® A deeper discount on a TPR item Bashas’ compiles a universe of 350+ PERSONAL DEAL® items from all around the store, with a keen eye on individual profit margins The most individually relevant 16 items (out of the 350+) are showcased on each PERSONAL CIRCULAR ® The POWER of PERSONALIZATION: The Bashas’ Case Study
The POWER of PERSONALIZATION: The Bashas’ Case Study
The POWER of PERSONALIZATION: The Bashas’ Case Study
DRIVING GREATER SHOPPER LOYALTY • Enrolled Core HHs have become more loyal as a result of the PTY Program, and have driven 85% of the sales lifts (with lower % lift on much higher base spending) • The PTY Program is driving strong lifts across the store, with the greatest lifts within the Grocery, Meat, and Produce departments • Bashas’ PTY is trading registrants up into more loyal segments at a greater rate than that of the control households, and helping to retain households as well. The POWER of PERSONALIZATION: The Bashas’ Case Study
DRIVING GREATER SHOPPER LOYALTY 53% of Bashas’ PTY New HHs converted to Core shoppers 18% of Opportunity HHs converted to Core shoppers 14% of Fringe HHs converted to Core shoppers The POWER of PERSONALIZATION: The Bashas’ Case Study
ANALYSIS $ SPEND % TRIPS $ PER TRIP Daily Loyals 6.1% 7.1% -1.0% Large Baskets 9.5% 9.2% 0.2% Cross-Shoppers 13.3% 12.5% 0.8% Fill-Ins 29.1% 27.9% 0.9% Fresh Deal Seekers 25.3% 22.6% 2.2% High Potentials 155.1% 136.4% 7.9% Cherry Pickers 58.9% 59.8% -0.5% Occasionals 469.5% 488.0% -3.1% Private Label 291.5% 307.5% -3.9% The POWER of PERSONALIZATION: The Bashas’ Case Study
Examined 100 Individual Grocery Items PRE-PERIOD: 2014 POST-PERIOD: 2015 PERCENTAGE INCREASE CONSUMPTION CRITERIA: MUST PURCHASE AS PERSONAL DEAL® AT LEAST ONCE IN 2015 The POWER of PERSONALIZATION: The Bashas’ Case Study
PERSONAL DEAL® LIFT ANALYSIS Volume Dollars Produce +66% +41% Meat +75% +73% Center Store +93% +83% Frozen +59% +55% Beverages +107% +101% Snacks +120% +116% Dairy +61% Private Label +46% +36% The POWER of PERSONALIZATION: The Bashas’ Case Study
The POWER of PERSONALIZATION: The Bashas’ Case Study
The POWER of PERSONALIZATION: The Bashas’ Case Study
KEYS TO THE SUCCESS CONTENT, CONTENT, CONTENT: It all starts with a large universe of offers, across several offer types RELEVANCE, RELEVANCE, RELEVANCE: “Showcasing” ALL individually relevant offers, ALL in one place Easy access & activation of offers across multiple platforms (e.g. PC, tablet, smartphone, email) The POWER of PERSONALIZATION: The Bashas’ Case Study
IMPLICATIONS FOR THE COUPONING INDUSTRY: “DRIVERS FOR CHANGE” CONTENT, CONTENT, CONTENT: More offers across many, many, many more brands. RELEVANCE, RELEVANCE, RELEVANCE: Shoppers are more engaged when ALL of the content is relevant/targeted. EMBRACE THE OPPORTUNITY: Digital delivery coupled with personalization will change the coupon industry over the next decade. The POWER of PERSONALIZATION: The Bashas’ Case Study