Retailer Sales Modelling Case Study

Retailer Sales Modelling Case Study

Learn how econometric modelling optimize promotion campaigns

OVERVIEW

One of the biggest retailers in the Nordics needed to know which types of offers and promotion campaigns generate most revenue and/or profit.

Solutions

All sales, marketing, media and promotion data going back 3 years was divided into four campaign dimensions – Target Group, Discount Type (percentage or absolute value), Number of promoted products and Minimum Purchase Value.
Using econometric modelling we were able to define in detail which types and combinations of promotion campaigns and messages create most revenue and profit respectively. This was also put into the context of the industry seasonality across the year.

SOLUTION

Via understanding and implementing the results of this econometric modelling study into their campaign message structure, the brand was able to increase their revenue and profit potential by 15%+ coming directly from media and marketing investments. The frequency of the best performing promotion campaign types was increased and the lowest performing campaigns were restructured.

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