Customer Strategy

Background: Despite increased marketing spending, a large grocery chain witnesses flat same-store sales comps (i.e., sales in existing stores, excluding new stores, are flat).

Challenge: Drive same-store sales comp to support overall business sales growth.

Measurement: Same-store sales comp rate (year-over-year growth)

Benchmark: 0.2% based on recent data.

Method: Using 2 years of loyalty card transaction data, our team developed a customer segmentation with extensive profiling. Initial findings led us to work with the client to design and conduct a survey study to uncover key needs and preferences in a critical customer segment.

Action: Our client redesigned its customer loyalty program and certain product lines to address changing customer preferences and shopping behavior. Additionally, new marketing campaigns were developed to reconnect with key customers.

Results: Test stores generated a 70% higher comp rate over a 10-month period.