Consumer-Centric Analytics & Promotions

GOAL

Savancy was consulted to improve the usage/success of promotions. We moved the goal to predictive analytics by providing promotions based on consumer’s forecasted need.

CHALLENGE

This digital marketing company for FMCG products was providing promotions based on the consumer’s purchased basket. That was a reactionary promotion for the next purchase and most promotions went unused.

SOLUTION

WE CAME, WE SAW, WE SOLVED

Move from Basket/cart-Centric Data Analytics to Consumer-Centric Data Analytics. We started understanding consumer purchasing behavior at the individual and household levels. We brought consumer-centric, omni-channel data ingesting 1.6 billion POS transactions/month.

The program provided 208 new Business Intelligence insights ranging across Transactions Insights, Shopper Insights, and Distribution Insights.

Based on this, we forecasted the consumption at the product level, frequency, and brand preferences. Once this forecast was finetuned with ML, we could start providing promotions and discounts based on consumer’s upcoming product needs.

RESULTS

  • The promotion success rate increased from 17% to 32%, and is expected to improve quarter on quarter.
  • Over $100 million in additional revenue from cross-selling and bulk purchase promotions.
  • Saved $17 million in print-error penalties, which were earlier resulting from distribution errors and overage penalties.
pinkiConsumer Analytics