CASE STUDY

How did we help a major CPG player optimize their trade promotional campaigns and increase sales conversion?

Sep 29, 2022

Highlights of the Case Study: 

Particulars Description 
Client  A global CPG player partnered with Quantzig to optimize its trade promotional campaigns and increase sales conversion. 
Business Challenge The client partnered with Quantzig to analyze and track the results of its promotional campaigns and leverage Quantzig’s promo optimization techniques and CPG analytics solutions to attain higher sales conversion. 
Impact Quantzig’s advanced analytics solutions helped in improved store visibility of the client’s products and its success rate by developing multiple promotional offerings over mass promotional campaigns. This significantly reduced the client’s promotional spend and generated a higher return on investment. 

Game-Changing Solutions for CPG  

To remain competitive and visible in the market, CPG companies are developing a deeper understanding of customer insights. Notwithstanding the advances in automation across all retail sales channels, promotional campaigns remain a ‘black box,’ i.e., most CPG players are not entirely certain on how to make promotional campaigns appealing enough to achieve a higher turnover and market share. 

With Quantzig’s promo optimization techniques and CPG analytics solutions, CPG players can develop a net promotion index and calculate the index value to gauge marketing effectiveness and gain insights into the customer experience. This index analysis enables CPG players to build customer loyalty and provide value propositions throughout customer lifetime value. 

Challenges of the Client 

The end result of any successful promotional campaign is a high sales conversion rate. A global CPG leader, which was planning on scaling up its sales conversion rate in the German market, partnered with Quantzig to increase its sales conversion. The client lacked the transparency and the analytical capabilities to analyze and track the end results of its promotional campaigns and, therefore, wanted to leverage Quantzig’s promo optimization techniques and CPG analytics solutions to attain higher sales conversion. The client’s promotional team faced the following challenges in designing promotional campaigns: 

  • Connecting and comparing internal customer sales data in designing a promotional strategy that appeals to customers 
  • Quantifying the impacts of its promotional campaigns on its own brand and how it affects the competitor 
  • Designing a promotional campaign that yields a higher return on its investments 
  • Improving its conversion rate. Thirty percent of the gross sales was spent on its promotional strategies, yet it yielded a conversion rate of merely five percent 

Quantzig’s Analytics Solutions for CPG  

To help the client achieve its sales target, Quantzig’s data analytics team, along with industry experts, curated the internal sales data, pricing data, and promotional spend data from multiple retailers to provide a more concise view of the buying habits and spending patterns of customers. It also provided insights on the catchment area of the targeted group of customers aligned with the specific store’s customers visit. With this, the client could limit and customize its promotional offerings to those specific shoppers’ stores.  

In addition, Quantzig’s advanced CPG analytics solutions developed a CPG metric for categorizing customers based on preferences, income, income-to-spend ratio, etc., which enabled our client to design multiple targeted promotional offerings over mass promotional campaigns, saving huge promotional spending with a higher ROI. 

Impact Analysis of Quantzig’s analytics solutions on the CPG industry

Quantzig’s analytics solutions helped the client increase its household penetration by three to six percent, improving its operating margin by about 56 percent. In addition, the client could reduce its promotional spend by 15 percent and increase its conversion rate by 20 percent. In addition, CPG analytics solutions enabled the categorization of customers based on various factors such as income, preferences, income-to-spend ratio, etc., which helped the client design multiple promotional offerings over mass promotional campaigns, saving huge promotional spending with a higher ROI. This alliance improved the store visibility of the client’s products and its success rate. 

Key Outcomes 

Quantzig’s CPG analytics solutions helped the client develop a CPG metric for categorizing customers based on preferences, income, income-to-spend ratio, etc., which enabled our client to design multiple promotional offerings over the mass promotional campaign, saving huge promotional spending with a higher ROI.  

Broad Perspective on CPG analytics solutions  

Data has been a decisive factor in every business across all industries today, leading to growth and innovation, and the skill to leverage this data has become one of the most basic yet critical business aspects. Trade Promotional Optimization is bringing this scattered data to existence. With the advent of data and analytics in the business world, sales promotions are becoming more customer-centric. Trade promo optimization techniques develop promotional strategies that are uniquely differentiated from the competitor’s strategies by leveraging the vast amount of data and its analytical tools. These strategies become the leading driver that influences purchase decisions. 

Key Takeaways 

  • Increased household penetration by three to 6% 
  • Improved operating margin by about 56% 
  • Reduced promotional spend by 15% 
  • Increased conversion rate by 20% 

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