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A direct mail campaign targeting Bi-Lo’s most loyal customers resulted in substantial increases in total product sales, items purchased in one trip, and overall customer trips, the grocer said.
The direct mail initiative was created in partnership with Bi-Lo’s consumer marketing partners and consumer-centric shopper marketing firm, Spire, LLC.
Over the course of the test, Bi-Lo sent 50,000 shoppers 60 different offers. Each shopper received only the coupons that were most relevant based on the customer’s shopping history. The campaign resulted in a 50 percent increase in sales for individuals who redeemed coupons and approximately a 35 percent increase across all recipients.
“This is a key success metric that tells us the offers were relevant and we are on the right track,” said John Conroy, director of marketing for Bi-Lo. “We targeted individuals who are already spending at high levels and shop with Bi-Lo frequently, so to see these types of increases is exciting and will help us to continue providing our customers with the best offers on the products they use the most.”
Results also showed customers increased their spending by $84 during the program period and added a full extra trip compared to a control group. Additionally, 45 percent of the targeted customers used four or more of the coupon offers.
Spire is a consumer-centric analytic services and shopper marketing company that designs and implements marketing programs, analytics, and insight generation initiatives. It owns a proprietary Loyalty Panel with transaction level POS data for 30 million households living in 24 states. Spire retail partners include A&P, Brookshire Grocery Co., Price Chopper, Weis Market, Marsh Supermarkets, Winn Dixie, and Spartan Stores.
Bi-Lo plans to launch several more direct mail campaigns this year and will expand the offers to 250,000 of its most loyal shoppers. The goals of the additional campaigns include providing customers with coupons that are relevant to them and driving additional sales for vendors participating in the campaigns. Bi-Lo also launched a web-based portal last month to share consumer insights with vendors to help drive sales by understanding why and how their customers shop.
Mauldin, S.C.-based Bi-Lo operates 207 supermarkets in North Carolina, South Carolina, Georgia, and Tennessee.