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Case Studies

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New Pricing Strategy Delivers Yogurt Customers

Via customer insight provided by dunnhumby, a global yogurt manufacturer learned that sales of its popular yogurt range were as much as five times higher than usual during promotional periods. Acting on what customers were responding to, the manufacturer reduced the regular price of the range to focus on baseline sales. The company wanted to see what insights they could discover around customer preferences, and determine how the price change would impact their sales in the long run.

The results

As predicted, customers responded to the price reductions in positive ways:

  • New customers: Lower prices attracted new customers uniformly across all the price sensitivity and shopping habit segments
  • Sales growth: Range sales grew by 20% with the largest growth coming from price sensitive customers (33%), followed by mid-market customers (23%)
  • Increased loyalty and frequency of purchase: Customers are buying the brand more often, including those who were already buying (15.75% increase in visits)