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Case Studies

Increase spend per visit

New Promotion Leads to Fountain of Water Sales

It was easy for a global grocery retailer in Poland to see that good promotions in the store’s entrance aisle were always successful. But it wanted to know just how good it could get. So the retailer and a bottled water supplier engaged dunnhumby to help them prove that customers are ready to buy larger quantities than usual, if they get a good, unique offer.

The insight

Upon review of the customer base, dunnhumby discovered some revealing insight about how people purchase bottled water:

  • Customers like multipacks of mineral water — even a small bottle size generates 80% of sales value when sold in quantity of six pieces or more
  • Customers buying water brand X, usually buy it along with other brands of water — there is a huge chance to attract a lot of people to one brand

The action

With the insight above and the assumption that people are capable of purchasing many more bottles in a single trip to the store, dunnhumby suggested these actions to drive sales and increase brand loyalty:

  • Offer a Power Aisle XXL, selling huge multipacks of water
  • Sell 12-packs of mineral water in 0.5L and 1.5L bottles at attractive prices, but not hugely discounted
  • Run a two-week promotion period during the summer season

The result

The Power Aisle XXL worked; the unique promotion attracted customers, and increased sales without even having a big price decrease:

  • Promoted products gained 178% within those two weeks; the category rose by 23%
  • Brought 21% incremental shopper base to the water brand
  • 50.4% of brand sales came from these new customers who did not buy the brand in the previous three months
  • These measures all increased for brand / category:
    • Basket penetration +105% / +21%
    • Units/visit +50% / +7%
    • Sales units +219% / +35%