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Case Studies

Drive sales through targeted text messaging

Targeting Customers with Text Messages Increases Sales

With nearly 100% mobile phone penetration in the market, a retailer wanted to effectively harness the sales power of SMS advertisements. dunnhumby was asked to help find out what kind of customer outreach via SMS messaging would be most effective at boosting product sales.

The insight

As a result of deep customer analysis, dunnhumby was able to:

  • Identify active customers who have purchased an item in a key subclass
  • Pinpoint race and price sensitivities as useful ways to segment the SMS recipients
  • Determine that the most effective product lines were selected based on basket penetration and product appeal

The action

As a result of what it learned about its customers, the retailer sent personalized text messages to a targeted set of customers, and advertised general in-store promotions to all customers via SMS.

The results

Texting was not only a cost effective means of customer outreach, it was also effective at bringing people into the retailer:

  • The sales to cost ratio was 15:1
  • 70% of the generated uplift was on products not advertised via text messages