At the time, Waitrose had a very crude methodology to evaluate the effectiveness of campaign performance for offer redemptions. They recognised that this was inefficient for them and asked Model Citizens to develop a more robust measurement and evaluation process.
A selection of tasks were carried out:
We started with developing a basic monitoring tool. A campaign report that not only measured the campaign performance, but included an ability to profile and segment audiences to see where incremental behaviour and costs were being driven.
Once the reporting was in place, an in-depth review was carried out on the previous 12 months worth of campaigns which unfortunately showed that each campaign was not profitable. The future of the campaigns were now in doubt. But a careful analysis showed that the campaigns were not profitable due to the high cost of redemptions (rather than a lack of incremental sales). A mismatch of offer strength against customer behaviour which was a hangover of an old targeting algorithm.
A new offer strength to behaviour algorithm was developed, tested and implemented.
As well as re-positioning Direct Mail as a cornerstone and profitable communications channel, this exercise formed the foundations of Waitrose recognising the power of data analytics, measurement and testing that would go on to underpin a multitude of other strategic initiatives.