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Building customer knowledge
Gaining new insight into customer buying habits
The Client
Fortune 100 toy manufacturer
The Challenge
A Fortune 100 toy manufacturer wanted to increase sales of an expensive toy during its prime end-of-year selling season. In addition, the company wanted to collect key demographic, transactional and attitudinal data for use in future targeting efforts.
Business objectives:
- Create a promotion that would be acceptable to all retailers that would not hinder the time and procedure of the point of sale,
- Collect and track consumer data,
- Provide measurable results.
The Breakthrough
Collecting consumer data in a retail environment is difficult because of limitations in data collection mechanisms and time constraints in the check-out lines. SIGMA designed a strategy that supported the standard check-out procedures through a promotion that allowed consumers to respond immediately after the sale.
The promotion included a $50 U.S. Savings Bond when the toy is purchased to be used for child’s education. At the time of the promotion, the bond cost the manufacturer approximately $30 after processing fees.
Participation by the retail store only required them to hang entry forms near the product. Consumer information was gathered with the promise that it would never be sold, shared or loaned, thus reinforcing the credibility of our client.
The Win
The results from the consumer profiles provided new insights into different buying patterns than previously perceived: this later lead to the revamping of the product positioning. Every major retailer accepted the promotion as designed. The program generated a 100 percent increase in incremental sales. This promotion has been repeated at least four times by our client.