Helping a Leading Retailer Bring Customers Back to its Stores

BlueLabs helps a large retail chain bring customers back to the store and revolutionize its analytics.

One of the largest retailers in the United States was facing an all-too-common challenge in the digital age: shoppers visited its stores to test merchandise but finalized their purchases elsewhere. The retailer asked BlueLabs to help it identify new ways of solving this challenge.

BlueLabs did just that. Based on extensive interviews with the retailer’s sales, marketing, and analytics teams, we formulated an action plan for one of our client’s priority products to find out which tactics worked best with specific customers.

Our program included several steps. First, we cleaned and matched the retailer’s data with BlueLabs’ national consumer file. This enabled our client to understand, for the first time, the true extent of the problem by knowing which shoppers didn’t finalize their purchase or had it finalized by other household members.

Next, we designed a randomized control trial in which shoppers were assigned to several treatment and control groups. Shoppers in the treatment groups received different messages via different modes including mail, email, and social. BlueLabs then delivered targeted segments to the retailer’s digital, social, and direct mail vendors.

When results were in, we found that mail substantially outperformed email and social in this particular case, even when accounting for its higher costs. Mail had a sales return-on-advertising-spend (ROAS) of 49x for one message and 20x for a second message, compared with marginal gains for email and social. Moreover, customers who received messages by mail were more likely to purchase, increasing the retailer’s profit per household by about 550%.

Overall, this pilot experiment increased the rate of store purchases by 10% and generated more than $350,000 in additional revenues for our client.

At the retailer’s request, BlueLabs also provided a comprehensive report with recommendations for improving the retailer’s analytics infrastructure. The retailer’s board approved all of BlueLabs’ 13 strategic analytics recommendations.