Customer success

Retail business: How to optimise your advertising expenses

At a glance

  • Advertising success monitoring model measures the results of marketing campaigns
  • Findings enable optimal item mix for campaigns
  • Success of planned campaigns can be predicted by means of key figures

The business situation of our client

“I know half my advertising is money thrown out. I just don’t know which half.” – The much-quoted wisdom of Henry Ford has lost none of its relevance for the retail industry. On the contrary: due to saturated markets, the industry is mainly occupied with competing with each other for customers by means of massive advertising campaigns. In the meantime, a large part of the marketing expenditures of retail companies is allotted to this item – and the trend is still rising.

Unlike Henry Ford, however, retailers today can use their data to determine the share of misinvested advertising money relatively precisely and reduce it in a targeted manner. For example, we have developed an advertising success control model for a large German retail company that makes exactly this possible.

The solution for our client

Technologically, the model is based on a very powerful Microsoft platform. With the help of the solution, our client can first store and calculate the baseline sales per day and shop for each of their items. These normal values are then compared to the sales in a promotional period. The difference results in the turnover achieved with the respective promotional measure – traceable down to the receipt level and for each individual article. It is also measured whether a promotional item promotes a deadweight loss.

How data turns into values

Our customer can now evaluate the success of his advertising in detail. For each promotion, the top sellers, slow sellers and slow sellers can be precisely identified and stored in the system. A combined view of the different advertising channels is also possible. In addition, external sources such as competitive, weather or demographic data are used.

All these findings are finally incorporated into an index that measures the expected success by means of defined key figures already during the planning of campaigns – such as an offer brochure. If the evaluation is negative, our client can readjust accordingly. In this way, the optimal article mix can be defined for each advertising medium and channel, while also preventing cannibalisation effects.


turn your data into value.

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At a glance

  • Advertising success monitoring model measures the results of marketing campaigns
  • Findings enable optimal item mix for campaigns
  • Success of planned campaigns can be predicted by means of key figures
turn your data into value

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