How Targeting Overlooked Shoppers Drove 25% Redemption and 30% Sales Lift
The Challenge
A southwest seafood grocer approached us after noticing declining activity in certain customer segments and that some shoppers they assumed were lost had stopped visiting entirely. Traditional local ads and previous mailings, even with a loyalty list, had delivered limited results. The grocer aimed to re-engage these overlooked customers and encourage upward migration into higher spending tiers.
The Approach
The test program focused on two groups: formerly strong customers whose purchase activity had declined and shoppers who had stopped visiting. The offer was delivered on a laminated AcclaimMailer™ with a personalized, wallet-ready, trackable $20 off $50 coupon designed to resemble a gift card. The variable-data coupon allowed the grocer to monitor redemption, transaction size, and overall sales impact in real time. This data-driven targeting approach has also been applied successfully in other B2C sectors, including car washes, restaurants, home services, and retail, particularly when focusing on customers who are most likely to respond and spend more. AcclaimMailer™ is also available in NVIO™ biodegradable material.
Results
The initial test quickly exceeded the grocer’s 10% redemption goal. In the first year, targeted customers showed a 16% total sales lift compared to the control group, with redeemers increasing sales by 7.5% while the control group declined by 5.8%. Nearly twice as many mailed customers migrated upward in spending levels compared to non-recipients (27.2% vs. 13.7%).
Based on that success, the grocer continued the annual program. For five years, the campaign has delivered:
- Average Redemption: 25%
- Average ROI: 55% (including promotion and redemption costs)
- Average Increase in Transaction: $7.88
- Total Sales Lift: 30.18%
By year five, customers who had been trending downward saw sales growth of 27.7%, while “low-level” redeemers improved by 67%. Effective targeting helped sustain strong engagement and long-term growth.
Key Takeaways
- Focusing on downward-trending and lapsed customers can drive measurable revenue recovery.
- A consistent, tangible offer encourages repeat visits and increases return frequency (+10% vs control group).
- Laminated, wallet-ready coupons support redemption and encourage upward migration by keeping the offer visible.
- Targeted campaigns can increase average transaction size, encouraging customers to spend more per visit.
- Sustained data targeting drives long-term growth and customer loyalty.
About REG Oklahoma Acquisition, LLC [DBA SSI Cards Marketing & Direct Mail]