Grocery Store Direct Mail Success Story

Grocery Store Direct Mail Success Story

Customer Objective

This grocery customer wanted a monthly promotional program to drive incremental dollars and generate store traffic.

Campaign Strategy

  • Mail households surrounding grocer’s location

  • Consistent mail frequency to increase traffic & sales

  • Mail the Impact Postcard where geography is available

  • Mail Wrap and TPM products when geography is not available for Impact Postcard

  • Incentivize customers with aggressive coupon offers

Campaign Results

0
Unique Customers Gained during Promotional Period
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Grocery Industry Trends

The Supermarkets and Grocery Stores industry makes up the largest food retail channel in the United States and it has grown over the past five years, benefiting from a strengthening economy.

The Supermarkets and Grocery Stores industry is highly fragmented, with over one-third of enterprises employing fewer than five workers. Moreover, the top three operators are expected to account for 31.3% of industry revenue in 2017. The remaining share of the market is mainly composed of small and medium-sized operators that cater to local and regional markets.

Here are some more stats around grocery industry trends for the past year.

Grocery Industry Trends

The Supermarkets and Grocery Stores industry makes up the largest food retail channel in the United States and it has grown over the past five years, benefiting from a strengthening economy.

The Supermarkets and Grocery Stores industry is highly fragmented, with over one-third of enterprises employing fewer than five workers. Moreover, the top three operators are expected to account for 31.3% of industry revenue in 2017. The remaining share of the market is mainly composed of small and medium-sized operators that cater to local and regional markets.

Here are some more stats around grocery industry trends for the past year.

  • As income increases, many consumers have shifted to premium, organic and all-natural brands, helping lift industry revenue

  • Despite revenue growth during the period, industry operators faced intensifying competition from alternative retailers – consumers turned toward warehouse clubs and supercenters because of the cost savings and convenience of these retailers

  • Even though a large portion of businesses operate a single establishment, medium-sized stores are beginning to comprise a larger portion of the market

  • Market share concentration has fluctuated over the past five years due to a flurry of mergers and acquisitions

Source: 2017 IBISWorld, 2017 Seattle pi

Grocery Advertising Opportunities in Rural America

Supermarkets experience sales peaks in advance of holidays (especially for barbecues and entertaining) and party events like the Super Bowl.
Grocery store sales also increase in May, July and December.

  • The average shopper makes 1.6 trips to the supermarket each week

  • Supermarkets have an opportunity to target shoppers by age group with products that will alleviate health problems they may be experiencing

  • Marketers are tweaking their advertising strategies to reach consumers who engage in co-shopping – at least 85% of folks who live in multi-person households share the responsibility for grocery shopping

  • College football season and NFL football are both very popular with rural residents. In fact, they are 20% more likely to watch college football than their urban counterparts. And for NFL, they are 4% more likely to watch Monday night football on ESPN. Expect them to be entertaining friends and heading to the store for game-day groceries and drinks.

Source: 2017 IBISWorld, AdMall 2017, 2015 DMA Fact Book

How Do I Find My Best Rural Grocery Customers?

Our Consumer Analytics team are highly skilled in the science of micromarketing. What does that mean? Micromarketing is another way of saying that we develop a marketing strategy in which your direct mail advertising efforts are focused on a small group of highly-targeted customers. This gives your message the best chance possible to be seen by the right customers at the right time.

Direct Mail’s Influence on Grocery Customers

  • For frequent grocery shoppers (adults who shop at a grocery store or supermarket at least 3 times in a typical week) – 43% of this audience saw an ad/coupon in their mailbox in the last 30 days that led them to take action – 71% in the last year
  • Rural counties are 3% more likely to be influenced by coupons for groceries
  • According to the DMA, direct mail response rates are on the rise – last year average response rates were at 5.3% – a 43% increase from the previous year and the best it’s been in the last 13 years

Sources: AdMall 2017, 2016 DMA Fact Book

Do You Have Any Questions About How Direct Mail Can Grow Your Business?

If you have any questions about how direct mail can grow your business, we would be happy to answer them. You can call us at 877-620-6283 or select GET STARTED TODAY to fill out our form.

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