Quantitative
Case Study: Sainsbury's
Sainsbury’s is one of the leading supermarket chains in the UK and were seeking a way to optimise a promotional mechanic.
The mechanic had several components which could be varied:
- Who was eligible
- What categories were included
- The level of discount
- The type of redemption (e.g. instant or off next purchase)
- The minimum spend required to participate
- The maximum discount allowed
We ran a complex conjoint analysis and produced a model which allowed them to assess the change in take up rate for every change in these parameters and thus help assess the most cost-effective combination of parameters
Given the scale of the business, being able to be as precise in setting these components to the most effective level had significant commercial impact.
Conjoint
Conjoint is a powerful tool for optimising products or propositions which have two or more important components which can be varied quantitatively.
By assessing how customer choices are affected by changes in the level of each component, and factoring in the cost of delivery of each level, conjoint can suggest an optimal mix to maximise customer choice/£ spent.