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Chick-Fil-A

Optimizing Marketing Spend Effectiveness

Challenges

  • Chick-fil-A wanted to understand the impact of each marketing/advertising medium on product sales (by unit type, product type, geographical location and season) to better allocate their marketing spend in the future for optimum impact on sales

Approach

  • Collected, cleansed and loaded into our database 300 million rows of data on daily Chick-fil-A sales by product (item) and location for the previous 5 years. Also loaded data on every single marketing campaign that was run (TRP’s)
  • Ran the data through our proprietary spend effectiveness data to measure and isolate the effect of each marketing and non-marketing driver (e.g., type of location, macroeconomic conditions, season, time of year, operator type, etc) on product sales
  • Determine SIR (sales to investment ratio) for every marketing/advertising medium

Results

  • Determined the impact (lift) of every dollar spent on marketing & advertising (by medium) on product sales
  • Quantified the impact of seasonality, macroeconomic conditions, type of store, customer service, weather, etc on product sales
  • Recommended changes to the 2008 campaign to optimize marketing spend effectiveness

 

Case Study ChickFilA MSE