Chick-fil-A is a fast food chain with over $3 billion in sales and a major presence in the southeast. Chick-fil-A runs a wide gamut of marketing/advertising campaigns at a national, market and local level.
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 and increase impact on sales and profit.
Approach
- Collected, cleansed and loaded database of 300 million rows of daily Chick-fil-A sales data by product (item) and location for the previous 3 years
- Loaded data on every marketing campaign that was run (e.g., TV, radio, out-of-home, sports sponsorships, discounts & giveaways, community outreach events, sampling)
- Ran the data through our proprietary spend effectiveness model
- Measured and isolated 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
- Determined Marketing ROI 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 marketing campaign to optimize marketing spend effectiveness
