LensCrafters is the nation’s second-largest optical chain with more than 970 stores. With the entry of mass merchandisers into their category and growing competition from regional chains, LensCrafters was faced with a challenge to retain share in their core markets. Complicating the matter was the fact that consumers had become conditioned to use discount coupons, but with so many offers to choose from, redemption rates were on a steady decline. Our challenge was to break the coupon cycle and achieve preference with the target audience without raising the dollar value of the offer from LensCrafters.
We determined that the best way to increase redemption and maintain market share was to make it easier for the consumer to take advantage of our discount offer. Ott segmented consumer behavior patterns relative to income levels, propensity to “buy on deal” and distance from a LensCrafters.
Understanding that the “nearest” LensCrafters was not necessarily defined by a consumer’s home location, but could be near their workplace or along routes traveled between the two, opened the aperture as to what media delivery platforms could be employed. The application of our proprietary Retail Geo-Zoning (RGZ) process also led us to evaluate various return-on-investment scenarios across multiple media platforms. Based on calculations that took into account media impressions delivered, effective reach modeling and offer redemption percentages, we recommended using television as the best way to reinforce the LensCrafters value proposition.
We executed a 30-second TV spot featuring a “write your own coupon” offer. The spot tested so well that it was reserved for use in only the most competitive markets. Average redemption rates doubled during the promotional period.
Because this new approach proved to be a path of least resistance, average redemption rates doubled during the promotion period and LensCrafters gained share in every market receiving television support.