Marketing Objective

To measure the effectiveness of a Cox Target Media promotion in increasing sales volume, customer transactions and number of items sold.

Mailing Strategy/Campaign

• Matched-store panel test in 3 markets: Boston, Chicago, Detroit
• Test and control stores were similar in size, customer buying habits and consumer profiles
• 500,000 homes mailed offers twice (1 million total mailings) within 5-mile radius of test stores
• $5 off $50 or more, $10 off $25 or more and 20% off any item mailed in December
• $5 off $25 or more, $10 off $50 or more and 20% off any item mailed in February

Test Results

• 5,535% overall return on investment (ROI) over both mailings
• $1.6 million net sales increase
• 18,723 coupon redemptions
• $85.40 average purchase
• 7% increase in overall number of customer transactions
• 4.3% increase in number of items sold

Conclusion

The sales increase generated by the Cox Target Media promotion indicates its effectiveness in
motivating consumers. In addition to the dramatic 5,535% ROI, the promotion’s 18,723 redemptions, a rate of 1.9%, produced an average purchase of $85.40 and a net sales increase of $1.6 million. The significant results of this marketing test indicate the Cox Target Media audience is highly motivated and responds enthusiastically to an ad campaign that includes strong offers.