MATTHEWS, N.C. — Family Dollar here has established a minimum standard of $4 for the impact on store sales per dollar spent on circular promotions, said Trip McCoy, manager of promotion analytics for the 6,655-store discount chain.
“We’ve targeted $4 as being the required lift to meet our ROI requirements,” he said during a webinar yesterday sponsored by Applied Predictive Technologies, Arlington, Va., which supplies the software used by Family Dollar in testing and analyzing promotion effectiveness.
By establishing a minimum threshold, the chain can identify high- and low-performing markets and “make adjustments where necessary to raise the bar,” said McCoy.
“In troubled areas, we might need to reexamine our current media spend or media vehicle to lower costs. Or we might reexamine the circular’s message to drive a greater response.”
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