ROI, or (eng. ) Return on Investment is the estimated or exact return on invested capital. Regardless of the company’s goal, ROI data definitely helps in evaluating the effectiveness of certain actions. In the case of Listonic, ROI estimation is information about how many times potential sales of a product exceeds the costs of a campaign conducted for it.
How do we estimate sales?
In Listonic, we make ROI estimates based on data from shopping lists and receipts. Our partner in the study is CMR (Centrum Monitorowania Rynku “Market Monitoring Centre”), which is an independent research agency specializing in the analysis of transactional data obtained from grocery stores. The aim of CMR’s activities is to provide FMCG manufacturers and retail chains with information on the extent to which their marketing activities actually influence the purchasing decisions of shoppers.
CMR has access to store transactional data and can track sales trends for the entire assortment and individual product categories. It is with the support of the CMR that we are able to combine data from shopping lists (purchase intent) and sales data (average transaction size).
Methodology of ROI research in Listonic
We conduct research in a large research group – it is about 200 thousand unique users active in Listonic application every month. We combine this data with sales data from thousands of grocery stores across the country. During the advertising campaign in Listonic, we are able to measure the number of additions of a particular product to shopping lists. We multiply this data together with the average quantity of the product in the category on the receipts (data obtained by CMR) and its average price.
The resulting estimated sales from an ad campaign broadcast is divided by the cost of the campaign. This makes it possible to evaluate the estimated return on investment thanks to advertising in Listonic – ROI estimation.
In Listonic we provide as much data as possible in the summary of the campaign, which shows the effectiveness of the invested amount. We always shared information on how the brand’s popularity has grown on shopping lists. From H2 2021 onwards, as part of the summary of a campaign run in Listonic, the Client Success Team also provides an ROI estimation, so clients find out how effective their campaign was.
Our partner is able to prepare dedicated and even more advanced analyses for FMCG brands, such as:
- experiments in shops
- marketing-mix econometric modelling
- price elasticity analyses
- analyses of shopping habits
- other analyses based on transactional data from grocery stores
Don’t hesitate to contact CMR: