Coles’ successful Little Shop campaign has been heralded as marketing ingenuity by consumers and investors across Australia.
Consumers rushed online and to stores to collect miniature versions of 30 household favourites with every $30 spent, including mini Tim Tams, Vegemite, Nutella, and Oaks.
This campaign also helped Coles see tangible results online, a key battleground for Australia’s supermarket landscape. Using Hitwise data, we quantify this uplift and pinpoint the audiences that drove Coles’ success.
Coles Little Shop sees huge gains in traffic and market share
Coles saw a 16% increase in unique users during the eight weeks of the campaign, compared to the previous eight weeks. This equated to a rise of over 250,000 visitors or roughly 1% of Australia’s total population.
The growth in unique users was also met with an impressive 19% rise in total site visits, or a rise of over 2.5 million visits across the two periods. Highlighting that this was no mere result of a seasonal uplift, Coles also enjoyed a 15% year-on-year rise in total visits the eight weeks of the campaign YoY.
Crucially for Coles, the supermarket also saw substantial gains in online market share. Coles’ share to the groceries industry grew by 11% to 22.9% during the campaign, compared to the previous 8 weeks. Additionally, when 2017 saw a decline over the month of August, Coles was able to grow and maintain industry share, which was 7% higher over the campaign period YoY.
Affluent households driven by rewards were behind Coles’ online growth
All age groups saw an uplift over Coles’ Little Shop campaign. In particular, a key demographic of 45-54 yo grew by 19% compared to the previous 8 weeks. Females within this age group rose by 21%, suggesting that Coles successfully attracted the middle-age mother segment buying miniature treats for their children (or for themselves!).
Coles also attracted a higher share of affluent households, with incomes between $100k-$149k growing by 20%.
Furthermore, the supermarket was able to tap into customers who care about rewards and extensive product ranges, more so than consumers driven by price or brand prestige. Coles saw the largest uplift of 18% from visitors who purchase online due to rewards programs – a prime opportunity for the supermarket to capitalise on and grow this loyalty-driven segment.
What now for Coles?
Coles’ highly successful Little Shop campaign generated huge online successes in traffic and market share gains. But more importantly, the supermarket was able to attract and grow a highly valuable segment – the older, affluent household who love their loyalty programs and love their perks.
With the promotion coming to a close, it’s now up to the supermarket to nurture and grow this segment, particularly with the peak shopping period fast approaching at the end of the year.
Want to know how we got these online audience stats? Contact us!
* Pre-campaign: 8 weeks to 14-July-2018. During Campaign: 8 weeks to 08-September-2018.
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