Customer Success Stories - Gigantti: How the leading home electronics retailer in the Nordics stays on top of its (marketing) game with continuous marketing mix modeling service
Sellforte produced a case study together with Gigantti, the biggest home elecronics retailer in the Nordics, and Screensforce, a marketing body for commercial television in Finland. The case findings include the following highlights:
- TV is the largest sales driver when considering effectiveness, scalability and media spillover & saturation effects
- SEM is the most efficient medium in immediate sales generation
- In conjunction with TV, direct mail reinforces a robust Top of Mind position
In addition to measuring the exact media ROI, Sellforte discovered the importance of different campaigns in building a strong brand image.
Gigantti, the leading consumer electronics retail chain in Finland, has over 40 stores nationwide:
- In 2018, Gigantti's turnover was 563.5M€, and it employs over 1100 in Finland
- Gigantti's motto is 'It’s simply stupid to pay too much'
- Gigantti is a part of Dixon’s Carphone group, a concern with a turnover of 10.52 billion GBP and 2139 stores across the globe
Gigantti’s media mix is quite extensive, with the company utilizing almost all available marketing resources:
- In Gigantti’s early years, advertising was very tactical and price-driven (hence the slogan)
- Today, Gigantti carefully considers how tactical and brand marketing support each other
- Until recently, there have been no tools to measure all marketing with common metrics
Gigantti aimed to establish a systematic measurement process with common metrics for all its marketing activities:
- Gigantti's media mix is extensive, and sales are constantly monitored. Observing the effectiveness of marketing is particularly crucial in the busy and highly competitive home electronics sector
- Previously, Gigantti's marketing team received accurate data from its digital marketing but lacked tools to measure all marketing with unified and comparable metrics
- A key objective was to determine the impacts of TV and leaflet advertising on campaigns
- Secondly, Gigantti sought more insights into how tactical and brand advertising support each other
Sellforte’s software calculated the incremental sales and margin uplift that each media group generated, excluding the impact of the offers themselves.
- The UI displayed the daily sales and margin driven by each media group and the offers themselves, plus the estimated sales without any marketing or discounts.
- The UI featured customized filters for more specific analyses, such as the effectiveness of media channels with different campaigns or brands.
When analyzing how TV advertising drives sales in other channels, Sellforte found out that approximately 4% of SEM sales were due to TV.
- Looking at search engine traffic during TV spots revealed how TV advertising contributes to part of SEM sales uplifts.
- Analyzing sales and marketing data from the past two years, Sellforte found out that approximately 4% of sales attributed to SEM should be attributed to TV ROI.