Taking a Flier

A&P Canada Inc. uses analytics for more than segmentation.

It applies the same insights when distributing fliers.

Like most supermarket chains, A&P had dropped fliers on every doorstep it could. But then it figured out where its best customers live, thanks to shopping data from the Air Miles loyalty program.

“Knowing where our customers originate gives us confidence in accurately deciding where our fliers should be distributed,” says Douglas Brummer, A&P's vice president of marketing and corporate development.

“We've experimented with eliminating flier distribution during certain times of the year, and replacing it with offers in the store,” Brummer says.

“During weeks people are traveling, we'll look at what they buy at those times, and make sure we stock those products with the right incentives. We used Air Miles data to set up the model and measure the results.”

Finally, A&P changed the fliers' content based on customer preferences.

“Half of the recipients don't read it,” he says. “The half that does may just look at the front or back page. All they're looking at is price. They don't want recipes or product descriptions.”

While the primary goal of this analysis is better targeting, A&P Canada also has reduced its multimillion-copy annual print run by around 10%, Brummer adds.

There are limits to this analysis, however. The chain doesn't print different versions of its fliers,preferring to limit that kind of targeting to direct mail and e-mail.