Cannes Lions

Predictive Logic delivered more for McDelivery Singapore

TASSEOLOGIC, Keller / MCDONALD'S / 2016

Case Film

Overview

Entries

Credits

Overview

Description

Idea:

McRecommend it for you.

Basket analysis reviewed that more then 70% of customers prefers their regular comfort food fix delivered to their doorsteps.

We took it further, we predict what other items you will like to have based on other look-alike customers.

Instead of mass marketing, predictive offering backed by science allowed precision of relevancy. And a bigger basket size.

We did not change our products, we only changed our proposition - one customer at a time.

Execution

When McDelivery started in 2005, speed of ordering was prioritised over the data collection limiting the targeting segmentation. In 2015, we investigated and cleansed the available dataset, applied modelling, clustering and predictive logic to derive the best segments with the best up-sides.

3 segments were identified:

1. High

2. Mid/Low

3. New Customers

Based on their average transaction value, we crafted the right offer to deliver the business objective. This is further broken down to sub segments of time belts and offers. Basket analysis also allowed us to find the best offers for each target segment.

Targeting timing were tested to ensure the best open rates and a timely countdown reminder delivered 5 days before offer expiration drove conversions for non-respondents.

Outcome

Segmenting and mass personalisation not only allowed hyper-relevant offers to be served to customers, but also delivers big on results:

1. 24.1% higher open rates across all email communications

Email blasts performed better than Singapore's benchmarks. We see a trend as the customers get comfortable with relevant offers over the 6 email communication.

2. 22% bigger basket size and transactional value

Across 3 value customer segments, while the customer could have ordered a low prize item to fulfil the offer condition, they went on to upsize to another burger and more. This increased their average spend by 22% with the Mid/Low Value customers delivering a high of 27%.

3. Increased frequency by 2.57 times

On average, customers ordered twice more frequently than on average. Our newbies are even so receptive that they covered 3.3 times more than before.

4. All accounting for a 23.1% Incremental Sales.

And most of all more love from our customers.

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