How Data Helped a Little-Known Brand Get a Black Friday Promo at Target
When shoppers rush the digital camera aisle at Target stores on Black Friday, they'll find a special package that hit the shelves in part because of data analysis: a "doorbuster" promotion bundling Micron's Lexar memory cards with GoPro digital cameras.
Micron attributes the existence of the bundle to custom research by NPD Group suggesting that retailers move more cards through the tactic than by letting shoppers grab cameras and cards separately.
Not only did the result help give a little-known consumer electronics brand a prominent place alongside a popular product on Target store shelves and on its website, it armed Micron with information it used to approach Amazon with a bundling idea as well. Today, Lexar memory cards are offered along with GoPro cameras in an "Extreme Bundle" on Amazon.com.
"Target being one of our largest customers, it was a natural for us to approach them for an in-store promotion," said Wes Brewer, VP-general manager, Micron consumer products group. "The irony here is we actually used online data to drive an in-store promotion."
Target declined to discuss details of its discussions with Micron. Amazon did not respond to requests to comment for this story.
From November 26 through November 28, Target will offer a free 64GB Lexar MicroSD card, normally priced at $42.99, with purchase of a GoPro Hero camera. The retailer will also throw a $60 store gift card into the $299.99 bundle, available Thanksgiving morning on Target.com, and in stores starting at 6 p.m. that day.
Micron commissioned NPD to develop custom research based on data derived through its partnership with Slice Intelligence. Slice scans order confirmation emails received by consumers who have opted in to its program; the company stores e-commerce receipt data showing product details, purchase amounts, consumer demographics and loyalty program and discount information. NPD's own data represents in-store purchases among a panel of around 50,000 people, who upload photos of receipts with apps such as ReceiptPal, which gives rewards such as gift cards in exchange for receipt photos.
The resulting Micron study represented data from 2014 on 1.5 million people (the panel has since grown to 2.5 million). Working with NPD, the company evaluated the attachment rate of its products, or how well its memory cards sold in conjunction with purchases of point-and-shoot cameras, mobile phones, tablets, action sports cameras like GoPro, drone-based aerial cameras and DSLRs (digital single-lens reflex cameras). Micron chose to look at purchases on websites of a handful of key retailers with high occurrence of purchases of cameras along with memory cards: Target, Walmart, Amazon, Best Buy and B and H Photo. The data, which compared sales in the first half of 2014 to the second half, revealed BestBuy.com had the highest attachment rate of Micron's Lexar memory cards.
Mr. Brewer used the information in presentation materials for sales teams calling on U.S. retailers, "to show the opportunity loss if their data was underperforming in the market," he said. His hope is that the new bundling partnerships with Target and Amazon will spur additional memory card sales.
"Amazon is pretty savvy, so they know that bundles work," said Mr. Brewer, who said the NPD research gave Micron some leverage when approaching the e-commerce giant with the bundling idea. "What we were able to do was use the data as a conversation starter, to engage with them on a deeper level," he said.