STORE VISIT FREQUENCY
By partnering with Social Fulcrum, we have seen excellent results from In-Store Solutions. We are excited by Facebook’s ability to drive new and existing customers to shop more frequently at our Clubs — and to help us reach younger customers more effectively.
-DONNA NOA, VICE PRESIDENT BRAND MARKETING
Average Monthly Incremental Store Visits
Annual Incremental Revenue Generated
Net Return on Advertising Spend
BJ’s Wholesale Club is a membership-only warehouse chain operating on the East Coast of the United States, as well as in the state of Ohio.
- Stores: 216
- States: 16
- Founded: 1984
- Revenue: 12 billion
BJ’s asked Social Fulcrum to increase the frequency of member visits to their stores. The primary challenge with this is that consumer behavior towards buying bulk items is largely geared towards monthly store visits; consumer tend to do weekly shipping at traditional grocery stores.
Social Fulcrum initially implemented Facebook Store Visit Ads. These ads use GPS tracking to track consumers that see or interact with an ad on Facebook (a promotion or coupon for a specific product) to a physical store location. BJ’s stores are ideal for this, as they are large standalone buildings surrounded by parking lots making GPS tracking of results unambiguous.
After very compelling initial results, Social Fulcrum greatly expanded the program and launched Facebook Offline Conversion Ads. These ads measure the basket size and individual SKUs associated with each in-store transaction and map transactions back to Facebook campaign data. Because members are required to scan their membership cards, Social Fulcrum saw a 100% match between basket and our campaigns.
After a few months, BJ’s was uploading all of their anonymous purchase data to Facebook. With this data, Social Fulcrum was able to segment the audience very precisely and serve ads with promotions that are highly relevant to members.
BJ’s has seen massive advantages with Facebook In-Store Solutions over their traditional direct mail coupon programs. Time-to-market is greatly reduced (Social Fulcrum can now swap out budgets and promotions daily) and targeting is drastically improved (Social Fulcrum is now using machine learning to choose promotions that have the highest probability to produce the best return). Additionally, Social Fulcrum’s incremental testing program ensured that the programs take credit for only those conversions that would not have otherwise occurred without Facebook advertising.
The program has grown 20x in budget, driving 160k monthly incremental store visits and $15 million monthly incremental revenue. Facebook ads see a 5x higher return than direct mail with a 7.2x net return on advertising investment.