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All content copyright © 5one 2001 - 2010. All rights reserved. Confidential.

Clicks Acdoco Targeted VoucherJanuary Cashback ClubCard MailingPost-Campaign Report

March 2010


Contents

• Introduction• Coupon Redemption & Response• Incremental Analysis• Immediate ROI• Conclusions & Recommendations

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Introduction

• 99,960 ClubCard customers targeted utilising 5one’s targeting tool

• Campaign period: 22 Jan – 26 Feb• Both Current and New shoppers

targeted:• 8,349 Current• 91,611 New

• Offer:• Save R3.50 when you buy any

Lifestyle Condoms• Control group of look alike

customers measured over exact same campaign period

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The Mailing

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Contents


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Targeted Coupon: Redemption

Redemption: customers who bought featured product at the same time as handing in the coupon.

• Overall redemption rate is below average considering the high number of new shoppers targeted: 0.39% (above 1% is ‘good’ for Current, 0.5% ‘good’ for New)

• Of the 385 redeemers, 301 were current shoppers

How many mailants shopped the promoted products?

Coupon Mailed Redeemed Red. Rate

Current 8,349 301 3.60%

New 91,611 84 0.09%

TOTAL 99,960 385 0.39%


Targeted Coupon: Response

Response: customers who bought featured product regardless of whether they handed in the coupon A more accurate metric for campaign success as the coupon acts as both a discount and marketing message.

• Overall response rate is below average: 1.3% (above 2% is ‘good’ for Current, above 1% for New)

• Response rates generated by Current shoppers: 12%• Of the 1,258 responders, 1,044 were new; meaning 214 new shoppers were

gained

Coupon Mailed Redeemed Red. Rate Respond

ed Resp. Rate

Current 8,349 301 3.60% 1044.1 12.5%

New 91,611 84 0.09% 213.9 0.2%

TOTAL 99,960 385 0.39% 1,258 1.3%


Contents


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Incremental Shoppers

• Control response rates, however still significantly lower compared to mailed response rates

• Overall 34% of shoppers were incremental• % incremental shoppers for Current: 84%• % incremental shoppers for New: -207%

Incremental analysis shows how total mailed responders would have shopped had they not received the mailing – essential in understanding actual effect of the campaign.How many shoppers were incremental?

CouponMailed Resp. Rate

Responded

Control Resp. Rate

Incremental

Shoppers%

Incremental

Current 12.5% 1044.1 0.8% 535 84%

New 0.2% 213.9 0.7% 171 -207%

TOTAL 1.3% 1,258 0.7% 537 34%


Incremental Units

How many more units were purchased?

• Total number of units purchased 727, of which 34% was incremental:• Current shopper: 42% incremental units• New shopper: -6% incremental units

Coupon Total Mailed Units

Incremental Units

% Incremental

Current 1,777 750 42%

New 369 -23 -6%

TOTAL 2,146 727 34%


Incremental Sales

Coupon Total Mailed Sales Incremental % Incremental

Current R 21,335 R 9,569 45%

New R 4,072 -R 954 -23%

TOTAL R 25,407 R 8,615 34%

How many more sales were achieved?

Total mailed sales of R25,507 achieved:• Current shopper generating high 45% of incremental sales• New shopper generating lower -23% incremental sales

*sales through the till ex VAT


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Immediate Return On Investment

• Overall ROI is negative: -14%• However, exceptionally high ROI amongst Current shoppers: 1046%• Low ROI generate amongst New shoppers: -110%

What was the immediate ROI of the targeted coupon?

CouponTotal

Mailed Sales

Incremental

SalesProduction

CostsGross Profit ROI

Current R 21,335 R 9,569 R 835 R 8,733 1046%

New R 4,072 -R 954 R 9,165 -R 10,118 -110%

TOTAL R 25,407 R 8,615 R 10,000 -R 1,385 -14%


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Campaign Summary

• Overall campaign generated response:• Redemption rate: 0.39% (385 shoppers)• Response rate: 1.3% (1,258 shoppers)

• Successful at driving incremental behaviour:• Shoppers: 537 (43%)• Units: 727 (34%) • Sales: R 8,615 (34%)

• Overall campaign generated a below average immediate ROI:

• Profit: -R 1,385 • ROI: -14%


1. Continue to use targeted coupons to invoke re-purchase and gain new shoppers to the brands

2. Test both Current & New offers using high/low value split for reward levels

Recommendations


Thank-youRobert Grace – 5one Senior [email protected]

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