all content copyright © 5one 2001 – 2011. all rights reserved. confidential. new clicks: style...

All content copyright © 5one 2001 – 2011. All rights reserved. Confidential.

New Clicks: Style Aromatherapy Targeted Coupon

January CashBack ClubCard MailingPost-Campaign Report

March 2011

All content copyright © 5one 2001 - 2011. All rights reserved. Confidential.

Contents

• Introduction

• Coupon Redemption & Response

• Incremental Analysis

• Immediate ROI

• Conclusions & Recommendations

2


Introduction

• 100,000 ClubCard shoppers targeted utilising 5one’s targeting tool

• Campaign period: 20 January – 3 March 2011

• New shoppers targeted: 100,000 shoppers

• Reward level constructed tested:

• Get R20 off any Style Moisturiser or 500ml Style Mask

• Control group of look alike shoppers measured over the campaign period

3


The Mailing

4


Contents

• Introduction



• Immediate ROI


5

All content copyright © 5one 2001 - 2011. All rights reserved. Confidential. 6

Targeted Coupon: Redemption

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

How many mailants shopped the promoted products?

• Overall redemption rate is low 0.1% (above 1% is ‘good’ for Current shoppers, 0.5% ‘good’ for New shoppers)

Coupon Mailed Redeemed Red. Rate

New shoppers: R20 off

100,000 124 0.1%


Targeted Coupon: Response

Response: shoppers 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 low: 0.4% (above 2% is ‘good’ for Current shoppers, above 1% for New shoppers)

Coupon Mailed Redeemed Red. Rate Responded Resp. Rate


100,000 124 0.1% 405 0.4%


Contents

• Introduction



• Immediate ROI


8


Incremental Shoppers

CouponMailed Resp.

RateResponded

Control Resp. Rate

Incremental Shoppers

% Incremental


100,000 405 0.1% 347 86%

• Overall the mailed group shopped at a higher rate than the control group resulting in 347 incremental shoppers

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?


Incremental Units

How many more units were purchased?

• Overall 88% of units incremental

CouponTotal Mailed

UnitsIncremental

Units%

Incremental


422 370 88%


Incremental Sales

How many more sales were achieved?

• Total mailed sales of R33k achieved, with 88% sales being incremental

CouponTotal Mailed

SalesIncremental

Sales%

IncrementalIncremental /

Responder


R 33,115 R 29,160 88% R 72


Contents

• Introduction



• Immediate ROI


12


Immediate Return On Investment

What was the immediate ROI of the targeted coupon based on Incremental sales?

CouponTotal Mailed

SalesIncremental

SalesProduction

CostsGross Profit

ROI


R 33,115 R 29,160 R 10,000 R 19,160 192%

• Overall ROI is 192%


Contents

• Introduction



• Immediate ROI


14


Campaign Summary

• Overall campaign generated the following response:

• Redemption rate: 0.1% (124 shoppers)

• Response rate: 0.4% (405 shoppers)

• Successful at driving incremental behaviour:

• Shoppers: 347 (86%)

• Units: 370 (88%)

• Sales: R 29,160 (88%)

• Overall ROI is 192%


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

2. Test broader offer for new shoppers (less niched / fewer constraints)

3. In-depth analysis of what the Style Aromatherapy shopper looks like, how they shop across the range and what competitor products they are purchasing into

Recommendations

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