bio oil targeted coupon aug cashback clubcard mailing post-campaign report november 2010

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

Bio Oil Targeted CouponAug CashBack ClubCard MailingPost-Campaign Report

November 2010


Contents

• Introduction

• Coupon Redemption & Response

• Incremental Analysis

• Immediate ROI

• Conclusions & Recommendations

2


Introduction

• 150 000 ClubCard customers targeted utilising 5one’s targeting tool

• Campaign period: 16 Aug 2010 – 18 Sep 2010

• Both Current and New customers targeted:

• 25,827 Current shoppers125ml

• 26,220 Current shoppers 60ml

• 97,953 New shoppers

• Reward level constructed tested:

• R8 off when you buy Bio Oil 200ml

• R8 off when you buy Bio Oil 60ml

• 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 - 2010. 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 good: 1.72% (above 1% is ‘good’ for Current, 0.5% ‘good’ for New)

• Offer to current shoppers generating highest redemption rate

Coupon Mailed Redeemed Red. Rate

Current 125ml 25,827 903 3.50%

Current 60ml 26,220 927 3.54%

New 60ml 97,953 757 0.77%

TOTAL 150,000 2,587 1.72%


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 Excellent: 6.92% (above 2% is ‘good’ for Current shoppers, above 1% for New shoppers)

• Offer to new shoppers driving an additional 3,279 new shoppers to the brand!

Coupon Mailed Redeemed Red. Rate Responded Resp. Rate

Current 125ml 25,827 903 3.50% 3,544 13.72%

Current 60ml 26,220 927 3.54% 3,556 13.56%

New 60ml 97,953 757 0.77% 3,279 3.35%

TOTAL 150,000 2,587 1.72% 10,379 6.92%


Contents

• Introduction



• Immediate ROI


8


Incremental Shoppers

CouponMailed Resp. Rate

Responded

Control Resp. Rate

Incremental

Shoppers

% Increment

al

Current 125ml 13.72% 3,544 9.7% 1,029 29%

Current 60ml 13.56% 3,556 11.1% 657 18%

New 60ml 3.35% 3,279 1.3% 2,001 61%

TOTAL 6.92% 10,379 2.7% 3,688 36%

• Overall the mailed group shopped at a higher rate than targeted shoppers resulting in 36% of shoppers being incremental

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?

• Due to high response rates of shoppers, 47% of total units purchased were incremental

• Mailed units higher than responders indicating shoppers picking up more than one product during the promotional period

CouponTotal Mailed

UnitsIncremental

Units% Incremental

Current 125ml 5,193 2,294 44%

Current 60ml 5,222 1,790 34%

New 60ml 4,314 2,903 67%

TOTAL 14,729 6,987 47%


Incremental Sales

How many more sales were achieved?

• Total mailed sales of R713k achieved, with 34% sales being incremental

CouponTotal Mailed

SalesIncremental

Sales%

IncrementalIncremental / Responder

Current 125ml R 257,213 R 79,794 31% R 22.5

Current 60ml R 255,352 R 43,829 17% R 12.3

New 60ml R 200,685 R 117,989 59% R 36.0

TOTAL R 713,249 R 241,613 34% R 23.3


Contents

• Introduction



• Immediate ROI


12


Immediate Return On Investment

• Overall ROI is Excellent: 590%

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

CouponTotal

Mailed Sales

Incremental

Sales

Production Costs

Gross Profit

ROI

Current 125ml R 257,213 R 79,794 R 6,026 R 73,768 1224%

Current 60ml R 255,352 R 43,829 R 6,118 R 37,711 616%

New 60ml R 200,685 R 117,989 R 22,856 R 95,134 416%

TOTAL R 713,249 R 241,613 R 35,000 R 206,613 590%


Contents

• Introduction



• Immediate ROI


14


• Overall campaign generated ideal response:

• Redemption rate: 1.72% (2,587 shoppers)

• Response rate: 6,92% (10,379 shoppers)

• Successful at driving incremental behaviour:

• Shoppers: 3,688 (36%)

• Units: 6,987 (47%)

• Sales: R241,613 (34%)

• Overall campaign generated excellent immediate ROI of 590% at a promoted product level

Campaign Summary


Campaign Comparison

Mailing Offer Targeting Mailed Red. Rate

Resp. Rate

Control Resp. Rate

% Shoppers inc

% Units Inc

% Sales Inc

Inc Sales

Profit ROI

Aug-10R8 off when buy

200ml Current 125ml

25,827 3.50% 13.72% 9.7% 29% 44% 31% R 79,794 R 73,768 1224%

Aug-10R8 off when buy

200ml Current

60ml 26,220 3.54% 13.56% 11.1% 18% 34% 17% R 43,829 R 37,711 616%

Aug-10 R8 off when buy 60ml New 97,953 0.77% 3.35% 1.3% 61% 67% 59% R 117,989 R 95,134 416%

Jul-10R8 off when buy

200ml Current 125ml

26,489 2.91% 12.25% 10.6% 14% 32% 16% R 37,885 R 30,786 434%

Jul-10R8 off when buy

200ml Current

60ml 29,098 3.02% 12.14% 9.6% 21% 38% 23% R 59,083 R 51,284 658%

Jul-10 R8 off when buy 60ml New 75,000 0.63% 3.23% 1.2% 61% 65% 58% R 87,256 R 67,154 334%

Dec-9R8 off when buy

200ml Current 125ml

31,703 3.3% 8% 3% 58% 60% 62% R 74,618 R 66,369 805%

Dec-9R8 off when buy

200ml Current

60ml 60,737 4% 9% 2% 74% 78% 72% R 260,844 R 245,040 1,551%

Dec-9 R8 off when buy 60ml New 99,723 1% 2% 3% 0 0% 0% R 0 -R 25,948 -100%


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

2. In-depth analysis of what the Bio Oil shopper looks like, how they shop across the range and what competitor products they are purchasing into

Recommendations


Thank-you

Nikki Emerton – 5one Account Manager [email protected]

Zakariya Patel – 5one [email protected]

mailto:[email protected]

mailto:[email protected]

bio oil targeted coupon aug cashback clubcard mailing post-campaign report november 2010

Documents

content copyright

targeted shoppers

current shoppers 60ml97

rateincremental shoppers

alike shoppers

current 60ml26

new shoppers reward

new 60ml97