bio oil targeted coupon july cashback clubcard mailing post-campaign report

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

Bio Oil Targeted CouponJuly CashBack ClubCard MailingPost-Campaign Report


Contents

• Introduction

• Coupon Redemption & Response

• Incremental Analysis

• Immediate ROI

• Conclusions & Recommendations

2


Introduction

• 130,587 ClubCard customers targeted utilising 5one’s targeting tool

• Campaign period: 28 June 2010 – 30 July 2010

• Both Current and New customers targeted:

• 55,587 Current shoppers

• 75,000 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: 1.62% (above 1% is ‘good’ for Current, 0.5% ‘good’ for New)

• Offer to current shoppers of 60ml generating highest redemption rate

Coupon Mailed Redeemed Red. Rate

Current 125ml 26,489 772 2.91%

Current 60ml 29,098 879 3.02%

New 60ml 75,000 469 0.63%

TOTAL 130,587 2,120 1.62%


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: 7% (above 2% is ‘good’ for Current shoppers, above 1% for New shoppers)

• Offer to new shoppers driving an additional 2,425 new shoppers to the brand!

Coupon Mailed Redeemed Red. Rate Responded Resp. Rate

Current 125ml 26,489 772 2.91% 3,246 12.25%

Current 60ml 29,098 879 3.02% 3,532 12.14%

New 60ml 75,000 469 0.63% 2,425 3.23%

TOTAL 130,587 2,120 1.62% 9,203 7.05%


Contents

• Introduction



• Immediate ROI


8


Incremental Shoppers

CouponMailed Resp. Rate

Responded

Control Resp. Rate

Incremental

Shoppers

% Incremental

Current 125ml 12.25% 3,246 10.6% 448 14%

Current 60ml 12.14% 3,532 9.6% 752 21%

New 60ml 3.23% 2,425 1.2% 1,490 61%

TOTAL 7.05% 9,203 3.5% 2,690 29%

• Overall the control group shopped at a lower rate than targeted shoppers resulting in 29% 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 42% of total units purchased were incremental

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

Coupon Total Mailed UnitsIncremental

Units% Incremental

Current 125ml 4,680 1,491 32%

Current 60ml 5,130 1,964 38%

New 60ml 3,131 2,041 65%

TOTAL 12,941 5,496 42%


Incremental Sales

How many more sales were achieved?

• Total mailed sales of R638k was achieved, with 29% sales being incremental

CouponTotal Mailed

SalesIncremental

Sales%

IncrementalIncremental / Responder

Current 125ml R 233,061 R 37,885 16% R 11.7

Current 60ml R 254,122 R 59,083 23% R 16.7

New 60ml R 151,089 R 87,256 58% R 36.0

TOTAL R 638,272 R 184,224 29% R 20.0


Contents

• Introduction



• Immediate ROI


12


Immediate Return On Investment

• Overall ROI is excellent: 426%

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 233,061 R 37,885 R 7,100 R 30,786 434%

Current 60ml R 254,122 R 59,083 R 7,799 R 51,284 658%

New 60ml R 151,089 R 87,256 R 20,102 R 67,154 334%

TOTAL R 638,272 R 184,224 R 35,000 R 149,224 426%


Contents

• Introduction



• Immediate ROI


14


• Overall campaign generated ideal response:

• Redemption rate: 1.62% (2,120 shoppers)

• Response rate: 7% (9,203 shoppers)

• Highly successful at driving incremental behaviour:

• Shoppers: 2,690 (29%)

• Units: 5,496 (42%)

• Sales: R184,224 (29%)

• Overall campaign generated excellent immediate ROI 426% at a promoted product level

Campaign Summary


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

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

3. 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 july cashback clubcard mailing post-campaign report

Documents

current shoppers

targeted shoppers

rateincremental shoppers

alike shoppers

new shoppers reward

current 60ml29

incremental current

new customers