clicks sister lilian targeted voucher january cashback clubcard mailing post-campaign report

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Clicks Sister Lilian Targeted VoucherJanuary Cashback ClubCard MailingPost-Campaign ReportApril 2010


Contents

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

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Introduction

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

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

targeted:• 3,464 Current• 146,529 New

• Offer:• R10 off when you spend R60 or more

on any Sister Lilian product• 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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All content copyright © 5one 2001 - 2010. All rights reserved. Confidential. 6

Targeted Coupon: Redemption

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

• Overall redemption rate is below average: 0.05% (above 1% is ‘good’ for Current, 0.5% ‘good’ for New)

• Good redemption rate achieved amongst current shoppers• Low redemption rate amongst new shoppers, indicative of niched / low

awareness range

How many mailants shopped the promoted products?

Coupon Mailed Redeemed Red. Rate

Current 3,464 47 1.3%

New 146,529 33 0.02%

TOTAL 149,993 80 0.05%


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 significantly higher than redemption rate, but is still below average: 0.2% (above 2% is ‘good’ for Current, above 1% for New)

• Again, significantly higher response rates generated by Current shoppers: 4.9%

• Of the 232 responders, 63 new shoppers were gained who had not purchase the brand before

Coupon Mailed Redeemed Red. Rate Respond

ed Resp. Rate

Current 3,464 47 1.3% 169 4.9%

New 146,529 33 0.02% 63 0.04%

TOTAL 149,993 80 0.05% 232 0.2%


Contents


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Incremental Shoppers

• Although response rate was low, control group shopped at a significantly lower rate.

• This means that nearly all responders were 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?

CouponMailed Resp. Rate

Responded

Control Resp. Rate

Incremental

Shoppers%

Incremental

Current 4.9% 169 0.0% 159 95%

New 0.04% 63 0.0% 60 95%

TOTAL 0.2% 232 0.0% 219 95%


Incremental Units

How many more units were purchased?

• Total number of units purchased 303, of which 96% was incremental:• Current shoppers: 96% incremental units• New shoppers: 94% incremental units

Coupon Total Mailed Units

Incremental Units

% Incremental

Current 233 224 96%

New 70 66 94%

TOTAL 303 290 96%


Incremental Sales

How many more sales were achieved?

Total mailed sales of R17,977 achieved most of which were incremental: 96%

*sales through the till ex VAT

Coupon Total Mailed Sales

Incremental Sales

% Incremental

Current R 14,719 R 14,108 96%

New R 3,258 R 3,122 96%

TOTAL R 17,977 R 17,230 96%


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Immediate Return On Investment

• Overall ROI is negative: -66%• Exceptionally high ROI amongst Current shoppers: 1122%• Overall negative ROI a result of the low response rate of New shoppers: -

94%

What was the immediate ROI of the targeted coupon?

CouponTotal

Mailed Sales

Incremental

SalesProduction

CostsGross Profit ROI

Current R 14,719 R 14,108 R 1,155 R 12,953 1122%

New R 3,258 R 3,122 R 48,845 -R 45,723 -94%

TOTAL R 17,977 R 17,230 R 50,000 -R 32,770 -66%


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Campaign Summary

• Overall campaign generated below average response:• Redemption rate: 0.05% (80 shoppers)• Response rate: 0,2% (232 shoppers)

• However highly successful at driving incremental behaviour:• Shoppers: 219 (95%)• Units: 290 (96%)• Sales: R17,230 (96%)

• Overall campaign generated a below average immediate ROI:• Profit: - R32,770 • ROI: -66%

• Campaign performance indicative of a niched / low awareness range

• Current shopper behaviour to the campaign does indicate high loyalty to the product and should focus on raising awareness amongst Clicks shoppers


1. Raise awareness of the Sister Lilian range amongst ClubCard shoppers

2. Continue to use targeted coupons to invoke re-purchase amongst current shoppers as well as to gain new shoppers to the brands

3. Test higher reward level for New customers

Recommendations


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

Nikki Emerton – 5one Account [email protected]

clicks sister lilian targeted voucher january cashback clubcard mailing post-campaign report

Documents

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