colgate plax targeted coupon august cashback clubcard mailing post-campaign report january 2011

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

Colgate Plax Targeted Coupon

August CashBack ClubCard MailingPost-Campaign Report

January 2011


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:

• 134,919 New shoppers

• 15,081 Current shoppers

• Reward level constructed tested:

• R6 off any 500ml Colgate Plax Mouthwash

• 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 0.89% (above 1% is ‘good’ for Current, 0.5% ‘good’ for New)

• Offer to current shoppers generating excellent redemption rates

Coupon Mailed Redeemed Red. Rate

New R6 off 134,919 894 0.66%

Current R6 off 15,081 440 2.92%

TOTAL 150,000 1,334 0.89%


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 good: 2.08% (above 2% is ‘good’ for Current shoppers, above 1% for New shoppers)

• Offer to new shoppers driving an additional 1,872 new shoppers to the brand!

Coupon Mailed Redeemed Red. Rate Responded Resp. Rate

New R6 off 134,919 894 0.66% 1,872 1.39%

Current R6 off 15,081 440 2.92% 1,248 8.28%

TOTAL 150,000 1,334 0.89% 3,120 2.08%


Contents

• Introduction



• Immediate ROI


8


Incremental Shoppers

CouponMailed Resp. Rate

Responded

Control Resp. Rate

Incremental

Shoppers

% Incrementa

l

New R6 off 1.39% 1,872 0.3% 1,472 79%

Current R6 off 8.28% 1,248 5.5% 424 34%

TOTAL 2.08% 3,120 0.5% 1,896 61%

• Overall the mailed group shopped at a higher rate than control shoppers resulting in 61% 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 71% of total units purchased were incremental

Coupon Total Mailed UnitsIncremental

Units% Incremental

New R6 off 2,816 2,364 84%

Current R6 off 1,882 971 52%

TOTAL 4,698 3,336 71%


Incremental Sales

How many more sales were achieved?

• Total mailed sales of R134k achieved, with 57% sales being incremental

CouponTotal Mailed

Sales

Incremental

Sales

% Incremental

Incremental / Responder

New R6 off R 75,057 R 56,659 75% R 30.30

Current R6 off R 59,025 R 20,391 35% R 16.30

TOTAL R 134,082 R 77,051 57% R 24.70


Contents

• Introduction



• Immediate ROI


12


Immediate Return On Investment

• Overall ROI is 54%

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

CouponTotal

Mailed Sales

Incremental

Sales

Production Costs

Gross Profit

ROI

New R6 off R 75,057 R 56,659 R 44,973 R 11,686 26%

Current R6 off R 59,025 R 20,391 R 5,027 R 15,364 306%

TOTAL R 134,082 R 77,051 R 50,000 R 27,051 54%


Contents

• Introduction



• Immediate ROI


14


• Overall campaign generated ideal response:

• Redemption rate: 0.89% (1,334 shoppers)

• Response rate: 2.08% (3,120 shoppers)

• Highly successful at driving incremental behaviour:

• Shoppers: 1,896 (61%)

• Units: 3,336 (71%)

• Sales: R77,051 (57%)

• Overall campaign generated immediate ROI 54% 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 Colgate Plax 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]

mailto:[email protected]

colgate plax targeted coupon august cashback clubcard mailing post-campaign report january 2011

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