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Veet Targeted VoucherJanuary Cashback ClubCard MailingPost-Campaign Report
April 2010
All content copyright © 5one 2001 - 2010. All rights reserved. Confidential.
Contents
• Introduction
• Coupon Redemption & Response
• Incremental Analysis
• Immediate ROI
• Conclusions & Recommendations
2
All content copyright © 5one 2001 - 2010. All rights reserved. Confidential.
Introduction
• 100,000 ClubCard customers targeted utilising 5one’s targeting tool
• Campaign period: 22 Jan – 26 Feb
• Both Current and New shoppers targeted:
• 8,309 Current
• 91,691 New
• Offer:
• Get R10 off when you spend R40 or more on any Veet product
• Control group of look alike customers measured over exact same campaign period
3
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The Mailing
4
All content copyright © 5one 2001 - 2010. All rights reserved. Confidential.
Contents
• Introduction
• Coupon Redemption & Response
• Incremental Analysis
• Immediate ROI
• Conclusions & Recommendations
5
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Targeted Coupon: Redemption
Redemption: customers who bought featured product at the same time as handing in the coupon.
• Overall redemption rate is excellent: 1.5% (above 1% is ‘good’ for Current shoppers, 0.5% ‘good’ for New shoppers)
How many mailants shopped the promoted products?
Coupon MailedRedeeme
dRed. Rate
Current 8,309 494 5.95%
New 91,691 1,006 1.10%
TOTAL 100,000 1,500 1.50%
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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 is excellent: 5% (above 2% is ‘good’ for Current shoppers, above 1% for New shoppers)
• Excellent response rates generated by Current shoppers: 10.2%
• New coupon generating lower response rate but still good at 4.5%, driving 4,121 new shoppers to the range
Coupon MailedRedeeme
dRed. Rate
Responded
Resp. Rate
Current 8,309 494 5.95% 851 10.2%
New 91,691 1,006 1.10% 4,121 4.5%
TOTAL 100,000 1,500 1.50%4,972
5.0%
All content copyright © 5one 2001 - 2010. All rights reserved. Confidential.
Contents
• Introduction
• Coupon Redemption & Response
• Incremental Analysis
• Immediate ROI
• Conclusions & Recommendations
8
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Incremental Shoppers
• Control response rates significantly lower compared to mailed response rates
• Overall 70% of shoppers were incremental
• % incremental shoppers for Current: 97%
• % incremental shoppers for New: 64%
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 10.2% 851 1.2% 823 97%
New 4.5% 4,121 1.8% 2,652 64%
TOTAL 5.0%4,972
1.5% 3,476 70%
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Incremental Units
How many more units were purchased?
• Total number of units purchased 5,683, of which 71% was incremental:
• Current shoppers: 96% incremental units
• New shoppers: 66% incremental units
CouponTotal Mailed
UnitsIncremental
Units%
Incremental
Current 937 900 96%
New 4,745 3,141 66%
TOTAL 5,682 4,040
71%
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Incremental Sales
CouponTotal Mailed
SalesIncremental % Incremental
Current R 30,312 R29,402 97%
New R 220,785 R147,888 67%
TOTAL R 251,097 R177,291 71%
How many more sales were achieved?
Total mailed sales of R251k achieved:
• Current shoppers generating high 97% of incremental sales
• New shoppers generating lower 67% incremental sales due to lower overall response rate
*sales through the till ex VAT
All content copyright © 5one 2001 - 2010. All rights reserved. Confidential.
Contents
• Introduction
• Coupon Redemption & Response
• Incremental Analysis
• Immediate ROI
• Conclusions & Recommendations
12
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Immediate Return On Investment
• Overall ROI is excellent: 255%
• Exceptionally high ROI amongst Current shoppers: 608%
• Also high ROI generate amongst New shoppers: 223%
What was the immediate ROI of the targeted coupon?
CouponTotal
Mailed Sales
Incremental
Sales
Production Costs
Gross Profit
ROI
Current R 30,312 R29,402 R 4,154 R 25,248 608%
New R 220,785 R147,888 R 45,846 R 102,043 223%
TOTAL R 251,097 R177,291 R50,000 R 127,291 255%
All content copyright © 5one 2001 - 2010. All rights reserved. Confidential.
Contents
• Introduction
• Coupon Redemption & Response
• Incremental Analysis
• Immediate ROI
• Conclusions & Recommendations
14
All content copyright © 5one 2001 - 2010. All rights reserved. Confidential. 15
Campaign Summary
• Overall campaign generated ideal response:
• Redemption rate: 1.5% (1500 shoppers)
• Response rate: 5% (4,972 shoppers)
• Highly successful at driving incremental behaviour:
• Shoppers: 3,476 (70%)
• Units: 4,040 (71%)
• Sales: R177,291 (70%)
• Overall campaign generated an excellent immediate ROI:
• Profit: R127,291
• ROI: 255%
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1. Continue to use targeted coupons to invoke re-purchase and gain new shoppers to the brands
2. Test both Current & New offers using high/low value split for reward levels
Recommendations
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Thank-you
Robert Grace – 5one Senior [email protected]
Nikki Emerton – 5one Junior Account Manager [email protected]
Zakariya Patel – 5one Junior Analyst [email protected]