fine fragrance targeted voucher january cashback clubcard mailing post-campaign report

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

Fine Fragrance Targeted VoucherJanuary Cashback ClubCard MailingPost-Campaign Report

April 2010


Contents

• Introduction

• Coupon Redemption & Response

• Incremental Analysis

• Immediate ROI

• Conclusions & Recommendations

2


Introduction

• 100,000 ClubCard customers targeted utilising 5one’s targeting tool

• Campaign period: 22 Jan – 26 Feb

• Both Current and New shoppers targeted:

• 20,207 Current

• 79,787 New

• Offer:

• High Value Offer: R70 when you spend R300 or more on any fine fragrance

• Low Value Offer: R50 when you spend R300 or more on any fine fragrance

• Control group of look alike customers measured over exact same 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: customers who bought featured product at the same time as handing in the coupon.

• Overall redemption rate is low: 0.64% (above 1% is ‘good’ for Current shoppers, 0.5% ‘good’ for New shoppers)

• Of the 636 redeemers, 503 were current shoppers

How many mailants shopped the promoted products?

Coupon MailedRedeeme

dRed. Rate

High Value Offer 50,000 417 0.83%

Low Value Offer 49,994 219 0.44%

TOTAL 99,994 636 0.64%


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

• Of the 1,977 responders, 1,608 were new; meaning 369 new shoppers were gained

Coupon MailedRedeeme

dRed. Rate

Responded

Resp. Rate

High Value 50,000 417 0.83%1,238

2.5%

Low Value 49,994 219 0.44%739

1.5%

TOTAL 99,994 636 0.64% 1977 2.0%


Contents

• Introduction



• Immediate ROI


8


Incremental Shoppers

• Control response rates significantly lower compared to mailed response rates

• Overall 65% of shoppers were incremental:

• % incremental shoppers for High Value Offer: 55%

• % incremental shoppers for Low Value Offer: 82%

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

High Value Offer 2.5%1,238

1.1%

684

55%

Low Value Offer 1.5%739

0.3% 603 82%

TOTAL 2.0% 1977 0.5% 1,286 65%


Incremental Units

How many more units were purchased?

• Total number of units purchased 1,594, of which 67% was incremental:

• High Value Offer: 59% incremental units

• Low Value Offer: 82% incremental units

CouponTotal Mailed

UnitsIncremental

Units%

Incremental

High Value Offer 1,517 893 59%

Low Value Offer 858 702 82%

TOTAL 2,375 1,594 67%


Incremental Sales

How many more sales were achieved?

Total mailed sales of R632k achieved:

• High Value Offer generating high 70% of incremental sales

• Low Value Offer generating lower 86% incremental sales

*sales through the till ex VAT

CouponTotal Mailed

SalesIncremental

Sales%

Incremental

High Value Offer R 394,343 R 276,759 70%

Low Value Offer R 237,601 R 203,261 86%

TOTAL R 631,944 R 480,021 76%


Contents

• Introduction



• Immediate ROI


12


Immediate Return On Investment

• Overall ROI is excellent: 4700%

What was the immediate ROI of the targeted coupon?

CouponTotal

Mailed Sales

Incremental

Sales

Production Costs

Gross Profit

ROI

High Value Offer R 394,343 R 276,759 R5,000 R 271,759 5434%

Low Value Offer R 237,601 R 203,261 R5,000 R 198,262 3965%

TOTAL R 631,944 R 480,021 R10,000 R470,021 4700%


Contents

• Introduction



• Immediate ROI


14


Campaign Summary

• Overall campaign generated ideal response:

• Redemption rate: 0.64% (636 shoppers)

• Response rate: 2% (1977 shoppers)

• Highly successful at driving incremental behaviour:

• Shoppers: 1,286 (65%)

• Units: 1,594 (67%)

• Sales: R480,021 (76%)

• Overall campaign generated an excellent immediate ROI:

• Profit: R470,021

• ROI: 4700%


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


Thank-you

Robert Grace – 5one Senior [email protected]

Nikki Emerton – 5one Junior Account Manager [email protected]

Zakariya Patel – 5one Junior Analyst [email protected]

mailto:[email protected]



fine fragrance targeted voucher january cashback clubcard mailing post-campaign report

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