tip top nails:targeted coupon may 2010 cashback clubcard mailing post-campaign report

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

Tip Top Nails:Targeted Coupon

May 2010 Cashback ClubCard MailingPost-Campaign Report


Contents

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

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Introduction

• 88,180 ClubCard shoppers targeted utilising 5one’s targeting tool• Campaign period: 3 May – 4 June 2010• Both Current and New shoppers targeted:

• 37,911 Current • 50,269 New

• Reward level constructed tested:• Buy 3 Tip Top Products, one of which must be a Nail Treatment, and receive R10 off • Buy any Tip Top Nail Treatment and a Tip Top Nail Chic Colour and receive R5 off • Get R5 off any Tip Top boxed Nail treatment

• Control group of look alike shoppers measured over the 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: 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 low, however due to the large number of New shoppers targeted: 50k (above 1% is ‘good’ for Current , 0.5% ‘good’ for New )

• Current R5 off offer generating good redemptions rates, i.e. 0.5%

Coupon Mailed Redeemed Red. RateNew R5 off(treatment) 50,269 36 0.07%

Current R10 off (buy 3) 11,058 0 0

Current R5 off(treatment & colour) 26,853 121 0.5%

TOTAL 88,180 157 0.2%


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: 3.6% (above 2% is ‘good’ for Current , above 1% for New )

• Response rate amongst Current shoppers is very high• New offer generating good response rate: Driving 1,130 new shoppers to the

brand!

Coupon Mailed Redeemed

Red. Rate Responded Resp. Rate

New R5 off(treatment) 50,269 36 0.07% 1,130 2.3%

Current R10 off (buy 3) 11,058 0 0 487 4.4%

Current R5 off(treatment & colour) 26,853 121 0.5% 1,510 5.6%

TOTAL 88,180 157 0.2% 3,127 3.6%


Contents


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Incremental Shoppers

Coupon Mailed Resp. Rate Responded Control

Resp. RateIncremental

Shoppers%

Incremental New R5 off(treatment) 2.3% 1,130 0.2% 1,017 90%

Current R10 off (buy 3) 4.4% 487 11.5% 0 0

Current R5 off(treatment & colour) 5.6% 1,510 16% 0 0

TOTAL 3.6% 3,127 2.8% 1,017 33%

• Overall the control group shopped at a substantially higher rate than targeted shopper

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?

• No incremental units due to high control response rates• Again, targeting new shoppers generating high % incremental units

Coupon Total Mailed Units Incremental Units % Incremental

New R5 off(treatment) 1,550 1,423 92%

Current R10 off (buy 3) 650 0 0

Current R5 off(treatment & colour) 2,135 0 0

TOTAL 4,335 1,423 33%


Incremental Sales

How many more sales were achieved?

• Total mailed sales of R160k was achieved

Coupon Total Mailed Sales

IncrementalSales

% Incremental

Incremental / Responder

New R5 off(treatment) R57,122 R52,654 92% R47

Current R10 off (buy 3) R27,697 0 0 0

Current R5 off(treatment & colour) R74,600 0 0 0

TOTAL R159,419 R52,654 33% R17


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Immediate Return On Investment

• Overall ROI is Excellent : 427%

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

CouponTotal

Mailed Sales

Incremental

SalesProduction

CostsGross Profit ROI

New R5 off(treatment) R57,122 R52,654 R 5,701 R 46,953 824%

Current R10 off (buy 3) R27,697 0 R 1,254 R -1,254 -100%

Current R5 off(treatment & colour) R74,600 0 R 3,045 R -3,045 -100%

TOTAL R159,419 R52,654 R 10,000 R 42,654 427%


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Campaign Summary

• Overall campaign generated ideal response:• Redemption rate: 0.2% (157 shoppers)• Response rate: 3.6% (3,127 shoppers)

• Highly successful at driving incremental behaviour:• Shoppers: 1,017 (33%)• Units: 1,423 (33%)• Sales: R52,654 (33%)

• Overall campaign generated an excellent immediate ROI 427%


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

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

3. In-depth analysis of what the Vital shopper looks like, how they shop across the range and what competitor products they are purchasing into

Recommendations


Thank-youNikki Emerton – Account Manager [email protected]

Zakariya Patel – 5one [email protected]

mailto:[email protected]

mailto:[email protected]

tip top nails:targeted coupon may 2010 cashback clubcard mailing post-campaign report

Documents

current shoppers

new current r5

current r10

current r5 offtreatment

targeted coupon

clubcard shoppers

rateincremental shoppers

alike shoppers