vhf: natrodale targeted coupon aug cashback clubcard mailing post-campaign report november 2010
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VHF: Natrodale Targeted Coupon Aug CashBack ClubCard Mailing Post-Campaign Report November 2010. Contents. Introduction Coupon Redemption & Response Incremental Analysis Immediate ROI Conclusions & Recommendations. Introduction. - PowerPoint PPT PresentationTRANSCRIPT
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VHF: Natrodale Targeted CouponAug CashBack ClubCard MailingPost-Campaign Report
November 2010
All content copyright © 5one 2001 - 2010. All rights reserved. Confidential.
Contents
• Introduction• Coupon Redemption & Response• Incremental Analysis• Immediate ROI• Conclusions & Recommendations
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All content copyright © 5one 2001 - 2010. All rights reserved. Confidential.
Introduction
• 97,299 ClubCard customers targeted utilising 5one’s targeting tool
• Campaign period: 16 Aug 2010 – 18 Sep 2010
• Both Current and New customers targeted:
• 20,620 Current shoppers • 76,679 New shoppers
• Reward level constructed tested:• Get R10 off when you purchase 2 or more
Natrodale products• Get R10 off when you spend R70 or more
on any Natrodale products • Get R10 off any Natrodale products
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• Control group of look alike shoppers measured over the campaign period
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The Mailing
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Contents
• Introduction• Coupon Redemption & Response• Incremental Analysis• Immediate ROI• Conclusions & Recommendations
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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: 0.44% (above 1% is ‘good’ for Current, 0.5% ‘good’ for New)
• ‘Spend R70 and get R10 off’ offer to current shoppers has the highest redemption rate
Coupon Mailed Redeemed Red. Rate
Current: Spend R70 R10 off 10,306 237 2.30%
Current: Buy 2 get R10 off 10,314 109 1.06%
New: R10 off 76,679 78 0.10%
TOTAL 97,299 424 0.44%
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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: 2.66% (above 2% is ‘good’ for Current shoppers, above 1% for New shoppers)
• Offer to new shoppers driving an additional 347 new shoppers to the brand!
Coupon Mailed Redeemed Red. Rate Responded Resp. Rate
Current: Spend R70 R10 off 10,306 237 2.30% 1,129 10.95%
Current: Buy 2 get R10 off 10,314 109 1.06% 1,116 10.82%
New: R10 off 76,679 78 0.10% 347 0.45%
TOTAL 97,299 424 0.44% 2,592 2.66%
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Contents
• Introduction• Coupon Redemption & Response• Incremental Analysis• Immediate ROI• Conclusions & Recommendations
8
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Incremental Shoppers
Coupon Mailed Resp. Rate Responded Control
Resp. RateIncrement
al Shoppers
% Increment
al
Current: Spend R70 R10 off 10.95% 1,129 8.2% 279 25%
Current: Buy 2 get R10 off 10.82% 1,116 8.8% 205 18%
New: R10 off 0.45% 347 0.5% 0 0%
TOTAL 2.66% 2,592 2.7% 485 19%
• Overall the mailed group shopped at a higher rate than the control group resulting in 19% of shoppers being incremental overall
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?
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Incremental Units
How many more units were purchased?
• 23% of total units purchased were incremental• Mailed units higher than responders indicating shoppers picking up more
than one product during the campaign period
Coupon Total Mailed Units
Incremental Units
% Incremental
Current: Spend R70 R10 off 6,806 1,642 24%
Current: Buy 2 get R10 off 3,579 1,120 31%
New: R10 off 1,793 22 1%
TOTAL 12,178 2,784 23%
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Incremental Sales
How many more sales were achieved?
• Total mailed sales of R1.2m achieved, with 25% sales being incremental overall
Coupon Total
Mailed Sales
Incremental
Sales
% Incrementa
l
Incremental /
Responder
Current: Spend R70 R10 off R 682,977 R 163,553 24% R 145
Current: Buy 2 get R10 off R 370,878 R 134,465 36% R 121
New: R10 off R 174,774 R 12,605 7% R 36
TOTAL R 1,228,629 R 310,624 25% R 120
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Contents
• Introduction• Coupon Redemption & Response• Incremental Analysis• Immediate ROI• Conclusions & Recommendations
12
All content copyright © 5one 2001 - 2010. All rights reserved. Confidential. 1313
Immediate Return On Investment
• Overall ROI is Excellent: 945%
What was the immediate ROI of the targeted coupon based on Incremental sales?
Coupon Total
Mailed Sales
Incremental
SalesProduction
CostsGross Profit ROI
Current: Spend R70 R10 off R 682,977 R 163,553 R 3,149 R 160,404 5094%
Current: Buy 2 get R10 off R 370,878 R 134,465 R 3,151 R 131,314 4167%
New: R10 off R 174,774 R 12,605 R 23,429 -R 10,824 -46%
TOTAL R 1,228,629 R 310,624 R 29,730 R 280,894 945%
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Contents
• Introduction• Coupon Redemption & Response• Incremental Analysis• Immediate ROI• Conclusions & Recommendations
14
All content copyright © 5one 2001 - 2010. All rights reserved. Confidential. 15
• Overall campaign generated ideal response:• Redemption rate: 0.44% (424 shoppers)• Response rate: 2.66% (2,592 shoppers)
• Successful at driving incremental behaviour:• Shoppers: 485 (19%)• Units: 2,784 (23%)• Sales: R310,634 (25%)
• Overall campaign generated excellent immediate ROI 945% at a promoted product level
Campaign Summary
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Campaign Comparison
Mailing Offer Targeting Mailed Red. Rate
Resp. Rate
Control Resp. Rate
% Shoppers inc
% Units Inc
% Sales Inc
Inc Sales Profit ROI
Aug-10 R10 when spend R70 Current 10,306 2.30% 10.95% 8.2% 25% 24% 24% R163,553 R160,404 5094%
Aug-10 R10 off when buy 2 or more Current 10,314 1.06% 10.82% 8.8% 18% 31% 36% 134,465 R131,314 4167%
Aug-10 R10 off any Natrodale Products New 76,679 0.10% 0.45% 0.5% 0% 1% 7% R 12,605 R 10,824 -46%
Jul-10 R10 when spend R70 Current 12,736 1.81% 10.23% 8.4% 18% 27% 24% R 97,968 R 71,879 276%
Jul-10 R10 off when buy 2 or more Current 12,881 0.85% 9.99% 9.5% 5% 15% 18% R 72,257 R 67,827 1531%
Jul-10 R10 off any Natrodale Products New 104,226 0.07% 0.28% 0.5% 0% 0% 0% - -R 4,481 -100%
May-10 R15 when spend R75 New 115,157 0.08% 0.1% 0% 100% 100% 100% R 4,736 R-36,495 -89%
May-10 R15 when spend R75 Current 24,492 2.3% 3.5% 2% 43% 0% 0% 0 R -8,769 -100%
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Campaign Comparison
Mailing Offer Targeting Mailed Red. Rate
Resp. Rate
Control Resp. Rate
% Shoppers inc
% Units Inc
% Sales Inc
Inc Sales Profit ROI
Dec-9 R10 when spend R60 Current 36,818 3% 13% 3% 81% 60% n/a R 347,143
R 334,573
2 662%
Dec-9 R10 when spend R60 New 109,631 0.3% 1% 1% 33% 25% n/a R 87,851 R
50,421135%
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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 Natrodale shopper looks like, how they shop across the range and what competitor products they are purchasing into
Recommendations
All content copyright © 5one 2001 - 2010. All rights reserved. Confidential.
Thank-youNikki Emerton – 5one Account Manager [email protected]
Zakariya Patel – 5one [email protected]