vhf: vital targeted coupon august cashback clubcard mailing post-campaign report

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

VHF: Vital Targeted CouponAugust Cashback ClubCard MailingPost-Campaign Report

November 2010


Contents

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

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Introduction

• 39,317 ClubCard shoppers targeted utilising 5one’s targeting tool• Campaign period: 16 Aug – 18 Sep 2010• Both Current and New shoppers targeted:

• 16,759 Current shoppers • 22,558 New shoppers

• Offers tested: • Get R15 off when buying 2 or more Vital products to the value of R80 • Get R10 off when you purchase any of the following Vital products: Vital

Cranberry, Vital Evening Primrose Oil, Vital Omega 3&6, Vital Fat Burner • Control group of look alike customers 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: customers who bought featured product at the same time as handing in the coupon

How many mailants shopped the promoted products?

• Overall redemption rate is good: 1.47% (above 1% is ‘good’ for Current shoppers, 0.5% ‘good’ for New shoppers)

Coupon Mailed Redeemed Red. Rate

Current R15 off 16,759 531 3.17%

New R10 off 22,558 46 0.20%

TOTAL 39,317 577 1.47%


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: 4.70% (above 2% is ‘good’ for Current shoppers, above 1% for New shoppers)

• Campaign driving 88 new shoppers to the brand

Coupon Mailed Redeemed Red. Rate Responded Resp. Rate

Current R15 off 16,759 531 3.17% 1,758 10.49%

New R10 off 22,558 46 0.20% 88 0.39%

TOTAL 39,317 577 1.47% 1,846 4.70%


Contents


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Incremental Shoppers

CouponMailed Resp. Rate

Responded

Control Resp. Rate

Incremental

Shoppers%

Incremental

Current R15 off 10.49% 1,758 8.3% 359 20%

New R10 off 0.39% 88 0.1% 57 65%

TOTAL 4.70% 1,846 5.7% 416 23%

• The mailed group shopped at a higher rate than control shoppers resulting in 23% 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?


Incremental Units

How many more units were purchased?

• Overall 33% of units purchased incremental

Coupon Total Mailed Units Incremental Units % Incremental

Current R15 off 2,324 715 31%

New R10 off 123 92 75%

TOTAL 2,447 807 33%


Incremental Sales

How many more sales were achieved?

• Total mailed sales of R91k achieved, with 4% being incremental

Coupon Total Mailed Sales

IncrementalSales

% Incremental

Incremental / Responder

Current R15 off R 88,051 R 2,332 3% R 1.3

New R10 off R 3,560 R 1,382 39% R 15.7

TOTAL R 91,610 R 3,715 4% R 2.0


How Did Shoppers Respond at a Total Range Level

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Because the offer was only on specific Vital products, it is important to understand if responders chose a different product from the Vital range as a result of the mailing. Again, measuring this against the control group enables us to understand what was incrementalHow many more shoppers, sales and units were generated at a range level?

MetricProduct

level response

Range level response

Incremental

% Incrementa

l

Shoppers 1,846 4,220 426 10%

Units 2,447 14,630 3,234 22%

Sales R 91,610 R 741,607 R 146,443 20%

• Targeted voucher delivered better results at a total Vital level, generating R146K incremental sales

• This demonstrates the marketing halo effect of sending targeted communication


Contents


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Immediate Return On Investment: Product level

• Overall ROI is negative at a promoted product level : -84%

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

CouponTotal

Mailed Sales

Incremental

SalesProduction Costs

Gross Profit ROI

Current R15 off R 88,051 R 2,332 R 10,201 -R 7,869 -77%

New R10 off R 3,560 R 1,382 R 13,731 -R 12,349 -90%

TOTAL R 91,610 R 3,715 R 23,932 -R 20,217 -84%

*sales through the till ex VAT

How does this compare to range level?


Immediate Return On Investment: Range Level

• Excellent response rate of 22.5% for current shoppers at range level with R146k incremental

• Control group is too small for new shoppers to calculate accurate incremental figures

• Overall ROI at a range level is 512%

What was the immediate ROI of the targeted coupon based on Incremental sales at a total Range level?

CouponTotal

Mailed Sales

Incremental

SalesProduction Costs

Gross Profit ROI

Current R15 off R 676,256 R 146,443 R 10,201 R 136,242 1336%

New R10 off R 65,352 n/a R 13,731 n/a n/a

TOTAL R 741,607 R 146,443 R 23,932 R 122,511 512%


Contents


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• Overall campaign generated ideal response:• Redemption rate: 1.47% (577 shoppers)• Response rate: 4.70% (1,846 shoppers)

• Successful at driving incremental behaviour at a promoted product level:

• Shoppers: 416 (23%)• Units: 807 (33%)• Sales: R3,715 (4%)

• Overall campaign generated an negative immediate ROI at a promoted product level, but a good ROI at Range level

Campaign Summary

Level Profit ROIPromoted product -R 20,217 -84%Range R 122,511 512%


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 R15 off when buy 2 or more Vital products Current 16,759 3.17% 10.49% 8.3% 20% 31% 3% R 2,332 -R 7,869 -77%

Aug-10 R10 off certain Vital Products New 22,558 0.20% 0.39% 0.1% 65% 75% 39% R 1,382 -R 12,349 -90%

Jul-10 R10 off any Vital Products New 59,893 0.26% 0.39% 0.2% 61% 70% 28% R 2,364 -R 27,367 -92%

Jul-10 R10 off any Vital Products Current 10,614 2.08% 6.64% 5.7% 14% 32% 11% R 5,941 R 672 13%

May-10 R5 off any Vital Product New 75,000 0.3% 0.8% 0% 100% 100% 100% R22,398 -R 2,602 -10%

May-10 R10 off when buy 2 or more Current 75,000 3.1% 12.3% 6% 50% 57% 46% R244,226 R 219,226 877%

Dec-9 25% off Current 693 1% 1% 0.04% 97% 97% N/A R 98 R 28 41%

Dec-9 25% New 99,265 0.5% 0.5% 0.02% 97% 97% N/A R

3,093 -R 6,838 -69%


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

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

• E.g. R10 off any Vital product

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 – Analyst [email protected]

mailto:[email protected]

mailto:[email protected]


Coupon Mailed % Control Group

Mailed Resp. Rate

Control Not Mailed

% Mailed Group

Control Resp. Rate

Current R15 off 16,759 68% 10.49% 1,521 43% 8.3%

New R10 off 22,558 32% 0.39% 727 57% 0.1%

TOTAL 39,317 100% 4.70% 2,248 100% 5.7%

Addendum - Proportions

• At an individual product level the control group responds higher than the mailed group

• Overall the control group responds at a higher level because the proportions of the offer cells differ

vhf: vital targeted coupon august cashback clubcard mailing post-campaign report

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