vhf: weetol targeted coupon aug cashback clubcard mailing post-campaign report november 2010

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

VHF: Weetol Targeted CouponAug CashBack ClubCard MailingPost-Campaign Report

November 2010


Contents

• Introduction

• Coupon Redemption & Response

• Incremental Analysis

• Immediate ROI

• Conclusions & Recommendations

2


Introduction

• 66,566 ClubCard customers targeted utilising 5one’s targeting tool

• Campaign period: 16 Aug 2010 – 18 Sep 2010

• Both Current and New customers targeted:

• 18,747 Current shoppers

• 47,819 New shoppers

• Reward level constructed tested:

• Get R10 off when you purchase 2 or more Weetol products

• Get R10 off when you spend R50 or more on any Weetol products

• Get R10 off on any Weetol products

3

• Control group of look alike shoppers measured over the campaign period


The Mailing

4


Contents

• Introduction



• Immediate ROI


5

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: 0.82% (above 1% is ‘good’ for Current, 0.5% ‘good’ for New)

• The Spend R50 get R10 off offer, has the highest redemption rate of 3.20%

Coupon Mailed Redeemed Red. Rate

Current spend R50, R10 off

9,366 300 3.20%

Current buy 2, R10 off

9,381 167 1.78%

New R10 off any products

47,819 79 0.17%

TOTAL 66,566 546 0.82%


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: 3.29% (above 2% is ‘good’ for Current shoppers, above 1% for New shoppers)

• Offer to new shoppers driving an additional 212 new shoppers to the brand!

Coupon Mailed Redeemed Red. Rate Responded Resp. Rate


9,366 300 3.20% 1,006 10.74%


9,381 167 1.78% 969 10.33%


47,819 79 0.17% 212 0.44%

TOTAL 66,566 546 0.82% 2,187 3.29%


Contents

• Introduction



• Immediate ROI


8


Incremental Shoppers

CouponMailed Resp. Rate

Responded

Control Resp. Rate

Incremental

Shoppers

% Incrementa

l


10.74% 1,006 9.9% 79 8%


10.33% 969 9.9% 45 5%


0.44% 212 0.6% 0 0%

TOTAL 3.29% 2,187 2.8% 124 6%

• Overall the mailed group shopped at a higher rate than targeted shoppers resulting in 6% of shoppers being incremental

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?

• The mailed group shopped at a higher rate than the control group resulting in 28% of total units being incremental

• Large portion of current shoppers picking up more than one product during the promotional period

Coupon Total Mailed UnitsIncremental

Units% Incremental


1,566 556 36%


1,494 388 26%


298 0 0%

TOTAL 3,358 944 28%


Incremental Sales

How many more sales were achieved?

• Total mailed sales of R157k achieved, with 12% sales being incremental

CouponTotal Mailed

SalesIncremental

Sales%

IncrementalIncremental / Responder


R 70,637 R 8,633 12% R 8.6


R 74,383 R 10,223 14% R 10.6


R 11,605 R0 0% R 0.0

TOTAL R 156,625 R 18,856 12% R 8.6


Contents

• Introduction



• Immediate ROI


12


Immediate Return On Investment

• Overall ROI is good: 89%

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

CouponTotal

Mailed Sales

Incremental

Sales

Production Costs

Gross Profit

ROI


R 70,637 R 8,633 R 1,407 R 7,226 514%


R 74,383 R 10,223 R 1,409 R 8,814 625%


R 11,605 0 R 7,184 R -7,184 -100%

TOTAL R 156,625 R 18,856 R 10,000 R 8,856 89%


Contents

• Introduction



• Immediate ROI


14


• Overall campaign generated ideal response:

• Redemption rate: 0.82% (546 shoppers)

• Response rate: 3.29% (2,187 shoppers)

• Highly successful at driving incremental behaviour:

• Shoppers: 124 (6%)

• Units: 944 (28%)

• Sales: R18,856 (12%)

• Overall campaign generated immediate ROI of 89% at a promoted product level

Campaign Summary


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 R50 Current 9,366 3% 11% 10% 8% 36% 12% R 8,633 R 7,226 514%

Aug-10 R10 off when buy 2 or

more Current 9,381 2% 10% 10% 5% 26% 14% R 10,223 R 8,814 625%

Aug-10 R10 off any weetol New 47,819 0% 0% 1% 0% 0% 0% R0 R -7,184 -100%

Aug-10Overall

66,566 0.82% 3.29% 2.8% 6% 28% 12% R 18,856 R 8,856 89%

Jul-10 R10 off when spend R50 Current 11,915 3% 11% 9% 18% 37% 24% R 22,755 R 21,184 1348%

Jul-10 R10 off when buy 2 or

more Current 12,027 2% 11% 9% 19% 37% 31% R 31,203 R 29,616 1867%

Jul-10 R10 off New 51,882 0% 0% 0% 35% 49% 36% R 3,704 -R3,138 -46%

Jul-10Overall

75,824 1% 4% 4.6% 20% 38% 28% R 57,662 R 47,662 477%


Campaign Comparison


Resp. Rate

Control Resp. Rate

% Shoppers inc

% Units Inc

% Sales Inc

Inc Sales Profit ROI

May-10 R10 when spend R50 New 66,172 0.05% 0.3% 0% 100% 100% 100% R 9,437 R 1,715 22%

May-10 R10 when spend R50 Current 19,514 3.5% 12.5% 12% 6% 36% 21% R 37,193 R 34,915 1533%

May-10 Overall

85,686 0.8% 3% 4% 13% 39% 25% R 46, 630 R36,630 366%

Dec-09 R15 when spend R50 Current 14,495 10% 28% 3% 89% 92% 90% R 264,672 R 263,202 17

906%

Dec-09 R10 when spend R50 Current 9,116 4% 13% 2% 87% 90% 89% R 83,010 R 82,085 8 879%

Dec-09 R15 when spend R50 New 37,500 1% 2% 3% 0% 0% 0% R0 -R 3,803 -100%

Dec-09 R10 when spend R50 New 37,500 0.2% 1% 2% 0% 0% 0% R0 - R 3,803 -100%

Dec-09 Overall

98,611 2% 6% 3% 76% 81%80% R347,682 R 337,682 3377%


Campaign Comparison


Resp. Rate

Control Resp. Rate

% Shoppers inc

% Units Inc

% Sales Inc

Inc Sales Profit ROI

July-09 R15 when spend R50 Current 14,434 5% 20% 3% 87% 91% 89%R

154,463R

153,01410558%

July-09 R10 when spend R50 Current 10,160 3% 16% 2% 87% 91% 91%R

106,165R

105,14510307%

July-09 R15 when spend R50 New 37,500 0.4% 2% 1% 43% 37% 35% R 13,824R

10,059267%

July-09 R10 when spend R50 New 37,500 0.2% 1% 1% 39% 39% 29% R 8,613 R 4,847129%

July-09 Overall

99,594 1% 6% 6% 77% 82% R 283,065 R 273,065 2731%

Jan-09 R15 when spend R70 Current 16,270 4.06% 18.02% 0.90% 95.01% 96.57% R186,425 R184,798 11 356%

Jan-09 R10 when spend R70 Current 8,711 0.61% 10.07% 0.26% 97.47% 98.38% R58,619 R57,748 6 628%

Jan-09 R15 when spend R70 New 37,500 0.39% 2.01% 0.72% 64.05% 70.01% R25,691 R21,940 585%

Jan-09 R10 when spend R70 New 37,500 0.37% 1.01% 0.22% 78.04% 84.38% R16,388 R12,637 337%

Jan-09 Overall

99,981 1% 5% 0.55% 89.44% 92.67% R 287,123 R 277,123 2771%


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 VHF: Weetol shopper looks like, how they shop across the range and what competitor products they are purchasing into

Recommendations


Thank-you

Nikki Emerton – 5one Account Manager [email protected]

Zakariya Patel – 5one [email protected]

mailto:[email protected]

mailto:[email protected]

vhf: weetol targeted coupon aug cashback clubcard mailing post-campaign report november 2010

Documents

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rateincremental shoppers

alike shoppers