vital health foods: weetol targeted coupon may cashback clubcard mailing post-campaign report

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

Vital Health Foods: WeetolTargeted Coupon

May Cashback ClubCard MailingPost-Campaign Report

July 2010


Contents

• Introduction

• Coupon Redemption & Response

• Incremental Analysis

• Immediate ROI

• Conclusions & Recommendations

2


Introduction

• 85,713 ClubCard customers targeted utilising 5one’s targeting tool

• Campaign period: 3 May – 4 June 2010

• Both Current and New shoppers targeted:

• 19,514 Current shoppers

• 66,172 New shoppers

• Reward level tested:

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

• Control group of look alike customers measured over the 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

How many mailants shopped the promoted products?

• Overall redemption rate is average (above 1% is ‘good’ for Current, 0.5% ‘good’ for New), however this is due to the large number of New shoppers targeted

• Current shoppers generated excellent redemption rate of 3.5%

Coupon MailedRedeeme

dRed. Rate

New R10 66,172 32 0.05%

Current R10 19,514 692 3.5%

TOTAL 85,686 724 0.8%


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 excellent: 3% (above 2% is ‘good’ for Current, above 1% for New)

• Response rate amongst Current shoppers is excellent at 12%

• This campaign has driven an additional 180 new shoppers to the brand

Coupon MailedRedeeme

dRed. Rate

Responded

Resp. Rate

New R10 66,172 32 0.05% 180 0.3%

Current R10 19,541 692 3.5% 2,442 12.5%

TOTAL 85,713 724 0.8% 2,622 3%


Contents

• Introduction



• Immediate ROI


8


Incremental Shoppers

CouponMailed Resp. Rate

Responded

Control Resp. Rate

Incremental

Shoppers

% Incremental

New R10 0.3% 180 0.0% 180 100%

Current R10 12.5% 2,442 11.7% 155 6%

TOTAL 3.06% 2,622 4% 335 13%

• Overall the control group shopped at a substantially lower rate than targeted shoppers resulting in all new shoppers to the brand 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?

• Due to good response rates of customers 39% of total units purchased were incremental

CouponTotal Mailed

UnitsIncremental

Units%

Incremental

New R10 213 213 100%

Current R10 3,916 1,401 36%

TOTAL 4,129 1,614 39%


Incremental Sales

How many more sales were achieved?

• Total mailed sales of R187k achieved, with 25% sales being incremental

• R52 per responder gained for new shoppers

CouponTotal Mailed

SalesIncremental

Sales%

IncrementalIncremental / Responder

New R10 R 9,437 R 9,437 100% R 52

Current R10 R 177,243 R 37,193 21% R 15

TOTAL R186,681 R 46,630 25% R 18


Contents

• Introduction



• Immediate ROI


12


Immediate Return On Investment

• Overall ROI is excellent: 366%

• Current offer generated an exceptional ROI of 1533%

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

CouponTotal

Mailed Sales

Incremental

Sales

Production Costs

Gross Profit

ROI

New R10 R 9,437 R 9,437 R 7,723 R 1,715 22%

Current R10 R 177,243 R 37,193 R 2,277 R 34,915 1533%

TOTAL R186,681 R 46,630 R10,000 R 36,630 366%


Contents

• Introduction



• Immediate ROI


14


• Overall campaign generated ideal response:

• Redemption rate: 0.84% (724 shoppers)

• Response rate: 3% (2,622 shoppers)

• Highly successful at driving incremental behaviour:

• Shoppers: 250 (63%)

• Units: 300 (64%)

• Sales: R3,420 (55%)

• Overall campaign generated a poor immediate ROI -93% at a promoted product level

Campaign Summary


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

Recommendations


Thank-you

Nikki Emerton – Account Manager [email protected]

Zakariya Patel – 5one [email protected]

mailto:[email protected]

mailto:[email protected]

vital health foods: weetol targeted coupon may cashback clubcard mailing post-campaign report

Documents

content copyright

targeted shoppers

rateincremental shoppers

new shoppers reward

current r1019

incremental new r100

current r1012

excellent redemption