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All content copyright © 5one 2001 – 2011. All rights reserved. Confidential.
New Clicks: Style Aromatherapy Targeted Coupon
January CashBack ClubCard MailingPost-Campaign Report
March 2011
All content copyright © 5one 2001 - 2011. All rights reserved. Confidential.
Contents
• Introduction
• Coupon Redemption & Response
• Incremental Analysis
• Immediate ROI
• Conclusions & Recommendations
2
All content copyright © 5one 2001 - 2011. All rights reserved. Confidential.
Introduction
• 100,000 ClubCard shoppers targeted utilising 5one’s targeting tool
• Campaign period: 20 January – 3 March 2011
• New shoppers targeted: 100,000 shoppers
• Reward level constructed tested:
• Get R20 off any Style Moisturiser or 500ml Style Mask
• Control group of look alike shoppers measured over the campaign period
3
All content copyright © 5one 2001 - 2011. All rights reserved. Confidential.
Contents
• Introduction
• Coupon Redemption & Response
• Incremental Analysis
• Immediate ROI
• Conclusions & Recommendations
5
All content copyright © 5one 2001 - 2011. 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 0.1% (above 1% is ‘good’ for Current shoppers, 0.5% ‘good’ for New shoppers)
Coupon Mailed Redeemed Red. Rate
New shoppers: R20 off
100,000 124 0.1%
All content copyright © 5one 2001 - 2011. All rights reserved. Confidential. 7
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 low: 0.4% (above 2% is ‘good’ for Current shoppers, above 1% for New shoppers)
Coupon Mailed Redeemed Red. Rate Responded Resp. Rate
New shoppers: R20 off
100,000 124 0.1% 405 0.4%
All content copyright © 5one 2001 - 2011. All rights reserved. Confidential.
Contents
• Introduction
• Coupon Redemption & Response
• Incremental Analysis
• Immediate ROI
• Conclusions & Recommendations
8
All content copyright © 5one 2001 - 2011. All rights reserved. Confidential. 99
Incremental Shoppers
CouponMailed Resp.
RateResponded
Control Resp. Rate
Incremental Shoppers
% Incremental
New shoppers: R20 off
100,000 405 0.1% 347 86%
• Overall the mailed group shopped at a higher rate than the control group resulting in 347 incremental shoppers
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?
All content copyright © 5one 2001 - 2011. All rights reserved. Confidential. 1010
Incremental Units
How many more units were purchased?
• Overall 88% of units incremental
CouponTotal Mailed
UnitsIncremental
Units%
Incremental
New shoppers: R20 off
422 370 88%
All content copyright © 5one 2001 - 2011. All rights reserved. Confidential. 1111
Incremental Sales
How many more sales were achieved?
• Total mailed sales of R33k achieved, with 88% sales being incremental
CouponTotal Mailed
SalesIncremental
Sales%
IncrementalIncremental /
Responder
New shoppers: R2 off
R 33,115 R 29,160 88% R 72
All content copyright © 5one 2001 - 2011. All rights reserved. Confidential.
Contents
• Introduction
• Coupon Redemption & Response
• Incremental Analysis
• Immediate ROI
• Conclusions & Recommendations
12
All content copyright © 5one 2001 - 2011. All rights reserved. Confidential. 1313
Immediate Return On Investment
What was the immediate ROI of the targeted coupon based on Incremental sales?
CouponTotal Mailed
SalesIncremental
SalesProduction
CostsGross Profit
ROI
New shoppers: R2 off
R 33,115 R 29,160 R 10,000 R 19,160 192%
• Overall ROI is 192%
All content copyright © 5one 2001 - 2011. All rights reserved. Confidential.
Contents
• Introduction
• Coupon Redemption & Response
• Incremental Analysis
• Immediate ROI
• Conclusions & Recommendations
14
All content copyright © 5one 2001 - 2011. All rights reserved. Confidential. 15
Campaign Summary
• Overall campaign generated the following response:
• Redemption rate: 0.1% (124 shoppers)
• Response rate: 0.4% (405 shoppers)
• Successful at driving incremental behaviour:
• Shoppers: 347 (86%)
• Units: 370 (88%)
• Sales: R 29,160 (88%)
• Overall ROI is 192%
All content copyright © 5one 2001 - 2011. All rights reserved. Confidential. 16
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 Style Aromatherapy shopper looks like, how they shop across the range and what competitor products they are purchasing into
Recommendations
All content copyright © 5one 2001 – 2011. All rights reserved. Confidential.
Thank-you
Nikki Emerton
Nikki.Emerton@5one.co.za
083 686 9076
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