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L’Oreal: Garnier Targeted Coupon August CashBack ClubCard Mailing Post-Campaign Report November 2010. Contents. Introduction Coupon Redemption & Response Incremental Analysis Immediate ROI Conclusions & Recommendations. Introduction. - PowerPoint PPT Presentation
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All content copyright © 5one 2001 - 2010. All rights reserved. Confidential.
L’Oreal: Garnier Targeted CouponAugust 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
2
All content copyright © 5one 2001 - 2010. All rights reserved. Confidential.
Introduction
• 150 000 ClubCard customers targeted utilising 5one’s targeting tool
• Campaign period: 16 Aug 2010 – 18 Sep 2010• Only New shoppers targeted:
• 150,000 New Garnier Oil Control shoppers • Reward level constructed tested:
• Get R10 off the NEW Garnier Oil Control Complete Vanishing cream or face wash
• Control group of look alike shoppers measured over the campaign period
3
All content copyright © 5one 2001 - 2010. All rights reserved. Confidential.
The Mailing
4
All content copyright © 5one 2001 - 2010. All rights reserved. Confidential.
Contents
• Introduction• Coupon Redemption & Response• Incremental Analysis• Immediate ROI• Conclusions & Recommendations
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 good for new shoppers: 0.56% (above 1% is ‘good’ for Current shoppers, 0.5% ‘good’ for New shoppers)
Mailed Redeemed Red. Rate
150,000 844 0.56%
All content copyright © 5one 2001 - 2010. 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 good: 1.20% (above 2% is ‘good’ for Current shoppers, above 1% for New shoppers)
• The coupon drove 1,794 new shoppers to the brand!
Mailed Redeemed
Red. Rate Responded Resp. Rate
150,000 844 0.56% 1,794 1.20%
All content copyright © 5one 2001 - 2010. All rights reserved. Confidential.
Contents
• Introduction• Coupon Redemption & Response• Incremental Analysis• Immediate ROI• Conclusions & Recommendations
8
All content copyright © 5one 2001 - 2010. All rights reserved. Confidential. 99
Incremental Shoppers
Mailed Resp. Rate
Responded
Control Resp. Rate
Incremental Shoppers % Incremental
1.20% 1,794 0.5% 1,090 61%
• Overall the mailed group shopped at a higher rate than targeted shoppers resulting in 61% 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?
All content copyright © 5one 2001 - 2010. All rights reserved. Confidential. 1010
Incremental Units
How many more units were purchased?
• Due to high response rates of shoppers, 67% of total units purchased were incremental
• Mailed units higher than responders indicating shoppers picking up more than one product during the promotional period
Total Mailed Units Incremental Units % Incremental
2,745 1,845 67%
All content copyright © 5one 2001 - 2010. All rights reserved. Confidential. 1111
Incremental Sales
How many more sales were achieved?
• Total mailed sales of R28k was achieved, with 41% sales being incremental
Total Mailed Sales
Incremental Sales
% Incremental
Incremental / Responder
R 28,725 R 11,681 41% R 6,5
All content copyright © 5one 2001 - 2010. All rights reserved. Confidential.
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 poor: -77%
What was the immediate ROI of the targeted coupon based on Incremental sales?
Total Mailed Sales
Incremental Sales
Production Costs Gross Profit ROI
R 28,725 R 11,681 R 50,000 R -38,319 -77%
All content copyright © 5one 2001 - 2010. All rights reserved. Confidential.
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: 0.56% (844 shoppers)• Response rate: 1.20% (1,794 shoppers)
• Highly successful at driving incremental behaviour:• Shoppers: 1,090 (61%)• Units: 1,845 (67%)• Sales: R11,681 (41%)
• Overall campaign generated excellent immediate ROI -77% at a promoted product level
Campaign Summary
All content copyright © 5one 2001 - 2010. 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 customers (less niched / fewer constraints)
3. In-depth analysis of what the Garnier 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]