Wellman Targeted Coupon July CashBack ClubCard Mailing Post-Campaign Report

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

Wellman Targeted CouponJuly CashBack ClubCard MailingPost-Campaign Report


Contents

• Introduction

• Coupon Redemption & Response

• Incremental Analysis

• Immediate ROI

• Conclusions & Recommendations

2


Introduction

• 149,989 ClubCard customers targeted utilising 5one’s targeting tool

• Campaign period: 28 June 2010 – 30 July 2010

• Both Current and New customers targeted:

• 81 Current shoppers

• 149,908 New shoppers

• Reward level constructed tested:

• Get R15 off any Vitabiotics Wellman product purchased

• 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 low: 0.04% (above 1% is ‘good’ for Current, 0.5% ‘good’ for New)

Coupon MailedRedeeme

dRed. Rate

New R15 149,908 62 0.04%

Current R15 81 1 1.23%

TOTAL 149,989 63 0.04%


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 low: 0.09% (above 2% is ‘good’ for Current, above 1% for New)

• Response rate amongst Current shoppers is very high

• New offer driving 131 new shoppers to the brand

Coupon MailedRedeeme

dRed. Rate

Responded

Resp. Rate

New R15 149,908 62 0.04% 131 0.09%

Current R15 81 1 1.23% 8 9.88%

TOTAL 149,989 63 0.04% 139 0.09%


Contents

• Introduction



• Immediate ROI


8


Incremental Shoppers

CouponMailed Resp. Rate

Responded

Control Resp. Rate

Incremental

Shoppers

% Incremental

New R15 0.09% 131 0.0% 118 90%

Current R15 9.88% 8 - - -

TOTAL 0.09% 139 0.0% 118 85%

• Control group for current shoppers too small for incremental analysis to be accurate

• Overall the control group shopped at a substantially lower rate than targeted shoppers resulting in 85% 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?

• Due to average response rates of customers more than 85% of total units purchased were incremental

CouponTotal Mailed

UnitsIncremental

Units%

Incremental

New R15 162 146 90%

Current R15 10 - -

TOTAL 172 146 85%


Incremental Sales

How many more sales were achieved?

• Total mailed sales of R11k achieved, with 73% sales being incremental

CouponTotal Mailed

SalesIncremental

Sales%

IncrementalIncremental / Responder

New R15 R 10,171 R 8,051 79% R 61.5

Current R15 R 851 - - -

TOTAL R 11,022 R8,051 73% R 57.9


Contents

• Introduction



• Immediate ROI


12


Immediate Return On Investment

• Overall ROI is negative: -19%

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 10,171 R 8,051 R 9,995 -R 1,944 -19%

Current R15 R 851 - R 5 -R 5 -

TOTAL R 11,022 R 8,051 R 10,000 -R 1,949 -19%


Contents

• Introduction



• Immediate ROI


14


• Overall campaign generated ideal response:

• Redemption rate: 0.04% (63 shoppers)

• Response rate: 0.09% (193 shoppers)

• Incremental behaviour:

• Shoppers: 118 (85%)

• Units: 146 (85%)

• Sales: R8,051 (73%)

• Overall campaign generated a negative immediate ROI -19% 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. In-depth analysis of what the Wellman shopper looks like, how they shop across the range and what competitor products they are purchasing into

Recommendations


Thank-you

Nikki Emerton – 5one Account [email protected]

Zakariya Patel – 5one [email protected]

mailto:[email protected]

mailto:[email protected]

Documents

Wellman Targeted Coupon July CashBack ClubCard Mailing Post-Campaign Report