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Reckitt Benckiser: Veet Essence Targeted Coupon Dec CashBack ClubCard Mailing Post-Campaign Report. Contents. Introduction Coupon Redemption & Response Incremental Analysis Immediate ROI Conclusions & Recommendations. Introduction. - PowerPoint PPT Presentation
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All content copyright © 5one 2001 – 2011. All rights reserved. Confidential.
Reckitt Benckiser: Veet Essence Targeted Coupon
Dec CashBack ClubCard MailingPost-Campaign Report
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
• 298,691 ClubCard customers targeted utilising 5one’s targeting tool
• Campaign period: 29 Oct 2010 – 26 Dec 2010• Both Current and New customers targeted:
• 83,667 Current shoppers • 215,024 New shoppers
• Reward level constructed tested:• Get R10 off on Veet Supreme Essence
• Control group of look alike shoppers measured over the campaign period
3
All content copyright © 5one 2001 - 2011. All rights reserved. Confidential.
The Mailing
4
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 average: 0.5% (above 1% is ‘good’ for Current shoppers, 0.5% ‘good’ for New shoppers)
Coupon Mailed Redeemed Red. Rate
Current 83,667 1,172 1.4%
New 215,024 425 0.2%
TOTAL 298,691 1,597 0.5%
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 1.2% (above 2% is ‘good’ for Current shoppers, above 1% for New shoppers)
• Offer to new shoppers driving an additional 879 new shoppers to Veet Supreme Essence!
Coupon Mailed Redeemed Red. Rate Responded Resp. Rate
Current 83,667 1,172 1.4% 2,613 3.1%
New 215,024 425 0.2% 879 0.4%
TOTAL 298,691 1,597 0.5% 3,492 1.2%
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. Rate
Responded
Control Resp. Rate
Incremental
Shoppers
% Incrementa
l
Current 3.1% 2,613 2.7% 392 15%
New 0.4% 879 0.2% 536 61%
TOTAL 1.2% 3,492 1.0% 928 27%
• Overall the mailed group shopped at a higher rate than targeted shoppers resulting in 27% 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 - 2011. All rights reserved. Confidential. 1010
Incremental Units
How many more units were purchased?
• The mailed group shopped at a higher rate than the control group resulting in 38% of total units being incremental
Coupon Total Mailed Units Incremental Units % Incremental
Current 3,553 981 28%
New 1,137 794 70%
TOTAL 4,690 1,775 38%
All content copyright © 5one 2001 - 2011. All rights reserved. Confidential. 1111
Incremental Sales
How many more sales were achieved?
• Total mailed sales of R134k achieved, with 11% sales being incremental
Coupon Total Mailed Sales
IncrementalSales
% Incremental
Incremental / Responder
Current R 103,665 R 0 0% R 0.0
New R 30,523 R 15,001 49% R 17.10
TOTAL R 134,189 R 15,001 11% R 4.30
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
• Overall ROI is negative: -70%; however, if these new shoppers going to purchase there should be a positive longer-term effect of new customers on ROI
What was the immediate ROI of the targeted coupon based on Incremental sales?
CouponTotal
Mailed Sales
Incremental
SalesProduction
CostsGross Profit ROI
Current R 103,665 R 0 R 14,006 -R 14,006 -100%
New R 30,523 R 15,001 R 35,994 -R 20,993 -58%
TOTAL R 134,189 R 15,001 R 50,000 -R 34,999 -70%
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
• Overall campaign generated ideal response:• Redemption rate: 0.5% (1,597 shoppers)• Response rate: 1.2% (3,492 shoppers)
• Successful at driving incremental behaviour:• Shoppers: 928 (27%)• Units: 1,775 (38%)• Sales: R 15,001 (11%)
• Overall campaign generated immediate ROI of -70% at a promoted product level
Campaign Summary
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 different offer levels for current and new shoppers
3. In-depth analysis of what a Veet 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-youNikki Emerton – 5one Account Manager Nikki.emerton@5one.co.za
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