New Clicks: Dr Sole Targeted Coupon January CashBack ClubCard Mailing Post-Campaign Report

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New Clicks: Dr SoleTargeted 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

• Both Current and New shoppers targeted:

• 50,000 Current shoppers

• 50,000 New shoppers

• Reward level constructed tested:

• Get R5 off any Dr Sole product.

• Control group of look alike shoppers measured over the campaign period

3

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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

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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 0.2% (above 1% is ‘good’ for Current shoppers, 0.5% ‘good’ for New shoppers)

Coupon Mailed Redeemed Red. Rate

New: R5 off 100,000 239 0.2%

TOTAL 100,000 239 0.2%

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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: 1.24% (above 2% is ‘good’ for Current shoppers, above 1% for New shoppers)

• R5 offer generating a good response rate, driving 1,235 new shoppers to Dr Sole products.

Coupon Mailed Redeemed Red. Rate Responded Resp. Rate

New: R5 off 100,000 239 0.2% 1,235 1.24%

TOTAL 100,000 239 0.2% 1,235 1.24%

All content copyright © 5one 2001 - 2011. All rights reserved. Confidential.

Contents

• Introduction

• Coupon Redemption & Response

• Incremental Analysis

• Immediate ROI

• Conclusions & Recommendations

8

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Incremental Shoppers

CouponMailed Resp.

RateResponded

Control Resp. Rate

Incremental Shoppers

% Incremental

New: R5 off 1.24% 1,235 1.7% 0 0%

TOTAL 1.24% 1,235 1.7% 0 0%

• Overall the control group shopped at a higher rate than the mailed group resulting in no incremental shoppers

• This indicates a possible clash in promotional activity

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?

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Incremental Units

How many more units were purchased?

• Overall 1,470 units were mailed.

CouponTotal Mailed

UnitsIncremental

Units%

Incremental

New: R5 off 1,470 0 0%

TOTAL 1,470 0 0%

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Incremental Sales

How many more sales were achieved?

• Total mailed sales of R28,237 achieved.

CouponTotal Mailed

SalesIncremental

Sales%

IncrementalIncremental /

Responder

New: R5 off R 28,237 0 0% 0

TOTAL R 28,237 0 0% 0

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Contents

• Introduction

• Coupon Redemption & Response

• Incremental Analysis

• Immediate ROI

• Conclusions & Recommendations

12

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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: R5off R 28,237 0 R 10,000 -R 10,000 -100%

TOTAL R 28,237 0 R 10,000 -R 10,000 -100%

• Overall ROI is -100%

• 1,235 new shoppers to Dr Sole will generate long term ROI over time

All content copyright © 5one 2001 - 2011. All rights reserved. Confidential.

Contents

• Introduction

• Coupon Redemption & Response

• Incremental Analysis

• Immediate ROI

• Conclusions & Recommendations

14

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Campaign Summary

• Overall campaign generated the following response:

• Redemption rate: 0.2% (235 shoppers)

• Response rate: 1.24% (1,235 shoppers)

• Although ROI was negative these new shoppers should generate ROI over time

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1. Continue to use targeted coupons to invoke re-purchase and gain new shoppers to the brands; however need to ensure there is no clash in promotional activity over the campaign period

2. Test broader offer for new shoppers (less niched / fewer constraints)

3. In-depth analysis of what the Dr Sole shopper looks like, how they shop across the range and what competitor products they are purchasing into

Recommendations

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Thank-you

Nikki Emerton

Nikki.Emerton@5one.co.za

083 686 9076