TLC Direct Mailing Campaign November 2011

TLC Direct Mailing Campaign November 2011

Contents• Introduction

• Response

• ROI

• Conclusions & Recommendations

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Introduction

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• 60,000 ClubCard customers targeted using 5one’s targeting tool

• Campaign period: 15 July – 30 August 2011

• New shoppers TLC range targeted, i.e.

• Shoppers who have a high propensity to shop TLC based on their previous

transactional behaviour

• These shoppers have not purchased TLC in the past 12 months

• Offer:

• Pack included a TLC sachet

• After purchasing a TLC product shoppers are entered into a competition to win one

of 30 spa vouchers to the value of R500

Creative

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Contents• Introduction

• Response

• ROI

• Conclusions & Recommendations

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Response

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Response: Targeted customers who bought TLC over the campaign period

• Overall response rate is very good: 2.4% (above 1% considered good for new shoppers to a brand)

• This is a good response rate particularly from customers who have not shopped TLC in the last 12 months

MailedResponde

dResp. Rate

60,000 1433 2.4%

Contents • Introduction

• Response

• ROI

• Conclusions & Recommendations

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Return on Investment

R195 319 additional revenue to be generated by repeat purchases to breakeven

What was the immediate ROI of the mailing?

Total Mailed Sales Production Costs

R 60,417R42.60 spend/customer

R 255,736

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Return on Investment • It is important to keep in mind this is a brand awareness exercise and although

shopper volumes are relatively low, these shoppers should drive long term ROI over time if they continue to shop the brand

• If, for example, 50% of the 1433 shoppers buy TLC again at an average spend of R42.60 each the following revenue scenarios are possible

TLC shoppers (50%responders)

# of repeat purchases

Additional Revenue

716

1 R 30, 522

2 R 61, 045

3 R 96, 566

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Contents • Introduction

• Response

• ROI

• Conclusions & Recommendations

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Campaign summary

• Overall campaign generated the following response:

• Response rate: 2,4% (1433 shoppers) – this is a good response considering

there was no offer to drive the customer in-store

• Although ROI was negative these new shoppers will generate positive ROI over

time as they repurchase

• Not only is this a call to action, but also a brand awareness exercise so customers

may shop at a later stage outside of the analysis period

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Recommendations

1. Future mailings must include an offer to drive customers in-store and increase

response. From experience, we have seen that Rands off discount offers generate

responses up to 4 x higher than the response generated by this campaign.

• A minimum of 10% off the price is recommended

2. Test inclusion of sms reminder 1 week after mailing to further drive response.

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Thank You Belinda Walsh K&B Directbelinda@kbdirect.co.za

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