Bio Oil Targeted Coupon December CashBack ClubCard Mailing Post-Campaign Report

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

Bio Oil Targeted CouponDecember CashBack ClubCard MailingPost-Campaign Report


Contents

• Introduction

• Coupon Redemption & Response

• Incremental Analysis

• Immediate ROI

• Conclusions & Recommendations

2


Introduction

• 150 000 ClubCard customers targeted utilising 5one’s targeting tool

• Campaign period: 29 Oct 2010 – 26 Dec 2010

• Both Current and New customers targeted:

• 75,000 Current shoppers 60ml

• 75,000 New shoppers

• Reward level constructed tested:

• R8 off when you buy Bio Oil 125ml

• R5 off when you buy Bio Oil 60ml

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

3


The Mailing

4


Contents

• Introduction



• Immediate ROI


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 good: 2% (above 1% is ‘good’ for Current shoppers, 0.5% ‘good’ for New shoppers)

Coupon Mailed Redeemed Red. Rate

Current 60ml: R8 off 125ml

75,000 2,757 3.7%

New: R5 off 60ml

75,000 204 0.3%

TOTAL 150,000 2,961 2%


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 Excellent: 7.7% (above 2% is ‘good’ for Current shoppers, above 1% for New shoppers)

• Offer to new shoppers driving an additional 1,319 new shoppers to the brand

Coupon Mailed Redeemed Red. Rate Responded Resp. Rate


75,000 2,757 3.7% 10,206 13.6%

New: R5 off 60ml

75,000 204 0.3% 1,319 1.8%

TOTAL 150,000 2,961 2% 11,525 7.7%


Contents

• Introduction



• Immediate ROI


8


Incremental Shoppers

CouponMailed Resp. Rate

Responded

Control Resp. Rate

Incremental

Shoppers

% Increment

al


13.6% 10,206 14.5%0

0%

New: R5 off 60ml

1.8% 1,319 1.0% 540 41%

TOTAL 7.7% 11,525 5.7% 540 5%

• Overall the mailed group shopped at a higher rate than targeted shoppers resulting in 5% 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 higher response rates of mailed shoppers, 5% of total units purchased were incremental

CouponTotal Mailed

UnitsIncremental

Units% Incremental


14,590 0 0%

New: R5 off 60ml

1,611 783 49%

TOTAL 16,201 783 5%


Incremental Sales

How many more sales were achieved?

• Total mailed sales of R618k achieved, with 4% sales being incremental

CouponTotal Mailed

SalesIncremental

Sales%

IncrementalIncremental / Responder


R 554,845 R 0 0% R 0.0

New: R5 off 60ml

R 62,988 R 25,918 41% R 19.70

TOTAL R 617,833 R 25,918 4% R 2.20


Contents

• Introduction



• Immediate ROI


12


Immediate Return On Investment

• Overall ROI is negative: -26%

What was the immediate ROI of the targeted coupon based on Incremental sales?

CouponTotal

Mailed Sales

Incremental

Sales

Production Costs

Gross Profit

ROI


R 554,845 R 0 R 17,500 -R 17,500 -100%

New: R5 off 60ml

R 62,988 R 25,918 R 17,500 R 8,418 48%

TOTAL R 617,833 R 25,918 R 35,000 -R 9,082 -26%


Contents

• Introduction



• Immediate ROI


14


• Overall campaign generated ideal response:

• Redemption rate: 2% (2,961shoppers)

• Response rate: 7.7% (11,525 shoppers)

• Successful at driving incremental behaviour:

• Shoppers: 540 (5%)

• Units: 783 (5%)

• Sales: R 25,918 (4%)

• Overall campaign generated immediate ROI of -26% at a promoted product level

Campaign Summary


Campaign Comparison

Mailing Offer Targeting Mailed Red. Rate

Resp. Rate

Control Resp. Rate

% Shoppers inc

% Units Inc

% Sales Inc

Inc Sales

Profit ROI

Dec-10 R8 off 125ml Current 60ml

75,000 2,757 3.7% 14.5% 0% 0% 0% R 0 -R 17,500 -100%

Dec-10 R5 off 60ml New 75,000 204 0.3% 1.0% 41% 49% 41% R 25,918 R 8,418 48%

Overall Dec-10

150,000 2,961 2% 5.7% 5% 5% 4% R 25,918 -R 9,082 -26%

Aug-10R8 off when buy

200ml Current 125ml

25,827 3.50% 13.72% 9.7% 29% 44% 31% R 79,794 R 73,768 1224%

Aug-10R8 off when buy

200ml Current

60ml 26,220 3.54% 13.56% 11.1% 18% 34% 17% R 43,829 R 37,711 616%

Aug-10 R8 off when buy 60ml New 97,953 0.77% 3.35% 1.3% 61% 67% 59% R 117,989 R 95,134 416%

Overall Aug-10

150,000 1.72% 6.92% 2.7% 36% 47% 34% R 241,613 R 206,613 590%


Campaign Comparison

Mailing Offer Targeting Mailed Red. Rate

Resp. Rate

Control Resp. Rate

% Shoppers inc

% Units Inc

% Sales Inc

Inc Sales

Profit ROI

Jul-10R8 off when buy

200ml Current 125ml

26,489 2.91% 12.25% 10.6% 14% 32% 16% R 37,885 R 30,786 434%

Jul-10R8 off when buy

200ml Current

60ml 29,098 3.02% 12.14% 9.6% 21% 38% 23% R 59,083 R 51,284 658%

Jul-10 R8 off when buy 60ml New 75,000 0.63% 3.23% 1.2% 61% 65% 58% R 87,256 R 67,154 334%

Overall Jul-10

130,587 1.62% 7.05% 3.5% 29% 42% 29% R 184,224 R 149,224 426%

Dec-09R8 off when buy

200ml Current 125ml

31,703 3.3% 8% 3% 58% 60% 62% R 74,618 R 66,369 805%

Dec-09R8 off when buy

200ml Current

60ml 60,737 4% 9% 2% 74% 78% 72% R 260,844 R 245,040 1,551%

Dec-09 R8 off when buy 60ml New 99,723 1% 2% 3% 0 0% 0% R 0 -R 25,948 -100%

Overall Dec-09

192,163 2% 5% 3% 56% 60% 60% R 439,208 R 285,462 571%


Thank-you

Nikki Emerton – 5one Account Manager [email protected]

mailto:[email protected]

Documents

Bio Oil Targeted Coupon December CashBack ClubCard Mailing Post-Campaign Report