Colgate: Plax Targeted Coupon January CashBack ClubCard Mailing Post-Campaign Report

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

Colgate: Plax Targeted 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


Introduction

• 100,000 ClubCard shoppers targeted utilising 5one’s targeting tool

• Campaign period: 20 January – 3 March 2011

• Both Current and New shoppers targeted:

• 18,328 Current shoppers

• 81,639 New shoppers

• Reward level constructed tested:

• Get R6 off any 500ml Colgate Plax Mouthwash

• 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 1.27% (above 1% is ‘good’ for Current shoppers, 0.5% ‘good’ for New shoppers)

Coupon Mailed Redeemed Red. Rate

Current: R6 off 18,328 605 3.3%

New: R6 off 81,639 665 0.8%

TOTAL 99,967 1,270 1.27%


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: 3.5% (above 2% is ‘good’ for Current shoppers, above 1% for New shoppers)

• Excellent response rates for both current and new shoppers with overall 3,517 shoppers responding

Coupon Mailed Redeemed Red. Rate Responded Resp. Rate

Current: R6 off 18,328 605 3.3% 1,826 10%

New: R6 off 81,639 665 0.8% 1,691 2%

TOTAL 99,967 1,270 4.1% 3,517 3.5%


Contents

• Introduction



• Immediate ROI


8


Incremental Shoppers

CouponMailed Resp.

RateResponded

Control Resp. Rate

Incremental Shoppers

% Incremental

Current: R6 off 10% 1,826 n/a n/a n/a

New: R6 off 2% 1,691 0.6% 1,212 75%

TOTAL 3.5% 3,517

• Mailed group for new shoppers shopped at a higher rate than the control group resulting in 1,212 incremental shoppers

• Current shopper control group too small (598 shoppers) to acurately determine incremental behaviour

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?

• Overall 74% of units to new shoppers incremental

CouponTotal Mailed

UnitsIncremental

Units%

Incremental

Current: R6 off 2,305 n/a n/a

New: R6 off 1,979 1,470 74%

TOTAL 3,962


Incremental Sales

How many more sales were achieved?

• Total mailed sales of R177k achieved, with 74% new shopper sales being incremental

CouponTotal Mailed

SalesIncremental

Sales%

IncrementalIncremental /

Responder

Current: R6 off R 97,294 n/a n/a n/a

New: R6 off R 80,659 R 60,219 74% R 35.60

TOTAL R 177,953


Contents

• Introduction



• Immediate ROI


12


Immediate Return On Investment

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

CouponTotal Mailed

SalesIncremental

SalesProduction

CostsGross Profit

ROI

Current: R6 off R 97,294 n/a R 1,833 n/a n/a

New: R6 off R 80,659 R 60,219 R 8,167 R 52,052 637%

TOTAL R 177,953 R 10,000

• ROI for new shoppers is 637%


Contents

• Introduction



• Immediate ROI


14


Campaign Summary

• Overall campaign generated the following response:

• Redemption rate: 4.1% (1,270 shoppers)

• Response rate: 3.5% (3,517 shoppers)

• Successful at driving incremental behaviour for new shoppers

• Shoppers: 1,212 (72%)

• Units: 1,470 (74%)

• Sales: R 38,785 (75%)


1. Continue to use targeted coupons to invoke re-purchase and gain new shoppers to the brands

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

3. In-depth analysis of what the Plax 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-you

Nikki Emerton

[email protected]

083 686 9076

mailto:[email protected]

Documents

Colgate: Plax Targeted Coupon January CashBack ClubCard Mailing Post-Campaign Report