All content copyright © 5one 2001 - 2010. All rights reserved. Confidential.

L’Oreal: Age Perfect and Age Re-perfect Targeted Coupon

August CashBack ClubCard MailingPost-Campaign Report

November 2010


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: 16 Aug 2010 – 18 Sep 2010

• Only New shoppers targeted:

• 75,000 New Age Perfect

• 75,000 New Age Re-perfect

• Reward level constructed tested:

• Great skin for less! Save R 50 off your purchase on Age Perfect or Age Re-Perfect anti-ageing care.

• 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 - 2010. 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 excellent: 2.75% (above 1% is ‘good’ for Current shoppers, 0.5% ‘good’ for New shoppers)

• Offer to new shoppers of Age Re-perfect had the highest redemption rate

Target Cell Mailed Redeemed Red. Rate

New Age Perfect 75,000 886 1.18%

New Age Re-perfect

75,000 3,243 4.32%

TOTAL 150,000 4,129 2.75%


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: 4.01% (above 2% is ‘good’ for Current shoppers, above 1% for New shoppers)

• The offers drove 6,016 new shoppers to the brand!

Target Cell Mailed Redeemed Red. Rate Responded Resp. Rate

New Age Perfect 75,000 886 1.18% 1,732 2.31%

New Age Re-perfect

75,000 3,243 4.32% 4,284 5.71%

TOTAL 150,000 4,129 2.75% 6,016 4.01%


Contents

• Introduction



• Immediate ROI


8


Incremental Shoppers

Target CellMailed

Resp. RateResponde

d

Control Resp. Rate

Incremental Shoppers

% Increment

al

New Age Perfect 2.31% 1,732 0.4% 1,412 82%

New Age Re-perfect

5.71% 4,284 0.9% 3,574 83%

TOTAL 4.01% 6,016 0.6% 4,986 83%

• Overall the mailed group shopped at a higher rate than control shoppers resulting in 83% 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 high response rates of shoppers, 85% of total units purchased were incremental

Target CellTotal Mailed

UnitsIncremental

Units% Incremental

New Age Perfect 2,702 2,285 85%

New Age Re-perfect

5,637 4,804 85%

TOTAL 8,339 7,089 85%


Incremental Sales

How many more sales were achieved?

• Total mailed sales of R384k achieved, with 58% sales being incremental

Target CellTotal

Mailed Sales

IncrementalSales

% Incremental

Incremental / Responder

New Age Perfect R 154,523 R 111,896 72% R 64.6

New Age Re-perfect

R 229,544 R 109,911 48% R 25.7

TOTAL R 384,067 R 221,807 58% R 36.9


Contents

• Introduction



• Immediate ROI


12


Immediate Return On Investment

• Overall ROI is 344%

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

Target CellTotal

Mailed Sales

Incremental

Sales

Production Costs

Gross Profit

ROI

New Age Perfect R 154,523 R 111,896 R 25,000 R 86,896 348%

New Age Re-perfect

R 229,544 R 109,911 R 25,000 R 84,911 340%

TOTAL R 384,067 R 221,807 R 50,000 R 171,807 344%


Contents

• Introduction



• Immediate ROI


14


• Overall campaign generated ideal response:

• Redemption rate: 2.75% (4,129 shoppers)

• Response rate: 4.01% (6,016 shoppers)

• Highly successful at driving incremental behaviour:

• Shoppers: 4,986 (83%)

• Units: 7,089 (85%)

• Sales: R221,807 (58%)

• Overall campaign generated excellent immediate ROI 344% at a promoted product level

Campaign Summary


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

2. In-depth analysis of what the L’Oreal anti-ageing shopper looks like, how they shop across the range and what competitor products they are purchasing into

Recommendations


Thank-you

Nikki Emerton – 5one Account Manager [email protected]

Zakariya Patel – 5one [email protected]

mailto:[email protected]

mailto:[email protected]

Documents

Contents