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

Reckitt Benckiser: Veet Essence Targeted Coupon

Dec CashBack ClubCard MailingPost-Campaign Report

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

Contents

• Introduction• Coupon Redemption & Response• Incremental Analysis• Immediate ROI• Conclusions & Recommendations

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Introduction

• 298,691 ClubCard customers targeted utilising 5one’s targeting tool

• Campaign period: 29 Oct 2010 – 26 Dec 2010• Both Current and New customers targeted:

• 83,667 Current shoppers • 215,024 New shoppers

• Reward level constructed tested:• Get R10 off on Veet Supreme Essence

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

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The Mailing

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

Coupon Mailed Redeemed Red. Rate

Current 83,667 1,172 1.4%

New 215,024 425 0.2%

TOTAL 298,691 1,597 0.5%


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 1.2% (above 2% is ‘good’ for Current shoppers, above 1% for New shoppers)

• Offer to new shoppers driving an additional 879 new shoppers to Veet Supreme Essence!

Coupon Mailed Redeemed Red. Rate Responded Resp. Rate

Current 83,667 1,172 1.4% 2,613 3.1%

New 215,024 425 0.2% 879 0.4%

TOTAL 298,691 1,597 0.5% 3,492 1.2%


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Incremental Shoppers

CouponMailed Resp. Rate

Responded

Control Resp. Rate

Incremental

Shoppers

% Incrementa

l

Current 3.1% 2,613 2.7% 392 15%

New 0.4% 879 0.2% 536 61%

TOTAL 1.2% 3,492 1.0% 928 27%

• Overall the mailed group shopped at a higher rate than targeted shoppers resulting in 27% 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?

• The mailed group shopped at a higher rate than the control group resulting in 38% of total units being incremental

Coupon Total Mailed Units Incremental Units % Incremental

Current 3,553 981 28%

New 1,137 794 70%

TOTAL 4,690 1,775 38%


Incremental Sales

How many more sales were achieved?

• Total mailed sales of R134k achieved, with 11% sales being incremental

Coupon Total Mailed Sales

IncrementalSales

% Incremental

Incremental / Responder

Current R 103,665 R 0 0% R 0.0

New R 30,523 R 15,001 49% R 17.10

TOTAL R 134,189 R 15,001 11% R 4.30


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Immediate Return On Investment

• Overall ROI is negative: -70%; however, if these new shoppers going to purchase there should be a positive longer-term effect of new customers on ROI

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

CouponTotal

Mailed Sales

Incremental

SalesProduction

CostsGross Profit ROI

Current R 103,665 R 0 R 14,006 -R 14,006 -100%

New R 30,523 R 15,001 R 35,994 -R 20,993 -58%

TOTAL R 134,189 R 15,001 R 50,000 -R 34,999 -70%


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• Overall campaign generated ideal response:• Redemption rate: 0.5% (1,597 shoppers)• Response rate: 1.2% (3,492 shoppers)

• Successful at driving incremental behaviour:• Shoppers: 928 (27%)• Units: 1,775 (38%)• Sales: R 15,001 (11%)

• Overall campaign generated immediate ROI of -70% 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. Test different offer levels for current and new shoppers

3. In-depth analysis of what a Veet 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-youNikki Emerton – 5one Account Manager [email protected]

mailto:[email protected]

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