March 2011

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

New Clicks: Blooms in a BottleTargeted 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• New shoppers targeted: 100,000 shoppers • Reward level constructed tested:

• Get R2-0ff the purchase of any Blooms in a Bottle product• Control group of look alike shoppers measured over the

campaign period

3


The Mailing

4


Contents


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 low 0.04% (above 1% is ‘good’ for Current shoppers, 0.5% ‘good’ for New shoppers)

Coupon Mailed Redeemed Red. Rate

New shoppers: R2 off 100,000 38 0.04%


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 low: 0.27% (above 2% is ‘good’ for Current shoppers, above 1% for New shoppers)

• Although volumes are small this is still a 4% increase in the Blooms in a Bottle customer base

Coupon Mailed Redeemed Red. Rate Responded Resp. Rate

New shoppers: R2 off 100,000 38 0.04% 272 0.27%


Contents


8


Incremental Shoppers

Coupon Mailed Resp. Rate Responded Control Resp.

RateIncremental

Shoppers%

Incremental New shoppers:

R2 off 100,000 272 0.1% 199 73%

• Overall the mailed group shopped at a higher rate than the control group resulting in 199 incremental shoppers

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 77% of units incremental

Coupon Total Mailed Units

Incremental Units

% Incremental

New shoppers: R2 off 431 331 77%


Incremental Sales

How many more sales were achieved?

• Total mailed sales of R10k achieved, with 77% sales being incremental

Coupon Total Mailed Sales

IncrementalSales

% Incremental

Incremental / Responder

New shoppers: R2 off R 10,542 R 8,006 77% R 29.43


Contents


12


Immediate Return On Investment

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

Coupon Total Mailed Sales

IncrementalSales

Production Costs

Gross Profit ROI

New shoppers: R2 off R 10,542 R 8,006 R 10,000 -R 1,994 -20%

• Overall ROI is -20%


Contents


14


Campaign Summary

• Overall campaign generated the following response:• Redemption rate: 0.04% (38 shoppers)• Response rate: 0.3% (272 shoppers)

• Successful at driving incremental behaviour:• Shoppers: 199 (73%)• Units: 331 (77%)• Sales: R 8,006 (76%)

• Overall ROI is -20%


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

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

3. In-depth analysis of what the Blooms in a Bottle 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

[email protected]

083 686 9076

mailto:[email protected]

Documents

March 2011