Merck: Multibionta Targeted Coupon May Cashback ClubCard Mailing Post-Campaign Report

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

Merck: MultibiontaTargeted Coupon

May Cashback ClubCard MailingPost-Campaign Report


Contents

• Introduction

• Coupon Redemption & Response

• Incremental Analysis

• Immediate ROI

• Conclusions & Recommendations

2


Introduction

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

• Campaign period: 3 May – 4 June 2010

• Both Current and New shoppers targeted:

• 2,892 Current shoppers

• 147,108 New shoppers

• Reward level constructed tested:

• Get R15 off Multibionta Platinum

• 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 low 0.2%, however due to the large number of new shoppers targeted (above 1% is ‘good’ for Current, 0.5% ‘good’ for New)

• Current offer generated an excellent redemption rate of 4.3%

Coupon MailedRedeeme

dRed. Rate

New 147,108 182 0.1%

Current 2,892 123 4.3%

TOTAL 150,000 305 0.2%


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 low, due to large number of new shoppers targeted: 0.40% (above 2% is ‘good’ for Current, above 1% for New)

• Response rate amongst Current shoppers are excellent at 8.1%

• The new offer drove 298 new shoppers to the brand

Coupon MailedRedeeme

dRed. Rate

Responded

Resp. Rate

New 147,108 182 0.1% 298 0.2%

Current 2,892 123 4.3% 233 8.1%

TOTAL 150,000 305 0.2% 531 0.40%


Contents

• Introduction



• Immediate ROI


8


Incremental Shoppers

CouponMailed Resp. Rate

Responded

Control Resp. Rate

Incremental

Shoppers

% Incremental

New 0.2% 298 0% 298 100%

Current 8.1% 233 9.8% 0 0%

TOTAL 0.40% 531 0.1% 298 56%

• The new offer generated 298 new shoppers to the brand

• The control group for the current offer shopped at a higher rate, therefore there were no incremental shoppers, this could be due to a promotion perhaps?

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 response rate is 54% with all new shoppers being incremental

CouponTotal Mailed

UnitsIncremental

Units%

Incremental

New 460 460 100%

Current 387 0 0%

TOTAL 847 460 54%


Incremental Sales

How many more sales were achieved?

• Total mailed sales of R47k achieved, with 52% sales being incremental

• On average gained an additional R 46 per responder

CouponTotal Mailed

SalesIncremental

Sales%

IncrementalIncremental / Responder

New R 24,476 R 24,476 100% R 82

Current R 22,980 R0 0% R 0

TOTAL R47,456 R24,476 52% R 46


Contents

• Introduction



• Immediate ROI


12


Immediate Return On Investment

• Overall ROI is negative due to high volume of new shoppers targeted with low incremental sales

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

CouponTotal

Mailed Sales

Incremental

Sales

Production Costs

Gross Profit

ROI

New R 24,476 R 24,476 R 49,036 R -24,560 -50%

Current R 22,980 0 R 964 R -964 -100%

TOTAL R 47,456 R 24,476 R50,000 -R 25,254 -51%


Contents

• Introduction



• Immediate ROI


14


• Overall campaign generated ideal response:

• Redemption rate: 0.20% (305 shoppers)

• Response rate: 0.40% (531 shoppers)

• Overall incremental behaviour:

• Shoppers: 298 (56%)

• Units: 460 (54%)

• Sales: R 24,476 (52%)

Campaign Summary


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 Vital shopper looks like, how they shop across the range and what competitor products they are purchasing into

Recommendations


Thank-you

Nikki Emerton – Account Manager [email protected]

Zakariya Patel – 5one [email protected]

mailto:[email protected]

mailto:[email protected]

Documents

Merck: Multibionta Targeted Coupon May Cashback ClubCard Mailing Post-Campaign Report