Natrodale Targeted Coupon July CashBack ClubCard Mailing Post-Campaign Report

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

Natrodale Targeted CouponJuly CashBack ClubCard MailingPost-Campaign Report


Contents

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

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Introduction

• 130,587 ClubCard shoppers targeted utilising 5one’s targeting tool

• Campaign period: 28 June 2010 – 30 July 2010

• Both Current and New customers targeted:• 25,617 Current shoppers • 104,226 New shoppers

• Reward level constructed tested:• Get R10 off when you purchase 2 or

more Natrodale products • Get R10 off when you spend R70 or

more on any Natrodale products • Get R10 off any Natrodale products

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

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The Mailing

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Contents


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All content copyright © 5one 2001 - 2010. All rights reserved. Confidential. 6

Targeted Coupon: Redemption

Redemption: customers 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: 0.32% (above 1% is ‘good’ for Current, 0.5% ‘good’ for New)

• ‘Spend R70 and get R10 off’ offer generating highest redemption rates

Coupon Mailed Redeemed Red. Rate

Current: Spend R70 get R10 off 12,736 231 1.81%

Current: Buy 2+ get R10 off 12,881 110 0.85%

New : R10 off 104,226 76 0.07%

TOTAL 129,843 417 0.32%


Targeted Coupon: Response

Response: customers 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: 2.22% (above 2% is ‘good’ for Current, above 1% for New)

• Response rate amongst Current shoppers excellent: 10%• New offer driving 292 new shoppers to the brand

Coupon Mailed Redeemed Red. Rate Responded Resp. Rate

Current: Spend R70 get R10 off 12,736 231 1.81% 1,303 10.23%

Current: Buy 2+ get R10 off 12,881 110 0.85% 1,287 9.99%

New : R10 off 104,226 76 0.07% 292 0.28%

TOTAL 129,843 417 0.32% 2,882 2.22%


Contents


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Incremental Shoppers

CouponMailed Resp. Rate

Responded

Control Resp. Rate

Incremental

Shoppers%

Incremental

Current: Spend R70 get R10 off 10.23% 1,303 8.4% 236 18%

Current: Buy 2+ get R10 off 9.99% 1,287 9.5% 67 5%

New : R10 off 0.28% 292 0.5% - 0%

TOTAL 2.22% 2,882 4.7% 303 11%

• Overall the control group shopped at a substantially high rate compared to targeted shoppers resulting in a low % of incremental shoppers 11%

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?

• 19% of total units purchased were incremental

Coupon Total Mailed Units Incremental Units % Incremental

Current: Spend R70 get R10 off 4,134 1,122 27%

Current: Buy 2+ get R10 off 4,048 601 15%

New : R10 off 831 - 0%

TOTAL 9,013 1,723 19%


Incremental Sales

How many more sales were achieved?

• Total mailed sales of R888k achieved, with 19% sales being incremental

Coupon Total Mailed Sales

IncrementalSales

% Incremental

Incremental / Responder

Current: Spend R70 get R10 off R 401,147 R 97,968 24% R 75.2

Current: Buy 2+ get R10 off R 410,500 R 72,257 18% R 56.1

New : R10 off R 77,294 - 0% R 0.0

TOTAL R 888,941 R 170,225 19% R 59.1


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Immediate Return On Investment

• Overall ROI is good: 386%

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

CouponTotal

Mailed Sales

Incremental

SalesProduction

CostsGross Profit ROI

Current: Spend R70 get R10 off R 401,147 R 97,968 R 26,089 R 71,879 276%

Current: Buy 2+ get R10 off R 410,500 R 72,257 R 4,430 R 67,827 1531%

New : R10 off R 77,294 - R 4,481 -R 4,481 -100%

TOTAL R 888,941 R 170,225 R 35,000 R 135,225 386%


Contents


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• Overall campaign generated ideal response:• Redemption rate: 0.32% (417 shoppers)• Response rate: 2.22% (2,882 shoppers)

• Highly successful at driving incremental behaviour:• Shoppers: 303 (11%)• Units: 1,723 (19%)• Sales: R170,225 (19%)

• Overall campaign generated immediate ROI 386% at a promoted product level

Campaign Summary


Mailing Mailed Shopped

Inc Shoppe

rsUnits Inc

Units Sales Inc Sales ROI

Aug-09 94,315 2,639 2,490 7,979 7,621 R699, 000 R674,000 1248%

Dec-09 146,449 6,121 4,393 11,260 5,645 R937,945 R434,993 770%

May-10 139,649 1,014 517 1,132 157 R40,275 R4,736 -91%

July-10 130,587 2,882 303 9,013 1,723 R888,941 R170,225 386%

Campaign Comparison


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

2. Test broader offer for new customers (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-youNikki Emerton – 5one Account Manager [email protected]

Zakariya Patel – 5one [email protected]

mailto:[email protected]

mailto:[email protected]

Documents

Natrodale Targeted Coupon July CashBack ClubCard Mailing Post-Campaign Report