Revlon: Charlie Targeted Coupon August Cashback ClubCard Mailing Post-Campaign Report

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

Revlon: Charlie Targeted CouponAugust Cashback ClubCard MailingPost-Campaign Report


Contents

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

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Introduction

• 149,984 ClubCard customers targeted utilising 5one’s targeting tool

• Campaign period: 16 Aug 2010 – 18 Sep 2010• Both Current and New customers targeted:

• Eye Shadow 8 pan palette• 74,678 Current shoppers• 316 New shoppers

• Eye Pencils• 70,424 Current shoppers• 4,566 New shoppers

• Offers tested: • R10 off when you buy 2 or more Charlie Cosmetics Eye shadow 8 Pan Palettes • R10 off when you buy 2 or more Charlie Cosmetics Eye Pencils

• 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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Targeted Coupon: Redemption

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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 for both coupons: 0.07% and 0.09% for Eye shadow and Eye Pencil respectively (above 1% is ‘good’ for Current, 0.5% ‘good’ for New)

Target Offer Mailed Redeemed Red. RateNew R10 off Eye Shadow 74,678 56 0.07%

Current R10 off Eye Shadow 316 - 0.00%TOTAL Eye Shadow 74,994 56 0.07%

New R10 off Eye Pencil 70,424 60 0.09%Current R10 off Eye Pencil 4,566 8 0.18%TOTAL Eye Pencil 74,990 68 0.09%

All content copyright © 5one 2001 - 2011. All rights reserved. Confidential. 7

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 poor: 0.11% and 0.16 for Eye shadow and Eye Pencil respectively (above 2% is ‘good’ for Current, above 1% for New)

• Driving 181 new shoppers to the brand

Target Offer Mailed Redeemed Red. Rate Responded Resp. RateNew R10 off Eye Shadow 74,678 56 0.07% 79 0.11%

Current R10 off Eye Shadow 316 - 0.00% 1 0.32%TOTAL Eye Shadow 74,994 56 0.07% 80 0.11%

New R10 off Eye Pencil 70,424 60 0.09% 102 0.14%Current R10 off Eye Pencil 4,566 8 0.18% 16 0.35%TOTAL Eye Pencil 74,990 68 0.09% 118 0.16%


Contents


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Incremental Shoppers

Target Offer MailedMailed Resp. Rate

Responded

Control Resp. Rate

Incremental

Shoppers

% Increment

al New R10 off Eye Shadow 74,678 0.11% 79 0.0% 68 86%

Current R10 off Eye Shadow 316 0.32% 1 0.0% 1 100%TOTAL Eye Shadow 74,994 0.11% 80 0.0% 69 86%

New R10 off Eye Pencil 70,424 0.14% 102 0.0% 102 100%Current R10 off Eye Pencil 4,566 0.35% 16 0.8% 0 0%TOTAL Eye Pencil 74,990 0.16% 118 0.1% 102 86%

• Overall 86% of shoppers 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?

• 86% of eye shadow units purchased incremental • 100% of eye pencils incremental

Target Offer Total Mailed

UnitsIncremental

Units%

Incremental New R10 off Eye Shadow 84 69 86%

Current R10 off Eye Shadow 1 1 100%TOTAL Eye Shadow 85 70 82%

New R10 off Eye Pencil 102 102 100%Current R10 off Eye Pencil 17 - 0%TOTAL Eye Pencil 119 102 86%


Incremental Sales

How many more sales were achieved?

Target OfferTotal

Mailed Sales

Incremental

Sales

% Increment

al

Incremental /

ResponderNew R10 off Eye Shadow R 556 - 0% R 0.0

Current R10 off Eye Shadow R 40 R 40 100% R 40.3TOTAL Eye Shadow R 596 R 40 7% R 0.5

New R10 off Eye Pencil R 2,199 R 2,199 100% R 21.6Current R10 off Eye Pencil R 482 - 0% R 0.0TOTAL Eye Pencil R 2,682 R 2,199 82% R 18.6

• Eye Shadow had total mailed sales of R596 of which 7% was incremental

• Eye Pencil had total mailed sales of R2,682 of which 82% was incremental


How Did Shoppers Respond at a Total Range Level

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Because the offer was only on Charlie: Eye Shadow, it is important to understand if responders chose a different product from the Charlie range as a result of the mailing. Again, measuring this against the control group enables us to understand what was incrementalHow many more shoppers, sales and units were generated at a range level?

• Targeted voucher delivered better results at a total Charlie level, generating R43K incremental sales

• This demonstrates the marketing halo effect of sending targeted communication

MetricEye

Shadow response

Eye Shadow response for the entire Charlie

makeupIncremental %

Incremental

Shoppers 80 1,685 836 50%

Units 85 2,173 1,096 50%

Sales R 596 R 91,100 R 43,389 48%


How Did Shoppers Respond at a Total Range Level

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Because the offer was only on Charlie: Eye Pencil, it is important to understand if responders chose a different product from the Charlie range as a result of the mailing. Again, measuring this against the control group enables us to understand what was incrementalHow many more shoppers, sales and units were generated at a range level?

• Revlon Charlie Eye Pencil has done poorly on both a product level as well as on a brand level

• As a result there was no halo effect from marketing communication

Metric Eye Pencil Response

Eye Pencil response for the entire Charlie

makeupIncremental %

Incremental

Shoppers 118 1,929 26 1%

Units 119 2,475 85 3%

Sales R2,682 R 114,463 R 812 1%


Contents


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Immediate Return On Investment : Product level

• Overall ROI was poor : Eye Shadow has -100%, Eye Pencil has -91%

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

*sales through the till ex VAT

Coupon Product Range

Total Mailed Sales

Incremental

SalesProduction Costs Gross Profit ROI

New R10 off Eye Shadow R 556 - R 24,895 -R 24,895 -100%

Current R10 off Eye Shadow R 40 R 40 R 105 R -65 -62%

TOTAL Eye Shadow R 596 R 40 R 25,000 -R 24,960 -100%

New R10 off Eye Pencil R 2,199 R 2,199 R 23,478 -R 23,478 -91%

Current R10 off Eye Pencil R 482 - R 1,522 -R 1,522 -100%

TOTAL Eye Pencil R 2,682 R 2,199 R 25,000 -R 25,000 -91%


Immediate Return On Investment: Range Level

• The Eye Shadow range generated R91K and Eye Pencil R114K in total mailed sales

• Overall ROI for Eye Shadow did better on a range level at 74%, • Eye Pencil still has a negative ROI further illustrating the poor performance of

the Eye Pencil offer

What was the immediate ROI of the targeted coupon based on Incremental sales at a total Range level?

Coupon Product Range

Total Mailed Sales

IncrementalSales

Production Costs Gross Profit ROI

New R10 off Eye Shadow R 89,916 R 42,781 R 24,895 R 17,886 72%

Current R10 off Eye Shadow R 1,184 R 608 R 105 R 503 477%

New R10 off Eye Pencil R 100,790 - R 23,487 R -23,487 -100%

Current R10 off Eye Pencil R 13,674 R 812 R 1,522 R -710 -47%

TOTAL Eye Shadow R 91,100 R 43,389 R 25,000 R 18,389 74%

TOTAL Eye Pencil R 114,463 R 812 R 25,000 R -24,217 -97%


Contents


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• Overall campaign generated the following response:

• Eye Shadow, Redemption rate: 0.07% (56 shoppers)

• Eye Shadow, Response rate: 0.11% (80 shoppers)

• Eye Pencil, Redemption rate: 0.09% (68 shoppers)

• Eye Pencil, Response rate: 0.16% (188 shoppers)

• Reasonably successful at driving incremental behaviour on Range level:

• Eye Shadow, Shoppers: 836 (23%)• Eye Shadow, Units: 1,096 (33%)• Eye Shadow, Sales: R43,386 (4%)• Eye Pencil, Shoppers: 26 (1%)• Eye Pencil, Units: 85 (3%)• Eye Pencil, Sales: R 812 (1%)

Campaign Summary


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

2. Test broader offer for customers (less niched / fewer constraints)

• E.g. R10 any Revlon Charlie Eye Shadow and Eye Pencil

3. In-depth analysis of what the Revlon Charlie shopper looks like, how they shop across the range and what competitor products they are purchasing into

Recommendations


Thank-youNikki Emerton – Account Manager [email protected]

mailto:[email protected]

Documents

Revlon: Charlie Targeted Coupon August Cashback ClubCard Mailing Post-Campaign Report