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TLC Direct Mailing Campaign November 2011. Contents. Introduction Response ROI Conclusions & Recommendations. Introduction . 60,000 ClubCard customers targeted using 5one’s targeting tool Campaign period: 15 July – 30 August 2011 New shoppers TLC range targeted, i.e. - PowerPoint PPT Presentation
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TLC Direct Mailing Campaign November 2011
Contents• Introduction
• Response
• ROI
• Conclusions & Recommendations
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Introduction
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• 60,000 ClubCard customers targeted using 5one’s targeting tool
• Campaign period: 15 July – 30 August 2011
• New shoppers TLC range targeted, i.e.
• Shoppers who have a high propensity to shop TLC based on their previous
transactional behaviour
• These shoppers have not purchased TLC in the past 12 months
• Offer:
• Pack included a TLC sachet
• After purchasing a TLC product shoppers are entered into a competition to win one
of 30 spa vouchers to the value of R500
Creative
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Contents• Introduction
• Response
• ROI
• Conclusions & Recommendations
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Response
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Response: Targeted customers who bought TLC over the campaign period
• Overall response rate is very good: 2.4% (above 1% considered good for new shoppers to a brand)
• This is a good response rate particularly from customers who have not shopped TLC in the last 12 months
MailedResponde
dResp. Rate
60,000 1433 2.4%
Contents • Introduction
• Response
• ROI
• Conclusions & Recommendations
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Return on Investment
R195 319 additional revenue to be generated by repeat purchases to breakeven
What was the immediate ROI of the mailing?
Total Mailed Sales Production Costs
R 60,417R42.60 spend/customer
R 255,736
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Return on Investment • It is important to keep in mind this is a brand awareness exercise and although
shopper volumes are relatively low, these shoppers should drive long term ROI over time if they continue to shop the brand
• If, for example, 50% of the 1433 shoppers buy TLC again at an average spend of R42.60 each the following revenue scenarios are possible
TLC shoppers (50%responders)
# of repeat purchases
Additional Revenue
716
1 R 30, 522
2 R 61, 045
3 R 96, 566
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Contents • Introduction
• Response
• ROI
• Conclusions & Recommendations
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Campaign summary
• Overall campaign generated the following response:
• Response rate: 2,4% (1433 shoppers) – this is a good response considering
there was no offer to drive the customer in-store
• Although ROI was negative these new shoppers will generate positive ROI over
time as they repurchase
• Not only is this a call to action, but also a brand awareness exercise so customers
may shop at a later stage outside of the analysis period
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Recommendations
1. Future mailings must include an offer to drive customers in-store and increase
response. From experience, we have seen that Rands off discount offers generate
responses up to 4 x higher than the response generated by this campaign.
• A minimum of 10% off the price is recommended
2. Test inclusion of sms reminder 1 week after mailing to further drive response.
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