Vital Targeted Coupon July CashBack ClubCard Mailing Post-Campaign Report

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

Vital Targeted CouponJuly CashBack ClubCard MailingPost-Campaign Report


Contents

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

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Introduction

• 70,507 ClubCard shoppers targeted utilising 5one’s targeting tool

• Campaign period: 28 June 2010 – 30 July 2010• Both Current and New customers targeted:

• 10,614 Current shoppers • 59,893 New shoppers

• Reward level constructed tested:• Get R10 off when you purchase Colon Complete, Cranberry Complex or Arthrit

Ease from Vital • 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: shoppers who bought featured product at the same time as handing in the coupon

How many mailants shopped the promoted products?

• Overall redemption rate was average 0.53% : (above 1% is ‘good’ for Current, 0.5% ‘good’ for New)

• Current offers generated excellent redemptions rates

Coupon Mailed Redeemed Red. Rate

New R10 59,893 155 0.26%

Current R10 10,614 221 2.08%

TOTAL 70,507 376 0.53%


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: 1.33% (above 2% is ‘good’ for Current, above 1% for New)

• Response rate amongst Current shoppers is excellent at 6.64%• New offer driving 231 new shoppers to the brand

Coupon Mailed Redeemed Red. Rate Responde

dResp. Rate

New R10 59,893 155 0.26% 231 0.39%

Current R10 10,614 221 2.08% 705 6.64%

TOTAL 70,507 376 0.53% 936 1.33%


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Incremental Shoppers

CouponMailed Resp. Rate

Responded

Control Resp. Rate

Incremental

Shoppers%

Incremental

New R10 0.39% 231 0.2% 141 61%

Current R10 6.64% 705 5.7% 101 14%

TOTAL 1.33% 936 2.7% 242 26%

• Overall the mailed group shopped at a higher rate than control, resulting in a % increase of incremental shoppers 26%

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 41% of total units purchased were incremental

Coupon Total Mailed Units

Incremental Units

% Incremental

New R10 299 209 70%

Current R10 1058 342 32%

TOTAL 1,357 551 41%


Incremental Sales

How many more sales were achieved?

• Total mailed sales of R62k achieved, with 13% sales being incremental

Coupon Total Mailed Sales

IncrementalSales

% Incremental

Incremental / Responder

New R10 R 8,433 R 2,364 28% R 10.2

Current R10 R 53,800 R 5,941 11% R 8.4

TOTAL R 62,233 R 8,305 13% R 8.9


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Immediate Return On Investment

• Overall ROI is poor: -76%

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

CouponTotal

Mailed Sales

Incremental

SalesProduction

CostsGross Profit ROI

New R5 R 8,433 R 2,364 R 29,731 -R 27,367 -92%

Current R5 R 53,800 R 5,941 R 5,269 R 672 13%

TOTAL R 62,233 R 8,305 R 35 000 R -26,695 -76%


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• Overall campaign generated ideal response:• Redemption rate: 0.53% (376 shoppers)• Response rate: 1.33% (936 shoppers)

• Highly successful at driving incremental behaviour:• Shoppers: 242 (26%)• Units: 551 (41%)• Sales: R8,305 (13%)

• Overall campaign generated a poor immediate ROI -76% at a promoted product level

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 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

Vital Targeted Coupon July CashBack ClubCard Mailing Post-Campaign Report