Weetol Targeted Coupon July Cashback ClubCard Mailing Post-Campaign Report

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

Weetol Targeted CouponJuly Cashback ClubCard MailingPost-Campaign Report


Contents

• Introduction

• Coupon Redemption & Response

• Incremental Analysis

• Immediate ROI

• Conclusions & Recommendations

2


Introduction

• 75,824 ClubCard customers targeted utilising 5one’s targeting tool

• Campaign period: 28 June 2010 – 30 July 2010

• Both Current and New customers targeted:

• 23,942 Current

• 51,882 New

• Reward level constructed tested:

• Get R10 off when you purchase 2 or more Weetol products

• Get R10 off when you spend R50 or more on any Weetol products

• Get R10 off on any Weetol products 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: 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 0.8% (above 1% is ‘good’ for Current, 0.5% ‘good’ for New)

• Current offers generated excellent redemption rates, the spend R50 or more offer has a much higher redemption rate than the buy 2 or more offer

Coupon Mailed Redeemed Red. Rate

Current spend R50 get R10 11,915 342 2.87%

Current buy 2 or more R10 off 12,027 204 1.70%

New R10 51,882 55 0.11%

TOTAL 75,824 601 0.79%


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: 3.80% (above 2% is ‘good’ for Current, above 1% for New)

• New offer driving 202 new shoppers to the brand

Coupon Mailed Redeemed Red. Rate Responded Resp. Rate

Current spend R50 get R10 11,915 342 2.87% 1,336 11.21%

Current buy 2 or more R10 off

12,027 204 1.70% 1,345 11.18%

New R10 51,882 55 0.11% 202 0.39%

TOTAL 75,824 601 0.79% 2,883 3.80%


Contents

• Introduction



• Immediate ROI


8


Incremental Shoppers

CouponMailed Resp. Rate

Responded

Control Resp. Rate

Incremental

Shoppers

% Incremental

Current spend R50 get R10 11.21% 1,336 9.1% 246 18%

Current buy 2 or more R10 off

11.18% 1,345 9.0% 260 19%

New R10 0.39% 202 0.3% 70 35%

TOTAL 3.80% 2,883 4.6% 576 20%

• Overall the mailed group shopped at a higher rate than the control group resulting in 20% of shoppers being 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?

• 38% of total units purchased were incremental

Coupon Total Mailed UnitsIncremental

Units% Incremental

Current spend R50 get R10 2,060 771 37%

Current buy 2 or more R10 off 2,032 751 37%

New R10 259 127 49%

TOTAL 4,351 1,649 38%


Incremental Sales

How many more sales were achieved?

• Total mailed sales of R206k achieved, with 28% sales being incremental

CouponTotal Mailed

SalesIncremental

Sales%

IncrementalIncremental / Responder

Current spend R50 get R10 R 94,154 R 22,755 24% R 17.0

Current buy 2 or more R10 off R 102,121 R 31,203 31% R 23.2

New R10 R10,193 R 3,704 36% R 18.3

TOTAL R 206,469 R 57,662 28% R 20.0


Contents

• Introduction



• Immediate ROI


12


Immediate Return On Investment

• Overall ROI is Excellent!: 477%

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

CouponTotal

Mailed Sales

Incremental

Sales

Production Costs

Gross Profit

ROI

Current spend R50 get R10 R 94,154 R 22,755 R 1,571 R 21,184 1348%

Current buy 2 or more products R10

R 102,121 R 31,203 R 1,586 R 29,616 1867%

New R10 R 10,193 R 3,704 R 6,842 -R 3,138 -46%

TOTAL R 206,469 R 57,662 R10,000 R 46,662 477%


Contents

• Introduction



• Immediate ROI


14


• Overall campaign generated ideal response:

• Redemption rate: 0.79% (601 shoppers)

• Response rate: 3.80% (2,883 shoppers)

• Highly successful at driving incremental behaviour:

• Shoppers: 576 (20%)

• Units: 1,649 (38%)

• Sales: R57,662 (28%)

• Overall campaign generated excellent immediate ROI 477% at a promoted product level

Campaign Summary


Campaign Comparison

Mailing

Mailed

Shopped

Inc Shopp

ersUnits

Inc Unit

sSales

Inc Sales

Channel Cost

ROI

Jan-09 99,981 4,938 4,416 7,996 7,410 R313,398 R287,123 R10k 2771%

May-09 98,861 5,140 4,025 8,203 6,758 R322,353 R261,297 R10k 1329%

Aug-09 99,594 5,803 4,443 9,291 7,580 R359,671 R283,065 R10k 2731%

Dec-09 98,611 6,255 4,740 10,863 8,771 R435,633 R347,682 R10k 3377%

May-10 85,686 2,622 335 4,129 1,614 R186,681 R46,630 R10k 366%

July-10 75,824 2,883 576 4,351 1,649 R206,469 R57,662 R10k 477%


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-you

Nikki Emerton – 5one Account Manager [email protected]

Zakariya Patel – 5one [email protected]

mailto:[email protected]

mailto:[email protected]

Documents

Weetol Targeted Coupon July Cashback ClubCard Mailing Post-Campaign Report