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Wellman Targeted CouponJuly CashBack ClubCard MailingPost-Campaign Report
All content copyright © 5one 2001 - 2010. All rights reserved. Confidential.
Contents
• Introduction
• Coupon Redemption & Response
• Incremental Analysis
• Immediate ROI
• Conclusions & Recommendations
2
All content copyright © 5one 2001 - 2010. All rights reserved. Confidential.
Introduction
• 149,989 ClubCard customers targeted utilising 5one’s targeting tool
• Campaign period: 28 June 2010 – 30 July 2010
• Both Current and New customers targeted:
• 81 Current shoppers
• 149,908 New shoppers
• Reward level constructed tested:
• Get R15 off any Vitabiotics Wellman product purchased
• Control group of look alike customers measured over the campaign period
3
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The Mailing
4
All content copyright © 5one 2001 - 2010. All rights reserved. Confidential.
Contents
• Introduction
• Coupon Redemption & Response
• Incremental Analysis
• Immediate ROI
• Conclusions & Recommendations
5
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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: 0.04% (above 1% is ‘good’ for Current, 0.5% ‘good’ for New)
Coupon MailedRedeeme
dRed. Rate
New R15 149,908 62 0.04%
Current R15 81 1 1.23%
TOTAL 149,989 63 0.04%
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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 low: 0.09% (above 2% is ‘good’ for Current, above 1% for New)
• Response rate amongst Current shoppers is very high
• New offer driving 131 new shoppers to the brand
Coupon MailedRedeeme
dRed. Rate
Responded
Resp. Rate
New R15 149,908 62 0.04% 131 0.09%
Current R15 81 1 1.23% 8 9.88%
TOTAL 149,989 63 0.04% 139 0.09%
All content copyright © 5one 2001 - 2010. All rights reserved. Confidential.
Contents
• Introduction
• Coupon Redemption & Response
• Incremental Analysis
• Immediate ROI
• Conclusions & Recommendations
8
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Incremental Shoppers
CouponMailed Resp. Rate
Responded
Control Resp. Rate
Incremental
Shoppers
% Incremental
New R15 0.09% 131 0.0% 118 90%
Current R15 9.88% 8 - - -
TOTAL 0.09% 139 0.0% 118 85%
• Control group for current shoppers too small for incremental analysis to be accurate
• Overall the control group shopped at a substantially lower rate than targeted shoppers resulting in 85% 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?
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Incremental Units
How many more units were purchased?
• Due to average response rates of customers more than 85% of total units purchased were incremental
CouponTotal Mailed
UnitsIncremental
Units%
Incremental
New R15 162 146 90%
Current R15 10 - -
TOTAL 172 146 85%
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Incremental Sales
How many more sales were achieved?
• Total mailed sales of R11k achieved, with 73% sales being incremental
CouponTotal Mailed
SalesIncremental
Sales%
IncrementalIncremental / Responder
New R15 R 10,171 R 8,051 79% R 61.5
Current R15 R 851 - - -
TOTAL R 11,022 R8,051 73% R 57.9
All content copyright © 5one 2001 - 2010. All rights reserved. Confidential.
Contents
• Introduction
• Coupon Redemption & Response
• Incremental Analysis
• Immediate ROI
• Conclusions & Recommendations
12
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Immediate Return On Investment
• Overall ROI is negative: -19%
What was the immediate ROI of the targeted coupon based on Incremental sales?
CouponTotal
Mailed Sales
Incremental
Sales
Production Costs
Gross Profit
ROI
New R10 R 10,171 R 8,051 R 9,995 -R 1,944 -19%
Current R15 R 851 - R 5 -R 5 -
TOTAL R 11,022 R 8,051 R 10,000 -R 1,949 -19%
All content copyright © 5one 2001 - 2010. All rights reserved. Confidential.
Contents
• Introduction
• Coupon Redemption & Response
• Incremental Analysis
• Immediate ROI
• Conclusions & Recommendations
14
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• Overall campaign generated ideal response:
• Redemption rate: 0.04% (63 shoppers)
• Response rate: 0.09% (193 shoppers)
• Incremental behaviour:
• Shoppers: 118 (85%)
• Units: 146 (85%)
• Sales: R8,051 (73%)
• Overall campaign generated a negative immediate ROI -19% at a promoted product level
Campaign Summary
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1. Continue to use targeted coupons to invoke re-purchase and gain new shoppers to the brands
2. In-depth analysis of what the Wellman shopper looks like, how they shop across the range and what competitor products they are purchasing into
Recommendations
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Thank-you
Nikki Emerton – 5one Account [email protected]
Zakariya Patel – 5one [email protected]