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All content copyright © 5one 2001 – 2011. All rights reserved. Confidential.
New Clicks: Fine FragranceTargeted Coupon
January CashBack ClubCard MailingPost-Campaign Report
March 2011
All content copyright © 5one 2001 - 2011. All rights reserved. Confidential.
Contents
• Introduction• Coupon Redemption & Response• Incremental Analysis• Immediate ROI• Conclusions & Recommendations
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All content copyright © 5one 2001 - 2011. All rights reserved. Confidential.
Introduction• 100,000 ClubCard shoppers targeted utilising 5one’s targeting
tool• Campaign period: 20 January – 3 March 2011• Both Current and New shoppers targeted:
• 50,000 Current shoppers • 50,000 New shoppers
• Reward level constructed tested:• Spend over R300 and receive R40 off your fragrance – from Brands
like Hugo Boss, Bvlgari and Calvin Klein.• Spend over R300 and receive R30 off your fragrance – from Brands
like Hugo Boss, Bvlgari and Calvin Klein.• Control group of look alike shoppers measured over the
campaign period
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All content copyright © 5one 2001 - 2011. All rights reserved. Confidential.
The Mailing
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All content copyright © 5one 2001 - 2011. All rights reserved. Confidential.
Contents
• Introduction• Coupon Redemption & Response• Incremental Analysis• Immediate ROI• Conclusions & Recommendations
5
All content copyright © 5one 2001 - 2011. 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 is good 0.62% (above 1% is ‘good’ for Current shoppers, 0.5% ‘good’ for New shoppers)
Coupon Mailed Redeemed Red. Rate
Current: R40 off 50,000 541 1.1%
New: R30 off 50,000 74 0.1%
TOTAL 100,000 615 0.62%
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Targeted Coupon: Response
Response: shoppers 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: 4% (above 2% is ‘good’ for Current shoppers, above 1% for New shoppers)
• R30 offer generating a good response rate, driving 745 new shoppers to Fine Fragrance
Coupon Mailed Redeemed Red. Rate Responded Resp. Rate
Current: R40 off 50,000 541 1.1% 3,233 6.5%
New: R30 off 50,000 74 0.1% 745 1.5%
TOTAL 100,000 615 1.2% 3,978 4%
All content copyright © 5one 2001 - 2011. All rights reserved. Confidential.
Contents
• Introduction• Coupon Redemption & Response• Incremental Analysis• Immediate ROI• Conclusions & Recommendations
8
All content copyright © 5one 2001 - 2011. All rights reserved. Confidential. 99
Incremental Shoppers
Coupon Mailed Resp. Rate Responded Control Resp.
RateIncremental
Shoppers%
Incremental
Current: R40 off 6.5% 3,233 3.3% 1,559 48%
New: R30 off 1.5% 745 0.3% 589 79%
TOTAL 4% 3,978 0.6% 2,147 58%
• Overall the mailed group shopped at a higher rate than the control group resulting in 2,147 incremental shoppers
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?
All content copyright © 5one 2001 - 2011. All rights reserved. Confidential. 1010
Incremental Units
How many more units were purchased?
• Overall 58% of units were incremental
Coupon Total Mailed Units
Incremental Units
% Incremental
Current: R40 off 4,657 2,470 53%
New: R30 off 1,009 815 81%
TOTAL 5,666 3,285 58%
All content copyright © 5one 2001 - 2011. All rights reserved. Confidential. 1111
Incremental Sales
How many more sales were achieved?
• Total mailed sales of R1.1 million achieved, with 60% sales being incremental
Coupon Total Mailed Sales
IncrementalSales
% Incremental
Incremental / Responder
Current: R40 off R 954,601 R 542,215 57% R 168
New: R30 off R 178,774 R 140,837 79% R 189
TOTAL R 1,133,375 R 683,052 60% R 172
All content copyright © 5one 2001 - 2011. All rights reserved. Confidential.
Contents
• Introduction• Coupon Redemption & Response• Incremental Analysis• Immediate ROI• Conclusions & Recommendations
12
All content copyright © 5one 2001 - 2011. All rights reserved. Confidential. 1313
Immediate Return On Investment
What was the immediate ROI of the targeted coupon based on Incremental sales?
Coupon Total Mailed Sales
IncrementalSales
Production Costs
Gross Profit ROI
Current: R40 off R 954,601 R 542,215 R 5,000 R 537,215 10744%
New: R30 off R 178,774 R 140,837 R 5,000 R 135,837 2717%
TOTAL R 1,133,375 R 683,052 R 10,000 R 673,052 6731%
• Overall ROI is 6731%
All content copyright © 5one 2001 - 2011. All rights reserved. Confidential.
Contents
• Introduction• Coupon Redemption & Response• Incremental Analysis• Immediate ROI• Conclusions & Recommendations
14
All content copyright © 5one 2001 - 2011. All rights reserved. Confidential. 15
Campaign Summary
• Overall campaign generated the following response:• Redemption rate: 1.2% (615 shoppers)• Response rate: 4% (3,978 shoppers)
• Successful at driving incremental behaviour:• Shoppers: 2,147 (54%)• Units: 3,285 (58%)• Sales: R 683,052 (60%)
• Overall ROI is 6731%
All content copyright © 5one 2001 - 2011. All rights reserved. Confidential. 16
Campaign Comparison
Mailing Offer Targeting Mailed Red. Rate
Resp. Rate
Control Resp. Rate
% Shoppers inc
% Units Inc
% Sales Inc
Inc Sales Profit ROI
Jan-11 R40 when you spend R300 or more Current 50,000 1.1% 6.5% 3.3.% 48% 53% 57% R 542,215 R537,215 10744
%
Jan-11 R30 when you spend R300 or more New 50,000 0.1% 1.5% 0.3% 79% 81% 79% R 140,837 R135,837 2717%
Overall Jan-11 100,000 0.62% 4% 0.6% 54% 58% 60% R 683,052 R673,052 6731%
Dec-10 R50 when you spend R300 or more Current 28,762 2.64% 14.78% 16.1% 0% 3% 0% R 0 -R 2,881 -100%
Dec-10 R30 when you spend R300 or more New 71,081 0.23% 2.39% 0.9% 64% 67% 55% R 185,875 R 178,755 2511%
Overall Dec-10 99,843 0.92% 5.96% 1.7% 18% 19% 13% R 185,875 R 150,875 431%
May-10 R70 when you spend R300 or more Current 44,200 1.5% 5.4% 14% 0% 0% 0% R 0 -R698 -100%
May-10 R50 when you spend R300 or more New 55,800 0.2% 0.9% 0.01% 99% 99% 99% R 114,512 R105,209 1131%
Overall May-10 100,000 0.7% 2.9% 1% 18% 16% 15% R 114,512 R 104,512 1045%
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Mailing Offer Targeting Mailed Red. Rate
Resp. Rate
Control Resp. Rate
% Shoppers inc
% Units Inc
% Sales Inc
Inc Sales Profit ROI
Jan-10 R70 when you spend R300 or more Current 50,000 0.83% 2.5% 1.1% 55% 59% 70% R 276,759 R 271,759 5435%
Jan-10 R50 when you spend R300 or more New 49,994 0.44% 1.5% 0.3% 82% 82% 86% R 203,261 R 198,262 3965%
Overall Jan-10 99,994 0.64% 2.0% 0.5% 65% 67% 76% R 480,021 R 470,021 4700%
Dec-09 R70 when you spend R300 or more Current 15,124 3% 4% 0.2% 94% 94% 85% R 53,372 R 51,844 3392%
Dec-09 R50 when you spend R300 or more Current 10,938 3% 4% 0.2% 95% 96% 88% R 64,623 R 63,517 5746%
Dec-09 R70 when you spend R300 or more New 36,448 0.5% 1% 0.4% 35% 32% 0% R0 -R3,683 -100%
Dec-09 R50 when you spend R300 or more New 36,447 0.4% 1% 0.2% 71% 84% 56% R 16,914 R 13,231 359%
Overall Dec-09 62,509 1% 2% 0.2% 83% 84% 74% R 134,909 R
124,9091249
%
Campaign Comparison
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1. Continue to use targeted coupons to invoke re-purchase and gain new shoppers to the brands
2. Test broader offer for new shoppers (less niched / fewer constraints)
3. In-depth analysis of what the Fine Fragrance shopper looks like, how they shop across the range and what competitor products they are purchasing into
Recommendations
All content copyright © 5one 2001 – 2011. All rights reserved. Confidential.
Thank-youNikki Emerton
Nikki.Emerton@5one.co.za
083 686 9076