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All content copyright © 5one 2001 - 2010. All rights reserved. Confidential.
L’Oreal: Age Perfect and Age Re-perfect Targeted Coupon
August CashBack ClubCard MailingPost-Campaign Report
November 2010
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
• 150 000 ClubCard customers targeted utilising 5one’s targeting tool
• Campaign period: 16 Aug 2010 – 18 Sep 2010
• Only New shoppers targeted:
• 75,000 New Age Perfect
• 75,000 New Age Re-perfect
• Reward level constructed tested:
• Great skin for less! Save R 50 off your purchase on Age Perfect or Age Re-Perfect anti-ageing care.
• Control group of look alike shoppers measured over the campaign period
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The Mailing
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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: 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 excellent: 2.75% (above 1% is ‘good’ for Current shoppers, 0.5% ‘good’ for New shoppers)
• Offer to new shoppers of Age Re-perfect had the highest redemption rate
Target Cell Mailed Redeemed Red. Rate
New Age Perfect 75,000 886 1.18%
New Age Re-perfect
75,000 3,243 4.32%
TOTAL 150,000 4,129 2.75%
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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 excellent: 4.01% (above 2% is ‘good’ for Current shoppers, above 1% for New shoppers)
• The offers drove 6,016 new shoppers to the brand!
Target Cell Mailed Redeemed Red. Rate Responded Resp. Rate
New Age Perfect 75,000 886 1.18% 1,732 2.31%
New Age Re-perfect
75,000 3,243 4.32% 4,284 5.71%
TOTAL 150,000 4,129 2.75% 6,016 4.01%
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
Target CellMailed
Resp. RateResponde
d
Control Resp. Rate
Incremental Shoppers
% Increment
al
New Age Perfect 2.31% 1,732 0.4% 1,412 82%
New Age Re-perfect
5.71% 4,284 0.9% 3,574 83%
TOTAL 4.01% 6,016 0.6% 4,986 83%
• Overall the mailed group shopped at a higher rate than control shoppers resulting in 83% 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 high response rates of shoppers, 85% of total units purchased were incremental
Target CellTotal Mailed
UnitsIncremental
Units% Incremental
New Age Perfect 2,702 2,285 85%
New Age Re-perfect
5,637 4,804 85%
TOTAL 8,339 7,089 85%
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Incremental Sales
How many more sales were achieved?
• Total mailed sales of R384k achieved, with 58% sales being incremental
Target CellTotal
Mailed Sales
IncrementalSales
% Incremental
Incremental / Responder
New Age Perfect R 154,523 R 111,896 72% R 64.6
New Age Re-perfect
R 229,544 R 109,911 48% R 25.7
TOTAL R 384,067 R 221,807 58% R 36.9
All content copyright © 5one 2001 - 2010. All rights reserved. Confidential.
Contents
• Introduction
• Coupon Redemption & Response
• Incremental Analysis
• Immediate ROI
• Conclusions & Recommendations
12
All content copyright © 5one 2001 - 2010. All rights reserved. Confidential. 1313
Immediate Return On Investment
• Overall ROI is 344%
What was the immediate ROI of the targeted coupon based on Incremental sales?
Target CellTotal
Mailed Sales
Incremental
Sales
Production Costs
Gross Profit
ROI
New Age Perfect R 154,523 R 111,896 R 25,000 R 86,896 348%
New Age Re-perfect
R 229,544 R 109,911 R 25,000 R 84,911 340%
TOTAL R 384,067 R 221,807 R 50,000 R 171,807 344%
All content copyright © 5one 2001 - 2010. All rights reserved. Confidential.
Contents
• Introduction
• Coupon Redemption & Response
• Incremental Analysis
• Immediate ROI
• Conclusions & Recommendations
14
All content copyright © 5one 2001 - 2010. All rights reserved. Confidential. 15
• Overall campaign generated ideal response:
• Redemption rate: 2.75% (4,129 shoppers)
• Response rate: 4.01% (6,016 shoppers)
• Highly successful at driving incremental behaviour:
• Shoppers: 4,986 (83%)
• Units: 7,089 (85%)
• Sales: R221,807 (58%)
• Overall campaign generated excellent immediate ROI 344% 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 L’Oreal anti-ageing 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 Manager [email protected]
Zakariya Patel – 5one [email protected]