June 2010
description
Transcript of June 2010
All content copyright © 5one 2001 - 2010. All rights reserved. Confidential.
Indigo Cosmetics: Yardley Skin Even Targeted Coupon
May Cashback ClubCard MailingPost-Campaign ReportJune 2010
All content copyright © 5one 2001 - 2010. All rights reserved. Confidential.
Contents
• Introduction• Coupon Redemption & Response• Incremental Analysis• Immediate ROI• Conclusions & Recommendations
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All content copyright © 5one 2001 - 2010. All rights reserved. Confidential.
Introduction
• 150 000 ClubCard customers targeted utilising 5one’s targeting tool
• Campaign period: 3 May – 4 June 2010• Both Protect and Steal customers targeted:
• 5,096 Protect• 144,904 Steal
• Reward level constructed tested:• R5 off when you buy 2 or more Yardley Skin even products. Normal prices range between R17.95 and R21.95.
Get R5 off any Vital product purchased • R3 off when you buy any Yardley Skin even product. Normal prices range between R17.95 and R21.95.
• Control group of look alike customers measured over the campaign period
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The Mailing
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Contents
• Introduction• Coupon Redemption & Response• Incremental Analysis• Immediate ROI• Conclusions & Recommendations
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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 slightly below average, however due to the large number of Steal shoppers targeted: (above 1% is ‘good’ for Protect, 0.5% ‘good’ for Steal)
Coupon Mailed Redeemed Red. Rate
New R3 144,904 100 0.07%
Current R5 5,096 13 0.26%
TOTAL 150,000 113 0.08%
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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 excellent: 0.27% (above 2% is ‘good’ for Protect, above 1% for Steal)
• Response rate amongst Protect shoppers is good at 3%• Steal offer generating average response rate: Driving 250 new shoppers to
the brand.
Coupon Mailed Redeemed Red. Rate Responde
dResp. Rate
New R3 144,904 100 0.07% 250 0.17%
Current R5 5,096 13 0.26% 149 2.92%
TOTAL 150,000 113 0.08% 399 0.27%
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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 R3 0.17% 250 0.0% 250 100%
Current R5 2.92% 149 11.0% 0 0
TOTAL 0.27% 399 0.2% 0 0
• Overall the control group shopped at a substantially higher rate than targeted shoppers resulting in a lower % of 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?
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Incremental Units
How many more units were purchased?
• Due to high response rate from current customers more than 64% of total units purchased were incremental
Coupon Total Mailed Units
Incremental Units
% Incremental
New R3 300 300 100%
Current R5 172 0 0
TOTAL 472 300 64%
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Incremental Sales
How many more sales were achieved?
• Total mailed sales of R6k was achieved
Coupon Total Mailed Sales
IncrementalSales
% Incremental
Incremental / Responder
New R3 R 3,420 R 3,420 100% R 13.7
Current R5 R 2,833 0 0 0
TOTAL R6,253 R 3,420 55% R 8.6
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 below average: -109%
What was the immediate ROI of the targeted coupon based on Incremental sales?
CouponTotal
Mailed Sales
Incremental
SalesProduction
CostsGross Profit ROI
New R3 R 3,420 R 3,420 R 48,301 R -44,881 -93%
Current R5 R 2,833 0 R 1,699 R -1,699 -100%
TOTAL R6,253 R 3,420 R50,000 R -46,580 -109%
All content copyright © 5one 2001 - 2010. All rights reserved. Confidential.
Contents
• Introduction• Coupon Redemption & Response• Incremental Analysis• Immediate ROI• Conclusions & Recommendations
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• Overall campaign generated ideal response:• Redemption rate: 0.08% (113 shoppers)• Response rate: 0.27% (399 shoppers)
Campaign Summary
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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 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
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Thank-youZakariya Patel – 5one [email protected]