Olay Total Effects DM Campaign Post-Campaign Report
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Transcript of Olay Total Effects DM Campaign Post-Campaign Report
All content copyright © 5one 2001 - 2011. All rights reserved. Confidential.
Olay Total Effects DM Campaign
Post-Campaign Report
August 2011
All content copyright © 5one 2001 - 2011. All rights reserved. Confidential.
Contents
• Introduction
• Creative
• Response
• Incremental Analysis
• Immediate ROI
• Observations & Conclusions
• Recommendations
2
All content copyright © 5one 2001 - 2011. All rights reserved. Confidential.
Introduction
• 280,068 ClubCard customers targeted using 5one’s targeting tool
• Campaign period: 27 June 2011 – 07 August 2011
• New shoppers Olay Total Effects range targeted, i.e. • Shoppers who have a high propensity to buy Olay Total Effects based on their previous
transactional behaviour• These shoppers have not purchased Olay Total Effects in the past 12 months
• Control group of look-alike customers were measured over exact same campaign period
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All content copyright © 5one 2001 - 2011. All rights reserved. Confidential.
Contents
• Introduction
• Creative
• Response
• Incremental Analysis
• Immediate ROI
• Observations & Conclusions
• Recommendations
4
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Creative
All content copyright © 5one 2001 - 2011. All rights reserved. Confidential.
Contents
• Introduction
• Creative
• Response
• Incremental Analysis
• Immediate ROI
• Observations & Conclusions
• Recommendations
6
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Response
Customers who received the mailing and bought Olay Total Effects in the 6-week period measured
• Overall response rate is good: 1.1% (above 1% considered good for new shoppers to a brand), particularly for a mailing going to customers who have:
• not bought Olay Total Effects, and
• where there is no offer attached.
Mailed Responded Resp. Rate
280,068 2,987 1.1%
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Response
Customers who received the mailing and bought any Olay product in the 6-week period measured
• Overall response rate very good: 5.3%
Mailed Responded Resp. Rate
280,068 14,796 5.3%
All content copyright © 5one 2001 - 2011. All rights reserved. Confidential.
Contents
• Introduction
• Creative
• Response
• Incremental Analysis
• Immediate ROI
• Observations & Conclusions
• Recommendations
9
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Incremental Analysis: incremental shoppers
• Overall 55% of shoppers responding to this campaign were incremental, i.e. 1,633 customers shopped for Olay Total Effects as a direct result of this mailing
Incremental analysis shows how the customers who did respond would have shopped had they not received the mailing – this is essential in understanding the actual effect of the campaign.
The control group of ‘look-alike’ customers selected were not sent the mailing.How many Olay Total Effects shoppers were incremental?
Mail QtyMailed
Response Rate
Responded
Control Response
RateIncremental
Shoppers%
Incremental
280,068 1.1% 2,987 0.5% 1,633 55%
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• Of the 4061 units of Olay Total Effects purchased, 2298 (57%) were incremental
• Of the R506 487 worth of revenue generated from Olay Total Effects sales, R307 977 (61%) was incremental.
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Total Incremental % Incremental
Olay TE Shoppers 2,987 1,633 55%
Olay TE Units purchased 4,061 2,298 57%
Olay TE Sales R 506,487 R 307,977 61%
What other incremental behaviour did this campaign drive?
Incremental Analysis: incremental behaviour
All content copyright © 5one 2001 - 2011. All rights reserved. Confidential.
• Of the 14,796 total Olay brand shoppers, 2192 (15%) were incremental
• Of the 20 780 total Olay brand unit sales, 2838 (14%) were incremental
• Of the R1 807 765 worth of revenue generated from total Olay brand sales, R339 316 (19%) was incremental.
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Olay Brand Total Incremental % Incremental
Olay Brand Shoppers 14,796 2,192 15%
Olay Brand Units purchased 20,780 2,838 14%
Olay Brand Sales R1,807,765 R339,316 19%
Incremental behaviour at brand level:
Incremental Analysis: brand level
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Incremental Analysis: TE vs brand
• 55% of Olay Total Effects shoppers responding to this campaign were incremental, i.e. 1633 customers shopped for Olay TE as a direct result of this mailing
• 15% of shoppers of any Olay product responding to this campaign were incremental, i.e. 2192 customers shopped for any Olay product as a direct result of this mailing
• Overall the campaign attracted 2192 new shoppers to the total Olay brand.
Mail Qty280,068
Mailed Response
RateResponde
dControl
Response Rate
Incremental Shoppers
% Incremental
Olay TE 1.1% 2,987 0.5% 1,633 55%
Total Olay Brand 5.28% 14,796 0.8% 2,192 15%
Olay Total Effects vs total Olay brand sales:
All content copyright © 5one 2001 - 2011. All rights reserved. Confidential.
Contents
• Introduction
• Creative
• Response
• Incremental Analysis
• Immediate ROI
• Observations & Conclusions
• Recommendations
14
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Immediate Return On Investment
• Overall ROI is negative: -64%. However it is important to keep in mind that there was no offer included. In addition, the brand awareness generated cannot be directly measured.
What was the immediate ROI of the mailing?
Total Mailed Sales
IncrementalSales
Production Costs
Gross Profit ROI
Olay TE R 506,487 R 307,977 R939,000 -R631,023 -67%
Total Olay R1,807,765 R 339,316 R939,000 -R599,684 -64%
All content copyright © 5one 2001 - 2011. All rights reserved. Confidential.
Contents
• Introduction
• Creative
• Response
• Incremental Analysis
• Immediate ROI
• Observations & Conclusions
• Recommendations
16
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Observations & Conclusions
• The response rate of 1.1% was fair considering the following:
• No specific call to action to drive sales was included
• No deadline to drive urgency was included
• Purchase behaviour for a product like face cream is typically more difficult to influence in the short-term.
• Because there was no offer, the mailing could have prompted customers to buy from any retail store. This impact cannot be measured.
• This mailing will have done a further brand building job that will be realised over time with additional sales.
• It is quite possible there have been additional sales after the 6-week measured sales period from the customers mailed which would improve the results.
• The investment in this campaign needs to be viewed from a long-term customer lifetime value perspective, i.e. customers who purchased Olay TE for the first time will repeat purchase.
All content copyright © 5one 2001 - 2011. All rights reserved. Confidential.
Contents
• Introduction
• Creative
• Response
• Incremental Analysis
• Immediate ROI
• Observations & Conclusions
• Recommendations
18
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• For maximum return on investment from a ClubCard direct mailing, we recommend:
• Inclusion of an offer ( rands off, points, competition, etc.) for in-store redemption
• An expiry date to drive urgency
• Because of the nature of the product, a product sample could be included for customers to trial
• Future mailings could include tests of different offers (different rands off values, points, competitions, etc.)
• Support the mail pack by using additional Clicks channels around the same mailing period.
Recommendations
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