colgate plax targeted coupon august cashback clubcard mailing post-campaign report january 2011
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All content copyright © 5one 2001 - 2011. All rights reserved. Confidential.
Colgate Plax Targeted Coupon
August CashBack ClubCard MailingPost-Campaign Report
January 2011
All content copyright © 5one 2001 - 2011. All rights reserved. Confidential.
Contents
• Introduction
• Coupon Redemption & Response
• Incremental Analysis
• Immediate ROI
• Conclusions & Recommendations
2
All content copyright © 5one 2001 - 2011. All rights reserved. Confidential.
Introduction
• 150 000 ClubCard customers targeted utilising 5one’s targeting tool
• Campaign period: 16 Aug 2010 – 18 Sep 2010
• Both Current and New customers targeted:
• 134,919 New shoppers
• 15,081 Current shoppers
• Reward level constructed tested:
• R6 off any 500ml Colgate Plax Mouthwash
• Control group of look alike shoppers measured over the campaign period
3
All content copyright © 5one 2001 - 2011. All rights reserved. Confidential.
The Mailing
4
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 0.89% (above 1% is ‘good’ for Current, 0.5% ‘good’ for New)
• Offer to current shoppers generating excellent redemption rates
Coupon Mailed Redeemed Red. Rate
New R6 off 134,919 894 0.66%
Current R6 off 15,081 440 2.92%
TOTAL 150,000 1,334 0.89%
All content copyright © 5one 2001 - 2011. All rights reserved. Confidential. 7
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: 2.08% (above 2% is ‘good’ for Current shoppers, above 1% for New shoppers)
• Offer to new shoppers driving an additional 1,872 new shoppers to the brand!
Coupon Mailed Redeemed Red. Rate Responded Resp. Rate
New R6 off 134,919 894 0.66% 1,872 1.39%
Current R6 off 15,081 440 2.92% 1,248 8.28%
TOTAL 150,000 1,334 0.89% 3,120 2.08%
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
CouponMailed Resp. Rate
Responded
Control Resp. Rate
Incremental
Shoppers
% Incrementa
l
New R6 off 1.39% 1,872 0.3% 1,472 79%
Current R6 off 8.28% 1,248 5.5% 424 34%
TOTAL 2.08% 3,120 0.5% 1,896 61%
• Overall the mailed group shopped at a higher rate than control shoppers resulting in 61% 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?
All content copyright © 5one 2001 - 2011. All rights reserved. Confidential. 1010
Incremental Units
How many more units were purchased?
• Due to high response rates of shoppers 71% of total units purchased were incremental
Coupon Total Mailed UnitsIncremental
Units% Incremental
New R6 off 2,816 2,364 84%
Current R6 off 1,882 971 52%
TOTAL 4,698 3,336 71%
All content copyright © 5one 2001 - 2011. All rights reserved. Confidential. 1111
Incremental Sales
How many more sales were achieved?
• Total mailed sales of R134k achieved, with 57% sales being incremental
CouponTotal Mailed
Sales
Incremental
Sales
% Incremental
Incremental / Responder
New R6 off R 75,057 R 56,659 75% R 30.30
Current R6 off R 59,025 R 20,391 35% R 16.30
TOTAL R 134,082 R 77,051 57% R 24.70
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
• Overall ROI is 54%
What was the immediate ROI of the targeted coupon based on Incremental sales?
CouponTotal
Mailed Sales
Incremental
Sales
Production Costs
Gross Profit
ROI
New R6 off R 75,057 R 56,659 R 44,973 R 11,686 26%
Current R6 off R 59,025 R 20,391 R 5,027 R 15,364 306%
TOTAL R 134,082 R 77,051 R 50,000 R 27,051 54%
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
• Overall campaign generated ideal response:
• Redemption rate: 0.89% (1,334 shoppers)
• Response rate: 2.08% (3,120 shoppers)
• Highly successful at driving incremental behaviour:
• Shoppers: 1,896 (61%)
• Units: 3,336 (71%)
• Sales: R77,051 (57%)
• Overall campaign generated immediate ROI 54% at a promoted product level
Campaign Summary
All content copyright © 5one 2001 - 2011. All rights reserved. Confidential. 16
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 Colgate Plax 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-you
Nikki Emerton – 5one Account Manager Nikki.emerton@5one.co.za
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