
Introduction

• 149,890 ClubCard customers targeted utilising 5one’s targeting tool

• Campaign period: 16 Aug 2010 – 18 Sep 2010• Both Current and New shoppers targeted:

• 1,059 Current shoppers • 148,831 New shoppers

• Reward level constructed tested:• Buy any 2 Sister Lillian Remedies and get R15 .00 off • Buy any Sister Lillian Remedies products and get R10.00 off

• Control group of look alike shoppers measured over the campaign period

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The Mailing

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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 low: 0.05% (above 1% is ‘good’ for Current, 0.5% ‘good’ for New)

Coupon Mailed Redeemed Red. Rate

New R10 off 148,831 71 0.05%

Current R15 off 1,059 10 0.94%

TOTAL 149,890 81 0.05%


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 low: 0.14% (above 2% is ‘good’ for Current shoppers, above 1% for New shoppers)

• Offer to new shoppers driving an additional 153 new shoppers to the brand

Coupon Mailed Redeemed Red. Rate Responded Resp. Rate

New R10 off 148,831 71 0.05% 153 0.10%

Current R15 off 1,059 10 0.94% 59 5.57%

TOTAL 149,890 81 0.05% 212 0.14%


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Incremental Shoppers

Coupon Mailed Resp. Rate

Responded

Control Resp. Rate

Incremental

Shoppers

% Incrementa

l

New R10 off 0.10% 153 0.01% 134 88%

Current R15 off 5.57% 59 5.1% 5 8%

TOTAL 0.14% 212 0.04% 139 65%

• Overall the mailed group shopped at a higher rate than targeted shoppers resulting in 65% 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?


Incremental Units

How many more units were purchased?

• Due to high response rates of shoppers 65% of total units purchased were incremental

• Mailed units higher than responders indicating shoppers picking up more than one product during the promotional period

Coupon Total Mailed Units

Incremental Units % Incremental

New R10 off 225 206 92%

Current R15 off 96 1 1%

TOTAL 321 207 65%


Incremental Sales

How many more sales were achieved?

• Total mailed sales of R14k was achieved, with 57% sales being incremental

Coupon Total Mailed Sales

IncrementalSales

% Incremental

Incremental / Responder

New R10 off R 9,416 R 8,293 88% R 54.2

Current R15 off R 5,090 R 0 0% R 0.0

TOTAL R 14,506 R 8,293 57% R 39.1


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Immediate Return On Investment

• Overall ROI is negative: -76%

What was the immediate ROI of the targeted coupon based on Incremental sales?

CouponTotal

Mailed Sales

Incremental

SalesProduction

CostsGross Profit ROI

New R10 off R 9,416 R 8,293 R 34,753 -R 26,460 -76%

Current R15 off R 5,090 0 R 247 -R 247 -100%

TOTAL R 14,506 R 8,293 R 35,000 -R 26,707 -76%


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• Overall campaign generated ideal response:• Redemption rate: 0.05% (81 shoppers)• Response rate: 0.14% (212 shoppers)

• Successful at driving incremental behaviour:• Shoppers: 139 (65%)• Units: 207 (65%)• Sales: R 8,293 (57%)

• Overall campaign generated negative immediate ROI -76% at a promoted product level

Campaign Summary


Campaign Comparison

Mailing Offer Targeting Mailed Red. Rate

Resp. Rate

Control Resp. Rate

% Shoppers inc

% Units Inc

% Sales

IncInc

Sales Profit ROI

Aug-10 R10 off when you buy any products New 148,831 0.05% 0.10% 0.01% 88% 88% 88% R 8,293 R -26,460 -76%

Aug-10 R15 off when buy 2 or more Current 1,059 0.94% 5.57% 5.1% 8% 0% 0% 0 R -247 -100%

Jul-10 R10 off when you buy any products New 148,576 0.04% 0.15% 0.1% 62% 62% 62% R 9,889 -R 24,808 -71%

Jul-10 R15 off when buy 2 or more Current 1,300 0.92% 5.23% 6.3% 0% 0% 0% - -R 304 -100%

Jan-10 R10 when spend R60 Current 3,464 1.3% 4.9% 0.0% 95% 96% 96% R 14,719 R 12,953 1122%

Jan-10 R10 when spend R60 New 146,529 0.02% 0.04% 0.0% 95% 94% 96% R 3,258 -R 45,723 -94%


1. Use targeted coupons to invoke re-purchase and reward current shoppers

2. Consider solus mailing to gain new shoppers to the brand (targeting shoppers near stores where Sister Lilian is stocked)

3. In-depth analysis of what the Sister Lillian shopper looks like, how they shop across the range and what competitor products they are purchasing into

Recommendations


Thank-youNikki Emerton – 5one Account Manager [email protected]

Zakariya Patel – 5one [email protected]

mailto:[email protected]

mailto:[email protected]

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