
Introduction

• 100,000 ClubCard customers targeted utilising 5one’s targeting tool

• Campaign period: 29 Oct 2010 – 26 Dec 2010• Only New customers to hair relaxer kits in Clicks • Reward level constructed tested: R10 off the purchase of

any hair relaxer kit like Motions, Organic Roots, Dark ‘n Lovely, Beautiful Beginnings etc.• 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 good: 1.2% (above 1% is ‘good’ for Current shoppers, 0.5% ‘good’ for New shoppers)

Coupon Mailed Redeemed Red. Rate

R10 off 100,000 1,225 1.2%


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: 6.2% (above 2% is ‘good’ for Current shoppers, above 1% for New shoppers)

• Offer driving an additional 6,522 new shoppers to purchase hair relaxer kits!

Coupon Mailed Redeemed Red. Rate Responded Resp. Rate

R10 off 100,000 1,225 1.2% 6,522 6.2%


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Incremental Shoppers

CouponMailed Resp. Rate

Responded

Control Resp. Rate

Incremental

Shoppers

% Incrementa

l

R10 off 6.5% 6,522 2.9% 3,644 56%

• Overall the mailed group shopped at a higher rate than targeted shoppers resulting in 56% 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?

• The mailed group shopped at a higher rate than the control group resulting in 62% of total units being incremental

Coupon Total Mailed Units Incremental Units % Incremental

R10 off 8,535 5,269 62%


Incremental Sales

How many more sales were achieved?

• Total mailed sales of R415k achieved, with 56% sales being incremental

Coupon Total Mailed Sales

IncrementalSales

% Incremental

Incremental / Responder

R10 off R 414,931 R 233,232 56% R 35.80


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Immediate Return On Investment

• Overall ROI is excellent: 2232%

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

CouponTotal

Mailed Sales

Incremental

SalesProduction

CostsGross Profit ROI

R10 off R 414,931 R 233,232 R 10,000 R 223,232 2232%


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• Overall campaign generated ideal response:• Redemption rate: 1.2% (1,225 shoppers)• Response rate: 6.5% (6,522 shoppers)

• Highly successful at driving incremental behaviour:• Shoppers: 3,644 (56%)• Units: 5,269 (62%)• Sales: R233,232 (56%)

• Overall campaign generated immediate ROI of 2232% at a promoted product level

Campaign Summary


1. Continue to use targeted coupons to invoke re-purchase and gain new shoppers to hair relaxer kits in Clicks

2. Test different offer levels for new customers (high/low)

3. In-depth analysis of what a hair relaxer kit shopper looks like, how they shop across the ranges

Recommendations


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

mailto:[email protected]

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