fine fragrance targeted voucher january cashback clubcard mailing post-campaign report
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Fine Fragrance Targeted Voucher January Cashback ClubCard Mailing Post-Campaign Report. April 2010. Contents. Introduction Coupon Redemption & Response Incremental Analysis Immediate ROI Conclusions & Recommendations. Introduction. - PowerPoint PPT PresentationTRANSCRIPT
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Fine Fragrance Targeted VoucherJanuary Cashback ClubCard MailingPost-Campaign Report
April 2010
All content copyright © 5one 2001 - 2010. All rights reserved. Confidential.
Contents
• Introduction
• Coupon Redemption & Response
• Incremental Analysis
• Immediate ROI
• Conclusions & Recommendations
2
All content copyright © 5one 2001 - 2010. All rights reserved. Confidential.
Introduction
• 100,000 ClubCard customers targeted utilising 5one’s targeting tool
• Campaign period: 22 Jan – 26 Feb
• Both Current and New shoppers targeted:
• 20,207 Current
• 79,787 New
• Offer:
• High Value Offer: R70 when you spend R300 or more on any fine fragrance
• Low Value Offer: R50 when you spend R300 or more on any fine fragrance
• Control group of look alike customers measured over exact same campaign period
3
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The Mailing
4
All content copyright © 5one 2001 - 2010. All rights reserved. Confidential.
Contents
• Introduction
• Coupon Redemption & Response
• Incremental Analysis
• Immediate ROI
• Conclusions & Recommendations
5
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Targeted Coupon: Redemption
Redemption: customers who bought featured product at the same time as handing in the coupon.
• Overall redemption rate is low: 0.64% (above 1% is ‘good’ for Current shoppers, 0.5% ‘good’ for New shoppers)
• Of the 636 redeemers, 503 were current shoppers
How many mailants shopped the promoted products?
Coupon MailedRedeeme
dRed. Rate
High Value Offer 50,000 417 0.83%
Low Value Offer 49,994 219 0.44%
TOTAL 99,994 636 0.64%
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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 good: 2% (above 2% is ‘good’ for Current shoppers, above 1% for New shoppers)
• Of the 1,977 responders, 1,608 were new; meaning 369 new shoppers were gained
Coupon MailedRedeeme
dRed. Rate
Responded
Resp. Rate
High Value 50,000 417 0.83%1,238
2.5%
Low Value 49,994 219 0.44%739
1.5%
TOTAL 99,994 636 0.64% 1977 2.0%
All content copyright © 5one 2001 - 2010. All rights reserved. Confidential.
Contents
• Introduction
• Coupon Redemption & Response
• Incremental Analysis
• Immediate ROI
• Conclusions & Recommendations
8
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Incremental Shoppers
• Control response rates significantly lower compared to mailed response rates
• Overall 65% of shoppers were incremental:
• % incremental shoppers for High Value Offer: 55%
• % incremental shoppers for Low Value Offer: 82%
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?
CouponMailed Resp. Rate
Responded
Control Resp. Rate
Incremental
Shoppers
% Incremental
High Value Offer 2.5%1,238
1.1%
684
55%
Low Value Offer 1.5%739
0.3% 603 82%
TOTAL 2.0% 1977 0.5% 1,286 65%
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Incremental Units
How many more units were purchased?
• Total number of units purchased 1,594, of which 67% was incremental:
• High Value Offer: 59% incremental units
• Low Value Offer: 82% incremental units
CouponTotal Mailed
UnitsIncremental
Units%
Incremental
High Value Offer 1,517 893 59%
Low Value Offer 858 702 82%
TOTAL 2,375 1,594 67%
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Incremental Sales
How many more sales were achieved?
Total mailed sales of R632k achieved:
• High Value Offer generating high 70% of incremental sales
• Low Value Offer generating lower 86% incremental sales
*sales through the till ex VAT
CouponTotal Mailed
SalesIncremental
Sales%
Incremental
High Value Offer R 394,343 R 276,759 70%
Low Value Offer R 237,601 R 203,261 86%
TOTAL R 631,944 R 480,021 76%
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 excellent: 4700%
What was the immediate ROI of the targeted coupon?
CouponTotal
Mailed Sales
Incremental
Sales
Production Costs
Gross Profit
ROI
High Value Offer R 394,343 R 276,759 R5,000 R 271,759 5434%
Low Value Offer R 237,601 R 203,261 R5,000 R 198,262 3965%
TOTAL R 631,944 R 480,021 R10,000 R470,021 4700%
All content copyright © 5one 2001 - 2010. All rights reserved. Confidential.
Contents
• Introduction
• Coupon Redemption & Response
• Incremental Analysis
• Immediate ROI
• Conclusions & Recommendations
14
All content copyright © 5one 2001 - 2010. All rights reserved. Confidential. 15
Campaign Summary
• Overall campaign generated ideal response:
• Redemption rate: 0.64% (636 shoppers)
• Response rate: 2% (1977 shoppers)
• Highly successful at driving incremental behaviour:
• Shoppers: 1,286 (65%)
• Units: 1,594 (67%)
• Sales: R480,021 (76%)
• Overall campaign generated an excellent immediate ROI:
• Profit: R470,021
• ROI: 4700%
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1. Continue to use targeted coupons to invoke re-purchase and gain new shoppers to the brands
2. Test both Current & New offers using high/low value split for reward levels
Recommendations
All content copyright © 5one 2001 - 2010. All rights reserved. Confidential.
Thank-you
Robert Grace – 5one Senior [email protected]
Nikki Emerton – 5one Junior Account Manager [email protected]
Zakariya Patel – 5one Junior Analyst [email protected]