indigo cosmetics: sally hansen targeted coupon may cashback clubcard mailing post-campaign report
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Indigo Cosmetics: Sally Hansen Targeted Coupon May Cashback ClubCard Mailing Post-Campaign Report. August 2010. Contents. Introduction Coupon Redemption & Response Incremental Analysis Immediate ROI Conclusions & Recommendations. Introduction. - PowerPoint PPT PresentationTRANSCRIPT
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Indigo Cosmetics: Sally HansenTargeted Coupon
May Cashback ClubCard MailingPost-Campaign Report
August 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: 3 May – 4 June 2010
• Both Current and New customers targeted:
• 50 000 Current shoppers
• 50 000 New shoppers
• Reward level constructed tested:• Current shoppers: R15 off the purchase from the new Sally Hansen Hard as Nails extreme Colour range
• New shoppers: R10 off the purchase from the new Sally Hansen Hard as Nails extreme Colour range
• Control group of look alike customers measured over the 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
How many mailants shopped the promoted products?
• Overall redemption rate is low: 0.3% (above 1% is ‘good’ for Current shoppers, 0.5% ‘good’ for New shoppers)
Coupon MailedRedeeme
dRed. Rate
New 50,000 65 0.1%
Current 50,000 258 0.5%
TOTAL 100,000 323 0.3%
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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: 2.5% (above 2% is ‘good’ for Current shoppers, above 1% for New shoppers)
• Response rate amongst Current shoppers is excellent: 4.1%
• R10 offer driving 514 new shoppers to the brand!
Coupon MailedRedeeme
dRed. Rate
Responded
Resp. Rate
New 50,000 65 0.1% 514 1%
Current 50,000 258 0.5% 2,035 4.1%
TOTAL 100,000 323 0.3% 2,549 2.5%
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
CouponMailed Resp. Rate
Responded
Control Resp. Rate
Incremental
Shoppers
% Incremental
New 1% 514 0% 514 100%
Current 4.1% 2,035 6.6% 0 0
TOTAL 2.5% 2,549 0.9% 514 20%
• Overall the control group shopped at a substantially lower rate than targeted shoppers resulting in 100% of new shoppers being incremental
• No incremental current shoppers due to the control group shopping at a much higher rate
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?
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Incremental Units
How many more units were purchased?
• Overall 19% of units incremental
CouponTotal Mailed
UnitsIncremental
Units%
Incremental
New 575 575 100%
Current 2,406 0 0
TOTAL 2,981 575 19.3%
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Incremental Sales
How many more sales were achieved?
• Total mailed sales of R199k achieved, with 20% sales being incremental overall
CouponTotal Mailed
SalesIncremental
Sales%
IncrementalIncremental / Responder
New R 39,481 R 39,481 100% R 76.80
Current R 159,351 R 0 0 R0
TOTAL R 198,832 R 39,481 20% R 15.50
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
• Excellent overall ROI of 295% generated
What was the immediate ROI of the targeted coupon based on Incremental sales?
CouponTotal
Mailed Sales
Incremental
Sales
Production Costs
Gross Profit
ROI
New R 39,481 R 39,481 R 5,000 R 34,481 690%
Current R 159,351 0 R 5,000 R -5,000 -100%
TOTAL R 198,832 R 39,481 R 10,000 R 29,481 295%
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
• Overall campaign generated ideal response:
• Redemption rate: 0.32% (323 shoppers)
• Response rate: 2.55% (2,549 shoppers)
• Highly successful at driving incremental behaviour:
• Shoppers: 514 (20%)
• Units: 575 (19%)
• Sales: R 39K (20%)
• Overall campaign generated an excellent immediate ROI 295%
Campaign Summary
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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 Vital shopper looks like, how they shop across the range and what competitor products they are purchasing into
Recommendations
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Thank-you
Nikki Emerton – Account Manager [email protected]
Zakariya Patel – 5one [email protected]