new clicks: dr sole targeted coupon january cashback clubcard mailing post-campaign report
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New Clicks: Dr Sole Targeted Coupon January CashBack ClubCard Mailing Post-Campaign Report. March 2011. Contents. Introduction Coupon Redemption & Response Incremental Analysis Immediate ROI Conclusions & Recommendations. Introduction. - PowerPoint PPT PresentationTRANSCRIPT
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New Clicks: Dr SoleTargeted Coupon
January CashBack ClubCard MailingPost-Campaign Report
March 2011
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All content copyright © 5one 2001 - 2011. All rights reserved. Confidential.
Contents
• Introduction
• Coupon Redemption & Response
• Incremental Analysis
• Immediate ROI
• Conclusions & Recommendations
2
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All content copyright © 5one 2001 - 2011. All rights reserved. Confidential.
Introduction
• 100,000 ClubCard shoppers targeted utilising 5one’s targeting tool
• Campaign period: 20 January – 3 March 2011
• Both Current and New shoppers targeted:
• 50,000 Current shoppers
• 50,000 New shoppers
• Reward level constructed tested:
• Get R5 off any Dr Sole product.
• Control group of look alike shoppers measured over the campaign period
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All content copyright © 5one 2001 - 2011. All rights reserved. Confidential.
The Mailing
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All content copyright © 5one 2001 - 2011. All rights reserved. Confidential.
Contents
• Introduction
• Coupon Redemption & Response
• Incremental Analysis
• Immediate ROI
• Conclusions & Recommendations
5
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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 0.2% (above 1% is ‘good’ for Current shoppers, 0.5% ‘good’ for New shoppers)
Coupon Mailed Redeemed Red. Rate
New: R5 off 100,000 239 0.2%
TOTAL 100,000 239 0.2%
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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: 1.24% (above 2% is ‘good’ for Current shoppers, above 1% for New shoppers)
• R5 offer generating a good response rate, driving 1,235 new shoppers to Dr Sole products.
Coupon Mailed Redeemed Red. Rate Responded Resp. Rate
New: R5 off 100,000 239 0.2% 1,235 1.24%
TOTAL 100,000 239 0.2% 1,235 1.24%
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All content copyright © 5one 2001 - 2011. All rights reserved. Confidential.
Contents
• Introduction
• Coupon Redemption & Response
• Incremental Analysis
• Immediate ROI
• Conclusions & Recommendations
8
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Incremental Shoppers
CouponMailed Resp.
RateResponded
Control Resp. Rate
Incremental Shoppers
% Incremental
New: R5 off 1.24% 1,235 1.7% 0 0%
TOTAL 1.24% 1,235 1.7% 0 0%
• Overall the control group shopped at a higher rate than the mailed group resulting in no incremental shoppers
• This indicates a possible clash in promotional activity
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 1,470 units were mailed.
CouponTotal Mailed
UnitsIncremental
Units%
Incremental
New: R5 off 1,470 0 0%
TOTAL 1,470 0 0%
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Incremental Sales
How many more sales were achieved?
• Total mailed sales of R28,237 achieved.
CouponTotal Mailed
SalesIncremental
Sales%
IncrementalIncremental /
Responder
New: R5 off R 28,237 0 0% 0
TOTAL R 28,237 0 0% 0
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All content copyright © 5one 2001 - 2011. All rights reserved. Confidential.
Contents
• Introduction
• Coupon Redemption & Response
• Incremental Analysis
• Immediate ROI
• Conclusions & Recommendations
12
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Immediate Return On Investment
What was the immediate ROI of the targeted coupon based on Incremental sales?
CouponTotal Mailed
SalesIncremental
SalesProduction
CostsGross Profit
ROI
New: R5off R 28,237 0 R 10,000 -R 10,000 -100%
TOTAL R 28,237 0 R 10,000 -R 10,000 -100%
• Overall ROI is -100%
• 1,235 new shoppers to Dr Sole will generate long term ROI over time
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All content copyright © 5one 2001 - 2011. All rights reserved. Confidential.
Contents
• Introduction
• Coupon Redemption & Response
• Incremental Analysis
• Immediate ROI
• Conclusions & Recommendations
14
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Campaign Summary
• Overall campaign generated the following response:
• Redemption rate: 0.2% (235 shoppers)
• Response rate: 1.24% (1,235 shoppers)
• Although ROI was negative these new shoppers should generate ROI over time
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1. Continue to use targeted coupons to invoke re-purchase and gain new shoppers to the brands; however need to ensure there is no clash in promotional activity over the campaign period
2. Test broader offer for new shoppers (less niched / fewer constraints)
3. In-depth analysis of what the Dr Sole 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
083 686 9076