vital health foods: natrodale targeted coupon may cashback clubcard mailing post-campaign report
DESCRIPTION
Vital Health Foods: Natrodale Targeted Coupon May Cashback ClubCard Mailing Post-Campaign Report. July 2010. Contents. Introduction Coupon Redemption & Response Incremental Analysis Immediate ROI Conclusions & Recommendations. Introduction. - PowerPoint PPT PresentationTRANSCRIPT
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Vital Health Foods: NatrodaleTargeted Coupon
May Cashback ClubCard MailingPost-Campaign Report
July 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
• 139,649 ClubCard shoppers targeted utilising 5one’s targeting tool
• Campaign period: 3 May – 4 June 2010
• Both current and new shoppers targeted:
• 24,492 Current
• 115,157 New
• Reward level constructed tested:
• Get R15 off any Natrodale products of R75 or more
• Control group of look alike shoppers 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: 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: 0.5% (above 1% is ‘good’ for current , 0.5% ‘good’ for new)
• Current shoppers generated excellent redemption rate of 2.3%
Coupon MailedRedeeme
dRed. Rate
New R15 115,157 97 0.08%
Current R15 24,492 561 2.3%
TOTAL 139,649 658 0.5%
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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 low: 0.7% (above 2% is ‘good’ for current , above 1% for new) due to high volume of new shoppers
• Response rate amongst current shoppers is excellent at 3.5%.
• This campaign has driven additional 148 new shoppers to the brand
Coupon MailedRedeeme
dRed. Rate
Responded
Resp. Rate
New R15 115,157 97 0.08% 148 0.1%
Current R15 24,492 561 2.3% 866 3.5%
TOTAL 139,649 658 0.5% 1,014 0.7%
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 R15 0.1% 148 0% 148 100%
Current R15 3.5% 866 2% 369 43%
TOTAL 0.7% 1,014 0.5% 517 51%
• Overall 51% of shoppers were incremental
• All New shoppers to the brand were 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?
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Incremental Units
How many more units were purchased?
• Overall 14% of total units purchased were incremental with 100% of units generated by New shoppers being incremental
CouponTotal Mailed
UnitsIncremental
Units%
Incremental
New R15 157 157 100%
Current R15 975 0 0%
TOTAL 1,132 157 14%
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Incremental Sales
How many more sales were achieved?
• Total mailed sales of R40k achieved
CouponTotal Mailed
SalesIncremental
Sales%
IncrementalIncremental / Responder
New R5 R 4,736 R 4,736 100% R 32
Current R10 R 35,539 0 0% 0
TOTAL R40,275 R 4,736 0% R4.7
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 poor: -91%
What was the immediate ROI of the targeted coupon based on Incremental sales?
CouponTotal
Mailed Sales
Incremental
Sales
Production Costs
Gross Profit
ROI
New R5 R 4,736 R 4,736 R 41,231 R-36,495 -89%
Current R10 R 35,539 0 R 8,769 R -8,769 -100%
TOTAL R40,275 R 4,736 R50,000 R -45,264 -91%
All content copyright © 5one 2001 - 2010. All rights reserved. Confidential.
Contents
• Introduction
• Coupon Redemption & Response
• Incremental Analysis
• Immediate ROI
• Conclusions & Recommendations
14
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• Overall campaign generated ideal response:
• Redemption rate: 0.5% (658 shoppers)
• Response rate: 0.7% (1,014 shoppers)
• Successful at driving incremental behaviour in terms of shoppers:
• Shoppers: 517 (51%)
• Not as successful in driving incremental behaviour in terms of units and sales
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 shoppers (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]