vital health foods: natrodale targeted coupon may cashback clubcard mailing post-campaign report

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l content copyright © 5one 2001 - 2010. All rights reserved. Confidential. Vital Health Foods: Natrodale Targeted Coupon May Cashback ClubCard Mailing Post-Campaign Report July 2010

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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 Presentation

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Page 1: Vital Health Foods:  Natrodale Targeted Coupon May Cashback ClubCard Mailing Post-Campaign Report

All content copyright © 5one 2001 - 2010. All rights reserved. Confidential.

Vital Health Foods: NatrodaleTargeted Coupon

May Cashback ClubCard MailingPost-Campaign Report

July 2010

Page 2: Vital Health Foods:  Natrodale Targeted Coupon May Cashback ClubCard Mailing Post-Campaign Report

All content copyright © 5one 2001 - 2010. All rights reserved. Confidential.

Contents

• Introduction

• Coupon Redemption & Response

• Incremental Analysis

• Immediate ROI

• Conclusions & Recommendations

2

Page 3: Vital Health Foods:  Natrodale Targeted Coupon May Cashback ClubCard Mailing Post-Campaign Report

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

Page 4: Vital Health Foods:  Natrodale Targeted Coupon May Cashback ClubCard Mailing Post-Campaign Report

All content copyright © 5one 2001 - 2010. All rights reserved. Confidential.

The Mailing

4

Page 5: Vital Health Foods:  Natrodale Targeted Coupon May Cashback ClubCard Mailing Post-Campaign Report

All content copyright © 5one 2001 - 2010. All rights reserved. Confidential.

Contents

• Introduction

• Coupon Redemption & Response

• Incremental Analysis

• Immediate ROI

• Conclusions & Recommendations

5

Page 6: Vital Health Foods:  Natrodale Targeted Coupon May Cashback ClubCard Mailing Post-Campaign Report

All content copyright © 5one 2001 - 2010. All rights reserved. Confidential. 6

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%

Page 7: Vital Health Foods:  Natrodale Targeted Coupon May Cashback ClubCard Mailing Post-Campaign Report

All content copyright © 5one 2001 - 2010. All rights reserved. Confidential. 7

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%

Page 8: Vital Health Foods:  Natrodale Targeted Coupon May Cashback ClubCard Mailing Post-Campaign Report

All content copyright © 5one 2001 - 2010. All rights reserved. Confidential.

Contents

• Introduction

• Coupon Redemption & Response

• Incremental Analysis

• Immediate ROI

• Conclusions & Recommendations

8

Page 9: Vital Health Foods:  Natrodale Targeted Coupon May Cashback ClubCard Mailing Post-Campaign Report

All content copyright © 5one 2001 - 2010. All rights reserved. Confidential. 99

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?

Page 10: Vital Health Foods:  Natrodale Targeted Coupon May Cashback ClubCard Mailing Post-Campaign Report

All content copyright © 5one 2001 - 2010. All rights reserved. Confidential. 1010

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%

Page 11: Vital Health Foods:  Natrodale Targeted Coupon May Cashback ClubCard Mailing Post-Campaign Report

All content copyright © 5one 2001 - 2010. All rights reserved. Confidential. 1111

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

Page 12: Vital Health Foods:  Natrodale Targeted Coupon May Cashback ClubCard Mailing Post-Campaign Report

All content copyright © 5one 2001 - 2010. All rights reserved. Confidential.

Contents

• Introduction

• Coupon Redemption & Response

• Incremental Analysis

• Immediate ROI

• Conclusions & Recommendations

12

Page 13: Vital Health Foods:  Natrodale Targeted Coupon May Cashback ClubCard Mailing Post-Campaign Report

All content copyright © 5one 2001 - 2010. All rights reserved. Confidential. 1313

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%

Page 14: Vital Health Foods:  Natrodale Targeted Coupon May Cashback ClubCard Mailing Post-Campaign Report

All content copyright © 5one 2001 - 2010. All rights reserved. Confidential.

Contents

• Introduction

• Coupon Redemption & Response

• Incremental Analysis

• Immediate ROI

• Conclusions & Recommendations

14

Page 15: Vital Health Foods:  Natrodale Targeted Coupon May Cashback ClubCard Mailing Post-Campaign Report

All content copyright © 5one 2001 - 2010. All rights reserved. Confidential. 15

• 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

Page 16: Vital Health Foods:  Natrodale Targeted Coupon May Cashback ClubCard Mailing Post-Campaign Report

All content copyright © 5one 2001 - 2010. All rights reserved. Confidential. 16

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

Page 17: Vital Health Foods:  Natrodale Targeted Coupon May Cashback ClubCard Mailing Post-Campaign Report

All content copyright © 5one 2001 - 2010. All rights reserved. Confidential.

Thank-you

Nikki Emerton – Account Manager [email protected]

Zakariya Patel – 5one [email protected]