charles worthington dm campaign post-campaign report

All content copyright © 5one 2001 - 2011. All rights reserved. Confidential.

Charles Worthington DM Campaign Post-Campaign ReportAugust 2011


Contents

• Introduction• Response• Incremental Analysis• Immediate ROI• Conclusions & Recommendations

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Introduction

• 32,001 ClubCard customers targeted using 5one’s targeting tool

• Campaign period: 21 May – 30 June

• New shoppers Charles Worthington range targeted, i.e. • Shoppers who have a high propensity to shop Charles Worthington based on their

previous transactional behaviour• These shoppers have not purchased Charles Worthington in the past 12 months

• Competition: • After purchasing a Charles Worthington product shoppers could enter into an SMS

competition for the chance to win a luxurious spa package to the value of R2,000 or pampering treatment

• Control group of look alike customers measured over exact same campaign period

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Competition Offer

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All content copyright © 5one 2001 - 2011. All rights reserved. Confidential. 5

Response

Response: customers who bought Charles Worthington regardless of whether they entered the competition A more accurate metric for campaign success as the mailing acts as a call to action and a marketing message.

• Overall response rate is very good: 2.9% (above 1% considered good for new shoppers to a brand)

• This is a very good response rate, particularly for a mailing going to customers who have never shopped Charles Worthington, the brand is relatively unknown in SA and where there is no offer attached

Mailed Responded Resp. Rate

32,001 913 2.9%


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Incremental Shoppers

• Overall 34% of shoppers responding to this campaign were incremental, i.e. 313 customers shopped as a direct result of this mailing

• We would expect to see a higher percentage of incremental shoppers; however as this is a new product launch other ATL promotional activity would have skewed the control group shopping behaviour. Ideally there should be no other promotional activity happening at the same time as a targeted mailing to ensure the control group shopping behaviour is not affected

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?

Mailed Resp. Rate

Responded

Control Resp. Rate

Incremental

Shoppers

% Incremen

tal

2.9% 913 1.9% 313 34%


• Incremental sales of R 42,789 (32%) driven by increased spend on Charles Worthington products (with customers purchasing 514 additional units) and additional shoppers purchasing Charles Worthington, i.e. 313 additional shoppers

• This campaign had not incentivised shoppers to purchase Charles Worthington more frequently (i.e. More of shoppers baskets contain Charles Worthington).

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Total Incremental % Incremental

Additional CW Shoppers 913 313 34%

Additional CW Units purchased 1,589 514 32%

Additional CW Sales R132,395 R 42,789 32%

Additional Baskets

containing CW1,024 0 0%

Where do incremental sales come from?


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Immediate Return On Investment

• Overall ROI is negative: -74%• However it is important to keep in mind this is a brand awareness exercise

and although shopper volumes are relatively low, these shoppers should drive long term ROI over time if they continue to shop the brand

What was the immediate ROI of the mailing?

Total Mailed Sales

IncrementalSales

Production Costs

Gross Profit ROI

R 132,395 R42,789 R 166,907 -R 124,118 -74%


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Campaign Summary

• Overall campaign generated the following response:• Response rate: 2.9% (913 shoppers) – this is good, especially

when you consider this is a relatively unknown brand in the SA market

• Although ROI was negative these new shoppers should generate positive ROI over time as they repurchase

• Not only is this a call to action, but also a brand awareness exercise so customers may shop at a later stage outside of the analysis period

• Overall campaign generated a negative immediate ROI:• Total Incremental Sales: R42,789• ROI: -74%


1. Continue to use targeted mailings to invoke re-purchase and gain new shoppers to the brands. Future mailings will be more cost effective as creative is complete and can be reused.

2. Ensure an offer is attached when targeting new shoppers to the brand to increase response. From experience we have seen offering a Rands off discount works well to incentivize shoppers to purchase. • A minimum of at least 10% off the price is

recommended.

Recommendations


Thank-you

Nikki Emerton – 5one Consultant [email protected]

Darren Shiel – 5one Analyst [email protected]

mailto:[email protected]

mailto:[email protected]

charles worthington dm campaign post-campaign report

Documents

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charles worthington

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rateincremental shoppers

campaign success

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