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Ethnic Hair care: Hair relaxer kits Targeted Coupon December CashBack ClubCard Mailing Post-Campaign Report January 2011. Contents. Introduction Coupon Redemption & Response Incremental Analysis Immediate ROI Conclusions & Recommendations. Introduction. - PowerPoint PPT PresentationTRANSCRIPT
All content copyright © 5one 2001 - 2011. All rights reserved. Confidential.
Ethnic Hair care: Hair relaxer kits Targeted CouponDecember CashBack ClubCard MailingPost-Campaign Report
January 2011
All content copyright © 5one 2001 - 2011. All rights reserved. Confidential.
Contents
• Introduction• Coupon Redemption & Response• Incremental Analysis• Immediate ROI• Conclusions & Recommendations
2
All content copyright © 5one 2001 - 2011. All rights reserved. Confidential.
Introduction
• 100,000 ClubCard customers targeted utilising 5one’s targeting tool
• Campaign period: 29 Oct 2010 – 26 Dec 2010• Only New customers to hair relaxer kits in Clicks • Reward level constructed tested: R10 off the purchase of
any hair relaxer kit like Motions, Organic Roots, Dark ‘n Lovely, Beautiful Beginnings etc.• Control group of look alike shoppers measured over the
campaign period
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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 good: 1.2% (above 1% is ‘good’ for Current shoppers, 0.5% ‘good’ for New shoppers)
Coupon Mailed Redeemed Red. Rate
R10 off 100,000 1,225 1.2%
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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 excellent: 6.2% (above 2% is ‘good’ for Current shoppers, above 1% for New shoppers)
• Offer driving an additional 6,522 new shoppers to purchase hair relaxer kits!
Coupon Mailed Redeemed Red. Rate Responded Resp. Rate
R10 off 100,000 1,225 1.2% 6,522 6.2%
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. Rate
Responded
Control Resp. Rate
Incremental
Shoppers
% Incrementa
l
R10 off 6.5% 6,522 2.9% 3,644 56%
• Overall the mailed group shopped at a higher rate than targeted shoppers resulting in 56% of shoppers being 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?
• The mailed group shopped at a higher rate than the control group resulting in 62% of total units being incremental
Coupon Total Mailed Units Incremental Units % Incremental
R10 off 8,535 5,269 62%
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Incremental Sales
How many more sales were achieved?
• Total mailed sales of R415k achieved, with 56% sales being incremental
Coupon Total Mailed Sales
IncrementalSales
% Incremental
Incremental / Responder
R10 off R 414,931 R 233,232 56% R 35.80
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
• Overall ROI is excellent: 2232%
What was the immediate ROI of the targeted coupon based on Incremental sales?
CouponTotal
Mailed Sales
Incremental
SalesProduction
CostsGross Profit ROI
R10 off R 414,931 R 233,232 R 10,000 R 223,232 2232%
All content copyright © 5one 2001 - 2011. All rights reserved. Confidential.
Contents
• Introduction• Coupon Redemption & Response• Incremental Analysis• Immediate ROI• Conclusions & Recommendations
14
All content copyright © 5one 2001 - 2011. All rights reserved. Confidential. 15
• Overall campaign generated ideal response:• Redemption rate: 1.2% (1,225 shoppers)• Response rate: 6.5% (6,522 shoppers)
• Highly successful at driving incremental behaviour:• Shoppers: 3,644 (56%)• Units: 5,269 (62%)• Sales: R233,232 (56%)
• Overall campaign generated immediate ROI of 2232% at a promoted product level
Campaign Summary
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1. Continue to use targeted coupons to invoke re-purchase and gain new shoppers to hair relaxer kits in Clicks
2. Test different offer levels for new customers (high/low)
3. In-depth analysis of what a hair relaxer kit shopper looks like, how they shop across the ranges
Recommendations
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Thank-youNikki Emerton – 5one Account Manager [email protected]