Vital Targeted Coupon July CashBack ClubCard Mailing Post-Campaign Report
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All content copyright © 5one 2001 - 2010. All rights reserved. Confidential.
Vital Targeted CouponJuly CashBack ClubCard MailingPost-Campaign Report
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
• 70,507 ClubCard shoppers targeted utilising 5one’s targeting tool
• Campaign period: 28 June 2010 – 30 July 2010• Both Current and New customers targeted:
• 10,614 Current shoppers • 59,893 New shoppers
• Reward level constructed tested:• Get R10 off when you purchase Colon Complete, Cranberry Complex or Arthrit
Ease from Vital • Control group of look alike customers measured over the
campaign period
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All content copyright © 5one 2001 - 2010. All rights reserved. Confidential.
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
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 was average 0.53% : (above 1% is ‘good’ for Current, 0.5% ‘good’ for New)
• Current offers generated excellent redemptions rates
Coupon Mailed Redeemed Red. Rate
New R10 59,893 155 0.26%
Current R10 10,614 221 2.08%
TOTAL 70,507 376 0.53%
All content copyright © 5one 2001 - 2010. All rights reserved. Confidential. 7
Targeted Coupon: Response
Response: customers 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: 1.33% (above 2% is ‘good’ for Current, above 1% for New)
• Response rate amongst Current shoppers is excellent at 6.64%• New offer driving 231 new shoppers to the brand
Coupon Mailed Redeemed Red. Rate Responde
dResp. Rate
New R10 59,893 155 0.26% 231 0.39%
Current R10 10,614 221 2.08% 705 6.64%
TOTAL 70,507 376 0.53% 936 1.33%
All content copyright © 5one 2001 - 2010. All rights reserved. Confidential.
Contents
• Introduction• Coupon Redemption & Response• Incremental Analysis• Immediate ROI• Conclusions & Recommendations
8
All content copyright © 5one 2001 - 2010. All rights reserved. Confidential. 99
Incremental Shoppers
CouponMailed Resp. Rate
Responded
Control Resp. Rate
Incremental
Shoppers%
Incremental
New R10 0.39% 231 0.2% 141 61%
Current R10 6.64% 705 5.7% 101 14%
TOTAL 1.33% 936 2.7% 242 26%
• Overall the mailed group shopped at a higher rate than control, resulting in a % increase of incremental shoppers 26%
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 41% of total units purchased were incremental
Coupon Total Mailed Units
Incremental Units
% Incremental
New R10 299 209 70%
Current R10 1058 342 32%
TOTAL 1,357 551 41%
All content copyright © 5one 2001 - 2010. All rights reserved. Confidential. 1111
Incremental Sales
How many more sales were achieved?
• Total mailed sales of R62k achieved, with 13% sales being incremental
Coupon Total Mailed Sales
IncrementalSales
% Incremental
Incremental / Responder
New R10 R 8,433 R 2,364 28% R 10.2
Current R10 R 53,800 R 5,941 11% R 8.4
TOTAL R 62,233 R 8,305 13% R 8.9
All content copyright © 5one 2001 - 2010. All rights reserved. Confidential.
Contents
• Introduction• Coupon Redemption & Response• Incremental Analysis• Immediate ROI• Conclusions & Recommendations
12
All content copyright © 5one 2001 - 2010. All rights reserved. Confidential. 1313
Immediate Return On Investment
• Overall ROI is poor: -76%
What was the immediate ROI of the targeted coupon based on Incremental sales?
CouponTotal
Mailed Sales
Incremental
SalesProduction
CostsGross Profit ROI
New R5 R 8,433 R 2,364 R 29,731 -R 27,367 -92%
Current R5 R 53,800 R 5,941 R 5,269 R 672 13%
TOTAL R 62,233 R 8,305 R 35 000 R -26,695 -76%
All content copyright © 5one 2001 - 2010. All rights reserved. Confidential.
Contents
• Introduction• Coupon Redemption & Response• Incremental Analysis• Immediate ROI• Conclusions & Recommendations
14
All content copyright © 5one 2001 - 2010. All rights reserved. Confidential. 15
• Overall campaign generated ideal response:• Redemption rate: 0.53% (376 shoppers)• Response rate: 1.33% (936 shoppers)
• Highly successful at driving incremental behaviour:• Shoppers: 242 (26%)• Units: 551 (41%)• Sales: R8,305 (13%)
• Overall campaign generated a poor immediate ROI -76% 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 the brands
2. Test broader offer for new customers (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
All content copyright © 5one 2001 - 2010. All rights reserved. Confidential.
Thank-youNikki Emerton – 5one Account Manager Nikki.emerton@5one.co.za
Zakariya Patel – 5one AnalystZakariya.Patel@5one.co.za
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