colgate: plax targeted coupon january cashback clubcard mailing post-campaign report
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Colgate: Plax Targeted Coupon January CashBack ClubCard Mailing Post-Campaign Report. March 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.
Colgate: Plax Targeted Coupon
January CashBack ClubCard MailingPost-Campaign Report
March 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 shoppers targeted utilising 5one’s targeting tool
• Campaign period: 20 January – 3 March 2011
• Both Current and New shoppers targeted:
• 18,328 Current shoppers
• 81,639 New shoppers
• Reward level constructed tested:
• Get R6 off any 500ml Colgate Plax Mouthwash
• Control group of look alike shoppers measured over the campaign period
3
All content copyright © 5one 2001 - 2011. All rights reserved. Confidential.
The Mailing
4
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 1.27% (above 1% is ‘good’ for Current shoppers, 0.5% ‘good’ for New shoppers)
Coupon Mailed Redeemed Red. Rate
Current: R6 off 18,328 605 3.3%
New: R6 off 81,639 665 0.8%
TOTAL 99,967 1,270 1.27%
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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 good: 3.5% (above 2% is ‘good’ for Current shoppers, above 1% for New shoppers)
• Excellent response rates for both current and new shoppers with overall 3,517 shoppers responding
Coupon Mailed Redeemed Red. Rate Responded Resp. Rate
Current: R6 off 18,328 605 3.3% 1,826 10%
New: R6 off 81,639 665 0.8% 1,691 2%
TOTAL 99,967 1,270 4.1% 3,517 3.5%
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.
RateResponded
Control Resp. Rate
Incremental Shoppers
% Incremental
Current: R6 off 10% 1,826 n/a n/a n/a
New: R6 off 2% 1,691 0.6% 1,212 75%
TOTAL 3.5% 3,517
• Mailed group for new shoppers shopped at a higher rate than the control group resulting in 1,212 incremental shoppers
• Current shopper control group too small (598 shoppers) to acurately determine incremental behaviour
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 74% of units to new shoppers incremental
CouponTotal Mailed
UnitsIncremental
Units%
Incremental
Current: R6 off 2,305 n/a n/a
New: R6 off 1,979 1,470 74%
TOTAL 3,962
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Incremental Sales
How many more sales were achieved?
• Total mailed sales of R177k achieved, with 74% new shopper sales being incremental
CouponTotal Mailed
SalesIncremental
Sales%
IncrementalIncremental /
Responder
Current: R6 off R 97,294 n/a n/a n/a
New: R6 off R 80,659 R 60,219 74% R 35.60
TOTAL R 177,953
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
What was the immediate ROI of the targeted coupon based on Incremental sales?
CouponTotal Mailed
SalesIncremental
SalesProduction
CostsGross Profit
ROI
Current: R6 off R 97,294 n/a R 1,833 n/a n/a
New: R6 off R 80,659 R 60,219 R 8,167 R 52,052 637%
TOTAL R 177,953 R 10,000
• ROI for new shoppers is 637%
All content copyright © 5one 2001 - 2011. All rights reserved. Confidential.
Contents
• Introduction
• Coupon Redemption & Response
• Incremental Analysis
• Immediate ROI
• Conclusions & Recommendations
14
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Campaign Summary
• Overall campaign generated the following response:
• Redemption rate: 4.1% (1,270 shoppers)
• Response rate: 3.5% (3,517 shoppers)
• Successful at driving incremental behaviour for new shoppers
• Shoppers: 1,212 (72%)
• Units: 1,470 (74%)
• Sales: R 38,785 (75%)
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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 Plax 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
083 686 9076