max factor targeted coupon december cashback clubcard mailing post-campaign report january 2011

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

Max Factor Targeted CouponDecember CashBack ClubCard MailingPost-Campaign Report

January 2011


Contents

• Introduction

• Coupon Redemption & Response

• Incremental Analysis

• Immediate ROI

• Conclusions & Recommendations

2


Introduction

• 100 000 ClubCard customers targeted utilising 5one’s targeting tool

• Campaign period: 29 Oct 2010 – 26 Dec 2010

• Both Current and New customers targeted:

• 50,000 Current shoppers

• 50,000 New shoppers

• Reward level constructed tested:

• R20 off when you purchase any Max Factor product

• Control group of look alike shoppers measured over the campaign period

3


The Mailing

4


Contents

• Introduction



• Immediate ROI


5

All content copyright © 5one 2001 - 2011. 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: 1.8% (above 1% is ‘good’ for Current shoppers, 0.5% ‘good’ for New shoppers)

• As expected, offer to current shoppers generating highest redemption rate

Coupon Mailed Redeemed Red. Rate

Current 50,000 1,501 3.0%

New 50,000 261 0.5%

TOTAL 100,000 1,762 1.8%


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: 9.5% (above 2% is ‘good’ for Current shoppers, above 1% for New shoppers)

• Offer to new shoppers driving an additional 2,364 new shoppers to the brand!

Coupon Mailed Redeemed Red. Rate Responded Resp. Rate

Current 50,000 1,501 3.0% 7,108 14.2%

New 50,000 261 0.5% 2,364 4.7%

TOTAL 100,000 1,762 1.8% 9,472 9.5%


Contents

• Introduction



• Immediate ROI


8


Incremental Shoppers

CouponMailed Resp. Rate

Responded

Control Resp. Rate

Incremental

Shoppers

% Increment

al

Current 14.2% 7,108 15.2% 0 0%

New 4.7% 2,364 1.1% 1,826 77%

TOTAL 9.5% 9,472 2.3% 1,826 19%

• Overall the mailed group shopped at a higher rate than targeted shoppers resulting in 19% 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?


Incremental Units

How many more units were purchased?

• Due to high response rates of shoppers, 38% of total units purchased were incremental

• Mailed units for current shoppers almost double that of responders indicating shoppers picking up more than one product during the promotional period

CouponTotal Mailed

UnitsIncremental

Units% Incremental

Current 13,853 3,764 27%

New 3,300 2,682 81%

TOTAL 17,153 6,446 38%


Incremental Sales

How many more sales were achieved?

• Total mailed sales of R1.2m achieved, with 18% sales being incremental

CouponTotal Mailed

SalesIncremental

Sales%

IncrementalIncremental / Responder

Current R 904,909 R 0 0% R 0

New R 263,231 R 214,466 81% R 90.70

TOTAL R 1,168,139 R 214,466 18% R 22.60


Contents

• Introduction



• Immediate ROI


12


Immediate Return On Investment

• Overall ROI is Excellent: 2045%

What was the immediate ROI of the targeted coupon based on Incremental sales?

CouponTotal

Mailed Sales

Incremental

Sales

Production Costs

Gross Profit

ROI

Current R 904,909 R 0 R 5,000 -R 5,000 -100%

New R 263,231 R 214,466 R 5,000 R 209,466 4189%

TOTAL R 1,168,139 R 214,466 R 10,000 R 204,466 2045%


Contents

• Introduction



• Immediate ROI


14


• Overall campaign generated ideal response:

• Redemption rate: 1.7% (1,762 shoppers)

• Response rate: 9.5% (9,472 shoppers)

• Successful at driving incremental behaviour:

• Shoppers: 1,826 (19%)

• Units: 6,446 (38%)

• Sales: R 214,466 (18%)

• Overall campaign generated excellent immediate ROI of 2045% at a promoted product level

Campaign Summary


1. Continue to use targeted coupons to invoke re-purchase and gain new shoppers to the brands

2. Test high/low offer levels and threshold offers for current shoppers

3. In-depth analysis of what the Max Factor shopper looks like, how they shop across the range and what competitor products they are purchasing into

Recommendations


Thank-you

Nikki Emerton – 5one Account Manager [email protected]

mailto:[email protected]

max factor targeted coupon december cashback clubcard mailing post-campaign report january 2011

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