october 2010
DESCRIPTION
Vital Health Foods: Vital Vitamins Targeted Coupon May Cashback ClubCard Mailing Post-Campaign Report. October 2010. Contents. Introduction Coupon Redemption & Response Incremental Analysis Immediate ROI Conclusions & Recommendations. Introduction. - PowerPoint PPT PresentationTRANSCRIPT
All content copyright © 5one 2001 - 2010. All rights reserved. Confidential.
Vital Health Foods: Vital Vitamins
Targeted Coupon
May Cashback ClubCard MailingPost-Campaign ReportOctober 2010
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
• 150 000 ClubCard customers targeted utilising 5one’s targeting tool
• Campaign period: 3 May – 4 June 2010
• Both Current and New customers targeted:
• 75,000 Current shoppers
• 75,000 New shoppers
• Reward level constructed tested:
• Get R10 off when buying 2 or more Vital products to the value of R80 or more
• Get R5 off any Vital product purchased
• Control group of look alike customers measured over the campaign period
3
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
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Targeted Coupon: Redemption
Redemption: customers 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: 1.7% (above 1% is ‘good’ for Current shoppers, 0.5% ‘good’ for New shoppers)
• Current offers generated an excellent redemption rate of 3.1%
Coupon MailedRedeeme
dRed. Rate
New 75,000 254 0.3%
Current 75,000 2,343 3.1%
TOTAL 150,000 2,597 1.7%
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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 excellent: 6.6% (above 2% is ‘good’ for Current, above 1% for New)
• Offer to New shoppers driving 581 new shoppers to the brand
Coupon MailedRedeeme
dRed. Rate
Responded
Resp. Rate
New 75,000 254 0.34% 581 0.8%
Current 75,000 2,343 3.1% 9,248 12.3%
TOTAL 150,000 2,597 1.7% 9,829 6.6%
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 0.8% 581 0% 581 100%
Current 12.3% 9,248 6% 4,596 50%
TOTAL 7% 9,829 4% 5,177 53%
• Overall the control group shopped at a substantially lower rate than targeted shoppers resulting in a high % of incremental shoppers
• All New shoppers to the brand 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?
All content copyright © 5one 2001 - 2010. All rights reserved. Confidential. 1010
Incremental Units
How many more units were purchased?
• Due to high response rate of customers 60% of total units purchased were incremental
CouponTotal Mailed
UnitsIncremental
Units%
Incremental
New 690 690 100%
Current 12,404 7,117 57%
TOTAL 13,094 7,807 60%
All content copyright © 5one 2001 - 2010. All rights reserved. Confidential. 1111
Incremental Sales
How many more sales were achieved?
• Total mailed sales of R550k achieved, with 48% sales being incremental
• Nearly half of all sales generated was incremental, and on average an additional R27 per responder gained
CouponTotal Mailed
SalesIncremental
Sales%
IncrementalIncremental / Responder
New R5 R 22,398 R 22,398 100% R 39
Current R10 R 527,675 R 244,226 46% R 26
TOTAL R550,073 R 266,624 48% R 27
All content copyright © 5one 2001 - 2010. 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: 433%
What was the immediate ROI of the targeted coupon based on Incremental sales?
CouponTotal
Mailed Sales
Incremental
Sales
Production Costs
Gross Profit
ROI
New R5 R 22,398 R 22,398 R 25,000 -R 2,602 -10%
Current R10 R 527,675 R 244,226 R 25,000 R 219,226 877%
TOTAL R550,073 R 266,624 R50,000 R 216,624 433%
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: 1.7% (2,597 shoppers)
• Response rate: 7% (9,829 shoppers)
• Highly successful at driving incremental behaviour:
• Shoppers: 5,177 (53%)
• Units: 7,807 (60%)
• Sales: R 266,624 (48%)
• Overall campaign generated an excellent immediate ROI of 433%
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
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Thank-you
Nikki Emerton – Account Manager [email protected]
Zakariya Patel – 5one [email protected]