
Introduction

• 41,226 ClubCard customers targeted utilising 5one’s targeting tool

• Campaign period: 16 Aug 2010 – 18 Sep 2010

• Both Current and New customers targeted:

• 31,351 Current shoppers

• 9,875 New shoppers

• Reward level constructed tested:

• Get 50 points when you purchase Sandoz Calcium Forte or Sandoz Calcium Optim

• 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 - 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 is low: 0.17% (above 1% is ‘good’ for Current, 0.5% ‘good’ for New)

Coupon Mailed Redeemed Red. Rate

New 50pts off 31,351 35 0.11%

Current 50pst off 9,875 37 0.37%

TOTAL 41,226 72 0.17%


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 low: 0.43% (above 2% is ‘good’ for Current shoppers, above 1% for New shoppers)

• New offer driving an additional 82 new shoppers to the brand

Coupon Mailed Redeemed Red. Rate Responded Resp. Rate

New 50pts off 31,351 35 0.11% 82 0.26%

Current 50pst off 9,875 37 0.37% 96 0.97%

TOTAL 41,226 72 0.17% 178 0.43%


Contents

• Introduction



• Immediate ROI


8


Incremental Shoppers

CouponMailed Resp. Rate

Responded

Control Resp. Rate

Incremental

Shoppers

% Incremental

New 50pts off 0.26% 82 0.3% 0 0%

Current 50pst off 0.97% 96 8.7% 0 0%

TOTAL 0.43% 178 1.3% 0 0%

• No incremental shoppers due to control group shopping at a higher rate than mailed shoppers

• Indicates clash in promotional activity?

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 and Sales

How many more units were purchased? How many more sales were achieved?

• Due to high response rate of control group only 9% of total units purchased were incremental

• Mailed units are higher than responders indicating some shoppers picking up more than one product during the campaign period

CouponTotal Mailed

UnitsIncremental

Units%

Incremental Total Mailed

Sales%

Incremental

New 50pts off 111 25 22% R 5,876 0%

Current 50pst off 159 0 0% R 9,548 0%

TOTAL 270 25 9% R 15,423 0%


Contents

• Introduction



• Immediate ROI


11


Immediate Return On Investment

• Overall ROI is negative: -100%

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

CouponTotal

Mailed Sales

IncrementalSales

Production Costs

Gross Profit

ROI

New 50pts off R 5,876 0 R 18,345 -R 18,345 -100%

Current 50pst off R 9,548 0 R 5,778 -R 5,778 -100%

TOTAL R 15,423 0 R 24,123 -R 24,123 -100%


Contents

• Introduction



• Immediate ROI


13


• Overall campaign generated the following response:

• Redemption rate: 0.17% (72 shoppers)

• Response rate: 0.43% (178 shoppers)

• Incremental behaviour:

• Units: 25 (9%)

• No inc. shoppers and sales

• Overall campaign generated negative immediate ROI -100% at a promoted product level

Campaign Summary


1. Test broader offer for new customers (less niched / fewer constraints)

2. Test Rand off offers

3. In-depth analysis of what the Sandoz 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]

Zakariya Patel – 5one [email protected]

mailto:[email protected]

mailto:[email protected]

Contents

Documents

Transcript of Contents