
Introduction

• 149,998 ClubCard customers targeted utilising 5one’s targeting tool

• Campaign period: 16 Aug 2010 – 18 Sep 2010• Both Current and New customers targeted:

• 140,356 New shoppers • 9,642 Current shoppers

• Reward level constructed tested:• Get 20 points when you purchase Excedrin tablets & Excedrin powders

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

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The Mailing

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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 low due to high proportion of new shoppers: 0.29% (above 1% is ‘good’ for Current shoppers, 0.5% ‘good’ for New shoppers)

Coupon Mailed Redeemed Red. Rate

New Get 20pts 140,356 160 0.11%

Current Get 20pts 9,642 273 2.83%

TOTAL 149,998 433 0.29%


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 1.07% (above 2% is ‘good’ for Current shoppers, above 1% for New shoppers)

• The new offer drove an additional 588 new shoppers to the brand!• Excellent response rates for current shoppers with 10.5% shopping the brand

Coupon Mailed Redeemed Red. Rate Responded Resp. Rate

New Get 20pts 140,356 160 0.11% 588 0.42%

Current Get 20pts 9,642 273 2.83% 1,012 10.50%

TOTAL 149,998 433 0.29% 1,600 1.07%


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Incremental Shoppers

CouponMailed Resp. Rate

Responded

Control Resp. Rate

Incremental

Shoppers%

Incremental

New Get 20pts 0.42% 588 0.1% 436 74%

Current Get 20pts 10.50% 1,012 8.0% 239 24%

TOTAL 1.07% 1,600 0.6% 675 42%

• Overall the mailed group shopped at a higher rate than targeted shoppers resulting in 42% 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 53% of total units purchased were incremental

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

Coupon Total Mailed Units

Incremental Units % Incremental

New Get 20pts 824 610 74%

Current Get 20pts 1,598 674 42%

TOTAL 2,422 1,284 53%


Incremental Sales

How many more sales were achieved?

• Total mailed sales of R28k achieved, with 37% sales being incremental

Coupon Total Mailed Sales

IncrementalSales

% Incremental

Incremental / Responder

New Get 20pts R 11,078 R 5,639 51% R 9.6

Current Get 20pst R 17,500 R 5,068 29% R 5.0

TOTAL R 28,578 R 10,707 37% R 6.7


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Immediate Return On Investment

• Overall ROI is negative: -79%

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

CouponTotal

Mailed Sales

IncrementalSales

Production Costs

Gross Profit ROI

New Get 20pts R 11,078 R 5,639 R 46,786 -R 41,147 -88%

Current Get 20pts R 17,500 R 5,068 R 3,214 R 1,854 58%

TOTAL R 28,578 R 10,707 R 50,000 -R 39,293 -79%


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• Overall campaign generated ideal response:• Redemption rate: 0.29% (433 shoppers)• Response rate: 1,07% (1,600 shoppers)

• Successful at driving incremental behaviour:• Shoppers: 675 (42%)• Units: 1,284 (53%)• Sales: R10,707 (37%)

• Overall campaign generated negative immediate ROI -79% 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 broader higher offer levels for new customers

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

Recommendations


Thank-youNikki Emerton – 5one Account Manager [email protected]

Zakariya Patel – 5one [email protected]

mailto:[email protected]

mailto:[email protected]

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