January 2012 Cash-back mailing Bio-Strath supplier offerPost-campaign Report

Feb 2012

Contents• Introduction

• Redemption

• Response

• Immediate ROI

• Average Customer Spend

• Summary, Conclusions & Recommendations

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Introduction

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• 150,000 sample of all qualifying ClubCard members:

• current Bio Strath users in the past 12 months

• new / potential shoppers – who have not purchased Bio Strath in the past 12 months but have the propensity to shop within the lifestyle supplements department

• R5 OFF any of Bio-Strath Elixir 200ml or Bio-Strath 100 tablets.

• Campaign period 20 January 2012 to 22 February 2012

Targeted Coupon: Redemption

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Redemption: mailed shoppers who bought featured product at the same time as handing in the coupon

Coupon Mailed Redeemed Red. Rate

Current Users 2,285 40 1.8%

New Users 147,715 64 0.04%

TOTAL 150,000 104 0.9%

Targeted Coupon: Total Response

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Response: mailed customers who received the offer and bought Bio-Strath products with or without redeeming the coupon. A more accurate metric for campaign success as the coupon acts as a call to action and a marketing message. (Buying without redeeming is the ideal as the supplier does not carry the cost)

• A larger percentage of redemptions and overall response to tablets rather than syrup across both markets

• Current users respond better than new users

Target SKU Redeemed per SKU

Redeemed Total Red. Rate Responded Responded

Total Resp. Rate

Current Users

Elixir 200ml 940 1.80%

60193 8.45%

100 Tablets 31 133

New UsersElixir 200ml 19

64 0.04%100

239 0.16%100 Tablets 45 139

TOTAL 104 104 0.90% 432 432 4.30%

Immediate Return on Investment

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What was the immediate ROI of the coupon within offer period?

*Revenue less redemption and marketing cost

Target SKU Total Mailed Sales per SKU

Total Mailed Sales

Redemption Cost

Marketing Cost

Gross Profit ROI

Current Users

Elixir 200ml R 6,622R 22,264

R 45

100 Tablets R 15,642 R 155

New UsersElixir 200ml R 9,876

R 25,840R 95

100 Tablets R 15,964 R 225

TOTAL R 48,104 R 48,104 R 520 R 53,000 -R 5,416 -10.12%

Summary • Overall campaign generated the following response:

• Redemption rate: 0.9% (104 shoppers)

• Overall response rate within offer period: 4.3% ( 432 shoppers )

• Response by current users: 8.45% ( 193 shoppers )

• Response by new users: 0.16% ( 239 shoppers )

• 63% of sales from tablets ( 272 shoppers )

• 37% of sales from syrup ( 160 shoppers )

• Mailed Sales within offer period: R48,103.61

• ROI: -10.12%7

Conclusions 1. As expected, sales from existing users was much better than new prospects.

2. The redemption for existing users was good and the results indicate that the voucher served as awareness and stimulated further sales without voucher redemption

3. The redemption from new prospects was poor but the voucher served as awareness and stimulated further sales without redemption and increased overall response to acceptable levels.

4. New users redeemed at a higher rate than existing users (Existing 40/193 sales i.e. 20% vs of total vs 64/239 i.e. 27%)

5. Sales of the tablets far exceeded the syrup.

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Recommendations

1. Considering that a large proportion of shoppers targeted had not purchased Bio Strath before this is a good result. Repeat purchases from new buyers will soon turn the small loss into a profit.

2. Consider testing various Rands-off offers to new shopper to assess the optimal offer.

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Thank You

Clicks Data Analyst: Jaco Van Staden

Enquiries:Belinda Walsh K&B Direct 021 7971628Belinda@kbdirect.co.za