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Novartis: Sandoz Targeted CouponAugust CashBack ClubCard MailingPost-Campaign Report
November 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
• 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
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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: 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%
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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%
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Contents
• Introduction
• Coupon Redemption & Response
• Incremental Analysis
• Immediate ROI
• Conclusions & Recommendations
8
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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?
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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%
All content copyright © 5one 2001 - 2010. All rights reserved. Confidential.
Contents
• Introduction
• Coupon Redemption & Response
• Incremental Analysis
• Immediate ROI
• Conclusions & Recommendations
11
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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%
All content copyright © 5one 2001 - 2010. All rights reserved. Confidential.
Contents
• Introduction
• Coupon Redemption & Response
• Incremental Analysis
• Immediate ROI
• Conclusions & Recommendations
13
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• 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
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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
All content copyright © 5one 2001 - 2010. All rights reserved. Confidential.
Thank-you
Nikki Emerton – 5one Account Manager [email protected]
Zakariya Patel – 5one [email protected]
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