Schick Targeted Coupon May Cashback ClubCard Mailing Post-Campaign Report

All content copyright © 5one 2001 - 2010. All rights reserved. Confidential.

Schick Targeted CouponMay Cashback ClubCard MailingPost-Campaign Report

July 2010


Contents

• Introduction• Coupon Redemption & Response• Incremental Analysis• Immediate ROI• Conclusions & Recommendations

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Introduction

• 149 279 ClubCard customers targeted utilising 5one’s targeting tool

• Campaign period: 3 May – 4 June 2010• Both Current and New customers targeted:

• 42 969 Current shoppers • 106 310 New shoppers

• Two offers tested: • Buy a Titanium Razor, and get 50% off the Blades• Buy a Titanium Razor, and get R47.50 off the Blades

• Three target groups tested: • Current shoppers of razor and blade range • Current shoppers of shaving cream • New shoppers

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

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The Mailing

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Contents


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All content copyright © 5one 2001 - 2010. All rights reserved. Confidential. 6

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 poor (above 1% is ‘good’ for Current, 0.5% ‘good’ for New)

• Current shoppers: Current shoppers of the razor & blade range performed better than current shoppers of shaving cream

Coupon Target Cell Mailed Redeemed Red. Rate

50% off Current razor & blade range 40,986 185 0.6%

50% off Current shaving cream 1,983 2 0.2%

R47.50 off New shoppers 106,310 191 0.2%

TOTAL 149,279 378 0.3%


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

• Response rate amongst Current shoppers overall is good – current shoppers to razor and blade range performed much better than current shoppers to shaving cream

• New offer generating good response rate: Driving 472 new shoppers to the brand!

Coupon Target Cell Mailed Redeemed Red. Rate Responded Resp. Rate

50% off Current razor & blade range 40,986 185 0.6% 731 2%

50% off Current shaving cream 1,983 2 0.2% 25 1%

R47.50 off New shoppers 106,310 191 0.2% 472 0.5%

TOTAL 149,279 378 0.3% 1,228 1%


Contents


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Incremental Shoppers

Coupon Target Cell Mailed Resp. Rate

Responded

Control Resp. Rate

Incremental

Shoppers%

Incremental

50% off Current razor & blade range 2% 731 2% 21 3%

50% off Current shaving cream 1% 25 0% 25 100%

R47.50 off New shoppers 0.5% 472 0% 472 100%

TOTAL 1% 1,228 0.45% 518 42%

• Overall 42% of shoppers incremental with 518 new shoppers to the range

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?

• This campaign has resulted in an additional 737 units being purchased 47% incremental units overall

Coupon Target Cell Total Mailed Units Incremental Units % Incremental

50% off Current razor & blade range 896 71 8%

50% off Current shaving cream 33 33 100%

R47.50 off New shoppers 633 633 100%

TOTAL 1,562 737 47%


Incremental Sales

How many more sales were achieved?

• Total mailed sales of R123k achieved, with nearly 50% being incremental• Nearly half of all sales generated were incremental, with an average

additional R47 per responder

Coupon Target Cell Total Mailed Sales

IncrementalSales

% Incremental

Incremental / Responder

50% off Current razor & blade range R 70,298 R5,797 8% R8

50% off Current shaving cream R 2,554 R2,554 100% R 102

R47.50 off New shoppers R 49,785 R49,785 100% R 105

TOTAL R 122,637 R 58,107 47% R 47


How Did Shoppers Respond at a Total Range Level

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Because the offer was only on Schick razor blades, it is important to understand if responders chose a different product from the Schick range as a result of the mailing. Again, measuring this against the control group enables us to understand what was incrementalHow many more shoppers, sales and units were generated at a range level?

MetricProduct

level response

Range level response

Incremental

% Incrementa

lShoppers 32 1,228 518 42%

Units 33 1,562 737 47%

Sales R2,269 R122,637 R 58,107 47%

• Targeted voucher delivered better results at a total Schick level, generating nearly R60k incremental sales

• This demonstrates the marketing halo effect of sending targeted communication


Contents


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Immediate Return On Investment : Product level

• Overall ROI is poor: -95%

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

Coupon Target Cell Total

Mailed Sales

Incremental

SalesProduction Costs

Gross Profit ROI

50% off Current razor & blade range R 675 R674 R6,687 R6,013 -90%

50% off Current shaving cream R 673 R 673 R120 R553 517%

R47.50 off New shoppers R 921 R 921 R43,244 -R42,323 -97%

TOTAL R2,269 R 2,269 R50,000 -R47,731 -95%

*sales through the till ex VAT


Immediate Return On Investment: Range Level

• Overall ROI at a range level is 16%• Targeting current shoppers of shaving cream has produced a higher ROI than

targeting razor and blade range shoppers; however, shopper volumes are small • Control group for razor and blade range shopped at a higher rate resulting in

negative ROI • Range level purchasing shows the effect that the coupon had on New shoppers,

generating 60k inc sales from new shoppers!

What was the immediate ROI of the targeted coupon based on Incremental sales at a total Range level?

Coupon Target Cell Total

Mailed Sales

Incremental

SalesProduction Costs

Gross Profit ROI

50% off Current razor & blade range R 70,298 R5,797 R 13,728 R-7,961 -58%

50% off Current shaving cream R 2,554 R 2,554 R 664 R 1,890 285%

R47.50 off New shoppers R 49,785 R 49,785 R 35,608 R 14,177 40%

TOTAL R 122,637 R58,107 R50,000 R 8,107 16%


Contents


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• Overall campaign generated ideal response:• Redemption rate: 0.3% (378 shoppers)• Response rate: 1% (1 228 shoppers)

• Highly successful at driving incremental behaviour:

• Shoppers: 518 (42%)• Units: 737 (47%)• Sales: R58,107 (47%)

• Overall campaign generated an poor immediate ROI at a promoted product level, but an excellent ROI at brand level

Campaign Summary

Level Profit ROIPromoted product R -47,731 -95%Range R8,107 16%


1. Continue to use targeted coupons to invoke re-purchase and gain new shoppers to the brands

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

• E.g. Price off offer for blades for current shoppers

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

Recommendations


Thank-youNikki Emerton – Account Manager [email protected]

Zakariya Patel – Analyst [email protected]

mailto:[email protected]

mailto:[email protected]

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Schick Targeted Coupon May Cashback ClubCard Mailing Post-Campaign Report

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