Tip Top Nails Targeted Voucher January Cashback ClubCard Mailing Post-Campaign Report

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

Tip Top Nails Targeted VoucherJanuary Cashback ClubCard MailingPost-Campaign Report

April 2010


Contents

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

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Introduction

• 100,000 ClubCard customers targeted utilising 5one’s targeting tool• Campaign period: 22 Jan – 26 Feb• Both Current and New shoppers to Tip Top Nails Treatment range

targeted:• Current: 10,811• New: 89,126

• Offer: Current and New shoppers received different offers:• Current: Buy any two boxed Tip Top Nail treatments and receive R10 off

your purchase• New: Buy any one of the boxed Tip Top Nail Treatments and receive R5 off

your purchase• Control group of look alike customers measured over exact same

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.

• Overall redemption rate is low: 0.17% (above 1% is ‘good’ for Current shoppers, 0.5% ‘good’ for New shoppers)

How many mailants shopped the promoted products?

Coupon Mailed Redeemed Red. Rate

Current: High Offer 10,811 46 0.43%

New: Low Offer 89,126 127 0.14%

TOTAL 99,937 173 0.17%


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 excellent: 3% (above 2% is ‘good’ for Current shoppers, above 1% for New shoppers)

• Excellent response rates generated by Current shoppers: 5.2%• New coupon generating lower response rate but still high at 2.8%, driving

2,467 new shoppers to the range

Coupon Mailed Redeemed Red. Rate Respond

edResp. Rate

Current: High Offer 10,811 46 0.43% 557 5.2%

New: Low Offer 89,126 127 0.14% 2,467 2.8%

TOTAL 99,937 173 0.17% 3,024 3.0%


Contents


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Incremental Shoppers

• Overall control group shopped at substantially lower rate vs. targeted customers

• However unusually high control response rates for current shoppers (potentially points towards clash in promotional activity?)

• Overall 53% of shoppers were 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?

CouponMailed Resp. Rate

Responded

Control Resp. Rate

Incremental

Shoppers%

Incremental

Current: High Offer 5.2% 557 11.8% 0 0%

New: Low Offer 2.8% 2,467 1.0% 1,604 65%

TOTAL 3.0% 3,024 1.0% 1,604 53%


Incremental Units

How many more units were purchased?

• Total number of units purchased 3,024, of which 59% were incremental:• Current shoppers: 0% incremental units• New shoppers: 71% incremental units

Coupon Total Mailed Units

Incremental Units

% Incremental

Current: High Offer 557 0 0%

New: Low Offer 2,467 2,476 71%

TOTAL 3,024 2,476 59%


Incremental Sales

How many more sales were achieved?

Total mailed sales of R350k achieved:• Current shoppers generating no incremental sales due to control group

responding at abnormally high rate • New shoppers generating a high incremental sales, 73%

*sales through the till ex VAT

Coupon Total Mailed Sales

Incremental Sales

% Incremental

Current: High Offer R 31,168 0 0%

New: Low Offer R 137,811 R 101,217 73%

TOTAL R 349,503 R 101,217 60%


Contents


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Immediate Return On Investment

• Overall ROI is excellent: 912%• Negative ROI amongst Current shoppers due to higher control response rate• Impressive ROI generated amongst New shoppers: 1035%

What was the immediate ROI of the targeted coupon?

CouponTotal

Mailed Sales

Incremental

SalesProduction

CostsGross Profit ROI

Current: High Offer R 31,168 0 R1,082 -R 1,082 -100%

New: Low Offer R 137,811 R 101,217 R8,918 R 92,299 1034%

TOTAL R 168,979 R 101,217 R10,000 R 91,217 912%


Contents


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Campaign Summary

• Overall campaign generated ideal response:• Redemption rate: 0.17% (173 shoppers)• Response rate: 3% (3,024 shoppers)

• Highly successful at driving incremental behaviour:• Shoppers: 1,604 (53%)• Units: 2,476 (59%)• Sales: R101,217 (60%)

• Overall campaign generated an excellent immediate ROI:• Profit: R91,217• ROI: 912%


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

2. Test both Current & New offers using high/low value split for reward levels

Recommendations


Thank-youRobert Grace – 5one Senior [email protected]

Nikki Emerton – 5one Junior Account Manager [email protected]

Zakariya Patel – 5one Junior Analyst [email protected]

mailto:[email protected]



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Tip Top Nails Targeted Voucher January Cashback ClubCard Mailing Post-Campaign Report

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