vital health foods: weetol targeted coupon may cashback clubcard mailing post-campaign report
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All content copyright © 5one 2001 - 2010. All rights reserved. Confidential.
Vital Health Foods: WeetolTargeted Coupon
May Cashback ClubCard MailingPost-Campaign Report
July 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
• 85,713 ClubCard customers targeted utilising 5one’s targeting tool
• Campaign period: 3 May – 4 June 2010
• Both Current and New shoppers targeted:
• 19,514 Current shoppers
• 66,172 New shoppers
• Reward level tested:
• Get R10 off when you spend R50 or more on any Weetol products
• Control group of look alike customers measured over the campaign period
3
All content copyright © 5one 2001 - 2010. All rights reserved. Confidential.
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
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 average (above 1% is ‘good’ for Current, 0.5% ‘good’ for New), however this is due to the large number of New shoppers targeted
• Current shoppers generated excellent redemption rate of 3.5%
Coupon MailedRedeeme
dRed. Rate
New R10 66,172 32 0.05%
Current R10 19,514 692 3.5%
TOTAL 85,686 724 0.8%
All content copyright © 5one 2001 - 2010. All rights reserved. Confidential. 7
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, above 1% for New)
• Response rate amongst Current shoppers is excellent at 12%
• This campaign has driven an additional 180 new shoppers to the brand
Coupon MailedRedeeme
dRed. Rate
Responded
Resp. Rate
New R10 66,172 32 0.05% 180 0.3%
Current R10 19,541 692 3.5% 2,442 12.5%
TOTAL 85,713 724 0.8% 2,622 3%
All content copyright © 5one 2001 - 2010. All rights reserved. Confidential.
Contents
• Introduction
• Coupon Redemption & Response
• Incremental Analysis
• Immediate ROI
• Conclusions & Recommendations
8
All content copyright © 5one 2001 - 2010. All rights reserved. Confidential. 99
Incremental Shoppers
CouponMailed Resp. Rate
Responded
Control Resp. Rate
Incremental
Shoppers
% Incremental
New R10 0.3% 180 0.0% 180 100%
Current R10 12.5% 2,442 11.7% 155 6%
TOTAL 3.06% 2,622 4% 335 13%
• Overall the control group shopped at a substantially lower rate than targeted shoppers resulting in all new shoppers to the brand 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?
All content copyright © 5one 2001 - 2010. All rights reserved. Confidential. 1010
Incremental Units
How many more units were purchased?
• Due to good response rates of customers 39% of total units purchased were incremental
CouponTotal Mailed
UnitsIncremental
Units%
Incremental
New R10 213 213 100%
Current R10 3,916 1,401 36%
TOTAL 4,129 1,614 39%
All content copyright © 5one 2001 - 2010. All rights reserved. Confidential. 1111
Incremental Sales
How many more sales were achieved?
• Total mailed sales of R187k achieved, with 25% sales being incremental
• R52 per responder gained for new shoppers
CouponTotal Mailed
SalesIncremental
Sales%
IncrementalIncremental / Responder
New R10 R 9,437 R 9,437 100% R 52
Current R10 R 177,243 R 37,193 21% R 15
TOTAL R186,681 R 46,630 25% R 18
All content copyright © 5one 2001 - 2010. All rights reserved. Confidential.
Contents
• Introduction
• Coupon Redemption & Response
• Incremental Analysis
• Immediate ROI
• Conclusions & Recommendations
12
All content copyright © 5one 2001 - 2010. All rights reserved. Confidential. 1313
Immediate Return On Investment
• Overall ROI is excellent: 366%
• Current offer generated an exceptional ROI of 1533%
What was the immediate ROI of the targeted coupon based on Incremental sales?
CouponTotal
Mailed Sales
Incremental
Sales
Production Costs
Gross Profit
ROI
New R10 R 9,437 R 9,437 R 7,723 R 1,715 22%
Current R10 R 177,243 R 37,193 R 2,277 R 34,915 1533%
TOTAL R186,681 R 46,630 R10,000 R 36,630 366%
All content copyright © 5one 2001 - 2010. All rights reserved. Confidential.
Contents
• Introduction
• Coupon Redemption & Response
• Incremental Analysis
• Immediate ROI
• Conclusions & Recommendations
14
All content copyright © 5one 2001 - 2010. All rights reserved. Confidential. 15
• Overall campaign generated ideal response:
• Redemption rate: 0.84% (724 shoppers)
• Response rate: 3% (2,622 shoppers)
• Highly successful at driving incremental behaviour:
• Shoppers: 250 (63%)
• Units: 300 (64%)
• Sales: R3,420 (55%)
• Overall campaign generated a poor immediate ROI -93% at a promoted product level
Campaign Summary
All content copyright © 5one 2001 - 2010. All rights reserved. Confidential. 16
1. Continue to use targeted coupons to invoke re-purchase and gain new shoppers to the brands
2. Test broader offer for new customers (less niched / fewer constraints)
3. In-depth analysis of what the Weetol 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 – Account Manager Nikki.emerton@5one.co.za
Zakariya Patel – 5one AnalystZakariya.Pate@5one.co.za
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