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January 2011

New Clicks: Fine Fragrance Targeted Coupon December CashBack ClubCard Mailing Post-Campaign Report. January 2011. Contents. Introduction Coupon Redemption & Response Incremental Analysis Immediate ROI Conclusions & Recommendations. Introduction.

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January 2011

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  1. New Clicks: Fine FragranceTargeted CouponDecember CashBack ClubCard MailingPost-Campaign Report January 2011

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

  3. Introduction • 99,843 ClubCard shoppers targeted utilising 5one’s targeting tool • Campaign period: 29 October – 26 December 2010 • Both Current and New shoppers targeted: • 28,762 Current shoppers • 71,081 New shoppers • Reward level constructed tested: • Get R50 off any fine fragrance purchase of R300 or more on all brands eg. Calvin Klein, Elizabeth Arden and Guess Fragrances • Get R30 off any fine fragrance purchase of R300 or more on brands eg. Calvin Klein, Elizabeth Arden and Guess Fragrances • Control group of look alike shoppers measured over the campaign period

  4. The Mailing

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

  6. Targeted Coupon: Redemption Redemption: shoppers who bought featured product at the same time as handing in the coupon • Overall redemption rate is 0.9% (above 1% is ‘good’ for Current , 0.5% ‘good’ for New) • Offer to current shoppers generated excellent redemption rates of 2.6% How many mailants shopped the promoted products?

  7. 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 excellent: 6%(above 2% is ‘good’ for Current, above 1% for New) • This is a massive YoY uplift compared to overall response rate of 2% in December 2009. Interestingly the discount was higher is 2009 (R70 off for current and R50 for new shoppers) • Response rate amongst Current shoppers is excellent 14.8% • New offer generating a good response rate, driving 1,696 new shoppers to the brand

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

  9. Incremental Shoppers 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? • Overall the mailed group shopped at a higher rate than the control group resulting in 1,079 incremental shoppers, all of which were New shoppers • Please keep in mind the control group current shopper volume is small (only 863 shoppers) and so not completely accurate 9

  10. Incremental Units How many more units were purchased? • Overall 19% of units were incremental 10

  11. Incremental Sales How many more sales were achieved? • Total mailed sales of R1.3 million achieved, with 13%sales being incremental 11

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

  13. Immediate Return On Investment What was the immediate ROI of the targeted coupon based on Incremental sales? • Overall ROI is 431% 13

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

  15. Campaign Summary • Overall campaign generated the following response: • Redemption rate: 0.9% (919 shoppers) • Response rate: 6% (5,946 shoppers) • Successful at driving incremental behaviour: • Shoppers: 1,079 (18%) • Units: 1,664 (19%) • Sales: R 185,875 (13%) • Overall ROI is 431%

  16. Campaign Comparison

  17. Campaign Comparison

  18. Recommendations • Continue to use targeted coupons to invoke re-purchase and gain new shoppers to the brands • Test broader offer for new shoppers (less niched / fewer constraints) • In-depth analysis of what the Fine Fragrance shopper looks like, how they shop across the range and what competitor products they are purchasing into

  19. Thank-you Nikki Emerton – Account Manager Nikki.Emerton@5one.co.za

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