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

Tip Top Nails Targeted Voucher January Cashback ClubCard Mailing Post-Campaign Report. April 2010. Contents. Introduction Coupon Redemption & Response Incremental Analysis Immediate ROI Conclusions & Recommendations. Introduction.

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

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  1. Tip Top Nails Targeted VoucherJanuary Cashback ClubCard MailingPost-Campaign Report April 2010

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

  3. 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

  4. The Mailing

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

  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?

  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 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

  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 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 9

  10. 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 10

  11. 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 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? • Overall ROI is excellent: 912% • Negative ROIamongst Current shoppers due to higher control response rate • Impressive ROI generated amongst New shoppers: 1035% 13

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

  15. 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%

  16. Recommendations • Continue to use targeted coupons to invoke re-purchase and gain new shoppers to the brands • Test both Current & New offers using high/low value split for reward levels

  17. Thank-you Robert Grace – 5one Senior Consultant robert.grace@newclicks.com Nikki Emerton – 5one Junior Account Manager Nikki.emerton@5one.co.za Zakariya Patel – 5one Junior Analyst Zakariya.patel@5one.co.za

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