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Fine Fragrance Targeted Coupon Campaign Analysis - December Cashback Report

This report provides a comprehensive analysis of the targeted coupon campaign aimed at promoting fine fragrances during the holiday season. Conducted from October 29 to December 26, 2010, the campaign engaged 99,843 ClubCard shoppers, including both current and new customers. The campaign achieved a redemption rate of 0.9% and an excellent response rate of 6%. With significant incremental sales and an impressive ROI of 431%, the findings suggest that continued use of targeted coupons can effectively encourage re-purchases and attract new shoppers.

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Fine Fragrance Targeted Coupon Campaign Analysis - December Cashback Report

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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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