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Targeted Coupon Campaign for Ethnic Haircare: Analysis and Recommendations

This report analyzes the impact of a targeted coupon campaign for ethnic haircare products executed from April to June 2011. It targeted 100,000 ClubCard shoppers, including 70,000 new shoppers for Inecto and 30,000 for Inecto Plus and Cavil Colours. The campaign achieved an overall redemption rate of 1.2% and a strong response rate of 4%, with 2,147 incremental shoppers contributing to sales of R683,052. The immediate ROI was 6731%, highlighting the campaign's effectiveness. Recommendations include continuing targeted coupons and testing broader offers.

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Targeted Coupon Campaign for Ethnic Haircare: Analysis and Recommendations

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  1. New Clicks: Ethnic HaircareTargeted CouponApril CashBack ClubCard MailingPost-Campaign Report July 2011

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

  3. Introduction • 100,000 ClubCard shoppers targeted utilising 5one’s targeting tool • Period: 11 April to 25 June 2011 • Both Current and New shoppers targeted: • 70,000 new shoppers to Inecto • 30,000 new shoppers to Inecto Plus and Cavil Colours • Reward level constructed tested: • R5 off INECTO 50ML’s • R10 off on INECTO PLUS & CAIVIL COLOURS

  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 good 0.5% (above 0.5% ‘good’ for New shoppers) 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 1%(above 1% for New shoppers) • This campaign resulted in an additional 1,110 new shoppers to the promoted product. Over time this should generate long term ROI for these brands.

  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 2,147 incremental shoppers 9

  10. Incremental Units How many more units were purchased? • Overall 58% of units were incremental 10

  11. Incremental Sales How many more sales were achieved? • Total mailed sales of R1.1 million achieved, with 60% 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 6731% 13

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

  15. Campaign Summary • Overall campaign generated the following response: • Redemption rate: 1.2% (615 shoppers) • Response rate: 4% (3,978 shoppers) • Successful at driving incremental behaviour: • Shoppers: 2,147 (54%) • Units: 3,285 (58%) • Sales: R 683,052 (60%) • Overall ROI is 6731%

  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 Nikki.Emerton@5one.co.za 083 686 9076

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