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Charles Worthington DM Campaign Post-Campaign Report

Charles Worthington DM Campaign Post-Campaign Report. August 2011. Contents. Introduction Response Incremental Analysis Immediate ROI Conclusions & Recommendations. Introduction. 32,001 ClubCard customers targeted using 5one’s targeting tool Campaign period: 21 May – 30 June

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Charles Worthington DM Campaign Post-Campaign Report

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  1. Charles Worthington DM Campaign Post-Campaign Report August 2011

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

  3. Introduction • 32,001 ClubCard customers targeted using 5one’s targeting tool • Campaign period: 21 May – 30 June • New shoppers Charles Worthington range targeted, i.e. • Shoppers who have a high propensity to shop Charles Worthington based on their previous transactional behaviour • These shoppers have not purchased Charles Worthington in the past 12 months • Competition: • After purchasing a Charles Worthington product shoppers could enter into an SMS competition for the chance to win a luxurious spa package to the value of R2,000 or pampering treatment • Control group of look alike customers measured over exact same campaign period

  4. Competition Offer

  5. Response Response: customers who bought Charles Worthington regardless of whether they entered the competition A more accurate metric for campaign success as the mailing acts as a call to action and a marketing message. • Overall response rate is very good: 2.9% (above 1% considered good for new shoppers to a brand) • This is a very good response rate, particularly for a mailing going to customers who have never shopped Charles Worthington, the brand is relatively unknown in SA and where there is no offer attached

  6. Contents • Introduction • Response • Incremental Analysis • Immediate ROI • Conclusions & Recommendations

  7. 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 34% of shoppers responding to this campaign were incremental, i.e. 313 customers shopped as a direct result of this mailing • We would expect to see a higher percentage of incremental shoppers; however as this is a new product launch other ATL promotional activity would have skewed the control group shopping behaviour. Ideally there should be no other promotional activity happening at the same time as a targeted mailing to ensure the control group shopping behaviour is not affected 7

  8. Where do incremental sales come from? • Incremental sales of R 42,789 (32%) driven by increased spend on Charles Worthington products (with customers purchasing 514 additional units) and additional shoppers purchasing Charles Worthington, i.e. 313 additional shoppers • This campaign had not incentivised shoppers to purchase Charles Worthington more frequently (i.e. More of shoppers baskets contain Charles Worthington).

  9. Contents • Introduction • Response • Incremental Analysis • Immediate ROI • Conclusions & Recommendations

  10. Immediate Return On Investment What was the immediate ROI of the mailing? • Overall ROI is negative: -74% • However it is important to keep in mind this is a brand awareness exercise and although shopper volumes are relatively low, these shoppers should drive long term ROI over time if they continue to shop the brand 10

  11. Contents • Introduction • Response • Incremental Analysis • Immediate ROI • Conclusions & Recommendations

  12. Campaign Summary • Overall campaign generated the following response: • Response rate: 2.9% (913 shoppers) – this is good, especially when you consider this is a relatively unknown brand in the SA market • Although ROI was negative these new shoppers should generate positive ROI over time as they repurchase • Not only is this a call to action, but also a brand awareness exercise so customers may shop at a later stage outside of the analysis period • Overall campaign generated a negative immediate ROI: • Total Incremental Sales: R42,789 • ROI: -74%

  13. Recommendations • Continue to use targeted mailings to invoke re-purchase and gain new shoppers to the brands. Future mailings will be more cost effective as creative is complete and can be reused. • Ensure an offer is attached when targeting new shoppers to the brand to increase response. From experience we have seen offering a Rands off discount works well to incentivize shoppers to purchase. • A minimum of at least 10% off the price is recommended.

  14. Thank-you Nikki Emerton – 5one Consultant Nikki.emerton@5one.co.za Darren Shiel – 5one Analyst Darren.shiel@5one.co.za

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