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Targeted Coupon Campaign Analysis: Fine Fragrance Promotions (Jan-Mar 2011)

This report discusses the outcomes of the targeted coupon campaign for fine fragrances aimed at 100,000 ClubCard shoppers, which took place from January 20 to March 3, 2011. The campaign focused on both current and new shoppers with various discount offers from brands like Hugo Boss and Bvlgari. Key findings included a coupon redemption rate of 1.2% and an impressive overall ROI of 6731%. The report covers coupon redemption, response rates, and recommendations for future campaigns to enhance shopper engagement and sales.

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Targeted Coupon Campaign Analysis: Fine Fragrance Promotions (Jan-Mar 2011)

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  1. New Clicks: Fine FragranceTargeted CouponJanuary CashBack ClubCard MailingPost-Campaign Report March 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 • Campaign period: 20 January – 3 March 2011 • Both Current and New shoppers targeted: • 50,000 Current shoppers • 50,000 New shoppers • Reward level constructed tested: • Spend over R300 and receive R40 off your fragrance – from Brands like Hugo Boss, Bvlgari and Calvin Klein. • Spend over R300 and receive R30 off your fragrance – from Brands like Hugo Boss, Bvlgari and Calvin Klein. • 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 good 0.62% (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: 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 good: 4%(above 2% is ‘good’ for Current shoppers, above 1% for New shoppers) • R30 offer generating a good response rate, driving 745 new shoppers to Fine Fragrance

  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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