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Indigo Cosmetics: Sally Hansen Targeted Coupon May Cashback ClubCard Mailing Post-Campaign Report

Indigo Cosmetics: Sally Hansen Targeted Coupon May Cashback ClubCard Mailing Post-Campaign Report. August 2010. Contents. Introduction Coupon Redemption & Response Incremental Analysis Immediate ROI Conclusions & Recommendations. Introduction.

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Indigo Cosmetics: Sally Hansen Targeted Coupon May Cashback ClubCard Mailing Post-Campaign Report

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  1. Indigo Cosmetics: Sally HansenTargeted CouponMay Cashback ClubCard MailingPost-Campaign Report August 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: 3 May – 4 June 2010 • Both Current and New customers targeted: • 50 000 Current shoppers • 50 000 New shoppers • Reward level constructed tested: • Current shoppers: R15 off the purchase from the new Sally Hansen Hard as Nails extreme Colour range • New shoppers: R10 off the purchase from the new Sally Hansen Hard as Nails extreme Colour range • Control group of look alike customers 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: customers who bought featured product at the same time as handing in the coupon • Overall redemption rate is low: 0.3% (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 good: 2.5%(above 2% is ‘good’ for Current shoppers, above 1% for New shoppers) • Response rate amongst Current shoppers is excellent: 4.1% • R10 offer driving 514 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 control group shopped at a substantially lower rate than targeted shoppers resulting in 100% of new shoppers being incremental • No incremental current shoppers due to the control group shopping at a much higher rate 9

  10. Incremental Units How many more units were purchased? • Overall 19% of units incremental 10

  11. Incremental Sales How many more sales were achieved? • Total mailed sales of R199k achieved, with20% sales being incremental overall 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? • Excellent overall ROI of 295% generated 13

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

  15. Campaign Summary • Overall campaign generated ideal response: • Redemption rate: 0.32% (323 shoppers) • Response rate: 2.55% (2,549shoppers) • Highly successful at driving incremental behaviour: • Shoppers: 514 (20%) • Units: 575 (19%) • Sales: R 39K (20%) • Overall campaign generated an excellent immediate ROI 295%

  16. Recommendations • Continue to use targeted coupons to invoke re-purchase and gain new shoppers to the brands • Test broader offer for new customers (less niched / fewer constraints) • In-depth analysis of what the Vital shopper looks like, how they shop across the range and what competitor products they are purchasing into

  17. Thank-you Nikki Emerton – Account Manager Nikki.emerton@5one.co.za Zakariya Patel – 5one Analyst Zakariya.Pate@5one.co.za

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