Corega Mailing CampaignPost-campaign Report December 2011

Contents• Introduction

• Redemption

• Response

• Immediate ROI

• Summary, Conclusions & Recommendations

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Introduction

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• 25,200 ClubCard customers targeted using 5one’s targeting tool• Campaign period: 14 October – 14 November 2011• Both current Corega shoppers and new Corega shoppers targeted, i.e. • 18,910 current Corega shoppers

• 6,290 new Corega shoppers (based on their transactional behaviour have a high propensity to purchase Corega)

• All shoppers received 4 offers• R10 off Corega Fixative Powder 50g

• R3.50 off Corega Cleansers 32’s

• R4 off Corega Cleanser Whitening 20’s

• R7.50 off Corega Fixative Cream 40g

Introduction

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Contents• Introduction

• Redemption

• Response

• Immediate ROI

• Summary, Conclusions & Recommendations

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Targeted Coupon: Redemption

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Redemption: shoppers who bought featured product at the same time as handing in the coupon

• Redemption rate is excellent: 11.4% (above 1% is ‘good’ for Current shoppers, 0.5% ‘good’ for New shoppers)

Offer Current shoppers

Redeemers (Red. Rate)

New shoppers

Redeemers (Red. Rate)

Overall

Redeemers (Red. Rate)

R10 off: Fixative Powder 50g 394 (2.1%) 8 (0.1%) 402 (1.6%)

R3.50 off: Cleansers 32s 1 480 (7.8%) 39 (0.6%) 1 519 (6.0%)

R4 off: Cleanser Whitening 20s 381 (2.0%) 12 (0.2%) 393 (1.6%)

R7.50 off: Fixative Cream 40g 1 424 (7.5%) 17 (0.3%) 1 441 (5.7%)

Total # of redemptions 3679 76 3755

Total # of shoppers redeeming 2 802 (14.8%) 59 (0.9%) 2 861 (11.4%)

Contents• Introduction

• Redemption

• Response

• Immediate ROI

• Summary, Conclusions & Recommendations

7

Targeted Coupon: Response

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Response: customers who received the mailing and bought Corega products (with and without redeeming the coupon) A more accurate metric for campaign success as the mailing acts as a call to action and a marketing message.

• Overall response rate is excellent: 20.0% (above 2% is ‘good’ for Current shoppers, above 1% for New shoppers)

Offer Current shoppers

Responders (Resp. Rate)

New shoppers

Responders (Resp. Rate)

Overall

Responders (Resp. Rate)

R10 off: Fixative Powder 50g 490 (3.0%) 10 (0.2%) 500 (2.0%)

R3.50 Off: Cleansers 32s 2 621 (14.0%) 63 (1.0%) 2 684 (11%)

R4 Off: Cleanser Whitening 20s 493 (3.0%) 19 (0.3%) 512 (2.0%)

R7.50 Off: Fixative Cream 40g 2 460 (13.0%) 21 (0.3%) 2 481 (10.0%)

Total # of purchases 6064 113 6177

Total # of shoppers purchasing 5 034 (27.0%) 97 (1.5%) 5 131 (20.0%)

Contents• Introduction

• Redemption

• Response

• Immediate ROI

• Summary, Conclusions & Recommendations

9

Immediate Return on Investment

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What was the immediate ROI of the mailing?

Target Total Mailed

SalesProduction

CostsROI

Current shoppers

R369 986 R115 693 319%

New shoppers R4 901 R38 483 -87%

Overall R374 887 R154 176 242%

• Further profit will be made from these shoppers as they repeat purchase over the long-term

Contents• Introduction

• Redemption

• Response

• Immediate ROI

• Summary, Conclusions & Recommendations

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Summary • Overall campaign was very successful

• Redemption: 11.4% (2 861 shoppers)

• Response rate: 20% (5 131 shoppers)

• ROI 242%

• On average 1.3 coupons were redeemed per shopper

• Whilst the new shoppers ROI was negative this group will break even 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

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Recommendation1. Continue to use targeted mailings to invoke re-purchase and gain new

shoppers to the brands. Consider tests as follows:

• extending the offer period from 4 to 6 weeks to see if this increases response as it gives a longer period within which to redeem.

• Test sms reminder 1 week after mailing

2. Potentially target shoppers who have responded to this campaign with threshold offers to drive increased spend e.g. Purchase 2 or more products and receive the discount.

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Thank You Belinda Walsh K&B Direct 021 7971628Belinda@kbdirect.co.za