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

All content copyright © 5one 2001 - 2010. All rights reserved. Confidential.

Indigo Cosmetics: Sally HansenTargeted Coupon

May Cashback ClubCard MailingPost-Campaign Report

August 2010


Contents

• Introduction

• Coupon Redemption & Response

• Incremental Analysis

• Immediate ROI

• Conclusions & Recommendations

2


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

3


The Mailing

4


Contents

• Introduction



• Immediate ROI


5

All content copyright © 5one 2001 - 2010. All rights reserved. Confidential. 6

Targeted Coupon: Redemption

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

How many mailants shopped the promoted products?

• Overall redemption rate is low: 0.3% (above 1% is ‘good’ for Current shoppers, 0.5% ‘good’ for New shoppers)

Coupon MailedRedeeme

dRed. Rate

New 50,000 65 0.1%

Current 50,000 258 0.5%

TOTAL 100,000 323 0.3%


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!

Coupon MailedRedeeme

dRed. Rate

Responded

Resp. Rate

New 50,000 65 0.1% 514 1%

Current 50,000 258 0.5% 2,035 4.1%

TOTAL 100,000 323 0.3% 2,549 2.5%


Contents

• Introduction



• Immediate ROI


8


Incremental Shoppers

CouponMailed Resp. Rate

Responded

Control Resp. Rate

Incremental

Shoppers

% Incremental

New 1% 514 0% 514 100%

Current 4.1% 2,035 6.6% 0 0

TOTAL 2.5% 2,549 0.9% 514 20%

• 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

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?


Incremental Units

How many more units were purchased?

• Overall 19% of units incremental

CouponTotal Mailed

UnitsIncremental

Units%

Incremental

New 575 575 100%

Current 2,406 0 0

TOTAL 2,981 575 19.3%


Incremental Sales

How many more sales were achieved?

• Total mailed sales of R199k achieved, with 20% sales being incremental overall

CouponTotal Mailed

SalesIncremental

Sales%

IncrementalIncremental / Responder

New R 39,481 R 39,481 100% R 76.80

Current R 159,351 R 0 0 R0

TOTAL R 198,832 R 39,481 20% R 15.50


Contents

• Introduction



• Immediate ROI


12


Immediate Return On Investment

• Excellent overall ROI of 295% generated

What was the immediate ROI of the targeted coupon based on Incremental sales?

CouponTotal

Mailed Sales

Incremental

Sales

Production Costs

Gross Profit

ROI

New R 39,481 R 39,481 R 5,000 R 34,481 690%

Current R 159,351 0 R 5,000 R -5,000 -100%

TOTAL R 198,832 R 39,481 R 10,000 R 29,481 295%


Contents

• Introduction



• Immediate ROI


14


• Overall campaign generated ideal response:

• Redemption rate: 0.32% (323 shoppers)

• Response rate: 2.55% (2,549 shoppers)

• Highly successful at driving incremental behaviour:

• Shoppers: 514 (20%)

• Units: 575 (19%)

• Sales: R 39K (20%)

• Overall campaign generated an excellent immediate ROI 295%

Campaign Summary


1. Continue to use targeted coupons to invoke re-purchase and gain new shoppers to the brands

2. Test broader offer for new customers (less niched / fewer constraints)

3. In-depth analysis of what the Vital shopper looks like, how they shop across the range and what competitor products they are purchasing into

Recommendations


Thank-you

Nikki Emerton – Account Manager [email protected]

Zakariya Patel – 5one [email protected]

mailto:[email protected]

mailto:[email protected]

Documents

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