Olay Total Effects DM Campaign Post-Campaign Report

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Presentation transcript:

Olay Total Effects DM Campaign Post-Campaign Report August 2011

Contents Introduction Creative Response Incremental Analysis Immediate ROI Observations & Conclusions Recommendations

Introduction 280,068 ClubCard customers targeted using 5one’s targeting tool Campaign period: 27 June 2011 – 07 August 2011 New shoppers Olay Total Effects range targeted, i.e. Shoppers who have a high propensity to buy Olay Total Effects based on their previous transactional behaviour These shoppers have not purchased Olay Total Effects in the past 12 months Control group of look-alike customers were measured over exact same campaign period

Contents Introduction Creative Response Incremental Analysis Immediate ROI Observations & Conclusions Recommendations

Creative

Contents Introduction Creative Response Incremental Analysis Immediate ROI Observations & Conclusions Recommendations

Response Customers who received the mailing and bought Olay Total Effects in the 6-week period measured Mailed Responded Resp. Rate 280,068 2,987 1.1% Overall response rate is good: 1.1% (above 1% considered good for new shoppers to a brand), particularly for a mailing going to customers who have: not bought Olay Total Effects, and where there is no offer attached.

Response Customers who received the mailing and bought any Olay product in the 6-week period measured Mailed Responded Resp. Rate 280,068 14,796 5.3% Overall response rate very good: 5.3%

Contents Introduction Creative Response Incremental Analysis Immediate ROI Observations & Conclusions Recommendations

Incremental Analysis: incremental shoppers Incremental analysis shows how the customers who did respond would have shopped had they not received the mailing – this is essential in understanding the actual effect of the campaign. The control group of ‘look-alike’ customers selected were not sent the mailing. How many Olay Total Effects shoppers were incremental? Mail Qty Mailed Response Rate Responded Control Response Rate Incremental Shoppers % Incremental 280,068 1.1% 2,987 0.5% 1,633 55% Overall 55% of shoppers responding to this campaign were incremental, i.e. 1,633 customers shopped for Olay Total Effects as a direct result of this mailing 10 10

Olay TE Units purchased Incremental Analysis: incremental behaviour What other incremental behaviour did this campaign drive? Total Incremental % Incremental Olay TE Shoppers 2,987 1,633 55% Olay TE Units purchased 4,061 2,298 57% Olay TE Sales R 506,487 R 307,977 61% Of the 4061 units of Olay Total Effects purchased, 2298 (57%) were incremental Of the R506 487 worth of revenue generated from Olay Total Effects sales, R307 977 (61%) was incremental.

Olay Brand Units purchased Incremental Analysis: brand level Incremental behaviour at brand level: Olay Brand Total Incremental % Incremental Olay Brand Shoppers 14,796 2,192 15% Olay Brand Units purchased 20,780 2,838 14% Olay Brand Sales R1,807,765 R339,316 19% Of the 14,796 total Olay brand shoppers, 2192 (15%) were incremental Of the 20 780 total Olay brand unit sales, 2838 (14%) were incremental Of the R1 807 765 worth of revenue generated from total Olay brand sales, R339 316 (19%) was incremental.

Incremental Analysis: TE vs brand Olay Total Effects vs total Olay brand sales: Mail Qty 280,068 Mailed Response Rate Responded Control Response Rate Incremental Shoppers % Incremental Olay TE 1.1% 2,987 0.5% 1,633 55% Total Olay Brand 5.28% 14,796 0.8% 2,192 15% 55% of Olay Total Effects shoppers responding to this campaign were incremental, i.e. 1633 customers shopped for Olay TE as a direct result of this mailing 15% of shoppers of any Olay product responding to this campaign were incremental, i.e. 2192 customers shopped for any Olay product as a direct result of this mailing Overall the campaign attracted 2192 new shoppers to the total Olay brand. 13 13

Contents Introduction Creative Response Incremental Analysis Immediate ROI Observations & Conclusions Recommendations

Immediate Return On Investment What was the immediate ROI of the mailing? Total Mailed Sales Incremental Sales Production Costs Gross Profit ROI Olay TE R 506,487 R 307,977 R939,000 -R631,023 -67% Total Olay R1,807,765 R 339,316 -R599,684 -64% Overall ROI is negative: -64%. However it is important to keep in mind that there was no offer included. In addition, the brand awareness generated cannot be directly measured. 15 15

Contents Introduction Creative Response Incremental Analysis Immediate ROI Observations & Conclusions Recommendations

Observations & Conclusions The response rate of 1.1% was fair considering the following: No specific call to action to drive sales was included No deadline to drive urgency was included Purchase behaviour for a product like face cream is typically more difficult to influence in the short-term. Because there was no offer, the mailing could have prompted customers to buy from any retail store. This impact cannot be measured. This mailing will have done a further brand building job that will be realised over time with additional sales. It is quite possible there have been additional sales after the 6-week measured sales period from the customers mailed which would improve the results. The investment in this campaign needs to be viewed from a long-term customer lifetime value perspective, i.e. customers who purchased Olay TE for the first time will repeat purchase.

Contents Introduction Creative Response Incremental Analysis Immediate ROI Observations & Conclusions Recommendations

Recommendations For maximum return on investment from a ClubCard direct mailing, we recommend: Inclusion of an offer ( rands off, points, competition, etc.) for in-store redemption An expiry date to drive urgency Because of the nature of the product, a product sample could be included for customers to trial Future mailings could include tests of different offers (different rands off values, points, competitions, etc.) Support the mail pack by using additional Clicks channels around the same mailing period.

Thank you