Fine Fragrance Targeted Voucher January Cashback ClubCard Mailing Post-Campaign Report

1. Fine Fragrance Targeted VoucherJanuary Cashback ClubCard MailingPost-Campaign Report April 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: 22 Jan – 26 Feb • Both Current and New shoppers targeted: • 20,207 Current • 79,787 New • Offer: • High Value Offer: R70 when you spend R300 or more on any fine fragrance • Low Value Offer: R50 when you spend R300 or more on any fine fragrance • Control group of look alike customers measured over exact same 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: 0.64% (above 1% is ‘good’ for Current shoppers, 0.5% ‘good’ for New shoppers) • Of the 636 redeemers, 503 were current 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%(above 2% is ‘good’ for Current shoppers, above 1% for New shoppers) • Of the 1,977 responders, 1,608 were new; meaning 369 newshoppers were gained

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? • Control response rates significantly lower compared to mailed response rates • Overall 65% of shoppers were incremental: • % incremental shoppers for High Value Offer: 55% • % incremental shoppers for Low Value Offer: 82% 9

10. Incremental Units How many more units were purchased? • Total number of units purchased 1,594,of which 67% was incremental: • High Value Offer: 59% incremental units • Low Value Offer: 82% incremental units 10

11. Incremental Sales How many more sales were achieved? • Total mailed sales of R632k achieved: • High Value Offer generating high 70% of incremental sales • Low Value Offer generating lower 86% incremental sales *sales through the till ex VAT 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? • Overall ROI is excellent: 4700% 13

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

15. Campaign Summary • Overall campaign generated ideal response: • Redemption rate: 0.64% (636 shoppers) • Response rate: 2% (1977 shoppers) • Highly successful at driving incremental behaviour: • Shoppers: 1,286 (65%) • Units: 1,594 (67%) • Sales: R480,021 (76%) • Overall campaign generated an excellent immediate ROI: • Profit: R470,021 • ROI: 4700%

16. Recommendations • Continue to use targeted coupons to invoke re-purchase and gain new shoppers to the brands • Test both Current & New offers using high/low value split for reward levels

17. Thank-you Robert Grace – 5one Senior Consultant robert.grace@newclicks.com Nikki Emerton – 5one Junior Account Manager Nikki.emerton@5one.co.za Zakariya Patel – 5one Junior Analyst Zakariya.patel@5one.co.za