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TLC Direct Mailing Campaign November 2011

TLC Direct Mailing Campaign November 2011. Contents. Introduction Response ROI Conclusions & Recommendations. Introduction . 60,000 ClubCard customers targeted using 5one’s targeting tool Campaign period: 15 July – 30 August 2011 New shoppers TLC range targeted, i.e.

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TLC Direct Mailing Campaign November 2011

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  1. TLC Direct Mailing Campaign November 2011

  2. Contents • Introduction • Response • ROI • Conclusions & Recommendations

  3. Introduction • 60,000 ClubCard customers targeted using 5one’s targeting tool • Campaign period: 15 July – 30 August 2011 • New shoppers TLC range targeted, i.e. • Shoppers who have a high propensity to shop TLC based on their previous transactional behaviour • These shoppers have not purchased TLC in the past 12 months • Offer: • Pack included a TLC sachet • After purchasing a TLC product shoppers are entered into a competition to win one of 30 spa vouchers to the value of R500

  4. Creative

  5. Contents • Introduction • Response • ROI • Conclusions & Recommendations

  6. Response Response: Targeted customers who bought TLC over the campaign period • Overall response rate is very good: 2.4% (above 1% considered good for new shoppers to a brand) • This is a good response rate particularly from customers who have not shopped TLC in the last 12 months

  7. Contents • Introduction • Response • ROI • Conclusions & Recommendations 7

  8. Return on Investment What was the immediate ROI of the mailing? R195 319 additional revenue to be generated by repeat purchases to breakeven 8

  9. Return on Investment • It is important to keep in mind this is a brand awareness exercise and although shopper volumes are relatively low, these shoppers should drive long term ROI over time if they continue to shop the brand • If, for example, 50% of the 1433 shoppers buy TLC again at an average spend of R42.60 each the following revenue scenarios are possible 9

  10. Contents • Introduction • Response • ROI • Conclusions & Recommendations 10

  11. Campaign summary • Overall campaign generated the following response: • Response rate: 2,4% (1433 shoppers) – this is a good response considering there was no offer to drive the customer in-store • Although ROI was negative these new shoppers will generate positive ROI 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 11

  12. Recommendations • Future mailings must include an offer to drive customers in-store and increase response. From experience, we have seen that Rands off discount offers generate responses up to 4 x higher than the response generated by this campaign. • A minimum of 10% off the price is recommended • Test inclusion of sms reminder 1 week after mailing to further drive response. 12

  13. Thank You Belinda Walsh K&B Directbelinda@kbdirect.co.za 13

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