Contents

1. Ethnic Hair care: Hair relaxer kits Targeted CouponDecember CashBack ClubCard MailingPost-Campaign ReportJanuary 2011

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: 29 Oct 2010 – 26 Dec 2010 • Only New customers to hair relaxer kits in Clicks • Reward level constructed tested: R10 off the purchase of any hair relaxer kit like Motions, Organic Roots, Dark ‘n Lovely, Beautiful Beginnings etc. • Control group of look alike shoppers measured over the campaign period

4. The Mailing

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

6. Targeted Coupon: Redemption Redemption: shoppers who bought featured product at the same time as handing in the coupon • Overall redemption rate is good: 1.2% (above 1% is ‘good’ for Current shoppers, 0.5% ‘good’ for New shoppers) How many mailants shopped the promoted products?

7. Targeted Coupon: Response Response: shoppers 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 excellent: 6.2%(above 2% is ‘good’ for Current shoppers, above 1% for New shoppers) • Offer driving an additional 6,522 new shoppers to purchase hair relaxer kits!

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? • Overall the mailed group shopped at a higher rate than targeted shoppers resulting in 56% of shoppers being incremental 9

10. Incremental Units How many more units were purchased? • The mailed group shopped at a higher rate than the control group resulting in 62% of total units being incremental 10

11. Incremental Sales How many more sales were achieved? • Total mailed sales of R415k achieved, with 56% sales being incremental 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 based on Incremental sales? • Overall ROI is excellent: 2232% 13

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

15. Campaign Summary • Overall campaign generated ideal response: • Redemption rate: 1.2% (1,225 shoppers) • Response rate: 6.5% (6,522 shoppers) • Highly successful at driving incremental behaviour: • Shoppers: 3,644 (56%) • Units: 5,269 (62%) • Sales: R233,232 (56%) • Overall campaign generated immediate ROI of 2232% at a promoted product level

16. Recommendations • Continue to use targeted coupons to invoke re-purchase and gain new shoppers to hair relaxer kits in Clicks • Test different offer levels for new customers (high/low) • In-depth analysis of what a hair relaxer kit shopper looks like, how they shop across the ranges

17. Thank-you Nikki Emerton – 5one Account Manager Nikki.emerton@5one.co.za