2. Things that can
measured = metrics
Response Rate - Clicks, phone calls, prints, forwards, visits
Retention - Repeat purchases
Information acquired / Permission granted
Eyeballs, ears, noses, mouths
(enter, exit, length of time)
Popularity / Virality - Friends, Followers, Likes, Links, Posts, Tags
Purchases by $
Purchases by #
Purchases by Item popularity
Expenses
Partners
Amount of Media coverage
Dollar value of media coverage
.....etc.
3. Cost Per Piece
cost of campaign / # sent
$500 for postcard printing (received 5000 cards)
$200 for Canada Post (mailed 3000)
$700 total campaign expenses
/3000 # sent
$ 0.24 cost per piece (sent)
4. Cost
Per Response
cost of campaign / # responded
$500 for postcard printing (received 5000 cards)
$200 for mailing (mailed 3000)
$700 total campaign expenses
/30 # responded
$ 23.33 cost per response
5. Gross Profit
cost of campaign
- revenue
$ 90 $3 discount x 30 customers = lost opportunity costs
$700 total campaign expenses
$790 total cost of campaign
-$1080 $36 revenue x 30 customers = generated revenue from offer
$ 290 gross profit / loss
6. Bottom Line
Profit
Similar to gross profit,
only all business
expenses are taken into
account
$ 90 $3 discount x 30 customers = opportunity costs
$700 total campaign expenses
$ 45 pro-rated operating expenses
$ 60 wholesale cost per product x # of products sold
$895 TRUE cost of campaign
-$1500 $50 revenue x 30 customers = revenue from all related sales
$ 605 bottom line profit / loss
7. ROI
(Return on investment)
$50 revenue x 30 customers =
$1500 revenue from all related sales
$ 790 total cost of campaign
$ 710 ROI
8. Lifetime Value
of a Customer
(LTV)
(5 x 3) *50 = $750 + $9 = $759
•average customer comes 5x /yr for 3 yrs, spends $50 ea.
•Plus the costs to do a campaign to replace that customer
9. Change in
Behaviour
Comparison of before
and after
10 Average # of frites sold Monday nights prior to campaign
16 # of frites sold Monday nights during campaign
15 # of frites sold on Monday nights after campaign
10. Trends
Chart showing trends for
any one category from
before, during and after.
Often using data from
Changes in behaviour.
10 Average # of frites sold Monday nights prior to campaign
16 # of frites sold Monday nights during campaign
15 # of frites sold on Monday nights after campaign