Posted on: August 16, 2013 by in Uncategorized
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How often do you see ads that are designed to immediately bring in new customers that essentially say something like “we sell shoes”?

When the ad gets a pathetic response, the advertiser concludes that advertising doesn’t work or is too expensive.

But what if they offered something of value to the prospect to give them an incentive to make a purchase such as a discount, gift with purchase, free consultation/estimate, extended warranty or any other valuable incentive? Most likely it will triple their response rate.

Let me illustrate this by running some typical numbers. Note that the lifetime value of the customer (initial purchase plus all subsequent purchases) needs to be used instead of just the profit on the initial purchase.

“We sell shoes” ad
Cost: $200
Customers acquired: 4
LIFETIME value of acquired customers: $300 ($75 each)
Return on investment: 50% ($100)

Incentive ad
Cost: $200
Customers acquired: 12
LIFETIME value (less per customer because of cost of incentive):$720 ($60 each)
Return on investment: 260% ($520)

As you can see, the “we sell shoes” ad got a decent return but the incentive ad was huge! Now you understand the value of making a great offer. To learn about the importance of and how to calculate lifetime customer value click here.

Posted on: July 14, 2013 by in Uncategorized
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As the economy has tightened over the past several years, its that much more important for businesses to cut waste. And there’s no better or easier place to do that than in your marketing.

Gone are the days of throwing an ad in the local newspaper or phone book and hoping for the best…at least if you’re smart.

With the advent of the internet, there really is no reason to not track the results of the bulk of your advertising and marketing campaigns.  Website analytics tools such as Google Analytics make it easy to understand where your traffic is coming from, what that traffic does once it gets to your site and a lot more.

Once the winners and losers have been identified and return on investment has been calculated, its simple to cut the losers and invest more in the winning campaigns.

For more information on how we can help you invest in results based marketing to get the best return on investment, call us at 219-670-6706 or click to contact us.