Getting A Return On Your Investment

Do you measure how effective your marketing initiatives are? All that time effort and money you’ve been spending on brochures, leaflets, flyers, advertising, etc, how do you know which is effective and which isn’t?

Here at RT Promotions the best thing about working with promotional gifts is that you can, if planned in advance, quite easily measure their effectiveness. One of our clients wanted to do a mailshot campaign to their prospect database. We worked with them on putting together an appropriate branded giveaway and supplied them with 1,000 promotional coffee coasters. Perfect to go into a mailshot campaign, as their size and weight don’t add to the postal costs here in the UK.

But here’s the thing, here’s the one thing they did that allowed them to measure this promotional idea…. they used a unique email address and telephone number on the coasters. It’s really easy to do this, and allows you to track incoming emails and calls, and of course, because the details are unique, it can mean just one thing, the enquiry has come as a direct result of the promotional coffee coaster campaign. I can tell you that they had over 50 enquiries as a result of the campaign, resulting in 10 new customers. Lets say the cost of the coasters was £500 (it was cheaper, but lets play a worst case cost scenerio). If it cost £500 and you secured 10 new customers from the campaign, then the cost per customer would be just £50!!

Or, put another way. If each customer spent an average of £750 with you, and you made a margin of 33% on each one, then the campaign would have brought you additional profit of £2,500.

So lets look at ‘Return on Investment’ one more time shall we? You spent £500, and made an instant return (profit) of £2,500!!! I’d say thats pretty good wouldn’t you?

Just two more thoughts…
1: Those customers should continue to buy, so ask yourself the question. What’s your average customer spend/profit over a year. The think how many years does your average customer stay with you for? That figure is the TRUE return on investment, as your initial £500 will continue to bring you a return from those customers for years to come.
2:  Lastly, think about the 950 other businesses, that received your coffee coaster, but didn’t instantly respond to the promotion. They could well still be in use, constantly reminding folk of your brand and service delivery. Think of them as ‘ticking sales time bombs’, they could go off at any time, you could receive your 51st enquiry from the promotion.

2 Responses to “Getting A Return On Your Investment”

  1. A well planned campaign and a great summary Richard

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: