Before pouring money into advertising, figure out exactly how much should be spent.Occupancy (rent)Gross sales10-12%Cost of exposureMarkup
Step # 110-12% x annual sales volume ThenSales volume x average mark-up Yes, mark-up. Not margin. Most of us know our margin by heart. Mark-up is simply GP/COGS
Step # 2Deduct your annual occupancy(rent) from the 10% and 12%. The balance represents Minimum & Maximum allowable budget for the year.
Sadly, the very people we are counting on to for advice in thisarea will tell us the amount shouldbe 5-7%. Don’t you believe them. It isn’t possible to designate a percentage without considering mark-up on your average sale & rent.
How it works…Total Annual Sales $1,000,000Budget for TOTAL Cost of Exposure X 10-12%(Cost of Occupancy + Advertising) $100,000- $120,000Average Markup X 80.0% Adjusted Budget for $80,000- $96,000 Total Cost of ExposureCost of Occupancy $35,000AD BUDGET $45,000- $61,000
Online marketplace?“In 2010 the wheat came off the chaff in onlineretailing,” says Nikki Baird, managing partner at research firm RSR Research.“The online retailers that just count onbeing the lowest price provider aren’tgoing to be around for the long term.Theones that survive and grow will be onesthat run a very efficient operation andgive consumers the best customer serviceand shopping experience.”
The industry iscurrently selling $12.3 billion online, representing about 9% of all category sales, according to research firm Forrester Research Inc. These numbers are expected to rise to 11% this year and more than double to $26.7 billion by 2012, based on our research.
TheOnce-familiar Consumer Journey 1. Few touch points, well-choreographed 2. Linear, store-dependent 3. Advertising-inspired View TV Go to Compare Choose Join/align or print best Buy item store options with brand ad optionAWARENESS CONSIDERATION SELECTION PURCHASE LOYALTY
A New Customer Journey 1. A proliferation of engaging digital touch points 2. Non-linear, cross-channel 3. Web-first for many consumer buying decisions ViewResearch designerproduct video Read a Upload review or pics of blog purchase Search for Visit a brand store Send Order mobile pic Read outfit Facebook feeds
The affordable Signature Design by Ashley site includes the industry’s ONLY integratedshopping cart!
Feature rich catalog pages include: rating system, up to 10photos, print, email, social share, and add- to cart functionality.
Quickly email from smart phone oripad, exactly what the customer is looking at.
Print catalog pages that include all of the detailed information the customer willneed in order to make a buying decision. Encourages the retail sales staff to becertain Ms. Jones doesn’t leave the store empty handed.
Instantly share catalog content onFacebook, Twitter, and over 1,500 other social media outlets.
The catalog connects with the customcoupon functionality that allows for every event imaginable. *side note- delivery codes are also completely flexible.
Single page checkout reducedabandonment by more than 50%
Facebook• Two Types of Facebook• Personal Profile – Users can add people as friends and send them messages, and update their personal profiles to notify friends about themselves.• Business Pages – Users (Personal Profile) can join networks organized by workplace, school, or college.
Facebook By The Numbers• 900 million active users• One person for every fourteen in the world is on Facebook• 93% of US adult Internet users are on Facebook.• 1 out of every “8 minutes” online is spent on Facebook.• 67% B2C have acquired a customer via Facebook.
Facebook By The Numbers• On average a Facebook fan: • Spends $71.84 more than a non-fan • McDonalds fans spend $159.79 more than non- Fans • Is 28% more likely to continue using a brand • Adidas fan 42.55% more likely than a non-fan • Is 41% more likely to recommend a product • Red Bull fan 49.26% more likely than a non-fan
Facebook Applications Integration of Social Media
Promotional AppsAn Email Signup that A Fan Offer App thatlets you build a will grow your fan basesubstantial subscriber to a massive number solist and target them you can target themwith email marketing with promotions andcampaigns to help you offers.sell more products andservices.A Sweepstakes App A Share and Save Appthat takes the Each deal is ‘triggered’guesswork out of only if a set number ofrunning a sweepstakes people ‘sign up,’so you can sit back and thereby creating awatch your business strong incentive forboom! buyers to share deals with friends and family.
Informational Apps• Connect your website content directly with your Facebook Page• Allow your consumer to find you, learn about you, view your menu and view your offers• Help your Facebook page come up in a search engine with SEO ready applications that pop up on Google, Yahoo & Bing• Manage it all from one central dashboard without having to know how to build a website• 24-7 customer support available to fix your problem and fix it fast
Connells Furniture•2 Stores•Customer Since 1987•Full Line Mid-Priced Store•Bedroom Communities of a Major Market
Connells Furniture• Contests• Wall Posts – What to post, how to post, and when to post• Facebook Events – Offer something to just your Facebook fans.
Connells Furniture• Contests – Finding the right contest that meets your marketplace and your Facebook’s marketing place. – Decide whether you want to create Fan interaction or you just want to increase Fans. – You have to give away something • Remember you’re a Furniture Store – Make it Fun – This is great PR… So BUILD it up!
Connells Furniture• Grand Prize: Sofa• Contest Instructions – Dress yourself, your family, or your kid up in a Halloween costume, take a picture and you might just win• Month Long Contest• Fans Decide Winner
Connells Furniture• Promoted On Website• Press Release• Email Marketing• Word of Mouth• POP• Sales people required to talk about it
Connells Furniture First Place 254 Number of Votes 79 Comments •1332 Total Number of Contest Votes Second Place •264 Total Number of 29 Comments Contest Comments Third Place 134 Number of Votes •Second and Third Place 33 Comments132 Number of Votes both bought from Connells after contest!
Connells FurnitureWhat to Post – Share links to interesting and relevant articles, post thought-provoking or meaningful updates, share a joke, or ask a question. – Just keep it lively, interesting, and consistent!• The words in updates that triggered the most “likes” and comments are: 1. Event 2. Win 3. Winner 4. Sale 5. ContestWall Posts—When & What
Connells Furniture• Top Post Examples – “Success is simple. Do whats right, the right way, at the right time.” (Quote) • 505 Impressions – “Creating a Reading Nook” (Blog) • 750 Impressions – “We have something big to offer just for our FB Fans on Friday. Be Sure to visit our page Friday morning for this amazing offer!” • 802 ImpressionsWall Posts—When & What
Connells Furniture• Be sure to check your Page Post Insights to see what your fans react to the most!Wall Posts—When & What
Connells Furniture• A report from Buddy Media found that the hours companies should post to Facebook don’t necessarily coincide with business hours. – The four best times for higher engagement rates among followers are at 4 a.m., 7 a.m., 11 p.m., and 5 p.m. – I encourage you to approach your timing on a case-by-case basisWall Posts—When & What
Connells Furniture – Offer something to just your Facebook fans – They are fans of you for a reason » Reward them for being a fan – Make it something distinctive » Unique enough to stand out above the rest – Make it share worthy » The more sharable the more likely it will be a better event – Events are fun » The more fun they have the more likely they remember you when shoppingEvents
Connells Furniture• Facebook Fan Offer Only• Ran right after a Contest – High visit and user rates• Offered a greater discount to Facebook fans than the public. – Reward them for being a Fan of your page• Made it time sensitive. – This will increase customers to visit page.Share and Save
Connells FurnitureShare and Save (one day insights)
December 2011•Offer(s): $50 Online Gift Card once 1000 fan was hit &Discount Equal to the Sales Tax•Period 11/28-12/31•Total Tab View: •Wall: 1,487 •Fan Offer: 646 •Facebook Site: 283•65,790 people reached•73% Female•27% Male•Average Age 25-34•Transactions: 66 as a result of Facebook•Total Sales: $67,000•Avg. Ticket: $1,015•Total Fan Increase: 220% increase•Total Monthly Sales Increase: 10% verses Dec 2010
Connells Furniture• 127% Increase of New Likes after • Black Friday Promotion month one – 95% advertising return• 112,539 Post Views • 2nd Highest Month in Connell’s history• Average 1% Post Feedbacks during Room Makeover Contest – 136 per month • 4% of unique visitors from Facebook• 140% more Average Monthly Active to the website Users than Fans – Third highest traffic source to – Cannot track active personal data Connells Website behind:• 4% of Fans Have Bought • Direct URL• 20% of Share and Saves Redeemed in • Google less than 24 hours • Facebook/Bing – Average ticket of $1900 • Yahoo – 2.3 times higher than the national average – $800 more than average ticket• 24 times unique votes cast for Room Makeover than enters
Case Study Three• Grand Prize: $2,500 Gift Card• Contest Instructions: – Take a picture of your room, explain why you deserve a room makeover, post it on Facebook, and you could win a brand new room!• Month Long Contest• Fans Decide Three Finalists• Judges Determine Winner
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