Webshop case roi

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Webshop case roi

  1. 1. Belgianwebshop case 20121 Source : 2012 BtC webshop! 50.000 contacts for each mediumEachinvested euro,returns into..?
  2. 2. Webshop case background• Sector:Food brand webshop active in Belgium• Campaign objectives:Increase online sales on prospects with interestfor the specific offered product ranges• Campaign setting:2Bannering: 4 weeksDirect Mail (50k contacts)Email (50k contacts)Google Adwords: 4 weeksMeasure
  3. 3. Comparing the approaches3Email Bannering Direct MailComparison of the approaches is based on• metrics provided by the brand• the results for a comparable reach of 50.000 contactsin each mediumStandard metrics, used for the 4 channels• Average ticket value by purchase: 12€• Purchase frequency / year: 12• DM cost,productionincluded:32.5Keur• DM response rate:3,5%• Campaign cost:3,4K eur• CTR/impressions:0,65%• Conversion / CTR:2,2%• Campaign cost:6K eur• Unique openrate:30%• CTR/openrate:15%• Conversion/CTR:2,2%Adwords• Campaign cost:5K eur• CTR/impressions:7,94%• Conversion / CTR:2,2%
  4. 4. 4Share of total salesfor 50.000 contacts for each mediumWrong !Online business= only online mediaSMART!Combinationon & offline!Source : 2012 BtC - 50.000 contacts for each mediumThe results: DM is the biggestturnover generator5%0%3%92%Total yearly turnover (K€)50.000 contacts for each mediumWrong !Online business= only online mediaSMART!Combinationon & offline!1317252GoogleadwordsBannering(CPM)EmailDM
  5. 5. 5The results: DM is the biggestturnover generator(X 1.000€)Wrong !Online business= only online mediaSMART!Combinationon & offline!131725253,4632,5GoogleadwordsBannering(CPM)EmailDMCampaign cost Total Yearly Turnover675%18%-71%125%CampaignROI
  6. 6. Each invested euro returns into50.000 contacts for each medium6“Each investedeuroreturns into”2,4 €0,3 €1,2 €7,7 €GoogleadwordsBannering(CPM)EmailDMSource : 2012 BtC - 50.000 contacts for each mediumThe results: DM ROI is higherthan other channelsx 7x 25x 3
  7. 7. Cost per acquisition50.000 contacts for each medium761 €473 €121 €19 €GoogleadwordsBannering(CPM)EmailDMSource : 2012 BtC - 50.000 contacts for each mediumx 6x 25x 3The results: Cost / acquisition islower with DM
  8. 8. Contacts needed to acquire 1 customer85726.9931.01029GoogleadwordsBannering(CPM)EmailDMSource : 2012 BtC - 50.000 contacts for each mediumThe results: budget to acquire 1 newcustomer is lower with DMx 35x 245x 20
  9. 9. Budget needed to acquire 1.000 customers960.990 €472.531 €121.212 €18.600 €GoogleAdwordsBannering(CPM)EmailDMSource : 2012 BtC - 50.000 contacts for each mediumx 7x 25x 3The results: budget to acquire 1 newcustomer is lower with DM
  10. 10. Key conclusion• Don’ t look only at the cost / contact, considerthe full campaign sales ROI• DM is proven to activate consumers on a moreefficient way: better campaign ROI, response rate• Combine online & offline approach to reinforcetheir mutual impact. A bannering campaignsupported by a DM action will generate betterresults10
  11. 11. Direct Mail – 50.000 contacten E-mail – 50.000 contacten11Costs CostsCost per rented adress - € Cost per rented email-address - €Stamp Tarif - DM EASY Small format (€ 0.44) Large format (€ 0,527) 0,440 €Mailing cost (creation + printing + handling) 9.550,00 € Email creation + sending 5.000,00 €LandingPage (creation) 1.000,00 € LandingPage (creation) 1.000,00 €Fulfilment cost per order - € Fulfilment cost per order - €Total campaigncost 32.550 € Total campaigncost 6.000 €x 5,4Revenues RevenuesAdresses 50.000 Adresses 50.000Response rateAverage: Response DM on external data is: 5,78%) 3,50%Unique openrate (IAB-benchmark: 20,58%)30,00%ClickTroughRate / openrate (IAB-benchmark: 5 %) 15,00%Conversion /ClickTrough (IAB-benchmark 2,2%) 2,2%Campaign result: total orders Campaign result: total ordersAdresses x Effective response rate 1.750,00 ((Adresses x openrate) x ClickTroughRate) x OrderRate 49,50Average Ticketvalue 12 € Average Ticketvalue 12 €Frequency per year 12 Frequency per year 12Margin (Please leave blank if you dont know) 0% 1 Margin (Please leave blank if you dont know) 0% 1Revenu 252.000 € Yearly Revenu 7.128 €Campaigncost 32.550 € Campaigncost 6.000 €Brut ROI 219.450 € Brut ROI 1.128 €Source : 2012 BtC - 50.000 contacts for each mediumBelgian BtC case!Direct Mail versus E-mail
  12. 12. Costs Costs CostsCost per rented adress - € Cost per rented email-address - € CostStamp Tarif - DM EASY Small format (€ 0.44) Large format (€ 0,527) 0,440 €Mailing cost (creation + printing + handling) 9.550,00 € Email creation + sending 5.000,00 € LandLandingPage (creation) 1.000,00 € LandingPage (creation) 1.000,00 € BannFulfilment cost per order - € Fulfilment cost per order - € FulfiTotal campaigncost 32.550 € Total campaigncost 6.000 € Totx 9,6Revenues Revenues RevenAdresses 50.000 Adresses 50.000 ImpResponse rateAverage: Response DM on external data is: 5,78%) 3,50%Unique openrate (IAB-benchmark: 20,58%)30,00%Click(IABClickTroughRate / openrate (IAB-benchmark: 5 %) 15,00% ConConversion /ClickTrough (IAB-benchmark 2,2%) 2,2%Campaign result: total orders Campaign result: total orders CamAdresses x Effective response rate 1.750,00 ((Adresses x openrate) x ClickTroughRate) x OrderRate 49,50 (ImAverage Ticketvalue 12 € Average Ticketvalue 12 € AveFrequency per year 12 Frequency per year 12 FreqMargin (Please leave blank if you dont know) 0% 1 Margin (Please leave blank if you dont know) 0% 1 MarRevenu 252.000 € Yearly Revenu 7.128 € YeaCampaigncost 32.550 € Campaigncost 6.000 € CamBrut ROI 219.450 € Brut ROI 1.128 € BruCosts Costs€ Cost per rented email-address - € Cost per Impression (CPM) (on average 27 €) 27,00 €0 € 0,0270 € Email creation + sending 5.000,00 € LandingPage (creation) 1.000,00 €0 € LandingPage (creation) 1.000,00 € Banners (creation) 1.000,00 €€ Fulfilment cost per order - € Fulfilment cost per order 4,00 €€ Total campaigncost 6.000 € Total campaigncost 3.379 €9,6Revenues Revenues000 Adresses 50.000 Impressies 50.00050%Unique openrate (IAB-benchmark: 20,58%)30,00%ClickTroughRate / impressions(IAB & ComScore benchmarks 2010: CPM Average CTR 0,17%)0,65%ClickTroughRate / openrate (IAB-benchmark: 5 %) 15,00% Conversion /ClickTrough (IAB-benchmark 2,2%) 2,2%Conversion /ClickTrough (IAB-benchmark 2,2%) 2,2%Campaign result: total orders Campaign result: total orders,00 ((Adresses x openrate) x ClickTroughRate) x OrderRate 49,50 (Impressions x ClickTroughRate) x OrderRate 7,152 € Average Ticketvalue 12 € Average Ticketvalue 12 €12 Frequency per year 12 Frequency per year 120% 1 Margin (Please leave blank if you dont know) 0% 1 Margin (Please leave blank if you dont know) 0% 10 € Yearly Revenu 7.128 € Yearly Revenu 1.030 €0 € Campaigncost 6.000 € Campaigncost 3.379 €0 € Brut ROI 1.128 € Brut ROI -2.349 €Direct Mail – 50.000 contacts Bannering – 50.000 contactsSource : 2012 BtC - 50.000 contacts for each medium12Belgian BtC case!Direct Mail versus BanneringCosts Costs CostsCost per rented adress - € Cost per rented email-address - € CostStamp Tarif - DM EASY Small format (€ 0.44) Large format (€ 0,527) 0,440 €Mailing cost (creation + printing + handling) 9.550,00 € Email creation + sending 5.000,00 € LandLandingPage (creation) 1.000,00 € LandingPage (creation) 1.000,00 € BannFulfilment cost per order - € Fulfilment cost per order - € FulfiTotal campaigncost 32.550 € Total campaigncost 6.000 € Totx 9,6Revenues Revenues RevenAdresses 50.000 Adresses 50.000 ImpResponse rateAverage: Response DM on external data is: 5,78%) 3,50%Unique openrate (IAB-benchmark: 20,58%)30,00%Click(IABClickTroughRate / openrate (IAB-benchmark: 5 %) 15,00% ConConversion /ClickTrough (IAB-benchmark 2,2%) 2,2%Campaign result: total orders Campaign result: total orders CamAdresses x Effective response rate 1.750,00 ((Adresses x openrate) x ClickTroughRate) x OrderRate 49,50 (ImAverage Ticketvalue 12 € Average Ticketvalue 12 € AveFrequency per year 12 Frequency per year 12 FreqMargin (Please leave blank if you dont know) 0% 1 Margin (Please leave blank if you dont know) 0% 1 MarRevenu 252.000 € Yearly Revenu 7.128 € YeaCampaigncost 32.550 € Campaigncost 6.000 € CamBrut ROI 219.450 € Brut ROI 1.128 € BruCosts Costs€ Cost per rented email-address - € Cost per Impression (CPM) (on average 27 €) 27,00 €0 € 0,0270 € Email creation + sending 5.000,00 € LandingPage (creation) 1.000,00 €0 € LandingPage (creation) 1.000,00 € Banners (creation) 1.000,00 €€ Fulfilment cost per order - € Fulfilment cost per order 4,00 €€ Total campaigncost 6.000 € Total campaigncost 3.379 €9,6Revenues Revenues000 Adresses 50.000 Impressies 50.00050%Unique openrate (IAB-benchmark: 20,58%)30,00%ClickTroughRate / impressions(IAB & ComScore benchmarks 2010: CPM Average CTR 0,17%)0,65%ClickTroughRate / openrate (IAB-benchmark: 5 %) 15,00% Conversion /ClickTrough (IAB-benchmark 2,2%) 2,2%Conversion /ClickTrough (IAB-benchmark 2,2%) 2,2%Campaign result: total orders Campaign result: total orders,00 ((Adresses x openrate) x ClickTroughRate) x OrderRate 49,50 (Impressions x ClickTroughRate) x OrderRate 7,152 € Average Ticketvalue 12 € Average Ticketvalue 12 €12 Frequency per year 12 Frequency per year 120% 1 Margin (Please leave blank if you dont know) 0% 1 Margin (Please leave blank if you dont know) 0% 10 € Yearly Revenu 7.128 € Yearly Revenu 1.030 €0 € Campaigncost 6.000 € Campaigncost 3.379 €0 € Brut ROI 1.128 € Brut ROI -2.349 €

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