Bob Bentz's IMC-529 class at West Virginia University emphasizes setting clear KPIs and goals. This includes interim and ultimate KPIs and goals for all mobile marketing projects done for the class. These slides will aid students in doing them correctly.

1. KPIs
How to Not Screw Up When Doing Them

2. Setting Proper KPIs
1. Required for every campaign & assignment
2. Set in advance
3. Based on past experience
4. Get management approval
5. Easy to understand
6. Easy to evaluate
7. Means to be evaluated
8. Statistically measured
9. Baseline
10.Different KPIs throughout campaign
11.Goals
12.What defines success?

3. What’s wrong with these KPIs?
● Increase sales.
● Improve the look of our website.
● Increase social media engagement by 8%.
● Increase click through rate by 5%.
● Increase foot traffic by 10%.
● Improve brand recognition
● Make 20 more sales at our store from the text message campaign.
● Get 50 new customers from our social media efforts in February. We will ask
the customers as to what brought them to the store to determine this.
● Show a increase of +1000 more visitors at our online bikini shop in 2nd
quarter vs 1st quarter.
● Of the traffic that Facebook sent, measure those that used our chat feature
and then made a purchase. Goal is 25 sales for the month of March.
● Measure the increased sales on Walmart.com from changing the buy button
from green to blue. Goal is to increase sales by 25% in May vs. April. Sales
in April were $20 billion.
And how will you fix them?

4. Bob’s Basketballs – Profit Per Sale
Sale Price = $50
Cost of Goods Sold = ($15)
Shipping = ($10)
Profit per Sale = $25

5. Bob’s Basketballs – Facebook Ad Campaign
Facebook Ad Cost = $15 CPM
For $15 = 1000 impressions
1000 x 0.9% = 9 Tap Throughs
9 People x 5% conversion rate = 0.45 sales per $15 ad cost
For $1500 = 100,000 impressions
100,000/1,000 = 100 x 0.45 = 45 sales
45 sales x $25 profit = $1,125 profit on $1,500 investment

6. Bob’s Basketballs – Facebook Ad Campaign
At the current estimated statistics, this is not a profitable venture.
What can Bob do to make it profitable?

7. Bob’s Basketballs – What Can We Do Better?
● Raise price
● Negotiate better wholesale price
● Discontinue free shipping
● Improve tap through rate
● Improve conversion rate

8. Bob’s Basketballs – Why Do It Anyway?
● Repeat sales
● Pass along referrals
● Sell other basketball items like nets, rims, sneakers
● Sell your database to Wilson
● Use lookalike audiences
Assume we can’t do any better than the original stats.

9. Bob’s Basketballs – KPIs & Goals
Most basketballs are purchased in November so we will compare statistics from
last November to this November. We obtained a list of parents of travel basketball
players at no cost. We will use this to target them on Facebook.
Last November, our tap through rate was 0.9%. Due to targeting travel basketball
parents only, our goal is to increase the TTR to 1.5%.
Last November, our conversion rate was 5.0%. Based on this targeted list, our
goal is to increase the conversion rate to 6.5%.
We will monitor the rates on November 10th and 20th to allow us to pivot aspects
or the campaign, if necessary. We will finalize the overall rates on December 1.

10. Bob’s Basketballs – Facebook Ad Campaign
Facebook Ad Cost = $15 CPM
For $15 = 1000 impressions
1000 x 1.5% = 15 Tap Throughs
15 People x 6.5% conversion rate = 0.975 sales per $15 ad cost
For $1500 = 100,000 impressions
100,000/1,000 = 100 x 0.975 = 97 sales
97 sales x $25 profit = $2,425 profit on $1,500 investment

11. Bob’s Basketballs – KPIs & Goals
Our ultimate goal is sales of $4,000 for a profit of $2,000 for the
campaign. We will monitor the interim KPI’s, and if we can
successfully improve on them, we will reach our ultimate sales
goal and continue to grow the business from repeat sales and
referral sales that have no advertising costs associated with
them.
Our break even point is 60 sales for the $1500 advertising
investment.
All KPIs have been approved by management.

12. Bob’s Basketballs – Putting it all Together
Bob’s Basketballs has obtained a list of parents of youth basketball players in West Virginia. It plans to invest $1500 to target this
list with a Facebook dark post campaign in November. It chose November because that is traditionally the biggest month for sales
of basketballs. Last November, its website had a 0.9% click through rate and a 5.0% conversion rate to sales and $10,000 in total
sales.This is the first time that Bob’s Basketballs has advertised on Facebook.
Interim KPIs will be measured on November 10 and 20 so that the company can pivot to make changes if we are not meeting our
interim goals. Our tap through rate KPI goal is 1.5% and our conversion rate KPI goal is 6.5%. Our ultimate goal is $2000 in direct
sales attributed to the Facebook campaign. A direct sale is one that clicks through from the Facebook ad and purchases
immediately, or the prospect is cookies and comes back to purchase within the month of November.
Our break even is 60 sales. If we meet the interim KPI goals, our profit potential is +$500 for a 133% return on advertising spend
(ROAS). These KPIs and goals were approved by the CMO at our marketing meeting.
We believe that the profit potential is actually underestimated. The reason is that some sales will not be directly attributable to the
Facebook campaign. There will also be repeat sales from the same customers and there will be referral sales from satisfied
customers. If we decide to expand our product line later, the database of purchasers will be invaluable in selling other basketball
related products.
Because of the potential add-on sales, we will consider the campaign a success if direct sales are $1200, or 80% of the
advertising investment.