Example
Website Promotion Cost: Client is paying Benedict &£750 per month Product Profit: Client's average sale value (RRP) is &£400 Profit = RRP - cost (&£400/2.5) = &£240
Return on Marketing Spend One sale is worth &£240 gross profit to a client Website Promotion Cost: ?750 pcm Break Even = ?750/(Y x &£120)
Y = 3 sales per month
100% ROI
A 100% ROI is often set as a target for new clients, as it is a simple memorable figure for all involved to be aware of, and if it is not reached we would question the viability of our strategy continuing.. In this example case a 100% ROI = 6 sales
Web Traffic Target
We know that it takes 400 unique visitors to a website to generate one sale. We would set a target of 3500 visitors to a client's website, for a client to see a return of 100%. How exactly do we determine the right online marketing mix to ensure this traffic, is what we are expert at.