Analytics Take Up from review class

Client: Green Door Vitamins
Channel: Email & DM Website
Expenses: $15/month for 1 year for Constant Contact, Website hosting $240 / yr, $15 domain / yr, $2500 development
Reach: 500 email subscribers, 12000 website views
Reponses: 100 phone calls or emails, 196 clicks, 65 subscribers
Offers redeemed: 68 total, 20 from email only
Average customer: 15 x / year
Average sale: $26
Attrition of customer: 6 years
Offer: Free vitamin C with $10 purchase (vitamin C retail value = $8)
Wholesale price of vitamin C: $5
Pro-rated operating expenses per product: $2
Total sales from customers redeeming the offer: $1015 

CPP (cost per piece)

• ($15x12months) + $240+$15+2500 = $2935 expenses
• 500+12000 = 12,500 pieces sent (equivalent)

$2935/12,500 = 0.24 / CPP

CPR (cost per response)

• $2935 expenses
• 100+196+65 = 361 responses

$2935 / 361 = $8.13 / CPR

CPS/ CPT (cost per sale / transaction)

• $2935 expenses
• 68 sales / redemptions

$2935 / 68 = $43.16 / CPT

Gross Profit (campaign specific)

• 68 (redemptions) x $8 (offer) = $544 lost opportunity cost $544+$2935 = $3,479 total direct campaign expenses
• $10 (terms) x 68 = $680 offer generated revenue

$680 - $3,479 = $-2,799 Gross Loss

Bottom Line Profit (bottom line = can we pay our bills too?)

• $2 x (68 x 2) = $272 prorated operating expenses
  (don’t have # of products so must use # of transactions x 1 for $10 item and 1 for Vitamin C = 2, as an estimation)
• $5 (wholesale of Vitamin C) x 68 = $340 wholesale expense
• $3,479 + $272 + $340 = $4,091 true cost of campaign

$1,015 - $4,091 = $-3,076 Bottom Line Loss

LTV (Lifetime Value)

• 15 x 6 = 90 number of average sales of a customer’s lifetime at store
• 90 x 26 = $2,340 Lifetime revenue potential of an average customer

$2,340 + $43.16 = $2,383.16 LTV of a customer
$2,383.16 x 68 = $162,054.88 LTV of this campaign

ROI (Return on Investment)

• $162,054.88 LTV of campaign - $3,479 total direct campaign expenses

$158,575.88 ROI

Your Campaign Storyboard

• Describe the brief/objective of the direct campaign and connection to client needs and brand
• Describe the target market / segment and how your list was developed
• Use some fancy smancy jargon to describe your execution
• Explain channel choice
• Make sure it screams theme / big idea
• Include forecasted results (LTV, ROI)
• Pictures, Screenshots, examples, are better than words. Bulleted lists, headlines and ways to break up text are encouraged.

 Steps to complete during class for this assignment:

1. review tips for storyboards and case writing
2. do a draft version of your storyboard for approval
3. after approval start compiling pieces and creating the official storyboard
4. seek approval before submitting
5. submit
6. see you at the GREGS

Pink Ponies and Marketing Case Writing Tips

Writing a case for competition entry is not an easy task... and a stellar intern you will be if you could do it well! Here are some key tips & resources to help:

Tips:

1. Write it, then go back and get rid of the fluff. KISS it to death - Keep it SHORT & sexy. (vids <1min, text <1000 words total)
2. There has to be a big idea / theme - no brief will ever hide a bad idea.
3. Connection to client needs is key - prove that the client liked it.
4. Creativity and finished 'corners' matter. Don't be cheap.
5. Get feedback... from people that matter.
6. Use a checklist to make sure you do what you're asked.
7. Numbers are important. Prove it worked.
8. Don't reuse your submission - judges will notice.

Resources:

• Great article / debate on the value of competitions and how to take the cheese out of submissions --> http://www.fastcocreate.com/1680955/best-case-scenario-how-to-nail-the-all-important-case-study-video
• Great list of tips for writing your submission --> http://www.marketingmag.com.au/blogs/10-award-submission-tips-from-a-judge-8269/#.UWdXC0rJKDc
• Lots of great award winning campaigns to check out --> http://mediaedge.imirus.com/Mpowered/book/vcmaa12/i1/p0

Awards you should know about:

• http://www.canneslions.com/
• http://www.directworks.org/dmef-marketing-programs/collegiate-echo-2012-2013
• https://entries.webbyawards.com/categories
• http://dma-echo.org/call-for-entries/welcome.jsp
• http://www.the-cma.org/education-events/awards

Print Inspiration

 

Great Print / Mail Case

 

BYO was primarily digital, but there were a ton of print components.

And there's a ton more here >>> http://pinterest.com/fairlistar/mcom30-direct-marketing/

Snow Day is a Work Day :-(

Well, I wish we could take the day off but it would put us too far behind in our campaigns so we have to trudge on. So class will go on today, but if you live out of town and can't make it in (and you've sent me an email communicating this) you don't have to loose the marks for 5% in class case for today. Both in class assignments are individual and should be emailed to me at lfair@sl.on.ca.  Here are the details:

In class assignment:
Using the newbie to town - Target Retailer as your client determine the following: (resources to help)

1. Find the NAICS code for local business offices so that Target can purchase the proper list to promote their upcoming business product offer.
2. Look up the house count through Canada Post to determine how many flyers they need to print for their grand opening weekend.
3. According to PRISZM what products would be the best to promote in the grand opening flyer if they are going to focus on the immediate area around their location?
4. Look up in the City of Kingston profiles the demographics of the area to determine number of parking spots needed, pricing point that would be most advantageous.
5. Using Twitter & KRED determine the local trends that would be timely for messaging in the flyer.

In class lab assignment:

1. Segment & Profile your classmates using as much as of the segmentation categories and tools that you can.
2. Create an excel database with the appropriate fields.
3. Populate your database.
4. Secure your database.
5. Email me your database without the password - send that in a seperate email.

These are due by 3:30 today.
Post questions if you have them.

PS - don't forget your client briefing notes are also due today.

Take care, stay warm, build a snowman.

Class 2 - Target Case Study

Great case example from the soon-to-be-in-Kingston retail giant Target on how proper segmentation can be very insightful. Do you see this as great customer service or intrusive?