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By: Alannah Haig, Amber Giles, Chad Ewart, Matthew Meagher, Nicholas Hovencamp Final Campaign Results

MCOM30 Final Campaign Presentation

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By: Alannah Haig, Amber Giles, Chad Ewart, Matthew Meagher, Nicholas Hovencamp

Final Campaign Results

THE CLIENT

• Our client for the direct marketing campaign was Agent 99. Agent 99 is an independently owned, and operated women’s fashion store, with a focus towards selling trendy, modern dresses and a target market of teenage girls, to older women (18-30).

For our direct marketing campaign our client listed her goals as trying to increase in store foot traffic, as well as trying to promote Agent 99 as a destination store for prom dresses.

TARGET MARKET

• Our target market consisted of young females between the ages of 15 and 19, attending prom. We targeted our online advertisements at girls attending Holy Cross Secondary School and Bayridge Secondary School.

• We chose these segments due to the fact that according to PRIZM and NAICS, consumers in this area were likely to have a fair amount of disposable income, therefore consumers in this area would be much more likely to purchase a high end, modern dress.

THE BIG IDEA

Our big idea initially consisted of utilizing Agent 99’s unique selling point of having a “list” of all dresses purchased for prom, and which high schools the dresses were going to be worn at. We wanted to inform consumers about this list, and communicate the benefits of purchasing a prom dress at Agent 99 to get on this list.

We believed that this would meet the needs of the client by promoting a unique feature of the store, as well as promoting the prom dresses, which was the main product our client wanted focus on. Upon discussing our campaign plans with the client, she disregarded our big idea, and wished for us to place our focus on the offer of our campaign instead.

THE MESSAGE

• The offer that we chose involved a printable online coupon. Upon printing the coupon off the consumer is required to fill out the coupon with their name, email address, and school. Upon filling out this information, and bringing the completed coupon to the Agent 99 Store location, the consumer was allowed to receive any free ring in the store.

• We decided to utilize a savings/urgency appeal, as we wanted people to feel that this offer was worth the act of printing off and returning a coupon, as well as trying to encourage action as quickly as possible. The action that we were trying to generate was having consumers print off the coupon, and go to the Agent 99 store. This is due to the fact that we were trying to increase foot traffic in the store location, as well as promote Agent 99’s prom clothing, and accessories.

THE CHANNEL

• The channel we chose to use for our campaign was digital online advertising; specifically search engine and social media advertising. With our advertising in this medium we chose to have two different approaches with a shotgun and rifle strategy ad.

• We chose to use a shotgun strategy with our search engine advertising on Google; this was reaching out to anyone that searched the keywords “prom dress Kingston”. The Facebook advertising we implemented targeted aged 15-19 females from Bayridge and Holy Cross Secondary Schools. Since this advertisement was so focused on a particular type of person this part of our campaign was a rifle strategy.

• We chose these channels because we felt that it was the most effective way to reach teenage females in the Kingston area. With an average response rate of 2-28% for social media advertising we felt that this was one of the highest responded to mediums and would best fit our campaign and objectives.

THE CREATIVE

Revised

Ad

Original Ad

THE CREATIVE

Click-through page

THE RESULTS

• The metrics that we tracked for this campaign were click rates, redeemed coupons and overall impressions. It was very easy to track the metrics of this campaign due to the very user friendly interfaces that Google Ads and Facebook Ads provides. Both of these sites have automated tracking systems for their advertising.

• We would go onto our accounts into the campaign stats section and would be given hourly – daily updates on impressions and click rates, this made this portion of the campaign much easier for us to track than for example a print DM campaign.

• Unfortunately, the revisions we made to our ad had no noticeable impact on increasing the impression, click, or redemption rates of our advertisements.

THE METRICS• CPP= $125 expense / 2 (Facebook and Google) = $75 cost

per piece per medium

• CPR= $125 expenses/ 149 clicks = $0.8389 = $0.84 cost per response

• CPS= $125 expenses / 0 sales = $125 cost per sale

• GP= Total Campaign Expenses = ($0 Lost Opportunity + $125 Expenses) = $125

• $125 total expenses - $0 Offer Generated Revenue = -$125 Gross Profit although the client paid for none of the expenses so realistically for the client Gross Profit was $0, but for analytic purposes the Gross Profit was -125 dollars.

THE METRICS

• LTV= # of sales/year/customer x churn rate = # avg. sales

• 2 sales/ year/ customer x 4= 8 average sales

• 8 average sales x $120 average sale value= $960 Lifetime Revenue Potential (LRP)

• $960 LRP + $125 CPS = $1085 Lifetime Value of a Customer

• $1085 LTVC x 0 redemptions = $0 Lifetime Value of the Campaign

• ROI $0 Revenue - $125 expenses = -125 dollars return on investment

THE ANALYSIS

The online direct marketing campaign generated a lot of impressions, and a fair amount of clicks, but the number of redeemed offers was lower than expected. We believe that online is a great method to quickly promote a message, and that Agent 99 should keep online marketing in mind when promoting various aspects of itself.

The online advertisements were able to quickly generate impressions while being cost effective, but there was difficulty turning these impressions into consumer activity. In the future we believe that Agent 99 would benefit from utilizing online advertising when trying to create general awareness for an activity such as a wide spread contest with a larger time window, versus a local promotion with a small window of time to generate interest.

If online advertisements are used again in the future by Agent 99, we think that a more focused offer/incentive would help to bring in more consumers, as well as help to draw a correlation between the offer, and the objectives of the campaign.