ROI Report – an example

Based on sample data

Campaign Summary

The objective of this campaign was to drive more sales of their products –

through driving more sales traffic to their online catalogue.

The campaign consisted of quarterly email campaigns and online advertising, using

a promotional incentive to encourage purchases.

Report SummaryThis report is designed to do the following:

• To explain the impact of the quarterly promotions to the audience

• To explain what works and what doesn’t when communicating to this audience

• To explain whether quarterly promotions detract from direct sales revenues, or whether these provide net increase in sales

• To provide sufficient learning to influence the direction of future communication strategy to this audience

The 5 minute review

Campaigns to date

1st campaign

• 3 emails + landing page

• Win an iPhone or PS3 (10 of each)

2nd campaign

• 3 emails + landing page)

• Win an iPad every day (running for 6 weeks)

Sales results to date

1st campaign revenue

• £318,978 for £60,000 investment (5.32:1 ROI)

• Email 1 = £159,902

• Email 2 = £108,512

• Email 3 = £ 50,564

2nd campaign (3 emails + landing page)

• £544,993 for £40,000 investment (13.62:1 ROI)

• Email 1 = £239,919

• Email 2 = £219,114

• Email 3 = £85,959

Sales impact of each emailIt can be seen from the graph below that each email had a large impact on sales.

The impact declined over a sequence of 3 emails for each campaign.

Email 1

Email 2

Email 3

Email 1

Email 2

Email 3

Do promos eat into direct sales?In short – not really. The graph below demonstrates there is a fractional dip in background

revenue the day

an email launches, implying we are targeting and converting outside the normal customer-base.

Response rates for emails

• All rates are unique rates

• Both campaigns demonstrate better response from the first email – pointing to a declining interest over the campaign

• Unsubscribes are well below 0.3% (which we view as our cut-off for acceptable unsubscribe levels)

Email Open Rate CTR UnsubscribeeDM1 40.1% 7.2% 0.02%eDM2 38.5% 6.5% 0.01%eDM3 32.0% 6.4% 0.01%

eDM1 45.2% 12.5% 0.02%eDM2 44.1% 10.2% 0.01%eDM3 40.2% 9.8% 0.01%

Conclusions

• The campaigns did not erode normal sales revenue

• Response rates declined over each campaign – sending more than 3 emails would be expected to yield lower response to email 4 and beyond

• The second campaign approach achieved significantly better response and sales results than the first campaign – implying this would be a better approach for future campaigns

A Deeper Analysis

What we haven’t looked at yet

• How the different countries respond to the campaigns

• Do we need a promo item, or can we just email people to drive sales up?

• ROI – a qualitative understanding, why is it increasing?

Responses by country

A/B Testing: Promo vs. No Promo item

A/B test was run on campaign Email 1 to all UK customers. This was a 50/50 split across the whole target audience (20,525 contacts).

The A/B target groups received the following different deliverables:

• A: Normal incentive (win a PS3)

• B: No incentive

Resulting revenue from this split was:

• A: £141,501

• B: £18,401

• This effectively demonstrates that including a promo item in campaign deliverables will generate over 7 times the return compared to not including a promo item. Even subtracting the cost of the promo items you still get more than 7 times the return from the promo email

Marketing fact: Promos items are effective as a tactic to increase response rates

ROI – changing over timeReviewing the ROI over time seen for the campaigns we can see that

Campaign 2

has a far higher ROI than Campaign 1. Also for each email in the sequence of 3 the

ROI drops significantly (due to lower impact of message from repeat sends).

Report Summary• Increased ROI from Campaign 1 to Campaign 2 – resulting from higher

response rates and reduced execution costs

• Email response rate over campaign period reduces – more than 3 emails for each campaign would be unadvisable

• UK response was higher than FR or DE regions, but overall campaign behaviour is very similar – so 3 emails for each region makes sense

• Response rates are favourably affected by including a promo item in the campaign (about 7 times the revenue from promo item emails)

Thank you