webshop case roi

Belgian webshop case 2012

1Source : 2012 BtC webshop! 50.000 contacts for each medium

Each

invested euro,

returns into..?

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Webshop case background

• Sector: Food brand webshop active in Belgium

• Campaign objectives: Increase online sales on prospects with interest for the specific offered product ranges

• Campaign setting:

2

Bannering: 4 weeks

Direct Mail (50k contacts)

Email (50k contacts)

Google Adwords: 4 weeks

Measure

Comparing the approaches

3

Email Bannering Direct Mail

Comparison of the approaches is based on • metrics provided by the brand• the results for a comparable reach of 50.000 contacts

in each medium

Standard metrics, used for the 4 channels

• Average ticket value by purchase: 12€• Purchase frequency / year: 12

• DM cost, production included: 32.5Keur

• DM response rate: 3,5%

• Campaign cost: 3,4K eur

• CTR/impressions: 0,65%

• Conversion / CTR:2,2%

• Campaign cost: 6K eur

• Unique open rate:30%

• CTR/openrate: 15%

• Conversion/CTR: 2,2%

Adwords

• Campaign cost: 5K eur

• CTR/impressions: 7,94%

• Conversion / CTR:2,2%

4

Share of total salesfor 50.000 contacts for each medium

Wrong ! Online business

= only online media

SMART!Combination on & offline!

Source : 2012 BtC - 50.000 contacts for each medium

The results: DM is the biggest turnover generator

5%

0%

3%

92%

Total yearly turnover (K€)50.000 contacts for each medium


= only online media


13

1

7

252

Google

adwords

Banneri

ng (CPM)

Email

DM

5

The results: DM is the biggest turnover generator

(X 1.000€)


= only online media


13

1

7

252

5

3,4

6

32,5

Google

adwords

Bannering

(CPM)

Email

DM

Campaign cost Total Yearly Turnover

675%

18%

-71%

125%

Campaign ROI

Each invested euro returns into50.000 contacts for each medium

6

“Each invested

euro

returns into”

2,4 €

0,3 €

1,2 €

7,7 €

Google

adwords

Bannering

(CPM)

Email

DM


The results: DM ROI is higher than other channels

x 7

x 25

x 3

http://www.clipartof.com/portfolio/beboy/illustration/gold-and-silver-1-euro-coin-with-a-partial-map-and-stars-26550.html

Cost per acquisition50.000 contacts for each medium

7

61 €

473 €

121 €

19 €

Google

adwords

Bannering

(CPM)

Email

DM


x 6

x 25

x 3

The results: Cost / acquisition is lower with DM

Contacts needed to acquire 1 customer

8

572

6.993

1.010

29

Google

adwords

Bannering

(CPM)

Email

DM


The results: budget to acquire 1 new

customer is lower with DM

x 35

x 245

x 20

Budget needed to acquire 1.000 customers

9

60.990 €

472.531 €

121.212 €

18.600 €

Google

Adwords

Bannering

(CPM)

Email

DM


x 7

x 25

x 3

The results: budget to acquire 1 new

customer is lower with DM

Key conclusion

• Don’ t look only at the cost / contact, considerthe full campaign sales ROI

• DM is proven to activate consumers on a more efficient way: better campaign ROI, response rate

• Combine online & offline approach to reinforcetheir mutual impact. A bannering campaignsupported by a DM action will generate betterresults

10

Direct Mail – 50.000 contacten E-mail – 50.000 contacten

11

Costs Costs

Cost per rented adress - € Cost per rented email-address - €

Stamp Tarif - DM EASY Small format (€ 0.44) Large format (€ 0,527) 0,440 €

Mailing cost (creation + printing + handling) 9.550,00 € Email creation + sending 5.000,00 €

LandingPage (creation) 1.000,00 € LandingPage (creation) 1.000,00 €

Fulfilment cost per order - € Fulfilment cost per order - €

Total campaigncost 32.550 € Total campaigncost 6.000 €

x 5,4

Revenues Revenues

Adresses 50.000 Adresses 50.000Response rate

Average: Response DM on external data is: 5,78%) 3,50%Unique openrate (IAB-benchmark: 20,58%)

30,00%

ClickTroughRate / openrate (IAB-benchmark: 5 %) 15,00%

Conversion /ClickTrough (IAB-benchmark 2,2%) 2,2%

Campaign result: total orders Campaign result: total orders

Adresses x Effective response rate 1.750,00 ((Adresses x openrate) x ClickTroughRate) x OrderRate 49,50

Average Ticketvalue 12 € Average Ticketvalue 12 €

Frequency per year 12 Frequency per year 12

Margin (Please leave blank if you don't know) 0% 1 Margin (Please leave blank if you don't know) 0% 1

Revenu 252.000 € Yearly Revenu 7.128 €

Campaigncost 32.550 € Campaigncost 6.000 €

Brut ROI 219.450 € Brut ROI 1.128 €


Belgian BtC case!Direct Mail versus E-mail

Costs Costs Costs Costs

Cost per rented adress - € Cost per rented email-address - € Cost per Impression (CPM) (on average 27 €) 27,00 € Cost Per Click (on average 0,75€) 0,75 €

Stamp Tarif - DM EASY Small format (€ 0.44) Large format (€ 0,527) 0,440 € 0,027

Mailing cost (creation + printing + handling) 9.550,00 € Email creation + sending 5.000,00 € LandingPage (creation) 1.000,00 € LandingPage (creation) 1.000,00 €

LandingPage (creation) 1.000,00 € LandingPage (creation) 1.000,00 € Banners (creation) 1.000,00 € Banners (creation) 1.000,00 €

Fulfilment cost per order - € Fulfilment cost per order - € Fulfilment cost per order 4,00 € Fulfilment cost per order 4,00 €

Total campaigncost 32.550 € Total campaigncost 6.000 € Total campaigncost 3.379 € Total campaigncost 5.327 €

x 9,6

Revenues Revenues Revenues Revenues

Adresses 50.000 Adresses 50.000 Impressies 50.000 Impressies 50.000Response rate


30,00%ClickTroughRate / impressions

(IAB & ComScore benchmarks 2010: CPM Average CTR 0,17%)

0,65% ClickTroughRate / impressions

Google Says Average AdWords CTR at 2%

7,94%

ClickTroughRate / openrate (IAB-benchmark: 5 %) 15,00% Conversion /ClickTrough (IAB-benchmark 2,2%) 2,2% Conversion /ClickTrough (IAB-benchmark) 2,2%


Campaign result: total orders Campaign result: total orders Campaign result: total orders Campaign result: total orders

Adresses x Effective response rate 1.750,00 ((Adresses x openrate) x ClickTroughRate) x OrderRate 49,50 (Impressions x ClickTroughRate) x OrderRate 7,15 (Impressions x ClickTroughRate) x OrderRate 87,34

Average Ticketvalue 12 € Average Ticketvalue 12 € Average Ticketvalue 12 € Average Ticketvalue 12 €

Frequency per year 12 Frequency per year 12 Frequency per year 12 Frequency per year 12

Margin (Please leave blank if you don't know) 0% 1 Margin (Please leave blank if you don't know) 0% 1 Margin (Please leave blank if you don't know) 0% 1 Margin (Please leave blank if you don't know) 0% 1

Revenu 252.000 € Yearly Revenu 7.128 € Yearly Revenu 1.030 € Yearly Revenu 12.577 €

Campaigncost 32.550 € Campaigncost 6.000 € Campaigncost 3.379 € Campaigncost 5.327 €

Brut ROI 219.450 € Brut ROI 1.128 € Brut ROI -2.349 € Brut ROI 7.250 €








x 9,6








7,94%











Direct Mail – 50.000 contacts Bannering – 50.000 contacts

Source : 2012 BtC - 50.000 contacts for each medium12

Belgian BtC case!Direct Mail versus Bannering








x 9,6








7,94%


















x 9,6








7,94%











webshop case roi

Business

biggest turnover

belgian btc

conversion

clicktroughrate

00clicktroughrate

average adwords

response dm

000response