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 Summary This 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 email It 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 1 Email 2 Email 3 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 Open Rate CTR Unsubscribe eDM1 40.1% 7.2% 0.02% eDM2 38.5% 6.5% 0.01% eDM3 32.0% 6.4% 45.2% 12.5% 44.1% 10.2% 40.2% 9.8% 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)

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 time Reviewing 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)

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