1. ROI Report – an example
Based on sample data

2. 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 campaigns and online advertising, using
a promotional incentive to encourage purchases.

3. 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

4. The 5 minute review

5. Campaigns to date 1st campaign 3 emails + landing page
Win an iPhone or PS3 (10 of each)
2nd campaign
3 s + landing page)
Win an iPad every day (running for 6 weeks)

6. Sales results to date 1st campaign revenue
£318,978 for £60,000 investment (5.32:1 ROI)
1 = £159,902
2 = £108,512
3 = £ 50,564
2nd campaign (3 s + landing page)
£544,993 for £40,000 investment (13.62:1 ROI)
1 = £239,919
2 = £219,114
3 = £85,959

7. Sales impact of each email
It can be seen from the graph below that each had a large impact on sales.
The impact declined over a sequence of 3 s for each campaign. 1 2 1 2 3 3

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

9. 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 – 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)

10. Conclusions The campaigns did not erode normal sales revenue
Response rates declined over each campaign – sending more than 3 s would be expected to yield lower response to 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

11. A Deeper Analysis

12. 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 people to drive sales up?
ROI – a qualitative understanding, why is it increasing?

13. Responses by country

14. A/B Testing: Promo vs. No Promo item
A/B test was run on campaign 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
Marketing fact: Promos items are effective as a tactic to increase response rates

15. 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 in the sequence of 3 the
ROI drops significantly (due to lower impact of message from repeat sends).

16. Report Summary
Increased ROI from Campaign 1 to Campaign 2 – resulting from higher response rates and reduced execution costs
response rate over campaign period reduces – more than 3 s for each campaign would be unadvisable
UK response was higher than FR or DE regions, but overall campaign behaviour is very similar – so 3 s 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 s)

17. Thank you