Return on Investment

Return on Investment

delivering your message direct to the customer's hands

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All business decisions will include the bottom line as an important if not the deciding factor.

How can we quantify the effectiveness of a advert?

One way would be to look at the "Return on Investment" based on the costs of using the method.

This can be calculated simply as

ROI= £u x c% x £v

where

£u is the unit cost of an advert

c% is the conversion rate of the advert

£v is the amount a client will spend as a result of the advert

so...

SMS VIP Leaflet Drop

Advert £8.11 per 100
unit cost=£8.11/100
unit cost=£0.0811 £150 for 5000
unit cost=£150/5000
unit cost=£0.03

Response 30% 1%

Customer Spend £25 £25

ROI 0.0811 x 30% x £25
= 60.825 0.03 x 1% x £25
= 0.75

These figures are based on feed back from existing clients.

SMS VIP offers a vast superiority in terms of return on investment plus the initial outlay based on an average AGC outlet with a core of 100 players is about 5% of the leaflet drop.

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