Example
Website Promotion Cost: Client is paying Benedict £750 per month
Product Profit: Client's average sale value (RRP) is £400
Profit = RRP - cost (£400 / 2.5) = £240
Return on Marketing Spend
One sale is worth £240 gross profit to a client
Website Promotion Cost: £750 pcm
Break Even = £750 / (Y x £120)
Y = 3 sales per month
100% ROI
A 100% ROI is often set as a target for new clients, as it is a simple
memorable figure for all involved to be aware of, and if it is not reach
we would question the viability of our strategy continuing. In this
example case a 100% ROI = 6 sales
Web Traffic Target
We know that is takes 400 unique visitors to a website to generate one sale. We would set a target of 3500 visitors to a client's website, for a client to see a return of 100%. How exactly we determine the right online marketing mix to ensure this traffic is what KnM are expert at.
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