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Return on Investment (example)

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 reached we would question the viability of our strategy continuing.. In this example case a 100% ROI = 6 sales

Web Traffic Target
We know that it 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 do we determine the right online marketing mix to ensure this traffic, is what we are expert at.

Can the 'internet' supply the necessary traffic?

You might be interested in actual client case study

 

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