Evaluation of the effectiveness of advertising campaigns

[subornaakter20]

A very important point is to give a correct assessment of the actions taken, to understand whether they were effective enough and whether there is any point in repeating them.

What needs to be calculated? How much profit did each product unit bring during the promotion period (calculate it yourself or have an accountant do it). Compare the resulting figures insurance leads for seniors with the same indicators, but before the marketing activities. This is where it will become clear whether the advertising campaign was really profitable.

Sales figures are also important. Compare what they were before the promotion started and what they were at the time of the promotion. Did you really start selling more as a result of the promotional activities, and if so, by how much? This way you can be sure that your actions are correct.

When calculating the final cost of sales, do not forget to subtract the amounts that went towards prizes and discounts (if any).

Let us give some examples of calculations for clarity.

Example 1

The store sells costume jewelry and is holding a promotion whereby anyone who buys five pairs of earrings (300 rubles each) receives a ring as a gift (it costs 100 rubles).

A week passed, during which 10 people took advantage of the offer. That is, earrings were sold for 15,000 rubles, and rings were given away for 1,000 rubles. Thus, the margin was about 14,000 rubles, and the sales volume increased by eight pairs of earrings.

The figures clearly demonstrate the effectiveness of the event.

Example 2

Let's look at the calculation of tasting.

Let's say, for example, pizza is presented for tasting. It is cut into pieces, and the cost of each is 17.3 rubles, and the cost is 20 rubles. The event is designed for two days (each day the tasting will last 2.5 hours).

Let's say, for example, you are going to attract 20 clients to participate. Then you will need 20 pieces of pizza, a tray on which they will lie (approximately 200 rubles), napkins (approximately 30 rubles). Thus, you will have to spend about 575 rubles on organizing the event.

Now divide your expenses by your margin and find out how much pizza you need to sell to break even. You need to sell 21.3 slices to at least break even.

Then the so-called rule of information spreading comes into force, according to which each participant who ate a portion of pizza will tell his friends about it. In total, you will get 180 buyers. How many more will come later and how much pizza will be sold as a result is difficult to predict. But at the tasting stage, it is clear that this advertising campaign may turn out to be unprofitable.

A well-planned promotional event will boost sales, which means it will increase profits. Try to think through everything to the smallest detail, study the market situation and the needs of your potential client, delve into the sales process, and do nothing at random.

A deep, comprehensive analysis of the situation will guarantee the success of the planned marketing event.

Delve into it, study it, calculate each step, evaluate the results. Then you will see which promotion methods work most effectively.