How to Calculate Cross Marketing Effectiveness
Posted: Wed Jan 29, 2025 9:36 am
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When calculating the budget for a cross-marketing campaign, try to take into account all costs without exception, including fixed cost items for the organization's operating activities. The staff involved in the promotions will not be able to perform their standard volume of work.
The budget must include:
Expenses for prizes (material or monetary) for consumers.
Salaries of employees (both office and BTL).
Costs of producing promotional materials (from printed to electronic).
Transport and logistics costs.
Identity costs.
Other expense items that will be optometrist accurate email list entailed by the campaign.
Many Russian entrepreneurs make one fatal mistake: they do not make calculations when planning cross-marketing activities and when assessing the effect of them. Without clear figures, statistics and calculations, your budget will be wasted, because after the campaign you will not have accurate information about the effectiveness of certain tools.
The budget for cross-marketing promotions is calculated using the following formulas:
ROMI (Return on Marketing Investment)
ROMI = (D – R)/R
D – income from cross-marketing promotion.
P – costs. The action is inefficient if the ratio is equal to or less.
Stock Rating
R = Cha/Ch*100%
Cha – the number of checks for the promotion,
Ч – total number of checks. A high percentage of checks indicates that the promotion was organized correctly.
Cost of attracting (returning) a client
RV = W/H
З – expenses per share,
Cha is the total amount of receipts. It should exceed expenses, and the more significant, the better.
Performance compared to the period without promotions
E = (Pa – Pb)/Pb
Pa – profit during the promotion,
Pb – profit in the control period when there were no promotions.
When Cross-Marketing Is Not Necessary for Companies
For all its versatility, cross-marketing is not a “magic button” that will instantly promote a brand and increase sales. It also has limitations. When choosing a partner and planning events, keep in mind that cross-marketing is useless in the following cases:
When products compete with each other: two cars of different brands, two phones or multicookers of different manufacturers, etc. The consumer will buy only one of them, there is no need for them to promote together.
Target audiences from different social groups. For someone who can afford to buy a BMW i8, even a Louis Vuitton travel bag does not seem like an expensive accessory. Which cannot be said about the owner of, for example, a Lada Kalina.
The target audiences do not coincide in principle. It is stupid and pointless to offer a jig as a gift to ladies choosing lipstick.
The products are not related. There is no point in promoting a saucepan along with hair shampoo, although both are used mainly by women. They would be more interested in a conditioner or styling spray.
Thus, cross-marketing events open up the opportunity to offer an existing product to a new target audience and find customers among those people who would otherwise never have heard of your brand. And if you approach the matter creatively and discard stereotypes, you can find forms of communication that will help to further expand the customer base of both partners.
In a guaranteed volume
Read more
When calculating the budget for a cross-marketing campaign, try to take into account all costs without exception, including fixed cost items for the organization's operating activities. The staff involved in the promotions will not be able to perform their standard volume of work.
The budget must include:
Expenses for prizes (material or monetary) for consumers.
Salaries of employees (both office and BTL).
Costs of producing promotional materials (from printed to electronic).
Transport and logistics costs.
Identity costs.
Other expense items that will be optometrist accurate email list entailed by the campaign.
Many Russian entrepreneurs make one fatal mistake: they do not make calculations when planning cross-marketing activities and when assessing the effect of them. Without clear figures, statistics and calculations, your budget will be wasted, because after the campaign you will not have accurate information about the effectiveness of certain tools.
The budget for cross-marketing promotions is calculated using the following formulas:
ROMI (Return on Marketing Investment)
ROMI = (D – R)/R
D – income from cross-marketing promotion.
P – costs. The action is inefficient if the ratio is equal to or less.
Stock Rating
R = Cha/Ch*100%
Cha – the number of checks for the promotion,
Ч – total number of checks. A high percentage of checks indicates that the promotion was organized correctly.
Cost of attracting (returning) a client
RV = W/H
З – expenses per share,
Cha is the total amount of receipts. It should exceed expenses, and the more significant, the better.
Performance compared to the period without promotions
E = (Pa – Pb)/Pb
Pa – profit during the promotion,
Pb – profit in the control period when there were no promotions.
When Cross-Marketing Is Not Necessary for Companies
For all its versatility, cross-marketing is not a “magic button” that will instantly promote a brand and increase sales. It also has limitations. When choosing a partner and planning events, keep in mind that cross-marketing is useless in the following cases:
When products compete with each other: two cars of different brands, two phones or multicookers of different manufacturers, etc. The consumer will buy only one of them, there is no need for them to promote together.
Target audiences from different social groups. For someone who can afford to buy a BMW i8, even a Louis Vuitton travel bag does not seem like an expensive accessory. Which cannot be said about the owner of, for example, a Lada Kalina.
The target audiences do not coincide in principle. It is stupid and pointless to offer a jig as a gift to ladies choosing lipstick.
The products are not related. There is no point in promoting a saucepan along with hair shampoo, although both are used mainly by women. They would be more interested in a conditioner or styling spray.
Thus, cross-marketing events open up the opportunity to offer an existing product to a new target audience and find customers among those people who would otherwise never have heard of your brand. And if you approach the matter creatively and discard stereotypes, you can find forms of communication that will help to further expand the customer base of both partners.