1 / 15

Conversion Rates in the Biz-Café Marketing Machine

Conversion Rates in the Biz-Café Marketing Machine. Ted Mitchell. You have decisions to make about. The amount of input to use for each of the four P’s The amount of Each Four P’s being used will impact the amount of Output from the Marketing machine

todd-rosa
Download Presentation

Conversion Rates in the Biz-Café Marketing Machine

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Conversion Rates in the Biz-Café Marketing Machine Ted Mitchell

  2. You have decisions to make about • The amount of input to use for each of the four P’s • The amount of Each Four P’s being used will impact the amount of Output from the Marketing machine • You take advantage of the ‘Groundhog Day’ decisions and change only one input at a time while you monitor the effect on an output(s) • You can track multiple outputs being impacted by change in a single input

  3. Tracking Single Output With a Single Input, I

  4. Remember • The Two-Factor Marketing machine is a very SIMPLE model of a machine • It only considers one output from one input at any one time • It assumes the other controllable and uncontrollable inputs are held constant • We will graduate to multi-factor machines

  5. Tracking A Single Output With a Single Input, I

  6. Tracking Multiple Outputs With a Single Input, I EACH OF THE COLUMNS REPRESENTS A SIMPLE TWO-FACTOR MARKETING MACHINE

  7. Tracking Multiple Outputs With a Single Input, I EACH OF THE COLUMNS HAS A CALCULATED CONVERSION RATE

  8. There are many Different Weekly Outputs to Track • Amount of Customer Awareness • Level of Customer Satisfaction • Quantity of Cups Sold • Dollars of Revenues Generated • Average Revenue from a transaction • Dollars of Profit From a Single Cup (unit profit) • Dollars of Gross Profit • Dollars of Marketing Profit • Dollars of Net Income

  9. There are Many different types of marketing Inputs to explore • Price Tag Size • Types of promotion & communication • $ Cost of promotions & communications • Number of Radio Spots • Amount of General Awareness Advertising • Number of servers each week • $ Cost of Servers each week • Product Quality, Coffee, server training, Wi-Fi • Expanded product Line, Pastry, Entertainment • Number of Hours the Café is Open • Number of Managers

  10. If you wish see what happens with • Other Biz-Machine Inputs such as • Price Tag Size • Number of Radio Spots • Amount of General Awareness Promotion • Product Quality • Number of Hours the Café is Open • You need a new Input-Conversion Rate Record

  11. Tracking Multiple Outputs With a chosen amount of 90 Hours of Store Operations EACH OF THE COLUMNS HAS A Chosen Input and an Observed Output

  12. Tracking Multiple Outputs With a Hours of Store Operations EACH OF THE COLUMNS HAS A CALCULATED CONVERSION RATE

  13. Tracking Multiple Outputs With a Hours of Store Operations EACH OF THE COLUMNS Is the performance of a Two-Factor marketing machine

  14. Tracking Multiple Outputs With TotalServer Wages of Store Operations EACH OF THE COLUMNS Is the performance of a Two-Factor marketing machine

  15. Any Questions? • About the conversion rates you will find in the Simple Two-factor Marketing Machines for Biz-café? • Conversion rate are very popular metrics for describing marketing performance • Marketing Return on Sales • Marketing Return on Marketing Investment • Sales per day • Click-Through Rates • Markups and markdowns • They are used and Abused Big-Time!

More Related