Page 5: Evaluating promotion
The overall aim of all Portakabin promotional campaigns is to generate enquiries and sales. Portakabin sets a target of how many enquiries it wants to achieve for each campaign. It can then measure responses to assess whether the campaign has been a good investment.
- Portakabinrecords the number of enquires during and after a campaign. This is known as the response rate. Each campaign has a code, so it is possible to identify which campaign generated each response.
- The number of enquires together with the number of orders they generate tells Portakabin whether the campaign has given a good return on investment (ROI).
This is calculated by:
For example, if Portakabin spends £15,000 on a promotional campaign that generates £45,000 worth of orders, the return on investment would be:
Before each new campaign, Portakabin looks back at the effectiveness of previous promotions to help it decide which type of campaigns give the best return on investment.