Use the Online Consumer Purchasing Model (Figure 6.11 below) to assess the effectiveness of an e-mail campaign at a small Web site devoted to the sales of apparel to the ages 18–26 young adult market in the United States. Assume a marketing campaign of 100,000 e-mails (at 25 cents per e-mail address). The expected click-through rate is 5%, the customer conversion rate is 10%, and the loyal customer retention rate is 25%. The average sale is $60, and the profit margin is 50% (the cost of the goods is $30).
- Create a spreadsheet model for your numerical answer AND THEN
- Respond to the following questions in a Word document:
· Does the campaign produce a profit?
· What would you advise doing to increase the number of purchases and loyal customers?
· What Web design factors would you use to keep customers coming back and increase traffic?
· What communications messages would you convey to current and potential customers?