If you are in a room filled with 100 qualified prospects ready to buy, how much would you spend to get each customer?
It’s amazing how many times we sit down with a new client and ask that question…and there is nothing. Crickets.
People often get taken aback because we have met with them to talk about promotional products. And let’s be honest, the majority of people who think about promotional products do not think about them in the sense of getting an actual return.
It’s merely buy some pens and hand them out. With the hope that they remember you when it is time to buy what you are offering. Click here to learn what we think about HOPE being a valid strategy! Because Hope is Not a F*&$%#@ Strategy!
However, a promotional products campaign is no different than any other marketing campaign. It can be used in so many areas of an organization’s marketing efforts to simply start a conversation.
Before you start that conversation though, you need to establish goals. To intelligently establish a goal, or anything else for a successful promotional campaign, you need to first understand your sales numbers. Without knowing your numbers, ROO and ROI will be irrelevant.
Some questions that need answers:
- What is your dollar average amount per order/sale/contract?
- What is your gross profit margin?
- How much does it cost you to get a new customer?
- How long is your average sales cycle?
Assumption for this example:
If your average sale = $1,000 @ 30% GPM = $300 Gross Profit.
If it’s me, I would spend up to $50 on each of the 100 people to earn their business.
100 customers x $50 = $5,000 budget
100 customers x $1000/customer = $100,000 in Gross Sales…HELLO!
If you start with the numbers, you will almost always be happy with the promotional products campaign you run.
To check YOUR ROO/ROI #’s, click here to use our online, Tradeshow Bait Calculator
To get a full step by step process on How To Use Promotional Products To Get An ROI download our guide.