B2B Marketing Help - Can You Grow Your Business By Using This One Simple Marketing Idea?
This past weekend I got to go skiing for free. Yes for free. How you ask... All because of this great marketing program initiated by Volkswagen. Still not quite sure how I got to go skiing? Intrigued about what is so great about this Volkswagen marketing program that I am dedicating an entire blog post to it? Curious as to why I am calling this the best marketing idea I have seen yet this year? Click on this blog post and listen to the podcast to find out the entire story.
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Executive Summary
- it is always a good thing when you make your customers feel special
- wow your customers and they will talk about your company
- wow your customers and they will convince other people to buy your product
- wow your customers and they will be less likely to stop buying from you
- wow your customers and they will be more likely to buy more from you
- when you sell high ticket items or services you require much fewer sales transactions to break even on a marketing initiative meaning lower conversion rate activities can generate a healthy positive ROI
Sales & Marketing ROI Podcast: Episode 3
The Key Marketing Idea
Wow your customers by treating them special and treating them to special gifts and experiences.
Listen to the podcast now and learn more.
The Break Even Of The Volkswagen Program
Even though I don't have the data to be able to calculate the ROI for this program I can calculate an estimated break even with some basic assumptions.
Components of the Volkswagen Blue Mountain Ski Day
Staff = 10 (2 parking attendants, 6 booth attendants/picture takers, 2 hill patrols)
Staff Outfits = 8 normal plus 2 hill patrols
Website = https://www.volkswagenplus.ca/en/benefits/ski-2for1
Ticket Fulfillment = 3 hours of an employees time to send ticket confirmations
Tickets = 200 all day & night passes (estimated 200 skiers)
Blue Mountain Arrangements = 8 hours of a managers time
Booth = Large Volkswagen branded tent booth
Volkswagen Flag Markers = 30 flags
Give Away Items = 50 Hats, 50 Gloves, 50 Mints, 100 Zipper Tags, 100 Kleenex
Costs For Volkswagen Ski Day
Staff = $1,800 (10 employees x $15/hour x 12 hours)
Staff Outfits = $1,132 (8 x $80 + 2 x $200 (for skiing outfit for ski patrols) + 2 x $46 (for ski equipment rental)
Website = $10,000
Ticket Fulfillment = $45 (1 employees x $15/hour x 3 hours)
Tickets = $14,400 (200 x $72 from Blue Mountain assuming no discount given to Volkswagen)
Blue Mountain Arrangements = $320 (8 hours x $40/hour)
Booth = $5,000 (tent cost)
Volkswagen Flag Markers = $3,000 (30 x $100)
Give Away Items = $1,475 (50 Hats x $12, 50 Gloves $15, 50 Mints X $1, 100 Zipper Tags x $0.50, 100 Kleenex x $0.25
TOTAL COSTS = $37,172
Break Even
Volkswagen profit per car = $1,744/car*
Program Cost = $37,172
Break Even = 21 Cars (that equals 10% of attendees of the event either need to buy a Volkswagen or convince someone to but a Volkswagen)
Break Even (If Scaled Back Program)
Volkswagen profit per car = $1,744/car (source: Calculated from Volkswagen 2012 annual report*)
Program Cost = $9,597 (negotiate tickets with Blue Mountain 25% of cost -$10,800, no booth tent -$5,000, no flag markers, except 2 for where the staff with congregate -$2,800, simplified website -$8,000, only give away mints but give people 3 of them each -$875)
Break Even = 6 Cars (that equals 3% of attendees of the event either need to buy a Volkswagen or convince someone to but a Volkswagen)
*896,000 vehicles sold in North America in 2012 with an operating profit of $221 Million Euros, +$629 Million Euros in fixed interest expense and +$196 Million Euros in fixed General & Administrative expenses. At an exchange rate of $1 Euro equaling $1.52 Canadian, that equates to $1,774.46 in profit per car sold in North America.
Listen to the podcast now and learn more.
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My name is Chris R. Keller. I work at Profitworks Small Business Services helping various B2B small businesses in Waterloo and Kitchener Ontario generate new customers. Profitworks Small Business Services provides sales & marketing services which obtain new customers for our clients. We focuses specifically on actually tracking and reporting back to our clients on sales & marketing program ROI for the activities we execute. To learn more about Profitworks click here. Feel free to connect with me on Google+ or if you are just interested in getting new customers for your B2B small businesses enter your email in the box provided below and click the "Send Me Free Sales Insights" button.
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