June 08, 2017

Marketing Tactics Make A Difference, Too

Yesterday, we figured out that the Merchandising Team discontinued existing items back in 2014, and then stopped the ramp-up of new items in late 2016, making it hard to grow the top-line.

Marketing created some problems as well.

I have three images for your viewing pleasure. Let's start with demand from search, on a rolling twelve-month basis.

This is your classic "we have a budget and the search vendor takes care of things for us" graph, don't you think? The trajectory of the graph hasn't changed for eighteen months.

This is the online channel - after removing the impact of search and email from online sales.

Oh oh.

For two years, demand generated online is in decline. 

When a business is "sick" it is common to see more and more demand (as a share of total) is generated by marketing channels. When a business is "healthy" it is common to see more and more demand (as a share of total) generated without attribution - customers simply love the merchandise and they buy the merchandise.

What does email marketing look like?

By mid-2015, somebody yelled at poor email marketing manager, and she came through with a significant increase in demand.

One might infer that there is a problem with the website ... this is where the digital marketing folks need to apply their craft. Maybe there is something to be fixed/improved. Maybe the lack of existing winning items dissuades customers from buying online. Regardless, the topics can be easily researched, identified, analyzed, and acted upon, right?

Profit per New Customer

It's common for folks to measure cost per new customer. Total Marketing Cost = $10,000. Total New Customers = 130. Cost per New C...