ROI?

So what is “Return On Investment” & What Is A Customer Worth To Your Business?

What is a Return On Investment? If you invest $1.00 in advertising you want to return more than you spent (example you spend $100 for an ad and after the ad runs you determine you received $400 worth of sales you have an ROI but say the same $100 only returned you $75 you have a negative ROI).

What is a customer worth to your business? Let's use a restaurant for example. If you get a new couple into your restaurant, they like your food and service and become a repeat customer coming in to eat just one a month for dinner with an average bill of $35. This customer is worth $420 per year to your business. (once per month dinner $35 X 12 months).

So both the ROI & Customer Worth are intertwined? So let's say you are using one Adscapz beacon for advertising your restaurant this is how it may play out for you.

  • The beacon reaches 2/3th's of the people passing by per day
  • You have a foot traffic of say 500 people per day (people passing within range of the beacon)
  • Out of those 330 people receive your message
  • Of those people, if only 9 see your message (an average of 3% industry standard)
  • Out of that 9, just 1 couple responds every 3 days.
  • That would be 10 new customers per month.
  • In JUST that one month those 10 new customers each spent $35 per visit. That is $350 for the month.
  • Out of those 10, you get half (5) that become loyal customers coming in once per month. Those 5 new loyal customers that return once per month are worth $420 per year each or $2100
  • So to sum it up using an Adscapz Proximity Advertising Beacon you brought in 10 new customers for that month at $35 per visit equals $350 and 5 new repeat customers For Just $39 Per Month.

If you had these results every month would you say that your ROI was well worth the investment?

Each business is unique, the customer, the amount a customer spends, the number of visits per month/year are all different.

Adscapz is not in the business of just placing proximity marketing beacons everywhere we will work with you to determine if our program is a cost-effective and the right fit for your business. Contact us today for a free analysis.