Strategy

  • Figures Lie, Liars Figure and Marketing ROI

    Posted August 16, 2010 By in Strategy With | No Comments

    Recently sat through  a social media presentation and  got an earful on the success of the Old Spice campaign.

    Since the campaign launched, Old Spice Bodywash sales are up 27%; in the last three months up 55%; and in the last month up 107%  (Source: We Are Social at http://bit.ly/aK7kaD)

    I have also sat through countless presentations from a variety of people in a broad array of industries and have heard all about huge percentage increases on sales.

    Just remember that when sales go from 1 unit to 10, it’s a 900% increase (though some will report a 1,000% increase).  And the next question to ask is “How much did you spend to generate those sales?” followed by “What was the gross profit on those sales?”

    The reason?  When you spend [ex] $1 million to generate $2 million in revenue, people get excited and forget that with 20% gross profit margins, you really spent $1 million to generate $200,000.

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    patmcgraw
    Pat McGraw founded [mcgraw | marketing] in 1999 in order to provide growth-oriented small businesses with hands-on services that increase sales and marketing performance. In addition to offering coaching, consulting and interim executive solutions to businesses, Pat has taught business and marketing courses at several colleges and universities and is a frequent speaker at conferences around the country.

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