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Sept. 18, 2024

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Attributing Marketing Expenses by Channel

Some marketers now measure and attribute the cost of labor, technology, and services to individual promotional channels.

The concept is simple. Many companies track only revenue from marketing channels without considering the expense of managing them. The result is often misleading bottom-line performance.

Channel Comparison

Imagine a business with two marketing channels, A and B, each costing $1,000. Both generate 3,000 interactions from potential customers. However, Channel A converts at 2.5%, while Channel B converts at 4%.

If both channels had a $75 average order value and a 25% gross profit margin, Channel A would produce $406 in profit, and Channel B would earn $1,250. Channel B is the clear winner when compared in this way.

Just about every business would take the $1,000 invested in Channel A and double down on Channel B. After all, Channel B produces about three times as much profit.

Read article > 

A Message from Plivo CX

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From the Archive: December 2006

Craigslist.com’s Craig Newmark

Craig Newmark is the founder of the intensely successful Craigslist.com. As far as he is concerned, less is more when it comes to website design and his business. Read article > 

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