Reference no: EM131323893
(E-commerce) Use the Online Consumer Purchasing Model, Figure 6.11 in Chapter 6, to assess the effectiveness of an e-mail campaign at a small website devoted to the sales of apparel to the young adult market (ages 18–26) in the United States. Assume a marketing campaign of 100,000 e-mails (at $0.25 per e-mail address). The expected click-through rate is 5%, the customer conversion rate is 10%, and the loyal customer retention rate is 25%. The average sale is $60, and the profit margin is 50% (the cost of the goods is $30). Does the campaign produce a profit? what would you advise doing to increase the number of purchases and loyal customers? what web design factors? What communications messages? Please answer all questions :)
Assume the Business started the marketing campaign by purchasing a database of 100,000 e-mails (at $0.25 per e-mail address). The expected click-through rate is 5%, the conversion to customer rate is 10%, and the loyal customer retention rate is 25%. The average sale is $60, the profit margin is 50%, and the cost of the goods is $30/unit.
Does the campaign produce a Profit? (Note that gross revenue x profit margin of 50%= gross profit; gross profit – cost of goods sold = Profit or Loss).
What would you advise this online business do to increase the number of purchases and loyal customers?
What Web Design factors would you incorporate to keep customers keep coming back and to increase traffic?
What communications messages would you convey to current customers?
What communications messages would you convey to potential customers?
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