ELDORADO STONE Measuring Marketing ROI
Eldorado, a manufacturer of construction veneer products, was investing several million dollars annually in a consumer advertising program nationally. Management wanted to understand the effectiveness of the program, and the ability of the program to generate an acceptable Return On Investment.
GeoStrategies’ plan was to reach out to Eldorado prospects who had responded with either a phone call called or a brochure request to a marketing advertisement. The goal was to determine how many of those leads had resulted in the purchase of Eldorado Stone, and how much revenue was generated as a result of the marketing program. We were also tasked to understand how long the buying cycle was from the time a lead was generated until the time that the lead had acted to make a purchase.
We began by assembling a list of leads that had been generated over the previous four years. We were interested in leads that had included at least their email address, but most importantly, those that had also included their phone number. We developed a survey to ask them the following critical questions:
- Did you decide to purchase stone?
- If so:
- when did you purchase?
- what was the brand you purchased?
- how much did you purchase?
As an incentive to respond, we entered anyone who participated into a contest where several iPads would be given away in a drawing.
The GeoStrategies team began by making a customer service phone call on behalf of Eldorado to every lead that had included their phone number. We asked them if they had received the information they requested, and if they had any additional questions. We then asked them this critical question: “Did you decide to make a stone purchase for your project?” From the answer to this alone, we were able to estimate the closure rate on lead generation program for the company. We then asked the individual if we could email them a short survey to learn more about how we could better serve them. Included in this survey were the additional critical questions to help us estimate amount of stone purchased, date purchased, and satisfaction levels.
In total, our team attempted to survey 13,000 leads. We conducted 1,600 short interviews via phone, and an additional 11,400 leads were sent an electronic survey link via email. At the conclusion, our study had collected responses from 2,000 individuals.
THE FINAL RESULTS
We were able to estimate the actual return on investment for every dollar spent on advertising, the lag time between the generation of a lead and a sale, the regions of the country where marketing was most effective, and the satisfaction levels that customers had from their experience with both Eldorado’s products, and Eldorado’s dealers.
For more information this case study, or on how your organization can estimate the return on investment for your company’s marketing program, contact GeoStrategies at (800) 738-4GEO
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