This past weekend I got to go skiing for free. Yes for free. How you ask... All because of this great marketing program initiated by Volkswagen. Still not quite sure how I got to go skiing? Intrigued about what is so great about this Volkswagen marketing program that I am dedicating an entire blog post to it? Curious as to why I am calling this the best marketing idea I have seen yet this year? Click on this blog post and listen to the podcast to find out the entire story.
- it is always a good thing when you make your customers feel special
- wow your customers and they will talk about your company
- wow your customers and they will convince other people to buy your product
- wow your customers and they will be less likely to stop buying from you
- wow your customers and they will be more likely to buy more from you
- when you sell high ticket items or services you require much fewer sales transactions to break even on a marketing initiative meaning lower conversion rate activities can generate a healthy positive ROI
Sales & Marketing ROI Podcast: Episode 2
The Key Marketing Idea
Wow your customers by treating them special and treating them to special gifts and experiences.
The Break Even Of The Volkswagen Program
Even though I don't have the data to be able to calculate the ROI for this program I can calculate an estimated break even with some basic assumptions.
Components of the Volkswagen Blue Mountain Ski Day
Staff = 10 (2 parking attendants, 6 booth attendants/picture takers, 2 hill patrols)
Staff Outfits = 8 normal plus 2 hill patrols
Ticket Fulfillment = 3 hours of an employees time to send ticket confirmations
Tickets = 200 all day & night passes (estimated 200 skiers)
Blue Mountain Arrangements = 8 hours of a managers time
Booth = Large Volkswagen branded tent booth
Volkswagen Flag Markers = 30 flags
Give Away Items = 50 Hats, 50 Gloves, 50 Mints, 100 Zipper Tags, 100 Kleenex
Costs For Volkswagen Ski Day
Staff = $1,800 (10 employees x $15/hour x 12 hours)
Staff Outfits = $1,132 (8 x $80 + 2 x $200 (for skiing outfit for ski patrols) + 2 x $46 (for ski equipment rental)
Website = $10,000
Ticket Fulfillment = $45 (1 employees x $15/hour x 3 hours)
Tickets = $14,400 (200 x $72 from Blue Mountain assuming no discount given to Volkswagen)
Blue Mountain Arrangements = $320 (8 hours x $40/hour)
Booth = $5,000 (tent cost)
Volkswagen Flag Markers = $3,000 (30 x $100)
Give Away Items = $1,475 (50 Hats x $12, 50 Gloves $15, 50 Mints X $1, 100 Zipper Tags x $0.50, 100 Kleenex x $0.25
TOTAL COSTS = $37,172
Volkswagen profit per car = $1,744/car*
Program Cost = $37,172
Break Even = 21 Cars (that equals 10% of attendees of the event either need to buy a Volkswagen or convince someone to but a Volkswagen)
Break Even (If Scaled Back Program)
Volkswagen profit per car = $1,744/car (source: Calculated from Volkswagen 2012 annual report*)
Program Cost = $9,597 (negotiate tickets with Blue Mountain 25% of cost -$10,800, no booth tent -$5,000, no flag markers, except 2 for where the staff with congregate -$2,800, simplified website -$8,000, only give away mints but give people 3 of them each -$875)
Break Even = 6 Cars (that equals 3% of attendees of the event either need to buy a Volkswagen or convince someone to but a Volkswagen)
*896,000 vehicles sold in North America in 2012 with an operating profit of $221 Million Euros, +$629 Million Euros in fixed interest expense and +$196 Million Euros in fixed General & Administrative expenses. At an exchange rate of $1 Euro equaling $1.52 Canadian, that equates to $1,774.46 in profit per car sold in North America.
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My name is Chris R. Keller. I work at Profitworks Small Business Services helping various B2B small businesses in Waterloo and Kitchener Ontario generate new customers. Profitworks Small Business Services provides sales & marketing services which obtain new customers for our clients. We focuses specifically on actually tracking and reporting back to our clients on sales & marketing program ROI for the activities we execute. To learn more about Profitworks click here. Feel free to connect with me on Google+ or if you are just interested in getting new customers for your B2B small businesses enter your email in the box provided below and click the "Send Me Free Sales Insights" button.
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