At the center of this aspect of the program is the measurement of activity at the upper and lower phases or segments of the sales funnel. Typically promotional spending and advertising budgets are found to increase upper funnel performance, and over time contribute to sales leads being created and eventually sales made to customers. The $500,000 then must be highly effective to push $2M in business through a funnel that becomes narrower by each process step it is comprised of. My main question would be how the sales funnels' inherent nature to narrow down prospects to suspects to new customers is going to be effective enough, on a $500K investment, to yield $2M in sales....
The answer I suspect to hear would be a highly targeted campaign specifically focused on one very loyal, very quickly purchasing, very price insensitive group of customers - in short the core customer base of the company.
The bottom line is that for $500K in spending to increase sales by $2M, there needs to be highly efficient, highly targeted, and well measured performance metrics in place to make sure the goal is attained.
References
Retail Pricing (2006) - Retail Pricing: The Optimization Story Expands. Michael Barret and Janet Suleski. Thursday September 7, 2006.
Accessed from the Internet on August 21,…
