Data Measured Right: How To Maximize Your ROI
Unless you’re a seasoned professional, it can be difficult to turn data into an easy-to-read narrative. A proper analysis of what happened throughout the life of a campaign can give you essential knowledge and insight into what lead to positive ROI.
Earlier this week, Triangles celebrated National Coffee Day the only way we knew how: gathering data throughout a two week timeframe of our staff coffee consumption. The vast pool of data that we collected tracked a variety of variables that led to what we considered was a positive ROI. But was it? Let’s dive into the data from National Coffee Day and determine if it was a success.
Conveniently, Triangles is located in the heart of downtown Toronto – a place saturated with coffee shops. Naturally, every member of the TriTeam has their favourite coffee shop they frequent. The most popular destination was Tim Horton’s (17 meters away), with Starbucks (180 meters away) and McDonald’s (230 meters away) coming in second and third.
Much like an ad campaign, every audience that you’re targeting won’t respond exactly the same to a singular message. For example, those who prefer iced coffee will fail to respond to a campaign that promotes hot coffee, especially when you factor in geographical location. In order to cater to different demographics, interests, and locations, you need to change up the language and messaging for your campaign. By doing so, your message will speak to your consumer’s interests and increase your chance of a favourable ROI.
During data examination, analysts will dig deep to identify what didn’t work so changes can be made in the next campaign in order to maximize ROI. Coffee may get our blood pumping, but it’s analyzing data that remains the heart of Triangles. So, what could we have done differently? Let’s exclusively target the behavioural aspect of the TriTeam.
It’s no secret that certain behaviours influence consumers decisions. For example, those that sought out McDonald’s as their coffee destination spent $5.87 on iced coffee due to an ongoing promotion. If all iced coffee connoisseurs went to McDonald’s, they would save $2.89. On the other hand, those that visited McDonald’s spent a whopping (or Big Mac-ing) 100 minutes getting coffee. If they frequented Tim Horton’s, for example, their travel time would be cut down substantially, spending 75 less minutes on the hunt for caffeine. Each situation could have a positive influence on ROI.
We mentioned the top three places that the TriTeam visited to get their caffeine fix, but what if our entire team sought out Tim Horton’s due to convenience and one person was sent out for office coffee runs? When you look at the data, the average travel time for visiting Tim Horton’s was just under 5 ½ minutes. Hypothetically, if you add a minute or so for the extra cups and one person was sent on bi-daily runs, the total time spent getting coffee would go from 5 hours and 25 minutes to a solid hour – a substantial influence on ROI.
Now what about cup sizes? Let’s use Starbucks and Tim Horton’s as our example. A small at Tim Horton’s is 10 ounces and a medium comes in at 14 ounces. When it comes to Starbucks their Tall (small) and Grande (medium) sizes are two ounces more than Tim’s sizes. From a monetary standpoint, if those that got grandes at Starbucks, got mediums at Tim’s, they would save $5.96 and if those that got talls at Starbucks, got smalls are Tim’s, they would save $3.36.
But are they really saving money when you take into account the different ounces per each cup from each establishment? At Tim’s, a small costs $1.50 and at Starbucks a tall costs an average of $2.62 – resulting in $1.12 difference. At Starbucks, a grande will set you back an average of $3.20 and at Tim’s it’s only $2.01 – a $1.19 difference. Do those who visit Tim’s receive a positive ROI when you factor in the 6 ounce difference?
By sitting down and looking at your data through the right lens, you will be able to identify the exact findings you need in order to make the best recommendations possible for any future campaigns. When we strategically plan for campaigns, our decisions are driven by results. We analyze numbers and investigate consumer behaviors to capitalize on campaigns. It’s the only way you are able to earn your desired campaign results and a rich ROI.