Difficulties in defining the indicator. It seems simple: we insert the values into the formula, calculate, and if the DRR is less than 100%, then the advertising is effective.
Difficulties in defining the overseas data indicator . However, many do not take into account how long the transaction lasts. If you are promoting sushi delivery or another “quick purchase”, then there are no problems. But if your products are expensive, then the buyer decides to buy longer than the campaign lasts. And this must be taken into account in the calculation.
For example, advertising lasts for one month (March)
During this time, managers receive 15 requests. 5 of which immiately buy the product, and the remaining ten move further along the sales funnel. 5 of them close the deal only in April, and another 5 in May. With a regular calculation does this persistence of the complexity not risk of the DRR. We would only take into account the income. And expenses for March and miss out on about 70% of the profit receiv thanks to the advertising campaign. With full coverage of all values, the indicator would be higher.
Thus, if the sales cycle is long, then you ne to either show advertising during the entire period of the consumer’s movement along the sales funnel, or view the path of all requests that came from advertising, and calculate the DRR after the time has elaps.
Another point that is often miss
When determining the DRR is the profit receiv during the placement of advertising. When assessing outdoor, radio or TV advertising, it will not be possible to assess this indicator, but with digital promotion the situation is different.
When analyzing online india number list channels, you should only consider the profit receiv from advertising, which will allow you to get accurate results.
This can be important if there were eight transactions during the advertising campaign, but all the buyers came from recommendations of friends.
Then it turns out that advertising was pointless and unprofitable. Although if you substitute all the income receiv from the incoming clients into the formula, it may seem that this is not the case. In general, when calculating the DRR, you ne to consider where the applications come from and whether advertising affects this.
