E-Commerce Marketing and Advertising Concepts
Use the above Online Consumer Purchasing Model and information provided to assess the effectiveness of an e-mail marketing campaign for a small-sized e-commerce company focused on sales of trendy apparel to the ages 18-26 young adult market in the United States.
For this e-mail marketing campaign:
The company purchased and used 100,000 e-mail addresses @ 25 cents cost per e-mail address.
The expected click-through rate is 15%
The conversion to customer rate is 10%
The loyal customer retention rate is 25% (for the purpose of this e-mail marketing campaign assume that a loyal customer makes two purchases).
The average sale is $60.00
The profit margin is 50%
Answer/Respond to the following:
1. Does this e-mail marketing campaign produce a profit? (Must show all work to support answer to receive credit).
2. Suggest some specific ways to increase the response rate to this e-mail marketing campaign.
3. Are e-mail marketing campaigns effective? If not, why not? If yes, why are they effective and which specific types of e-mail marketing campaigns are most effective?