Understanding your customer is absolutely key to driving growth in digital.
Here’s how a lot of my conversations start……
RETAILER: “Kelly, can you help us drive more traffic and sales?”
ME: “Of course who is your customer?”
RETAILER: “Everyone from 18 – 65……..
ME: ️️️ Sigh….. 🥲
Let me show you the math….
$100 spend on Facebook Ads per day
Targeting 18 – 65, all genders (21 million people)
Average clicks to site = 500
Average conversion rate at 0.5% = 2.5 sales per day
Average Basket Size = $60
Average return on ad spend (ROAS) = $150
For every $1 you spend you are getting a $1.50 return (take out all your costs, product costs, staff, and digital it means you are probably not breaking even!). Knowing your customer will reduce the cost of acquisition. Drive more customers both into store and online, who are more likely to buy!