As a marketer, you’re most likely on the eternal quest to increase your return on ad spend. However, it can be challenging to know exactly how to do that, and you may be facing a myriad of options and new strategies to try.
What if you could ground your campaign results in a real-world metric, which indisputably shows how your campaign performed? Well, incremental store visits do just that. They illustrate whether your campaign was effective in driving new visitors to store or not, so you can optimize your campaign accordingly. Let’s dive into how that works.
Decrease Your Cost Per Incremental Visit
Incremental store visits show whether your marketing activations actually changed consumer behavior or not. You can see not only whether your campaign drove consumers to store, but whether your campaign drove new visitors to your store.
With incrementality, you can also access another important metric: cost per incremental visit. This metric is powerful, as it allows you to understand exactly how much you need to spend on advertising in order to bring one new customer into your store. Ideally, you want to reduce this cost as much as possible, while still driving that customer to store.
For example, let’s say you’re a retail marketer looking to understand how your holiday campaign performed. You can look to incremental store visits to understand whether the campaign actually drove the new visitors you targeted into your store. If the campaign did not drive that many new visitors, then you would have a relatively high CPIV. In other words, you would have to spend a lot in order to drive one incremental visit. So the question is, how do you reduce your CPIV, so you can optimize your campaign?
Increase Your Return on Ad Spend
To decrease your CPIV, there are a number of actions you can take, all with the goal of making your campaign more effective. You can change the channel your media is running on, switch out one creative for another, adjust your frequency of audience targeting, change the time/day of targeting, and much more. All of these are actions you can take once you understand what’s performing and what’s not, in terms of driving consumers into your stores.
Let’s consider the retail example again. Say you see that a certain creative in your holiday campaign did not perform as well as the rest in terms of driving incremental store visits. You can switch that out for another, and if it winds up driving more new visits, then you have successfully decreased your CPIV.
In decreasing your CPIV, you by default increase your ROAS. After all, spending less money on a campaign to achieve the same results means you have increased your overall return on investment. At the end of the day, it’s all about maximizing campaign efficiency so you can increase your ROAS.
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