For marketers, driving people to places where they can make a purchase is one of the most important goals. Whether this is driving people to a sales page online, or to a physical store offline, it is good to know how much it will cost to successfully bring people where they need to go. Cuebiq recently released a study called, “Footfall Attribution Benchmarks Report” that looked at how much companies were spending to get each new customer into their store. This specifically looked at digital marketing to drive people into physical offline stores.
To measure this information, the first thing to look at was what percentage of people are actually interacting with different marketing options, and then coming into a store. The overall ‘view rates’ for web advertising was 3.09%, in-app mobile marketing was 4.21%, and using both together was 4.03%.
Of course, these rates varied greatly depending on what type of business category was being advertised. Convenience stores had the highest rate at 6.97%. The lowest converting category was automobiles at .73%.
From this information, the report looked at the cost per incremental visit for each category. This is essentially the amount of money spent on marketing that would predictably drive one customer into the store. Many factors go into this including how much advertising costs for specific categories, and available ad spots on quality platforms.
The most expensive category was retail locations, which cost $54.51 per customer. Given that retail doesn’t always have the highest profit margins anyway, it is hard to see how using this type of marketing would be effective unless they are really looking at the long term ROI from a new loyal customer.
Home appliances cost $52.29, which is a little more reasonable given the higher price points. Automobiles may have had the lowest rate at which customers actually come into the store, but they have a much more reasonable cost per customer at $36.64. Given the fact that a dealership can make hundreds, or thousands, of dollars on an auto sale, this is a great deal.
The lowest cost categories were convenience stores at $1.81, financial services at $4.48, and electronics stores at $8.70.
Whether you’re a marketer looking to drive customers to a specific type of business, or a business owner looking to bring in new customers, having this type of information can be very beneficial to improving your bottom line. The full report can be found HERE.