1. Data & Insights

Evaluating Advertising Effectiveness in the Mattress Industry

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In the competitive mattress industry, understanding which advertising sources yield the best results is crucial for maximizing return on investment (ROI). This use-case examines various advertising sources, analyzing their effectiveness based on average ticket, conversion rate, and opportunities. The sources evaluated include Be Back (visited prior), Customer Referral, Walk-in, Mobile Ads, Online Advertising, Online Reviews, TV, and Website.

Data Overview 

The provided data consists of three key metrics for each advertising source:

  1. Average Ticket: The average revenue generated per transaction.
  2. Conversion Rate: The percentage of opportunities that result in a sale.
  3. Opportunities: The total number of potential sales interactions.

Analysis

Average Ticket

The average ticket provides insight into the revenue potential of each source per transaction.

  • Mobile Ads: $2,755.55
  • Online Reviews: $2,345.61
  • TV: $2,151.99
  • Customer Referral: $2,016.54
  • Be Back (visited prior): $1,778.67
  • Walk-in: $1,637.44
  • Online Advertising: $1,652.00
  • Website: $956.03

Highest Average Ticket: Mobile Ads

Conversion Rate

The conversion rate indicates the efficiency of turning opportunities into sales.

  • Be Back (visited prior): 80%
  • Customer Referral: 80%
  • TV: 78%
  • Website: 78%
  • Online Reviews: 71%
  • Online Advertising: 59%
  • Mobile Ads: 58%
  • Walk-in: 47%

Highest Conversion Rate: Be Back (visited prior) and Customer Referral

Monthly Foot Traffic

Opportunities reflect the volume of potential sales interactions.

  • Website: 123
  • Be Back (visited prior): 154
  • Customer Referral: 43
  • Online Advertising: 31
  • Online Reviews: 20
  • TV: 8
  • Mobile Ads: 6

Highest Opportunities: Be-Back

Combined Effectiveness

To determine the overall effectiveness, we consider the interaction between average ticket, conversion rate, and the volume of opportunities. This holistic view helps identify which source offers the best balance of revenue potential, efficiency, and volume.

Be Back (visited prior)

  • Average Ticket: $1,778.67
  • Conversion Rate: 80%
  • Opportunities: 154

Customer Referral

  • Average Ticket: $2,016.54
  • Conversion Rate: 80%
  • Opportunities: 43

Walk-in

  • Average Ticket: $1,637.44
  • Conversion Rate: 47%
  • Opportunities: 160

Mobile Ads

  • Average Ticket: $2,755.55
  • Conversion Rate: 58%
  • Opportunities: 6

Online Advertising

  • Average Ticket: $1,652.00
  • Conversion Rate: 59%
  • Opportunities: 31

Online Reviews

  • Average Ticket: $2,345.61
  • Conversion Rate: 71%
  • Opportunities: 20

TV

  • Average Ticket: $2,151.99
  • Conversion Rate: 78%
  • Opportunities: 8

Website

  • Average Ticket: $956.03
  • Conversion Rate: 78%
  • Opportunities: 123

Conclusion

Based on the analysis, each advertising source has its strengths and weaknesses:

  • Mobile Ads generate the highest average ticket but have a low volume of opportunities.
  • Online Reviews balance a high average ticket with a strong conversion rate.
  • Walk-ins provide the highest volume of opportunities but have the lowest conversion rate.
  • Be Back (visited prior) and Customer Referral both have excellent conversion rates with substantial average tickets, making them highly effective overall despite the lower volume of opportunities.

Recommendation:

To maximize effectiveness, a diversified strategy is advisable. Investing in Customer Referrals and Be Back (visited prior) can yield high conversion rates and substantial average tickets. Simultaneously, enhancing the walk-in experience and leveraging online reviews can capture high volume and maintain high ticket value. This balanced approach can optimize overall performance in the mattress industry.



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About Trakwell

Trakwell.ai is a retail analytic software that utilizes AI-vision so businesses can see their foot traffic, improve their teams, and automate their data.  

At Trakwell.ai, we understand how difficult it is for brick-and-mortar businesses to maximize every sales opportunity. This is why we offer real-world AI computer vision to analyze foot traffic, improve teams, and automate data. 

Most systems merely count foot traffic and provide the data. We connect foot traffic analytics to every part of a business to track the entire customer journey; including advertising, in-store experience, sales results, and follow up tools that keep customers coming back. 

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