El Camino budget evaluation template

Task 1 – Email Marketing Campaign – spend $33,000. Conversion has a value of $174 per booking.
1. El Camino has a mailing list of 3000 contacts. The conversion rate for monthly direct marketing campaigns is 15%. That is to say, that when an email campaign goes out to the contact
list, 15% of the recipients respond by making a booking. How many bookings can be expected from these figures?
3000 x 0.15 = 450 bookings

2. Multiply the expected number of bookings by $174 to calculate the expected revenue.

450 bookings x 174,00 = $78300

3. Using the formula ROI = (Revenue from Email Marketing Campaign – Cost of Email Marketing Campaign)/Cost of the Email Marketing Campaign, calculate the ROI of this campaign.

($78300 - $33000)/$33000 = 1.37 (ROI)

4. Express the ROI as a percentage.

1.37 x 100 = 137%

5. Will this ROI meet the target of at least doubling the initial spend, as requested by the accountant?

The goal will be met. The 137% ROI shows that the initial spent was doubled.

Task 2.1 – Social Media Campaign – spend $13,500. Conversion has a value of $174.

The business achieves 33,000 web visitors a month. 20% of those visitors come from the social channels. How many bookings can be expected if the conversion rate from the social
channels is 3.5%?

33000 x 20% = 6600 visitors from social media

6600 x 3.5 % = 231 bookings

Task 2.2 – Social Media Campaign - ROI

Using the formula ROI = (Revenue from Social Media Campaign – Cost of Social Media Campaign)/Cost of Social Media Campaign, calculate the anticipated ROI and express it as a
percentage.

expected revenue = numbers of bookings x average booking value

231 bookings x $174 = $40194
ROI (revenue - cost)/cost = ($40194 - $13500) / $13500 = 1.97
ROI in percentage = 1.97 x 100 = 197%
El Camino budget evaluation template
Task 3 – Risk and Contingency – Direct Email Marketing Campaign

Describe the risk associated with the estimated ROI for the email marketing campaigns in the early months of campaigning.

The risk could be the company might not achieve the 197% ROI due to human error. The company would have less people
clicking on adds, therefore less bookings and ultimately less pro t.

Using the template below, write an email to the budget holders and finance staff. Your goal is to prepare them for variances to the budget projections for the upcoming
campaigns in February and March based on January’s results. Your Marketing Manager’s concern about the conversion rate estimation was correct. You need to
communicate this in order to manage expectations for the direct email marketing campaigns for February, March and into the next quarter.
Recommend improvements to the existing budget should they wish to make changes to it.
TO: Budged holders and nance staff
FROM: Thais Oliveira
SUBJECT: Why there are variances and how to address them

Good evening, team members and stakeholder

So as you may know, we are about to experience variances in our budget projections for the months of february and march
based on our january outcome. Due to the high email bounce back rate that we had we are going to focus on a new strategy
for the company or we might not be able to achieve our goal. I suspect this could've happened because of errors in the email
addresses so a good start would be to contact the clientes and double check their addresses. We should also invest on our
marketing strategies if we want a better outcome for the following months. We can come up with a new ad to attract new
customers and some sort of promotion that would interest the customers we already have.

I can't wait to hear your ideas.

Best regards,
Thais Oliveira