How much does it cost to acquire a customer using our WiFi marketing platform Aislelabs Connect?
We explore the customer acquisition cost along with the return on investment over a five year period with this use case for clothing retailers. You can download the PDF and read along with this guide that explains it all.
Client’s Stores & Visitors
In this use case, we have a chain of 100 stores with 400 guests visiting each store per day. Of those, 1% connect to the guest WiFi at least once. That means the annual number of users acquired would be 146,000 and the total number of users acquired over five years would be 730,000. The cost per user acquisition is $0.890.
Total Cost of Ownership Over Five Years
Now we need to calculate how much the cost of ownership of the Aislelabs Connect platform would be. At $100 per store and a one-time hardware setup cost of $500 per store, the total cost over the 5 year timeframe is $650,000.
Online Purchases
In this use case, 5 email/social campaign run each and every month. The campaigns’ average open rate is 1% with a conversion rate (ie. the percentage of users who shopped online after opening the email) of 1%. At an average purchase of $50 the estimated annual revenue of offline purchases is $219,000*.
In-Store Purchases
In this use case, 1 email or social campaign for an in-store purchase is run each and every month. The campaigns’ average open rate is 15% with a conversion rate (ie. the percentage of users who visited the store after opening the email) of 1%. At an average purchase of $50 the estimated annual revenue of offline purchases is $657,000*.
Purchase Influenced by Positive Reviews
Along with running digital campaigns for in-store purchase, an ongoing campaign encouraging positive reviews is also run. With 1% of visitors viewing the positive review per year influencing 0.5% of new customers that viewed the review we reach an estimated annual review of $182,500* with an average purchase of $50 per customer.
Results
The time to break-even would be about 11 months with an approximate number of users acquired to be about 125,000. The estimated annual revenue is $1,058,500* with an estimated total revenue of $5,292,500 over five years giving you a return on investment (ROI) of 714.23%.
