Contribution and Causation
If you take all your vendor reports and add up all the sales each of them contributed to, it would be more than the actual number of sales you obtained. Most marketing efforts don’t cause a sale, they contribute to a sale, and many of those efforts overlap on the same sale. That’s okay, it simply means those wild claims of 1,000% ROI are nothing more than wild claims. Say you add a homepage popup coupon for a $25.00 gift card with a test drive. That effort brings in 100 leads at a cost of $2500 for gift cards and $900 for the program, $3400. Of those leads, 17 became sales. That may seem like it’s bring in sales at $200 per sale, but what was the cost to get those shoppers to the website? And how many of those 17 buyers would have purchased even without the gift card? The program contributed to 100 leads which resulted in 17 sales, but it didn’t cause 17 sales, and that’s a fact.