Quantitative Analysis: 1 page memo

Memo

To: James MacIntyre, DP Solutions, Director of Sales

Cc: Daniel Price, Regional Sales Manager

From: Natalie Lebron, Business Advisor

Date: October 31, 2018

Subject: Target Digital Only Customers to Increase Sales

DP Solutions customers are trending toward digital only advertisements. Print ads help reach a larger audience for less. I recommend that we encourage combining digital with print advertisements. We will increase annual revenue by $3,300 per customer.

DP Solutions connects local businesses with customers. We are an industry leader in advertising solutions. A solution that combines print and digital advertising should be our goal. This will help create an advantage against digital only marketing competitors.

My team gathered annual data from 1,719 companies. We recorded the number of leads generated from digital versus digital and print. The results are provided in Table 1. The variance analysis is based on the average cost per lead. The highest customer return came from digital and print combined.

Average cost breakdown per lead:

· Digital only: $30.59

· Digital and print: $24.38

· Average customer savings: $6.21

I recommend we:

· Upsell digital only customers to include print by showing a $6.21 savings per lead.

· Spend $100K on advertising to target digital only competition. Show savings to customer of combining print and digital advertising.

Customers who purchase a digital and print advertising solution will on average increase their leads by 200 per year. By upselling digital only customers to include print, we will increase annual revenue by $3,300 per customer.

Natalie Lebron