The Challenge: Justifying marketing expenditures

Our client, Valor ConTemporary Services, was concerned about making an investment in marketing. Historically, they had relied on their sales force, and they were not sure about the value marketing would add.

The Solution: Commit to doing it right,
                      and measure the value of each customer.

• Despite their initial reservations about cost, Valor's CEO committed to developing a strong prospect database with over 600 contacts.
• Every response was carefully tracked and evaluated.
• New client conversions were then analyzed to determine how much revenue and gross margin they would produce over the next 12 months.

The Results: 205% ROI in less than 4 months!

Typically, relationship marketing takes 6 to 9 months to begin to produce results. However, after the third mailing, Valor received an order from a new customer for 13 regular temporaries--with the prospect of adding as many as 20 more people in the future!

The value of just this one client was astounding. Lets look at the math:

• 13 people x 40 hours per week x $7.80 per hour = $4,056 per week
• $4,056 x 52 weeks = $210,912 in Gross Revenue per year
• $210,912 x 17.5% Gross Margin = $36,909 in annual Gross Margin

In twelve months, this one new customer will be worth more than two times the total marketing investment for the entire year! And, the customer expects to add 17 more people in the coming weeks taking that ROI to 473%. Imagine what the lifetime value of this new customer could be.

And this wasn't the only customer Valor's marketing program produced!