Knowing which advertising sources yield the best results is crucial for maximizing your Return On Ad Spend (ROAS). This use-case lets you look at various advertising sources, analyzing their effectiveness based on average ticket, conversion rate, and sales opportunities.
The data used to compile this report has been collected over 15 years and includes more than 40 billion observations. The variables we used in this report include Be Back (visited prior), Customer Referral, Walk-in, Mobile Ads, Online Advertising, Online Reviews, TV, and Website.
Here’s a summary of the following use-case on advertising effectiveness in the mattress industry:
- Mobile Ads generate the highest average ticket but have a low volume of opportunities.
- Online Reviews balance a high average ticket with a strong conversion rate.
- Walk-ins provide the highest volume of opportunities but have the lowest conversion rate.
- Be Back (visited prior) and Customer Referral both have excellent conversion rates with substantial average tickets, making them highly effective overall despite the lower volume of opportunities.
Overview
Behind every successful mattress sale lies a story—and behind every story lies key metrics that drive success of a modern mattress retailer, including:
- Average Ticket: The average revenue generated per transaction.
- Conversion Rate: The percentage of opportunities that result in a sale.
- Opportunities: The total number of potential sales interactions.
This is how you can understand the effectiveness of different advertising sources, to gain not just insights into marketing effectiveness, but a deeper appreciation for how customers connect with your brand at different touchpoints along their path to better sleep.
Analysis
Your key metrics tell the story of how your business is performing and how to improve it at every opportunity. Here’s what our research says…
Average Ticket
Every sale tells a story, but some stories come with bigger price tags than others. This has to do with your teams’ ability to connect with clients, understand their problem, and satisfy their needs. But, it all begins with marketing that takes getting clients into your store from a guessing game into a strategic investment with measurable returns.
The data reveals significant differences in average ticket, with mobile ads driving the highest average ticket at nearly $2,800, while website visitors tend to purchase at lower price points (approximately $950). Interestingly, customers from online reviews and TV advertising also make substantial purchases, averaging over $2,300 and $2,150 respectively.
The average ticket provides insight into the revenue potential of each source per transaction.
- Mobile Ads: $2,755.55
- Online Reviews: $2,345.61
- TV: $2,151.99
- Customer Referral: $2,016.54
- Be Back (visited prior): $1,778.67
- Walk-in: $1,637.44
- Online Advertising: $1,652.00
- Website: $956.03
Highest Average Ticket: Mobile Ads
Conversion Rate
Conversion rate is more than a statistic; It is evidence of human connections forming and strengthening through different touchpoints in your customers’ journey.
Trust lies at the heart of these numbers. Consider the power of a personal recommendation—when a friend raves about how their new mattress transformed their sleep, that testimony carries weight no advertisement can match. The data confirms this, with “Be Back” visitors and customer referrals showing the highest conversion rates at nearly 80%. Customers who return after a previous visit have already built a relationship with your store; they’ve had time to sleep on their decision (sometimes literally) and come back with purpose.
The conversion rate indicates the efficiency of turning opportunities into sales.
- Be Back (visited prior): 80%
- Customer Referral: 80%
- TV: 78%
- Website: 78%
- Online Reviews: 71%
- Online Advertising: 59%
- Mobile Ads: 58%
- Walk-in: 47%
Highest Conversion Rate: Be Back (visited prior) and Customer Referral
Foot Traffic
It all boils down to a single source of truth: How many people are in your store?
High-volume channels cast a wide net, bringing awareness to your brand. Most visitors to your website are just beginning their research journey. “Be Back” visitors represent your highest opportunity channel, accounting for nearly 40% of all potential sales interactions, with website traffic following as your second strongest source.
Customer referrals generate fewer opportunities but represent a pre-qualified lead—someone who arrives with confidence based on trusted advice. The balance between these two dynamics has the potential to drive more foot traffic to your business.
Opportunities reflect the volume of potential sales interactions.
- Website: 123
- Be Back (visited prior): 154
- Customer Referral: 43
- Online Advertising: 31
- Online Reviews: 20
- TV: 8
- Mobile Ads: 6
Highest Opportunities: Be-Back
Combined Effectiveness
To determine the overall effectiveness of your advertising, we consider the relationship between average ticket, conversion rate, and the volume of opportunities. This holistic view helps identify which marketing source offers the best results.
Be Back (visited prior)
- Average Ticket: $1,778.67
- Conversion Rate: 80%
- Opportunities: 154
Customer Referral
- Average Ticket: $2,016.54
- Conversion Rate: 80%
- Opportunities: 43
Walk-in
- Average Ticket: $1,637.44
- Conversion Rate: 47%
- Opportunities: 160
Mobile Ads
- Average Ticket: $2,755.55
- Conversion Rate: 58%
- Opportunities: 6
Online Advertising
- Average Ticket: $1,652.00
- Conversion Rate: 59%
- Opportunities: 31
Online Reviews
- Average Ticket: $2,345.61
- Conversion Rate: 71%
- Opportunities: 20
TV
- Average Ticket: $2,151.99
- Conversion Rate: 78%
- Opportunities: 8
Website
- Average Ticket: $956.03
- Conversion Rate: 78%
- Opportunities: 123
Conclusion
The story of your business is about maximizing effectiveness through a diversified marketing strategy. Investing in Customer Referrals and Be Back (visited prior) while enhancing the walk-in experience and leveraging online reviews, can increase conversion rates and maximize ticket values. This balanced approach can optimize overall performance and enhance the customer experience so your customers tell th
About Trakwell
At Trakwell.ai, we understand how difficult it is for brick-and-mortar businesses to maximize every sales opportunity. This is why we offer real-world AI computer vision to analyze your foot traffic, improve your teams, and make more sales.
Most systems merely count foot traffic. Trakwell connects your foot traffic to every part of your business to track the entire customer journey; including advertising, in-store experience, sales results, and follow up tools that keep customers coming back.
