0 6 Module: Marketing ROI / Problem Set ID: 1098 Sandy's Trap Real Estate specializes in properties for sale around a new golf community development along the north coast. Each month, they receive 790 leads from a golfing magazine which are divided among the realtors who then follow-up with a phone call to qualify the leads and offer the prospect a free round of golf if they will attend a sales presentation. Approximately 40% of the original magazine leads qualify and agree to the sales presentation. Of those who attend the sales presentation, 6% percent ultimately decide to purchase a timeshare. Sandy knew that the average timeshare price was $15,900 and the total commission rate was set at 6% of which the salesperson receives 3% and Sandy's company receives 3%. CALCULATED VARIABLES: Sandy's wife and top salesperson, Sandra, suggested to Sandy that they could increase their successful close rate by 10 percentage points if they offered a golf weekend which would include an overnight stay and two meals instead of just a free round of golf. If the additional cost to Sandy for the weekend averaged $150 / lead, what would be the total additional cost of this new sales approach presuming no change in the number of leads received or the qualifying %. MROI = 0.813 (81.3%) newcontrib = $13,126 contrib = $9,063 timeshares = 19 0 dollars PS2 1 2 3 4 5 6 7 SUBMIT ANSWER EXIT 0 6 Module: Marketing ROI / Problem Set ID: 1098 Sandy's Trap Real Estate specializes in properties for sale around a new golf community development along the north coast. Each month, they receive 790 leads from a golfing magazine which are divided among the realtors who then follow-up with a phone call to qualify the leads and offer the prospect a free round of golf if they will attend a sales presentation. Approximately 40% of the original magazine leads qualify and agree to the sales presentation. Of those who attend the sales presentation, 6% percent ultimately decide to purchase a timeshare. Sandy knew that the average timeshare price was $15,900 and the total commission rate was set at 6% of which the salesperson receives 3% and Sandy's company receives 3%. CALCULATED VARIABLES: Sandy's wife and top salesperson, Sandra, suggested to Sandy that they could increase their successful close rate by 10 percentage points if they offered a golf weekend which would include an overnight stay and two meals instead of just a free round of golf. If the additional cost to Sandy for the weekend averaged $150 / lead, what would be the total additional cost of this new sales approach presuming no change in the number of leads received or the qualifying %. MROI = 0.813 (81.3%) newcontrib = $13,126 contrib = $9,063 timeshares = 19 0 dollars PS2 1 2 3 4 5 6 7 SUBMIT ANSWER EXIT