Center for Advanced Management




Prof. Koen H. Pauwels (Dartmouth College)


  • Datum: 30.04.2010
    Zeit: 14:00 - 15:00
    Ort: E004, Kaulbachstr. 45, EG

Marketing’s Profit Impact: Quantifying Online and Offline Funnel Progression

Inofec, an SME in the business-to-business sector, desired a more analytic approach to allocate marketing resources across communication activities and channels. We developed a conceptual framework and econometric model to empirically investigate (1) the marketing communication effects on offline and online purchase funnel metrics and (2) the magnitude and timing of the profit impact of firm-initiated and customer-initiated contacts. We find evidence of many cross-channel effects, in particular offline marketing effects on online funnel metrics and online funnel metrics on offline purchases. Moreover, marketing communication activities directly affected both early and later purchase funnel stages (website visits, online and offline information and quote requests). Finally, we find that online customer-initiated contacts have substantially higher profit impact than offline firm-initiated contacts. Shifting marketing budgets towards these activities in a field experiment, yielded net profit increases fourteen times larger than those for the status-quo allocation.