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Using the following funnel structure, assess the performance…

Using the following funnel structure, assess the performance efficiency of a current (Old) communications design versus a proposed (New) design: Target audiences are exposed to display ad (impression). Some people click on ad to arrive at landing page (click). On landing page, some people click to watch product performance video (video view). At the end of the video, viewers are asked to provide and confirm their email addresses to receive a “checklist” pdf. Some people leave confirmed email addresses (provide email). To those who have left a confirmed email address, the company sends an email asking them to call a phone number. Some people call the number (phone call). Salespeople are successful at times in getting some of the callers to buy the product (sale). Use a top-down approach with 100,000 impressions as your starting point.   The phone call sales pitch typically takes 20 minutes and costs the company approximately $7 per call (not counting any sales commissions).  After sales commissions and other expenses, each sale results in a margin of $400.  The company is currently using PPC (pay per click) at a cost of $0.09 per click. The conversion rates for each step in the funnel are: Old design and video                                       New design and video 3% click-to-impression ratio                35% click-to-impression ratio 35% video view rate                                  50% video view rate 20% provide email                                      40% provide email 5% phone call rate                                      20% phone call rate 20% sale rate                                                 2.5% sale rate IMPORTANT:  Before answering this question (Question 1), answer Questions 2 and 3.  Then return to this question to provide your final recommendations. Question 1:  Which design (OLD vs. NEW) would you recommend and what numbers support your decision? 

For the OLD design: 2a. If we start with 100,000 impressions…

For the OLD design: 2a. If we start with 100,000 impressions using the OLD design, how much would be spent on clicks? 2b. How much would be spent on phone calls? 2c. How much would be received from sales (before subtracting the costs of clicks and phone calls)? 2d. What would be the funnel “profit” after subtracting the funnel costs? 2e. What would be the return-on-sales percentage?