By: Alexia Phipps, Strategic Client Partner at Jebbit
CPGs, Telecomm, retail, auto, and beauty are just a few of the industries launching quizzes or gamified experiences to their consumers today. Quiz Commerce is an effective way to collect first-party, declared data at scale and increase consumer engagement in a conversational way.
Many brands, however, have different challenges they are aiming to solve, and therefore a different approach to measuring the impact of their quiz strategy.
Many CPG brands are investing in interactive quizzes to drive direct consumer engagement, consideration and audience insights. Maybe the eCommerce brand is looking to accelerate lead capture, and optimize the on-site experience with a “Product Finder” that recommends products and drives conversion.
The reason brands are investing in a quiz strategy often comes down to one of 3 primary reasons:
Now that we know WHY brands are investing in quiz strategies, let’s look at HOW they’re doing it!
For many brands, a Quiz Strategy is a new endeavor and showing immediate value and making the case for the investment isn’t as intuitive as highlighting a mere metric like the CPC or CPA from your paid social ads.
Is your team short on instincts?
Are you looking to make a big impact with little resources?
If so, then take a sigh of relief knowing that your brand can create and launch a full quiz strategy in practically no time! Plus, we took it upon ourselves to help you calculate ROI with a simple equation consisting of three parts: leads, data points and direct & incremental revenue.
A simple strategy + guaranteed results? Sign us up!
Let us start by breaking down these components.
A lead is an email address you’ve captured explicitly from a consumer. If you’re including a lead-capture field in your quiz, you’ll be able to view the number of leads (email addresses) collected.
Your company likely also has a sense for how valuable a new lead is to the business, which can range anywhere from $1 to $250 depending on your industry. You’ll need to know the number of leads you’ve collected from your quiz and the monetary value of a lead to calculate ROI.
Direct and incremental revenue is as simple as it sounds.
Direct revenue is the sales amount driven from a quiz that recommends a product that a consumer then purchased in the moment. Think: you get matched with a moisturizer to buy, immediately add it to cart and check-out (I did this on Honest Company’s site just last week!).
Incremental revenue is the sales amount driven from a quiz recommendation that a customer later goes back to purchase, maybe hours, days or weeks after they initially get matched with the product. This is an especially important metric for high consideration purchases, from cars to strollers and most things in-between.
**PRO TIP: We recommend taking a look at the consumers who took the quiz and purchased with at least a 30 or 60-day lookback window accounted for.
And finally we have 1st party data point, what we at Jebbit call an “attribute.”
This is the explicitly provided data point that you gained from a customer directly through quiz responses and forms. Often this refers to the lifestyle, psychographic, intent-based data that you have no other way of acquiring unless you ask for it (it can’t be scraped from the internet or purchased with confidence through a third party).
In Jebbit terminology, attributes are the value pairs that you will assign to the questions and responses in your experience that are most important to your data strategy and retargeting plans.
This data is what fuels brands’ marketing strategies and drastically improves efficiency. If you multiply the # of attributes you’ve collected times the value of those attributes, you will see just how much the data you’ve acquired is worth to your company (hint: it’s also more accurate and cost effective than purchasing it directly from research firms).
First things first.
Before you start to calculate your ROI or get too in the weeds too early, here are some key indicators we recommend you keep an eye out for before you break out the calculator.
Once you see these leading indicators, your brand can take those as a green light that now is a good time to start calculating the ROI of your investment.
Now the moment you’ve all been waiting for…
Here is the step-by-step, best-practice equation to measure the ROI on your quiz or gamification strategy:
(Monetary Value of a Lead x # of Leads Collected) + Direct & Incremental Revenue Driven + (Monetary Value of a 1st party data point x # of data points collected)
Divide the number you end up with over the cost of your Jebbit SaaS license
The Final Result:
The number you end with is X times of ROI you made on your investment.
On average, Jebbit clients see anywhere from 7x to 50x return on their investment.
To increase your chances of incredible results, consider the following 3 tips:
So there you have it!
Thanks for taking some time to learn how to calculate the ROI on your quiz or gamification strategies. Check out these quiz strategy examples from some of our wonderful clients!
Interested in learning more? If you need help with this equation or have questions, contact a Jebbit representative to learn more!