WiFi Customer Acquisition Cost for Diner & Cafe Chains

How much does it cost to acquire a customer using our WiFi marketing platform Aislelabs Connect?

We explore the customer acquisition cost along with the return on investment over a five year period with this use case for diners and cafes. You can download the PDF and read along with this guide that explains it all.

Client’s Stores & Visitors

In this use case, we have a chain of 100 stores with 300 guests visiting each store per day. Of those, 5% connect to the guest WiFi at least once. That means the annual number of users acquired would be 547,500 and the total number of users acquired over five years would be 2,737,500. The cost per user acquisition is $0.237.

Total Cost of Ownership Over Five Years

Now we need to calculate how much the cost of ownership of the Aislelabs Connect platform would be. At $100 per store and a one-time hardware setup cost of $500 per store, the total cost over the 5 year timeframe is $650,000.

In-Store Purchase

In this use case, one email or social campaign for an in-store purchase is run each and every month. The campaigns’ average open rate is 15% with a conversion rate (ie. the percentage of users who visited the store after opening the email) of 2%. At an average purchase of $10 the estimated annual revenue of offline purchases is $985,500*.

Purchase Influenced by Positive Reviews

Along with running digital campaigns for in-store purchase, an ongoing campaign encouraging positive reviews is also run. With 1% of visitors viewing the positive review per year influencing 5% of new customers that viewed the review we reach an estimated annual review of $273,750* with an average purchase of $10 per customer.

Results

The time to break-even would be about 9 months with an approximate number of users acquired to be about 410,000. The estimated annual revenue is $1,259,250* with an estimated total revenue of $6,296,250 over five years giving you a return on investment (ROI) of 868.65%.

*After five years

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Aislelabs is the leading global provider of enterprise software for marketing automation, location analytics, predictive intelligence, and combining online and offline customer touchpoints. The company serves customers across verticals including retail, transportation, hospitality, venues, and F&B.

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