Performance Marketing for Outfitters and Guides, Adventure Travel Marketing, Ecotourism Marketing

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PERFORMANCE MARKETING™

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PERFORMANCE TRACKING™

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Performance Tracking™

Easy to use and track your marketing results
Manage your account and easily track your marketing results with our advanced Performance Tracking™ system and calculate your sales conversions and ROI (return on investment) performance. You simply log-in to a friendly web based interface and run the reports for the date ranges that you need - your report shows real-time data. An easy to fill in form calculates your results. Your marketing campaign management, monthly reports and regular daily reports data is automatically tracked and you can check it at any time when you log-in to your Performance Tracking™ account.

Know Your Web Site's Conversion Rate

What percentage of unique visitors to your web site actually make a purchase? For instance, a web site that makes 1 sale for every 100 visitors has a conversion rate of 1%.

Although the quality of visitors you get from OUTDOORTRIPS.INFO may be higher than what you normally get through other marketing means, knowing your CR (conversion rate) will give you a "baseline" to help determine your ROI (return on investment - one time sale). What is your average sale? Lets say it is $200. You spent $20 to get a return of $200 that's' a 10 to 1 return on your advertising investment. (The minimum acceptable return is 2 to 1)

EXAMPLE:
Let's say your conversion rate is 1%. Based on this, you need 100 clicks on your link to make 1 sale. That's an investment of 20 cents/click or $20. Figure out whether or not your profit margin is sufficiently high enough to justify the cost. If so, are you willing to spend even more to get your link displayed longer in the search results and possibly generate more clicks and sales? Will the additional sales justify the extra cost?

Cost of Acquiring a New Customer

TOTAL LIFE VALUE:
What did it cost you to get that new customer? What you are calculating is the cost of acquiring a "new" customer. Once you have that new customer how many times will he/she come back? What is their TLV (total life value), how many times will they spend $200 as an example, in the future?

THE CLIENT VALUE FORMULA:

$200

40%

$80

$160

6 years

$960

Average Sale

GPM
gross profit margin

Profit per Sale

Sales per year

Profit per year

Client Life

Total Value of Client

Acquiring 1 customer cost you $20 and your TLV (Total Life Value) return will be $960. Your ROI (return on Investment) is 48 to 1 TLV. Now that's awesome value!

FORMULAS FOR INVESTING IN MARKETING TO ACQUIRE NEW CUSTOMERS

For start-ups & young growing companies with little or no customers ... there is no formula. Because whatever % you come up with would be meaningless. i.e. 5% of nothing = nothing. Even with successful established companies, this varies greatly ... but there are formulas.

There are industries that spend only 3% of revenue to generate clients (but they tend to be well established, have lots of customers and old fashioned.) I know other industries that spend 25-30% of Revenues back on marketing ... and also are very established, but have a low COGS (Cost of Goods Sold) and a high GPM (gross profit margin) (Beer, Soda, Paper Towels, Tissue, etc.)

The "norm" most companies work from is the "8-10-12% Rule" for established companies, which means:

Reinvest 8% of "gross profits" (not revenue) into marketing for marginal growth
10% for average growth
12% for aggressive growth

You only pay if you get RESULTS.

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Advantages to Web Site Owners | Tips for Boosting Your Marketing Success

Performance Tracking™ is a ServiceMark of OutdoorTrips.Info