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Peraffic Traffic Trial

Ongoing Campaign

Lead Management


Peraffic Online Marketing Campaign

An endless stream of cost-effective leads.



After the Traffic Trial...


Once your Peraffic Traffic Trial is completed, youíll need to make TWO choices:


  1. Choose your monthly campaign budget
  2. Choose your target cost per enquiry


Usually, itís pretty obvious what the budget should be, based on the data from the trial. Hereís a graph to illustrate the point:


(click to see a larger image)



The area marked A shows the free enquiries, when no ads are running; letís say (in this example) thatís about 4 enquiries per month. Obviously the cost per enquiry is $0, so this is a safe investment.


Area B is where you run ads, but the budget is too low, and thatís seriously limiting enquires; this produces comparatively expensive enquiries (in this example, up to $40-45 per enquiry).


In area C, things are improving; each additional $100 is bringing in another 3-5 enquiries, so the cost-per-enquiry falls.


Area D is the sweet spot, where you get lots of enquiries, at the lowest cost per enquiry.


In area E, your campaign is now limited by traffic; increasing the budget has only a minimal effect on enquiries, and the cost-per-enquiry rises again.



1. Choosing your monthly campaign budget


In reality, we donít produce such a pretty graph. Nevertheless, the answer is usually obvious, based on your margins and conversion rates...


In the above example, if the average margin generated per sale was $400, and you closed 1/4 of the enquiries, then each enquiry is worth about $100 to you. So, youíd set the budget in Area E, because the cost-per-enquiry is still acceptable; you want every possible enquiry.


If the sales were less reliable or less valuable though, youíd aim for Area D, to reduce your acquisition cost, minimise your risk and maximise your returns.


And if the average margin per enquiry didnít justify Area D (so in this case, if you could not confidently harvest $35 per enquiry), then you would cut the budget to $0 and just get the free enquiries.


Every 9 months, you should manipulate the budget again, to get a feel for the current traffic levels. So even if you set a $0 budget, you might spend $1,000 every 9th month, just to check; if traffic has risen, you might be able to establish a profitable budget and increase your sales.



2. Choosing your target cost per enquiry


Cheaper is better, right?


Nope. If your goal is to maximise your Gross Profit $$, then cheaper is not always better... if $100 per enquiry x 100 enquiries gets you 30 sales with average GP of $2,000 per sale, then you're spending $10,000 (advertising $$) and making $60,000 (gross profit $$). A good return.


But if you drop your budget to achieve a lower cost of $80 per enquiry, and that only generates 50 enquiries and 15 sales, then you've spent less on advertising ($4,000) but made far less GP ($30,000). That's a higher PERCENTAGE profit but a lower ACTUAL profit.


Now obviously, the best answer is to lower the cost per enquiry WITHOUT lowering the number of enquiries.


Your Peraffic Consultant will discuss this with you, with support from the technical team. The idea is to evaluate the cost-effectiveness of applying a tuning programme as part of your monthly budget.


A tuning programme applies the Peraffic 27 Step Process (spread over 3-4 months) to your campaign. It costs a little extra (usually $1,000 per month for 3-4 months) and has a very specific goal: to halve your cost per enquiry.


How do we do it? Actually it's very systematic, but it'll take a lot more than one or two pages to explain... click here to read more about this process.


Should you do it?


If, and only if, halving the cost per enquiry makes commercial sense, based on the return you are getting and your GP$ per sale.



An endless stream of cost-effective leads


If you are speaking with a Peraffic Consultant right now (reviewing your Traffic Trial results), they will assist you in setting the budget for your Ongoing Campaign, and help you to decide if you should invest in reducing your cost per enquiry.


To speak with a Peraffic Consultant, click here to book a consultation!




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