1. RELATIONSHIP DATABASE MARKETING
Is it cost effective to develop a database of “qualified’ prospects and customers?
Let’s look at the value of one loyal customer to your travel agency.
1. How many times does an average customer purchase from you each year?
A =________________
2. Calculate the average amount of each transaction. B =____________________
3. One year customer value A x B = C $____________________
4. Five-year value. C x 5 = D $______________________
5. Average net to office D x average commission. If you sell preferred suppliers that
is usually 12%-13%
Now let’s compare the value of that customer to the cost of mailing just two of the
Vacation.com marketing materials to them via MailXpress.
Annual cost of participating in only 3 of our Engagement offers. These calculations
are based on your participation in Level 2 sending out 500 pieces. Level 2: Send us
your database for storage. We create, print, personalize and mail promotion piece.
$1.10 2 Engagement mailings at a cost of .55 for each mailing.
$1.62 2 Issues of Destinations:Vacation or Destinations:Cruise
$2.72 Total annual cost to communicate 4 times per year with your valued
customer when you use the All Inclusive Level 2 mail option!!!!!