The cost-per-visit model is something that has been talked about for many years by marketers as the holy grail of marketing models. Numerous companies have attempted to implement this model (most notably Google) but none have done so successfully.
I want to quickly attempt to explain why this model is such a big deal (especially for small, local businesses).
Paid advertising in general (and why small businesses don’t use it)
If you own or manage a local business, there’s no doubt that you do (or did at one point) some sort of paid marketing with the ultimate goal of hopefully driving more traffic into your business.
To determine whether any paid marketing efforts were successful or not is pretty straightforward: you simply add up the total cost of the marketing expense and hope that’s it less than the total amount of profit generated from new customers as a result of said marketing effort.
Pretty straightforward, right?
Well, here’s the problem when it comes to any form of paid marketing for local business:
This is why most small, local businesses actually don’t invest in any form of paid marketing even though it could greatly help grow their business. These businesses simply don’t have the cash flow necessary to justify the risk.
Cost-per-visit model (and why it’s so powerful)
The cost-per-visit model fixes both of the issues that have previously prevented small businesses from utilizing paid marketing to grow their business.
With the cost-per-visit model, you only pay if and when a customer actually visits your business as a result of that marketing effort. Not only that, but as the business owner, you actually set your own price (i.e. how much you’re willing to pay for each new customer visit).
With cost-per-visit, there’s no upfront cost, it’s completely risk free, and can be tailored based on each business’s average customer spend.
Also, the cost-per-visit model is completely measurable (it has to be in order to work).
This model is literally a marketer’s dream as it allows a business to spend exactly what it can afford to acquire a new customer with no risk or upfront cost at all.