Green Travel Plan Advice

A Green Travel Plan should deliver economic, practical and easy to manage measures both now and in the future. The majority of individuals that usually require a green travel plan are commercial developers and businesses. A plan should typically be:

  • economic to implement ‘day one’
  • cost effective for future management
  • include practical, well thought out measures that work

What’s the difference between Green and Workplace travel plans?

A Green Travel Plan (also typically known as a Workplace Travel Plan) is an obligation imposed by local authorities through the planning process typically by way of panning condition attached to a planning consent or by a S.106 agreement. It may also be introduced as a requirement during the application process.

In addition a Travel Plan is often a requirement of a BREEAM assessment process.

The Green Travel Plan sets out a suite of actions and measures intended to promote travel to the site by sustainable transport methods such as bicycle, bus or train rather than private car.

So I have a Green Travel Plan, what happens if I don’t follow it?

Most local authorities will require occupiers to monitor the effectiveness of the plan to ensure measures are being implemented and targets set in the plan are being met. The aim should be to demonstrate ongoing improvement.

Some local authorities now have sustainable travel officers whose sole duty is to promote sustainable travel and to monitor plans to ensure compliance.

Ultimately the local authority does have the power to take Enforcement action against you if you are not implementing and monitoring your plan. The council has the power to issue of a breach of condition notice to require you to comply with the requirements which could ultimately lead to prosecution and fine if you still fail to comply.

What Actions and Measures do the plans typically include?

They are sometimes produced to include high cost and complicated measures such as staff showers, public transport information and ticketing systems, subsidised public transport, cycle parking and staff loan schemes. Whilst it’s important to be mindful of the commercial necessity to obtain a consent, more simpler and cost effective measures should be considered as well, such as; free internet access to travel guides; website links to local travel information; car sharing schemes and on site maps of bus and train stations.

A plan should be produced to minimise the cost to the clients of delivering their plan whilst balancing this against the local planning policy requirements and need for a consent in a timely manner.

What will my Green Travel Plan cost?

Every plan is different based on the local policy requirements, the site constraints and the commercial pressures. Each should ideally be produced on a site specific basis. It is important to appreciate that a well considered and written plan allied to skilled consultants negotiating terms with the local authority will save you more money than you will ever spend on preparing it. Conversely, one poorly written will cost you money ‘day one’ and for many years to come as you continue to spend money and management time on costly and unwieldy measures.

Direct Marketing Essentials – Simple Ways to Calculate and Measure Your Marketing

The mathematics of direct marketing primarily rests on three key elements:

  • Sales
  • Marketing Costs
  • Contribution Costs (e.g. Overheads)

Now there is no clear-cut balance for these elements as any direct marketing activity needs to be tailored and fine tuned according to each business. This is why I will never state off-the-cuff a direct marketing response rate for any business or industry type as there are significant variables involved such as the product itself, the demand for it, market preference and the nature of the offer.

Another point to highlight is that the mathematics used is underpinned by the belief that the future will be similar to the past. Hence if any variable within the equation changes significantly (e.g. magazine circulation significantly declines), then you have to expect a different response rate.

So to dive straight into it, I’ve listed below a few essential calculations which every small business should use:

Calculating the Allowable Using Your DM Budget

This equation lets you calculate the amount of money you need in order to make one sale. This is really important to know!

Revenue Selling Price: $1000

Minus Costs Production: $500

Overheads: $150

Postage & Handling: $50

The Breakeven allowance is $300 (the money you are allowed to spend to acquire a customer).

NOTE: If your business requires 10% profit, then your allowable would effectively be reduced to $200.

Using the Allowable to calculate your DM budget

So using our allowable recruitment spend per customer x target No. of Sales = $200 x 100

Marketing Budget = $20,000

What happens if you don’t make the sales required?

It is essential to test the market first using a small quantity before rolling out the entire campaign. Typically your allowable is based on what resources are required to acquire a customer already, plus I would expect some form of marketing research carried out in order to understand the size of your potential market. It is also important to include contingencies within your marketing activities if you don’t make the required sales. I always save 10% of my budget if something goes wrong. Or better still, if a potential list I’m targeting returns a huge ROI, then I have a bit left over to chase the money and market these top prospects again.

Measuring Costs, Responses and Sales

Here are a few very simple, yet essential equations to help measure costs, response and sales:

Cost per Unit:

Total cost / Total Quantity = Unit Cost

e.g. $20,000 / 4,000 = $5

Response Rate:

(Total Responses / Total Mailed) x 100% = % Response

e.g. (200 / 1,000) x 100% = 20%

This equation is exactly the same as measuring the Conversion Rate which would be Converted Leads / Total Leads Contacted

Cost per Sale:

Total Cost / Total Sales = Cost per Sale

e.g. 20,000 / 500 = $40

Example: Let’s say you were a travel insurance broker wanting to advertise in the local newspaper to sell premium travel insurance for $500 per person. I’ve listed some assumed sales and marketing costs to acquire a customer:

Advertising Cost: $7,800

Newspaper Circulation: 150,000

Promotional Cost: $5 per lead (e.g. Call centre costs)

Revenue per sale: $500

Total Marketing Cost for 100 leads is therefore: $8,300

The Cost per Inquiry or Sale will vary depending on the response rate, which you won’t know until you advertise. But the main focus on advertising is to achieve a required level of profitability in order to justify the expense. I like to refer to it as measuring the Profit Index. (This is exactly the same as using your allowable to calculate the number of sales you require in order to justify any marketing spend).

Profit Index (%) = Total Marketing Cost / Total Revenue

Profit Index (%) = 8,300 / 10,500

In this instance the Travel Insurance company requires 20% profit from print advertising. If my profit Index falls below 20%, then the advertising is deemed unprofitable. I’m so harsh!

Hence, 21 travel insurance premiums need to be sold to meet a profit index of 21%.

In other words, the allowable DM Budget would be set at $8,300 for advertising in the Local Newspaper.

Using Spreadsheets to Negotiate Spend

If you’ve seen the spreadsheet then you’ll wonder why I’ve highlighted the following cost fields – Ad Cost and Promotional Costs. Promotional Costs are harder to change in the short term, but negotiating advertising costs can be extremely effective. You’d be amazed to discover that by saving 10% of advertising you drive down your Profit Index, which means your advertising dollar doesn’t have to work as hard to acquire customers or sales. In the example used, you would only have to sell 19 Travel Premiums in order to meet the minimum profitability requirements. It also does hurt asking for a trial advertising rate to test the viability of a product in a publication. Some account managers will assist if it means you become a regular advertiser.

There are a couple of examples which the above calculations can be applied to in order to gain some further perspective for your next lead generation campaign.

Lead Generation Conversion Programs

1. Generally the more time you have to qualify an enquiry, the more it costs to generate. For example, if your telesales representative took 15 minutes to convert a prospect, while others may take only 5 minutes, then this will drive your overall costs to acquire a customer, and must be factored into your overheads or marketing costs.

2. Lead generation lists (Prospect Lists) can also support repeat conversion contacts, but you’ll always get a reduced response rate with each effort. For example, if you mailed 1,000 prospects, it may generate 250 leads. The second time you mail the list (minus the 250 leads you generated the first time round), you might get another 100 leads. This means you have generated a total of 350 leads from the prospect list. But we wary that if you use the list too many times then it will get to the point of being unprofitable.

As a general rule of thumb, you should change a portion of the DM piece the next time you mail (e.g. The offer, or a larger discount), as customers may respond to varying aspects of your direct marketing campaign, which is why it is always important to test.

You may hear direct marketing consultants talking about list building, and how much of their time is dedicated to developing a database of qualified prospects and customers. These lists are in fact a key ingredient which differentiate direct marketing from traditional marketing.

But I will say that typically, a list of present customers will respond much better or at a higher rate to a new product compared to non-qualified, or “cold” prospects.

It is also important to point out that while companies always depreciate their expenses over time such as equipment, machinery and inventory, they almost never capitalise what could be their most important asset, their customer. Therefore, small business owners should view their customers as investments and be able to measure and monitor customer data, and capitalise on it for the future.

Just remember that the maths of direct marketing sets it apart from all other marketing disciplines!

When Anything Gets Measured, It Gets Done

A genius without a roadmap will get lost in any city, whilst an average person with a clear map, will easily find their way to any location they want to travel to in the city. So even if you have a clearly defined concept about where you are and a crystal clear picture of where you want to go, you will never make it from one to the other unless you have proper map or plan.

Vague Plans, Result in Vague Outcomes
Always remember that a vague plan, will at best deliver vague or unsatisfying results, whilst a clear and concise plan will easily guide you to take the correct daily actions and help you achieve the outcomes you want. Ensure that you invest sufficient time to develop a well-designed plan, with very concise measurement criterion. Unless you constantly measure your progress against a well thought set of measurement criterion, you may very well be taking actions every day, which are not aligned with your goals.

Make Constant In-course corrections
When the Apollo Space craft took off from Cape Canaveral in the early 70’s and they were just one degree off alignment, the astronauts would have missed the moon by 300 000 miles. So to ensure that they remained on track they constantly made in-course corrections. They effectively failed their way to the moon, making tiny corrections all the way, to ensure that they reached their desired destination. They were only able to do this because they had a set of very concise measurement criterion and as the space craft passed these locations, the actual position was measured against the required location.

Include Measurement Criterion in your Plan
So it is not only important to have a plan, but when you are creating your plan make sure that you have a set of easy to measure and review, measurement criterion, against which you can regularly measure your progress. Apply discipline to measure your progress as often as feasible and then make any small changes or corrections necessary to keep you on track.

Patience and Persistence
One of the greatest challenges when you are on the path of success, is that you will become impatient and have unrealistic expectations about when projects or goals can be completed. As Anthony Robbins said, People often overestimate what they can achieve in a year, and significantly underestimate what they can achieve in a decade.

Take a Longer Term View and be Patient
Not having an understanding that achieving goals is a process and that things may not occur as fast as you would like them to happen, makes people feel like they are making no progress, so they give-up. When you are standing at the station and you look down the tracks and all you see are empty train tracks, do you just go home and say the train is not coming or do you walk over to the time table and check when the next train is expected and then wait for that train to arrive. When it arrives you board the train and just continue your journey. When you have concise measurement criterion for your goals, you can consistently measure your progress and create a realistic timetable of your own. This can then serve, to help you develop the patience you need to keep chipping away every day, until you succeed.

Measure your Progress
Whatever gets measured gets done. This is the main reason why you need a realistic set of measurement criterion, against which you can regularly measure your progress. This measurement criterion must be time defined, so that it can serve as your time table for success. As you know life is dynamic and things change all the time. These measurement criterions, are guidelines only. How many times do you think trains are delayed? Well the same is true for your goals; they can also be delayed by all sorts of unexpected delays. The secret is to know that even if the train is delayed, unless there has been a catastrophe, it is on its way. The same is true about your dreams.

Have Realistic expectations.
When you plant a seedling, if you constantly pull on the roots, do you thinks that it will grow any quicker. Obviously not, the same is true of your goals; they will materialize at the right time. The only thing over which you have control is that the more meaningful energy and effort you apply the sooner your dreams will materialize.