August 20, 2014 • By Joe Haydn
Your sales & marketing should be more effective. You know it. But you don’t know how to fix it. It’s a common problem. You fight hard to squeeze more juice out of all your marketing channels. Yet you feel like Sisyphus, the Greek king who was doomed to push the same boulder uphill for all eternity. Fortunately, your struggle doesn’t have to last forever. You can get the boulder up the hill. You simply need to figure out why it keeps falling back down.
The six key metrics every owner wants to hear about:There are many opinions on the key metrics for hotel S&M teams. And they can vary depending on your property’s location and key segments, but here are the six we recommend monitoring:
- MCPB (marketing cost per booking): tracks actual production vs the cost of each S&M channel
- Revenue variance from target: this metric reflects your actual results vs the revenue goals (by segment) memorialized in your annual S&M Plan.
- Sentiment score on TripAdvisor: using a reputation/social media monitoring tool allows you to measure guest satisfaction/sentiment, this reflects product acceptance or alerts you to product deficiencies. A bad product will outweigh all your other S&M activities.
- DRR (direct revenue ratio): measures % of online revenue coming direct vs expensive third-party sources like OTAs. If you’re not getting 40%+ direct, you have work to do!
- RevPar Index vs compset: This traditional benchmark is still a key indicator of your team’s performance vs the compset.
- Website conversion rate (from unique visitor to converted bookings): Revenue originates from potential guests researching your property online. As your hotel’s digital front door, your website influences your guests’ impression more than any other marketing asset. Converting a higher percentage of visitors is critical to reducing your cost of revenue and MCPB (For a deeper dive on the ways hotel websites can negatively impact revenue follow the link.)
How and where do you measure it all?Simple new technology is available to centralize all your KPIs in a colorful visual dashboard. When all your marketing activity is synced online in one place, team members can access it, regardless of location. It should look like this: https://track.tambourine.com/demo
Why is tracking marketing metrics so difficult?Tracking your metrics is easy, but doing it consistently… now that’s hard! Many of you are hitting your busy season. The hotel is booked at top rates. Hallelujah! You’re so busy you don’t need to watch your numbers, right? Well, no. Your sales and marketing metrics drive performance at the hotel. It’s easy to let them slide when you’re busy, but when the season ends, you’ll be stuck playing catch up. About Tambourine
Tambourine uses technology and creativity to increase revenue for hotels and destinations worldwide. The firm, now in its 30th year, is located in New York City and Fort Lauderdale. Please visit: www.Tambourine.com