Stop Obsessing Over Fluffy Hotel Marketing Metrics
Here are a few key metrics that every hotel marketer SHOULD obsess over:By Dave Spector - Partner at Tambourine
Each week we share one impactful hotel marketing tactic that you can implement immediately to drive more conversions and more revenue.
This week's Freebie:
Hotel marketers are drowning in metrics. But very few actually make a tangible difference to your business (and your career).
Page views, time on site, sentiment scores, Instagram followers, open rates, clicks… on and on the list of fluffy hotel marketing metrics goes.
No wonder hotel marketers are often distracted and overwhelmed - there's so much to track and analyze! So it's vital to remember that many of these metrics are meaningless to achieving what actually matters - conversions!
While boosting traffic to your hotel website is almost always a good thing, an increase in traffic can create a distorted sense of success and mask a deeper, more dangerous issue: LOW CONVERSION RATE.
Flash sales, media/PR events, seasonal/regional events, and many other things can cause transient spikes in traffic that fail to deliver a long-term, sustainable impact on your business.
In our opinion, after working with thousands of sophisticated hoteliers over the last 34 years, there are a few key metrics that every hotel marketer SHOULD obsess over, including:
- 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.
- 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!
Dave Spector is a Partner in Tambourine, a 34-year old marketing technology firm specializing in driving demand, revenue and direct website bookings for tourism and hospitality clients around the world. The firm has offices in Fort Lauderdale, New York City and Bogota. Prior to Tambourine, Dave was chief marketing officer for a global software company, managing an annual marketing budget of $15 million dollars across 17 countries. Earlier in his career, Dave was a founding member of two start-ups that eventually become thriving public companies whose current revenues today exceed $300 million dollars. Dave lives in Delray Beach with his wife and daughter who constantly remind him that he knows very little about anything!Sales & MarketingGlobal