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Interstate presentation of Convergence of Revenue and Marketing by Loren Gray


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Presented to the independent Hotels of Interstate Hotels & Resorts Sales and Marketing COnference New Orleans August 2018

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Interstate presentation of Convergence of Revenue and Marketing by Loren Gray

  1. 1. INTERSTATE HOTELS & RESORTS – CONVERGENCE OF REVENUE & MARKETING Loren Gray CHDM Founder / CEO Hospitality Digital Marketing
  2. 2. Bringing the Tactical and Strategic: The Convergence of Revenue Management and Digital Marketing
  3. 3. Lets Get Warmed Up Open your iPhone’s “Settings” menu, select “Privacy”, then “Location Services”, then scroll all the way down to “System Services”. In System Services scroll all the way down to the bottom, press “Significant Locations” and look at the “History” section. Click on one of the area names to see where you’ve been. Sales  Revenue  Marketing
  4. 4. Let’s Start From The Beginning…. Sales  Revenue  Marketing What are we….
  5. 5. Today In an American Express survey commissioned last year, consumers illustrated their demand for more enriched lives and personal fulfilment through experience and learning. Over 72 per cent of respondents said they would rather spend money on experiences than things. Further, 88 per cent said travel is the number one dream on their life’s bucket list, ranking higher than family or wealth.
  6. 6. Sales  Revenue  Marketing This is how we define our guests
  7. 7. This is how most see the ‘cycle’ of our guests Acquisition Pre-stay Engagement – (Stay) Post stay
  8. 8. How can Revenue Management and Digital Marketing create a symbiotic relationship? | Analysis | Optimization | Forecast | Price | Market | Customer | Distribution | Challenges | Consumers are getting smarter | The codependent relationship with OTAs | New market disruptors surfacing everyday | Customer | Analysis | Advertising | Market | Price | Promotion | Distribution
  9. 9. Understanding the Revenue & Marketing Team’s Ecosystem Known Customer Unknown Customer Media Web/Mobile Loyalty Program Direct Marketing Analytics Revenue Optimization Acquisition Direct & Loyalty CRM
  10. 10. Sales  Revenue  Marketing Digital Strategy – Guest Acquisition – The Really Short Version Stay Date Research Date(s) Timeline Prime Booking WindowResearch Period LOS January February March Departure Date
  11. 11. Facebook Examples Sales  Revenue  Marketing Custom Audiences and Look-Alike Audiences
  12. 12. Sales  Revenue  Marketing Group dropped 14 days out for entire weekend (62% of Occ) • Took arrivals list and made a custom audience • Took last years in-house list same time made a custom audience • Made a custom audience based on a radius of 150 miles (drive market) • Put all three together for an ad featuring those specific dates, (making the arrivals list a negative) Group Short Term Replacement
  13. 13. Sales  Revenue  Marketing Stealing Market Share and Driving Local Business Gender: Female Age: 24 - 34 Relationship Status: Single Interest: Live Music Located: Within a 5-mile radius Scheduled to Post: Friday @ 5 pm & 9 pm Meeting Initiative F&B Initiative
  14. 14. Person 1 • Born in 1948 • Grew up in England • Married twice • 2 children • Successful in Business • Wealthy • Spends winter holidays in the Alps • Loves dogs Person 2 • Born in 1948 • Grew up in England • Married twice • 2 children • Successful in Business • Wealthy • Spends winter holidays in the Alps • Loves dogs Profiling: What Assumptions Do
  15. 15. Now for some REALLY cool stuff… Sales  Revenue  Marketing
  16. 16. Sales  Revenue  Marketing New ways to look at Digital Marketing Data and Revenue Management Strategies
  17. 17. Sales  Revenue  Marketing Sourcing Data to Define Strategies with GTM
  18. 18. Digital Marketing Budget ‘Ground Level’
  19. 19. Example of How a Digital Marketing Budget Should Look Like
  20. 20. Leads = 10 Conversion Rate = 10% Sale = $7,500 Frequency – 1 GP = $7500 Leads = 20 Conversion Rate = 10% Sale = $7,500 Frequency – 1 GP = $15,000 Leads = 20 Conversion Rate = 20% Sale = $15,000 Frequency – 2 GP = $120,000 (which is 16x $7500) Double One, Double Growth. Double All – 16X Growth
  21. 21. Framework For Successful Analytics: Unlocking Capability Collaboration Common Vernacular Integrity in Data TransparencyBuild Trust Enabling Business Decisions Continuous Improvement
  22. 22. Reporting is “the process of organizing data into informational summaries in order to monitor how different areas of a business are performing.” ...Analytics is “the process of exploring data and reports in order to extract meaningful insights, which can be used to better understand and improve business performance.” The Differentiation Between Reporting & Analytics What data should be a part of both? KPI’s
  23. 23. Collaboration Working together as one unified team across all departments involved with profit optimization Establishing a committee to govern the next steps of the framework
  24. 24. Common Vernacular Common Language Does customer segmentation really mean the same thing as marketing segmentation? Common KPI’s Are stakeholders using the right KPI’s that generate holistic views of performance at the highest level? Common Goals Lowering the media budget to optimize profit might not be what marketing wants to hear for next year’s budget, but do our KPI’s show that this is the best way forward?
  25. 25. Integrity In Data Identify what data we have from each respective area that we can combine into our data model Make sure the data is accurate, consistent & correctly represents the common vernacular established Do not practice ‘statistical bending’
  26. 26. Transparency Be open to all consumers of the information about what the data “is” and what it “isn’t” Build visual context around what the consumers are looking at Understand what the team has now and what the team is trying to build for the future What is the forecasted revenue expectations for any particular channel
  27. 27. Build Trust Buy-in from stakeholders Trusting that the process works holistically towards profit optimization Rely on team members not simply oversee Acknowledge successes and share failures Own what is yours
  28. 28. Enable Business Decisions See the big picture across all data sets being sourced; both internal & 3rd party Holistic approach to enhanced enterprise / property decision making Grow your business profitably
  29. 29. Continuous Improvement What did we learn? How can we improve next time around? Fail fast Team share failures and debrief them, not hide them Define performance threshold metrics with concrete decision models Keep an activity log
  30. 30. Why Technology & Automation Are Essential to Conversion Optimization Booking Engine PMS CRS RMS CRM 3rd Party Data Services Campaign Management Conversion Optimization & True Customer Personalization • PMS delivers historical data on known guest behaviors (spending history, room preferences, etc.) • CRS delivers availability for dates of interest • RMS delivers demand forecast & rate recommendations by room type • CRM delivers customer worth & detailed customer data for known customers • 3rd party data services deliver detailed information about the known or unknown guest based on cookies which include flight information, searches, preferences & more • Booking engine will be personalized at the customer level to take advantage of all source systems & data with an offer tailored to that particular guest for that particular trip in real-time
  31. 31. Social Media A Hospitality Perspective
  32. 32. Sales  Revenue  Marketing Where’s ? The locations That Count
  33. 33. Google has a lot of guides and tools
  34. 34. Facebook City Guides • Who you know • What they did • What they shared • Is anyone around that you know • What was there feedback there reviews
  35. 35. Now What? Optimizing Mix Based on Channel Economics Through which channels can a guest X book a room? Given variation in guest economics by channel and property, which channels should we incentivize guest X to book through? PER ROOM NIGHT How much does it cost to acquire guest X for that channel? $XX $XX $XX $XX How much does it cost to process guest X’s room reservation? $XX $XX $XX $XX How much does guest X spend on a room?* $XX $XX $XX $XX Once guest X arrives, how much is spent on-property? $XX $XX $XX $XX Tracked Contribution Margins $XX $XX $XX $XX
  36. 36. Sales  Revenue  Marketing Merging Social, Analytics and Emails to Sales
  37. 37. Sales  Revenue  Marketing Isolating under performing opportunities
  38. 38. Four Predictions that are Coming True Websites will be a thing of the past The Search Box will go away “A.I.” will control your marketing Sales  Revenue  Marketing Video will become your only voice
  39. 39. Bots & API’s Bots, bots and bots… what’s a ‘BOT’ Google & Apple --- UNLOCKED!! Amazon Echo – From 16 to 128,000 Sales  Revenue  MarketingMicrosoft – first to be in FOUR MILLION Cars
  40. 40. Sales  Revenue  Marketing Urgency Messaging “x rooms left” option Real Time Prices Based on dates of travel Promotion Messaging Property Multi-property option available Brand Logo Stars Destination Messaging Dynamic Creative Template for a Real Time Bidding Display Ad Membership Link Facebook Brings DAT Mainstream
  41. 41. 2011
  42. 42. 2017
  43. 43. Sales  Revenue  Marketing GDPR – What is it and are you compliant?
  44. 44. Sales  Revenue  Marketing
  45. 45. Hyper Local Initiatives Sales  Revenue  Marketing Micro Influencers Gmail –vs- non Gmail Google Tours
  46. 46. Current Stages of Visual Engagement VR – Virtual Reality AR – Augmented Reality 360 – Flat Screen View Sales  Revenue  Marketing LIVE – ummm Yeah
  47. 47. Sales  Revenue  Marketing The LIVE World Today
  48. 48. Links We Discussed Please view how Facebook is changing the internet.. This is the whatsapp video from New York Times
  49. 49. Video, presentation, links, resources and Webinar are at… Sales  Revenue  Marketing OR
  50. 50. THANK YOU 51 @LorenGray “For the Privilege of your time”