Nevada Hotel & Lodging Association / HSMA Las Vegas ROC -- Keynote by Loren Gray
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The document discusses how revenue management and digital marketing can converge to create a symbiotic relationship. It provides examples of how analyzing data can help optimize pricing, forecasting, customer targeting, and distribution. It also addresses challenges like consumers becoming smarter and the codependent relationship with online travel agencies. The document suggests revenue and marketing teams can work together by sharing data, using common metrics, and continuously improving their combined efforts to maximize profits.
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Nevada Hotel & Lodging Association / HSMA Las Vegas ROC -- Keynote by Loren Gray
- 2. Bringing the Tactical and Strategic: The Convergence of Revenue Management and Digital Marketing Loren Gray CHDM Founder / CEO Hospitality Digital Marketing Bit.ly/lasvegasroc
- 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. Let’s Start From The Beginning…. Sales Revenue Marketing What are we….
- 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. Sales Revenue Marketing This is how we define our guests
- 7. This is how most see the ‘cycle’ of our guests Acquisition Pre-stay Engagement – (Stay) Post stay
- 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. 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. Looking forward by looking where we have been
- 11. 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
- 12. Facebook Examples Sales Revenue Marketing Custom Audiences and Look-Alike Audiences
- 13. 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
- 14. 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
- 15. 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
- 16. Now for some REALLY cool stuff… Sales Revenue Marketing
- 17. Sales Revenue Marketing New ways to look at Digital Marketing Data and Revenue Management Strategies
- 18. Sales Revenue Marketing Sourcing Data to Define Strategies with GTM
- 19. Digital Marketing Budget ‘Ground Level’
- 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. Framework For Successful Analytics: Unlocking Capability Collaboration Common Vernacular Integrity in Data TransparencyBuild Trust Enabling Business Decisions Continuous Improvement
- 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. 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. 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. 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. 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. 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. 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. 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. 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
- 32. 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 Brand.com
- 33. Sales Revenue Marketing Merging Social, Analytics and Emails to Sales
- 34. Sales Revenue Marketing Isolating under performing opportunities
- 35. 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
- 36. Bots & API’s Bots, bots and bots… what’s a ‘BOT’ Google & Apple --- UNLOCKED!! Amazon Echo – From 16 to 128,000 Sales Revenue Marketing Microsoft – first to be in FOUR MILLION Cars
- 37. 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
- 38. 2011
- 39. 2017
- 40. Sales Revenue Marketing GDPR – What is it and are you compliant?
- 41. Sales Revenue Marketing
- 42. Hyper Local Initiatives Sales Revenue Marketing Micro Influencers Gmail –vs- non Gmail Google Tours
- 43. Current Stages of Visual Engagement VR – Virtual Reality AR – Augmented Reality 360 – Flat Screen View Sales Revenue Marketing LIVE – ummm Yeah
- 44. Sales Revenue Marketing The LIVE World Today
- 45. Links We Discussed • Please view how Facebook is changing the internet.. • https://youtu.be/cR_XVGemAnw • This is the whatsapp video from New York Times • https://youtu.be/VAesMQ6VtK8
- 46. Video, presentation, links, resources and Webinar are at… Sales Revenue Marketing https://www.HospitalityDigitalMarketing.com/lasvegasroc OR Bit.ly/lasvegasroc
- 47. THANK YOU 47 @LorenGray “For the Privilege of your time”
- 48. Convergence of RM and Digital Marketing Loren Gray President Digital Hospitality Marketing
- 49. Thank you for attending the 2nd Annual Revenue Management Conference 49
- 50. Thank you to our Platinum Sponsor
- 51. Thank you to our Gold Sponsor
- 52. Thank you to our Member Partner
- 53. Thank you to our Host Sponsor
- 54. Thank you to our Education Sponsor
- 55. 2018 HSMAI Adrian Awards Enter Your Best Work by August 22nd ADRIANAWARDS.COM
- 56. Are you a CRME? How about your CHDM?
Editor's Notes
- Have a good and happy life Forbes says it has the five reasons businesses fail….
- Stop doing this
- The measure adapt is the never ending story
- Take a total of followers in the room Tally it up and show the power of who you already have Go through some examples of the types of filters in facebook Geofencing Proximity targeting Banjo How to turn on even targeting of posts Who has access to there FB pages Why is social good for brand hotels – last unregulated place for them to put timely content up online Will have all this content online to share
- Don’t blitz anymore Three types of data in a radius local / visitor / traveler take business out of your competitor. Geofedia – calgary example Twitter triggers for responses or unhappy guests at your competitors Gravy targeting concert goes passing by your venue Beacons Messenger tools to push notify
- Let’s go to Menti and enter what we think – how much will our growth potential increase if we double 4 variables. Will it quadruple? Grow by 8 times? 16? Or, do you just really have no idea and hate math? Give them a minute to vote. While they are voting, show the next box and walk them through. Then show them the answer. Say - The reality is, it grows 16 times! Using your influencer skill set, you are more likely to increase each touchpoint in the funnel. While the 90% are changing some of their behaviors and seeing an increase in their sales, there is a small percent of you who will make long term changes and see much larger growth than the rest.
- Metrics that span across divisions not specific to one. Example ROAS Ex- 5:1 ROAS is not making EBITA / 10:1 on a special offer rate below forecasted ADR is not yielding to successful revenue levels
- 4 out of 5 dentists agree – 20% disapproval rating
- Before any strategic development, a success goal must be defined, not a moving target on the end of a ‘stick’, or only ‘better than what we have now’
- Extra slide potential if we have to much content to share
- Google data studio in there new 360 program it used to be called
- The opening of ‘Bots’ — Google / Apple / Amazon / Microsoft — why is this important? it allows developers to now use the voice commands of Google now / Siri / Alexa / Cortana — googles new assistant / SIRI coming to your computer / Echo / and the internet of things coming to you home and cars…. Philly has the first Uber automous cars why is there a person behind the wheel? Whay are all the auto makers racing to build fleets of automous cars”? Henry ford said if he asked his future customers what they wanted they would have said faster horses
- Facebooks Dynamic Ad’s for Travel
- 100 million hours of video are being loaded onto Facebook everyday, 600 million for YouTube 3/4 of all video views are mobile over a billion active users a day on Facebook Cisco says 75% of all mobile traffic will be video by 2020 20 minutes a day on Facebook
- Facebook.com/map its almost its own TV station example Hurricane Mathew 100 million hours of video are being loaded onto Facebook everyday, 600 million for YouTube 3/4 of all video views are mobile over a billion active users a day on Facebook Cisco says 75% of all mobile traffic will be video by 2020 20 minutes a day on Facebook facebook.com/livemap screen shot