Using Data to Increase Booking Conversion

Transcription

1 Using Data to Increase Booking Conversion TTI Conference, Sept 2014 Frank Reeves Founder, #tticonf

2 About Us + 10m p/m Hotel Direct Bookings 350 Live Clients (UK, IRL) 11 years In Partnership Our Mandate: DELIVER GROWTH IN DIRECT BOOKINGS FOR CLIENTS

3

4 Who do we work with?

5 The rising costs of customer acquisition 146% Commissions increase between 2002 & 2013 TRI Hospitality 31% Booking.com European market share Feb Forbes +20% Booking.com YOY growth Q vs Q Forbes

6 The rising costs of customer acquisition Since 2009, customer acquisition costs, i.e., all sales, marketing and distribution, have outpaced hotel revenue growth Hospitality Asset Managers Association, August 2014

7 Agenda Part 1 Part 2 Part 3 The KPIs of Direct Booking Conversion Improving Booking Conversion Conversion Driven Digital Marketing

8 Part 1 The KPIs of Booking

9 Direct Business Traffic Booking Engine Website

10 Direct Business Traffic Maximise Organic Traffic Aggressively compete for Paid Traffic Multi-Channel approach ROI Focus Booking Engine Website

11 Direct Business Traffic Maximise Organic Traffic Aggressively compete for Paid Traffic Multi-Channel approach ROI Focus Booking Engine Website Begin Sales Conversation Generate BE leads

12 Direct Business Maximise Conversion Traffic Maximise Organic Traffic Aggressively compete for Paid Traffic Multi-Channel approach ROI Focus Analyse Abandonment Continuous Test & Improve Booking Engine Website Begin Sales Conversation Generate BE leads

13 Booking Conversion Formulae Revenue = Traffic x Conversion x ABV Conversion = Website C.R. x Booking Engine C.R.

14 Sample Hotel Performance Key Performance Indicators Traffic 10,000 Website Conversion 30% Booking Engine Conversion 2% ABV 360 Direct Revenue = 21,600

15 Part 2 Improving Booking

16 Focus on Booking Engine Conversion Booking Engine Conversion = 2%

17 Booking Abandonment 98%

18 Improving Booking Engine Conversion B.E. Conversion New Revenue 2.25% 2, % 5, % 8, % 10, % 13, % 16, % 18, % 21, % 24,300

19 Isolating Booking Engine Conversion B.E. Conversion Total Revenue Growth* 2.25% 24,300 13% 2.50% 27,000 25% 2.75% 29,700 38% 3.00% 32,400 50% 3.25% 35,100 63% 3.50% 37,800 75% 3.75% 40,500 88% 4.00% 43, % 4.25% 45, % * From Revenue of 21,600

20 Isolating Booking Engine Conversion New Revenue Through PPC Alone* 2,700 1,033 5,400 1,485 8,100 2,005 10,800 2,592 13,500 3,247 16,200 3,969 18,900 4,759 21,600 5,616 24,300 6,541 * Without improving Booking Conversion

21 Booking Conversion Funnel

22 How?

23 An Ultra Competitive Marketplace Is Booking.com the most persuasive Website in the World? April 10 th 2014

24 Selling Techniques & Book Direct Benefits Benefits Guarantee Urgency - Value

25 Dynamic Conversion Testing Optimising Conversion A/B Testing Heat-Mapping Market Segmentation testing Booking Engine Design Rate Effectiveness & Optimization Display: image size, book now etc. Sales messaging Personalisation How many Rooms/Rates Booking Path Optimized Navigation

26 A/B Testing

27 A/B Testing Goal Increase of 44.14%

28 Heatmap Testing

29 A/B Testing through Booking Engine Price Only

30 A/B Testing through Booking Engine Price + Value Goal Increase of 70.36%

31 Responsive Design

32 Sample Avvio Client Data KPI Desktop Tablet Smartphone Visitors 31, , ,6676 Website C.R % 43.28% 34.90% BE C.R 4.86% 3.26% 1.81% Bookings

33 Growth from B.E. Conversion Growth from B.E Conversion Improvements BE Con. Total Revenue Growth 2.25% 24,300 13% 2.50% 27,000 25% 2.75% 29,700 38% 3.00% 32,400 50% 3.25% 35,100 63% 3.50% 37,800 75% 3.75% 40,500 88% 4.00% 43, % 4.25% 45, %

34 Part 3 Conversion Driven Digital

35 Re-investing to accelerate growth Traffic Booking Engine Website

36 Digital Marketing Formula The Cost of Acquisition (COA) formula for PPC Traffic Budget = Conversion x A.B.V. x C.O.A.

37 Digital Marketing Formula Key Performance Indicators Traffic 10,000 Website Conversion 30% Booking Engine Conversion 2% ABV 360 Revenue = 21,600 PPC as a 10% Channel (Max) PPC Budget = 0.22 (.6% x 360 x 10%)

38 Conversion Driven Digital Marketing B.E. Conversion driving PPC Competiveness BE Con. PPC Budget* 2.25% % % % % % % % % 0.46 * Based on 10% CPA approach to PPC

39 Conversion Driven Digital Marketing Additional growth from new traffic BE Con. Revenue + Additional 2.25% 24,300 1, % 27,000 3, % 29,700 5, % 32,400 7, % 35,100 9, % 37,800 11, % 40,500 14, % 43,200 16, % 45,900 19,785

40 Conversion Driven Digital Marketing Additional growth from new traffic BE Con. Revenue +Additional Total Revenue 2.25% 24,300 1,598 25, % 27,000 3,240 30, % 29,700 5,173 34, % 32,400 7,128 39, % 35,100 9,396 44, % 37,800 11,664 49, % 40,500 14,266 54, % 43,200 16,848 60, % 45,900 19,785 65,685

41 Conversion Driven Digital Marketing Additional growth from new traffic BE Con. Revenue Growth* 2.25% 25,898 20% 2.50% 30,240 40% 2.75% 34,873 61% 3.00% 39,528 83% 3.25% 44, % 3.50% 49, % 3.75% 54, % 4.00% 60, % 4.25% 65, % * From 21,600

42 Conversion Driven Digital Marketing Total Growth + Total PPC Cost BE Con. Revenue Growth PPC Cost* 2.25% 25,898 20% % 30,240 40% % 34,873 61% % 39,528 83% 1, % 44, % 1, % 49, % 1, % 54, % 2, % 60, % 2, % 65, % 2,622 * Preserving 10% CPA approach to PPC

43 Booking Conversion Formulae Revenue Traffic x Conversion x ABV Conversion Website C.R. x Booking Engine C.R. Traffic Budget Conversion x A.B.V. x C.O.A.

44 Thank You