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Integrating Marketing, Revenue Management and Customer Analytics

Integrating Marketing, Revenue Management and Customer Analytics. Bryan Pierce, Director of Revenue Management, Holland Partner Group Devin Merrill, Vice President, Analytic Applications, Property Solutions Josh McDonald, Director of Marketing, Holland Partner Group

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Integrating Marketing, Revenue Management and Customer Analytics

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  1. Integrating Marketing, Revenue Management and Customer Analytics Bryan Pierce, Director of Revenue Management, Holland Partner Group Devin Merrill, Vice President, Analytic Applications, Property Solutions Josh McDonald, Director of Marketing, Holland Partner Group Moderator: Elaine Williams, Owner, E Williams Consulting

  2. Session Synopsis • Business Intelligence shows great promise "The emerging field of business intelligence shows great promise within multifamily for helping operators find ways to market and sell more effectively in a variety of ways.   • Combine Marketing and Revenue Management to generate and measure more demand Unifying marketing and revenue management practices gives owners the potential to understand the nuances of demand, as well as how to generate more demand that can be converted at a higher price.   • Leverage tools to understand and improve the buying process Customer knowledge and segmentation-including social media tools-can provide simple, clear areas where operators can better understand today's buying process and how to create a great buying experience that makes it easier to rent at communities using better data."

  3. Example Scenario – The Situation Forecast: 10 units of uncovered exposure over the next 90 days Uncovered Exposure

  4. Example Scenario – The Options • What do you do? • Costly Alternatives • Lower price • Increase marketing spend • Lower screening threshold • Free Alternatives • Improve lead conversion rate • Improve property reputation • Improve renewal rate

  5. Data-driven Marketing • Align your marketing processes with real data to allow your RM system to reach stronger performance • Why “buy” (literally) more traffic? Effectively manage what you already have to start with. • Align lead management touch points to when your traffic actual makes the “buy” decision. • Ratings & Reviews impact your traffic, leasing volume and rent growth • What sources give the most benefit – over the long term (18-24 mo). Think retention and increases.

  6. Lower Price and “buy” demand Cost: $1,500 • Demand can by “bought” by lowering the rent from $800 to $725 • Over the next 12 months, that will decrease potential revenue by $1,500

  7. Effective Lead Management • Align lead management touch points to when your traffic actual makes the “buy” decision.

  8. Marketing Optimization Why “buy” (literally) more traffic? Effectively manage what you already have to start with. 2013 Average Monthly Results Average follow-ups per lead • Our competitors (industry average) follow-up with only 59% of their leads • Holland lead follow-up is almost 4 times per lead (376%) Average time to follow-up • 82.4% of all leases signed within 2 days of the initial tour • 94.2% of all leases signed within 9 days of the initial tour

  9. Increase Marketing Spend • Marketing spend can be increased to cover the 10 units of forecast exposure • If the minimum cost per lease is $99, this alternative will cost $1,490 to cover the exposure Cost: $3,500 • ImproveLead Conversion Rate • Assume there are 133 leads expected in the next 90 days and the current conversion rate is 8% this will create 10 leases • An increase in conversion rate of 7% will cover the 10 exposed units

  10. Long-term value by Lead Source • What sources give the most benefit – over the long term (18-24 mo). Think retention and increases.

  11. Lower Screening Threshold Cost: $3,600 • Lowering the screen score threshold will increase the demand pool, but not without potential costs and risk • Potential costs may be incurred due to the risk of higher delinquency, skips, and evictions • In this example, 10 leases can be gained by moving the acceptable threshold from 60 to 40 • This will lead to an expected increase in the skip rate of 3% or 6 units • If the average turn cost is $600 per unit, the additional cost is $3,600

  12. Reputation Impact • Ratings & Reviews impact your traffic, leasing volume and rent growth • Social Media tools and SEO can tell us buying tendencies about the website visitors • Use this information to better target your renewal incentive

  13. Reputation Impact • Asset Class Implications

  14. Q & A Contact Info Bryan Pierce bpierce@hollandpartnergroup.com Devin Merrill dmerrill@propertysolutions.com Josh McDonald jmcdonald@hollandpartnergroup.com Elaine Williams ewilliams@ewilliamsconsulting.com Thank you!!

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