using big data to increase the bottom line for vacation rental management companies
DESCRIPTION
Using big data to increase the bottom line for vacation rental management companiesTRANSCRIPT
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Using Big Data to Increase the Bottom Line
October 2013
For Vacation Rental Management ProfessionalsAmy Hinote ↔ [email protected] ↔ 251-455-4994
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Agenda1. What is big data?2. Impacts of big data on the technology development in
the vacation rental industry3. Sources of data for professional property managers4. Input vs. output5. Step by step process for using vacation rental data to
impact revenue6. How-to examples
1. Pricing2. New customer acquisition3. Customer retention4. Homeowner retention/acquisition
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What is Big Data?• Big data is the collection of data
from traditional and digital sources, inside and outside your company, that represent a source for ongoing discovery and analysis.
• Big Data has come to the forefront because of increased ability to inexpensively store and work with large datasets, both unstructured and structured.
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What is Big Data?
• Big data isn’t constrained to digital inputs (i.e. web behavior, web app behavior, social networks.)
• In the vacation rental industry --we can’t exclude traditional data derived from how your guests interact at your properties, with your call center and at the point of sale.
• As much as we talk about automating all communications, there is a need for personal interaction. If we limit our data input solely to digital inputs, we can miss the big picture.
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5 V’s of Big Data
• Volume –the amount of data your collecting• Velocity –the speed of information generated• Variety –the kind of data available• Veracity –the accuracy and validity of the data• Value –what it means to you
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What big data can show you
Once you start tackling big data, • You’ll learn what you don’t know• You’ll likely be proven wrong on some paradigms
you have held close• You’ll be inspired to take steps to resolve any
problems.• You can use the insights to improve your customer
engagement and homeowner acquisition strategies• You will add more value to both your offline and
online interactions.
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What is Big Data?• Unstructured data: Information not organized or
easily interpreted by traditional databases or data models.
• Multi-structured data: A variety of data formats and types and can be derived from interactions between people and systems (i.e. web data, online marketing data, lead data in Narrowcast, data provided in PMS, which includes a combination of text and visual images along with more structured data like forms or transactional information.
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ISILink
FRS
Entech V12
PropertyPlus
Website Distribution Channels
Web App NAVISCRM
Payment Processing
??? ???
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3rd Party
ISILink PMS
Escapia Other PMS
Modules
Website Distribution Channels
Web App NWCCRM
Payment Processing
??? ???
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What is Big Data?Just as a note, as digital sources of data increase
—and as marketers enhance the customer experience across devices, properties, face-to-face
interactions and social platforms—
multi-structured data will continue to evolve, especially in the vacation rental space.
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Data Sources for Property Managers• Marketing Activity (online and offline)• Lead Management System• Call Center Information• Website Activity/Analytics• Property Management System• Customer Behavior Before and During the Stay• Face-to-Face Interaction• Re-engagement Data• Ancillary Spend• CVB/DMO• City/State/Regional• Geo-Analytics
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The good news…
What is finally coming down the pipeline in technology is that you will be able to analyze –and USE -your data from multiple data sources to grow revenue.
You can start today.
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The future in vacation rental datato grow revenue
One-stopdata
marketingsystem
Accurate data
Inaccurate data/
garbage
Orderedgarbage
Revenue-generating
insight
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The future in vacation rental data,for example.
One-stopdata
marketingsystemCustomer
feedback collected and scored during
and after the stay
Only surveys collected in
email after the stay
Limited view of customer experience
Actionable insight on ways to improve the
customer experience
Bad or incomplete data can lead to bad decisions, which is worse than no decision.
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Using data to increase bottom line:step by step
1. Determine Objective
2. Identify Metrics
3. Identify Data Input Sources
4. Begin accumulating clean data in systematic way
5. Examine Findings
6. Take Action
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• Pricing• Marketing• Customer Retention• Owner Acquisition
Using data to increase bottom linestep by step
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1. Determine objective.I want to know if and when I should adjust rates on my 2 bedroom condos for Thanksgiving week.
2. Identify metrics.1. Year-over-year comparisons
2. Booking window
3. ADR
4. Demand from non-booked data
5. Booking Pace
6. Call volume
Using data to increase bottom linePricing
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3. Identify Data Input Sources1. Property Management System
2. Call center/Lead Management System/NWC
3. Face to face interaction (if you have walk-ins)
4. Web Analytics (Search)
4. Begin accumulating clean data.5. Property types are segmented in your PMS
6. Create a way to collect property type information and accurate reason for not booking on lead/not booked data.
7. Track walk-in requests as leads.
8. Add analytics on your website for availability requests and quick search inquiries.
Using data to increase bottom linePricing
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Findings (if you have accurate data)
Take Action: Raise rates.
Using data to increase bottom linePricing
Findings: Week 47ADR ↑ 4%Booking Pace ↑ 3%Date of first not-booked inquiry October 18Requests for 2 BRs with no availability: Website 88Requests for 2 BRs with no availability: Call Center 14Requests for 2 BRs with no availability: VRBO 5Requests for 2 BRs with no availability: Walk-ins 1
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1. Determine objective.Am I losing market share from any of my top feeder markets for October?
2. Identify Metrics2. Leads and Inquiries: City/State/Zip, year over year, and YTD
3. Guests: City/State/Zip, year over year, and YTD
4. Geo-targeted marketing efforts, year over year, and YTD
5. Web-traffic by geography, year over year, and YTD
Using data to increase bottom lineMarketing
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3. Identify Data Input Sources1. Marketing Activity
2. Property Management System
3. Call center/Lead Management System
4. Web Analytics (Search)
4. Begin accumulating clean data. 5. Tracking marketing activity by type and location.
6. Make sure city/state/zip is collected on leads.
7. Make sure web analytics are set up correctly.
Using data to increase bottom lineMarketing
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5. Findings (with accurate data)
Take Action: Put together geo-targeted marketing effort.
Compare to area statistics from CVB/DMO
Using data to increase bottom lineMarketing
Birmin
gham
New O
rlean
s
Atlant
a
Baton
Rou
ge
Nashv
ille
Mon
tgom
ery
Mob
ile-P
ensa
cola
Jack
son
Little
Roc
k
Mem
phis
$0
$300,000
$600,000
$900,000
$1,200,000
$1,500,000
$1,800,000
2011 2012
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1. Determine objective.Is my churn rate higher or lower than the previous year?
2. Identify Metrics2. 2011 and 2012 stays by month (include guest data)
3. 2013 stays by month (include guest data)
Using data to increase bottom lineCustomer Retention
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3. Identify Data Input Sources1. Property Management System
4. Begin accumulating clean data. 1. Create a comprehensive system for connecting guest records in the reservations department.
2. If you are using source codes, establish consistency.
Using data to increase bottom lineCustomer Retention
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5. Findings
Using data to increase bottom lineCustomer Retention
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec0%
10%20%30%40%50%60%70%80%90%
100%
201120122013
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6. Take Action
April, May, August
and September have
trended downward
significantly.
1. Remarket to past guests in these months with targeted offer.
2. Aggregate and dedup the entire list and determine who stayed with you in 2011/2012, who hasn’t been back or made a future reservation and create a strategy for getting them back (may include email marketing, lifecycle email messaging, or even outbound phone calls or surveys)
Using data to increase bottom lineCustomer Retention
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
201120122013
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1. Determine objective.Which property types had the most lost revenue based on demand?
2. Decide what you want to measure.1. Demand from not-booked data by property type, by
complex/community, by location
Using data to increase bottom lineOwner Acquisition/Retention
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4. Identify Data Input Sources1. Property Management System
2. Call center/Lead Management System
3. Web Analytics (Search)
5. Begin accumulating clean data. 4. Property types are segmented in your PMS
5. Create a way to collect property type information and accurate reason for not booking on lead/not booked data.
6. Track walk-in requests as leads.
7. Add analytics on your website for availability requests and quick search inquiries.
Using data to increase bottom lineOwner Acquisition/Retention
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5. Findings
Using data to increase bottom lineOwner Acquisition
Call Center Web Searches with No
availability
3rd Party Inquiries
Walk-ins0
100
200
300
400
500
600
1 BR Condos2 BR Condos 3 BR Condos
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5. Findings
You can further segment by
complex and location.
6. Conclusion
Acquisition: Target these complexes or property types with legitimate marketing campaigns with compelling stats
Retention: “Show and tell” the levels of demand to your homeowners
Using data to increase bottom lineOwner Acquisition
0
200
400
600
1 BR Condos2 BR Condos3BR Condos
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Using Big Data to Increase the Bottom Line
October 2013
For Vacation Rental Management ProfessionalsAmy Hinote ↔ [email protected] ↔ 251-455-4994