August 29, 2005 - Today
I�m sorting through my pile of reading materials hoping to find the exact
headline. It�s no surprise: That�s what all marketers want. Times are tough
and the demands being placed on you are that much tougher. Spend less;
get more.
What I do find when I peruse the trade publications
is less exact. Headlines read, �Achieved Higher Click-Through Rates� or
�Response Rates Exceeded Our Expectations.� Why don�t you ever hear a simple
statement like, �we spent $X and made $Y.� People don�t like to talk about
how much money they�re making or losing. And if something is really working,
it�s a competitive advantage not to be shared.
We all know that the real returns generated by
your efforts can only be measured in dollars. But measuring ROI in terms
of dollars can be difficult. Here are some headlines to help you measure
the real dollar returns on your direct marketing efforts:
Bring together customer information and campaign
information in a marketing database, achieving remarkable results.
Most organizations maintain a variety of customer
databases, one for e-mail, one for customer transactions, another for guest
history and so on. Unless your customer information and campaign information
are all in one place, it�s difficult to know exactly what�s going on with
a guest. That central location probably won�t be your property management
system.
That�s why you can benefit from a marketing database.
A well-designed marketing database is a single system that provides you
with a comprehensive view of what your guests are buying, which messages
they are receiving and how they are responding. Anything less is a mailing
list. By all means don�t mistake a marketing database for an integrated
CRM program. A good marketing database is not very expensive and pays back
a hundredfold in the hands of a skilled direct marketer.
Train staff to understand the importance of
customer information.
Even if you have a great marketing database, there�s
no way to realize its benefits unless your staff knows the importance of
consistently collecting the correct information at each transaction point.
There must be a method of matching transactions and multiple points of
contact, most of the time it�s as simple as getting a home or e-mail address.
Admit it, you�ve seen a dozen duplicates of the
same person in your property management system because one of your staff
gets a home address, another gets a business address and yet another gets
a travel agency address. Create a standard and live by it. When you ask
for an e-mail address, get a little more information so you can tell if
the e-mail address belongs to a customer or a prospect. Be vigilant and
measure your progress toward your data collection goals.
Marketing Director generates $250,000 in sales
with a $2,500 direct mail campaign.
When all of your customer information is in one
place and data collection is standardized, you will be able to measure,
in more exact terms, the successes and failures of your marketing efforts.
You�ll see that the group who received Offer A, booked within two weeks
and spent $X at your property while the group who received Offer B responded
at half those levels. You�ll be able to compare the results of your e-mail
and direct mail efforts. Most important, you�ll know that you spent $X
on each campaign and generated $Y in revenue. That�s ROI, and it can be
as simple as ABC.
About David Metze:
A former travel industry, marketing executive,
David has spent the last 17 years in management and marketing luxury hotels
and resorts in a diverse range of markets and segments. David�s exceptionally
diverse experiences have resulted in a deep understanding of direct marketing,
database marketing, electronic marketing and relationship marketing principles.
David spent the last several years implementing and integrating marketing
database systems at dozens of hotels and resorts. Prior to that, David
worked for Destination Hotels & Resorts, an operator of independent
luxury properties, where he managed the company�s e-marketing and relationship
marketing programs.
About Incite Response:
Incite
Response is the hospitality industry�s direct marketing department, supplying
turn key direct mail and e-mail services for a wide range of hotel companies
that include, Marcus Hotels, Pelican Bay at Our Lucaya, Preferred Hotels,
and Sonesta Hotels among many others.
With a sharp focus on developing and managing
extremely targeted direct marketing programs, Incite Response is able to
achieve higher than average returns on our client�s marketing dollars.
Call us today to find out how we can generate the revenues you need to
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