Using Data to Increase Booking Conversion€¦ · · ROI Focus . Booking Conversion Formulae...

Using Data to Increase Booking Conversion TTI Conference, Sept 2014

Frank Reeves Founder, CEO [email protected]

@AvvioTweets, #tticonf

About Us

+£10m p/m Hotel Direct Bookings

11 years In Partnership

Our Mandate:

DELIVER GROWTH IN DIRECT BOOKINGS FOR CLIENTS

350 Live Clients (UK, IRL)

Who do we work with?

146% Commissions increase between 2002 & 2013

TRI Hospitality

31% Booking.com European market share

Feb 2014 - Forbes

+20% Booking.com YOY growth

Q1 2014 vs Q1 2013 Forbes

The rising costs of customer acquisition

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

Agenda

Part 1 The KPIs of Direct Booking Conversion

Part 2 Improving Booking Conversion

Part 3 Conversion Driven Digital Marketing

Part 1

The KPIs of Booking Conversion

@AvvioTweets

Direct Business

£

Traffic

Website Booking Engine

Direct Business

£

Traffic


· Maximise Organic Traffic

· Aggressively compete for Paid Traffic

· Multi-Channel approach

· ROI Focus

Direct Business

£

Traffic


· Begin Sales Conversation · Generate BE leads




· ROI Focus

Direct Business

£

Traffic


Maximise Conversion ·

Analyse Abandonment ·

Continuous Test & Improve ·

· Begin Sales Conversation · Generate BE leads




· ROI Focus

Booking Conversion Formulae

Revenue = Traffic x Conversion x ABV

Conversion =

Website C.R. x Booking Engine C.R.

Key Performance Indicators

Traffic 10,000

Website Conversion 30%

Booking Engine Conversion 2%

ABV £360

Sample Hotel Performance

Direct Revenue = £21,600

Part 2

Improving Booking Conversion

@AvvioTweets

Booking Engine Conversion = 2%

Focus on Booking Engine Conversion

Booking Abandonment

98%

B.E. Conversion New Revenue

2.25% £2,700

2.50% £5,400

2.75% £8,100

3.00% £10,800

3.25% £13,500

3.50% £16,200

3.75% £18,900

4.00% £21,600

4.25% £24,300

Improving 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% £43,200 100%

4.25% £45,900 113%

Isolating Booking Engine Conversion

* From Revenue of £21,600

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

Isolating Booking Engine Conversion

Booking Conversion Funnel

April 10th 2014

An Ultra Competitive Marketplace

Is Booking.com the most persuasive Website in the World?

Selling Techniques & Book Direct Benefits

Benefits – Guarantee – Urgency - Value

Dynamic Conversion Testing

•  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

Optimising Conversion

A/B Testing

A/B Testing

Goal Increase of 44.14%

Heatmap Testing

Price Only

A/B Testing through Booking Engine

Price + Value

A/B Testing through Booking Engine

Goal Increase of 70.36%

Responsive Design

KPI Desktop Tablet Smartphone

Visitors 31,6514 13,3013 15,6676

Website C.R. 35.10% 43.28% 34.90%

BE C.R 4.86% 3.26% 1.81%

Bookings 5401 1875 987

Sample Avvio Client Data

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% £43,200 100%

4.25% £45,900 113%

Growth from B.E Conversion Improvements

Growth from B.E. Conversion

Part 3

Conversion Driven Digital Marketing

@AvvioTweets

Re-investing to accelerate growth

£

Traffic


Traffic Budget = Conversion x A.B.V. x C.O.A.

The Cost of Acquisition (COA) formula for PPC

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)

Digital Marketing Formula

PPC Budget = £0.22 (.6% x £360 x 10%)

BE Con. PPC Budget*

2.25% £0.24

2.50% £0.27

2.75% £0.30

3.00% £0.32

3.25% £0.35

3.50% £0.38

3.75% £0.41

4.00% £0.43

4.25% £0.46

* Based on 10% CPA approach to PPC


B.E. Conversion driving PPC Competiveness

BE Con. Revenue + Additional

2.25% £24,300 £1,598

2.50% £27,000 £3,240

2.75% £29,700 £5,173

3.00% £32,400 £7,128

3.25% £35,100 £9,396

3.50% £37,800 £11,664

3.75% £40,500 £14,266

4.00% £43,200 £16,848

4.25% £45,900 £19,785


Additional growth from new traffic

BE Con. Revenue +Additional Total Revenue

2.25% £24,300 £1,598 £25,898

2.50% £27,000 £3,240 £30,240

2.75% £29,700 £5,173 £34,873

3.00% £32,400 £7,128 £39,528

3.25% £35,100 £9,396 £44,496

3.50% £37,800 £11,664 £49,464

3.75% £40,500 £14,266 £54,766

4.00% £43,200 £16,848 £60,048

4.25% £45,900 £19,785 £65,685



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% £44,496 106%

3.50% £49,464 129%

3.75% £54,766 154%

4.00% £60,048 178%

4.25% £65,685 204%


* From £21,600


BE Con. Revenue Growth PPC Cost*

2.25% £25,898 20% £792

2.50% £30,240 40% £972

2.75% £34,873 61% £1170

3.00% £39,528 83% £1,344

3.25% £44,496 106% £1,575

3.50% £49,464 129% £1,824

3.75% £54,766 154% £2,091

4.00% £60,048 178% £2,322

4.25% £65,685 204% £2,622

* Preserving 10% CPA approach to PPC


Total Growth + Total PPC Cost

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.

Thank You

@AvvioTweets

[email protected]

078 24428400

www.avvio.com

Using Data to Increase Booking Conversion€¦ · · ROI Focus . Booking Conversion Formulae...

Documents

Transcript of Using Data to Increase Booking Conversion€¦ · · ROI Focus . Booking Conversion Formulae...