Online marketing is an important investment for hoteliers. At the end of the day (or …season!) the impact on the final revenue has to be justifiable. But what qualifies as such?
With the marketing activities there are two major difficulties:
- They are not being monitored, tested, improved and evaluated correctly. As a result:
- Unrealistic expectations are held in regard to what marketing can do for the business in a given amount of time.
This is why the hotel marketers need Key Performance Indicators in their marketing action plan. KPIs are essentially measurement methods.
Choosing the right mix of KPIs for your business practically means guiding the fulfillment of objectives to realistic, yet meaningful results. The benefits of using KPIs also include:
Defining your objectives more clearly: I want a 25% increase in booking could sound like a good goal. But how can you achieve that and what information should you be looking at? Indicators can tell you both.
Evaluating the quality of your marketing activities. Quality indicators help determine if you are adequately approaching the performance of each marketing channel. For example, one of the main objectives of optimizing your hotel site for search engines (SEO) like Google is bringing visitors to site. This is why a traffic volume KPI is an important evaluator in seeing how visible your hotel site is. But is that all you want? With Pay per Click campaigns, it is important to ask if the newly generated traffic also lead to more bookings. This is why calculating the number of generated leads/bookings, another KPI, is essential. Finally, in the case of e-mail campaigns, the first question that a hotel marketer would ask is How many subscribers open the e-mails we send out? The open rate KPI tells you just this.
Note that for any channel, a chosen KPI should not stand alone. Instead, it needs to be interpreted in correlation with a relevant mix of KPIs for that particular channel.
Adapting the strategy, improving. KPI’s are all about pointing out where your marketing isn’t efficient enough.
Allocating the right budget. KPIs ultimately help you to see where you are losing money in the marketing activities and how you can mend that. They also show where you can reduce costs.
All in all, there are two things you need to know about KPIs. Firstly, you choose your own KPIs accordingly to your business marketing objectives, which makes them highly relevant to follow. Secondly, most KPIs are easily computable.
If you would like to learn more about how the KPIs can influence the business of your hotel, ask a Toubik marketing consultant.