In July 2012, we asked Peter Scott, President of BlueTent Marketing, to provide background on an area of his expertise: tracking online conversions. The report he provided is below:
Following Your Lead: Measuring Conversion to Inform Your Marketing Spend
At BlueTent, we understand that busy clients are overwhelmed by finding new leads while keeping up with their current volume of inquiries, especially during peak season. Our aim is to simplify the process by providing an intelligent look at each manager’s business – one that highlights what’s working and what isn’t.
A key metric is conversion – how many leads convert into bookings? What is the source of those leads? How many times does a customer return to make another transaction — that is, what is the lifetime value of that lead and how does it compare to the comprehensive cost of generating a new customer? By answering these questions, we are able to pinpoint which marketing channels are most helpful and to provide guidance for putting those channels to use.
To accomplish this, BlueTent interprets data from our clients and their websites using the help of external tools like Google Analytics and Navis Narrowcast. In one case, our team analyzed five months of phone and web traffic for one of our rental management clients. At the end of May 2012 the company had collected $160,000 in revenue from one of its primary distribution partners, FlipKey.
In this case, profit was closely tied to conversion: our analysis determined that 56% of the FlipKey leads converted, as we say, “heads into beds.” The leads converted at such a high rate that the cost to acquire each was minimal. What’s more, we anticipate that a number of these leads will become repeat guests. So then, not only does this client’s impressive conversion rate contribute to growth in their customer base, it also indicates significant return on their marketing investment.
To ensure that our clients get the most for their marketing dollars, we encourage them to closely monitor each distribution channel. If you’re ready to take a deeper dive, BlueTent offers solutions to identify and execute dynamic internet marketing that helps you communicate more effectively, streamline your functionality and increase sales.
Contact Peter Scott at +1.970.704.3240 or firstname.lastname@example.org for more information.
This research initially appeared in FlipKey’s Quarterly Front Desk Report, August 2012