February 6, 2018
It comes as no surprise that, until fairly recently, sales and marketing had different goals, metrics, and overall view of what was defined as success. The tides changed about six years ago with studies that showed that three out of four CEOs wanted the marketers at their company to be 100% ROI focused. This meant a tight alignment between marketing and sales was imperative to build leads and pipeline to support overall company revenue targets.
The question that followed and required further investigation was, “Does focusing on ROI lead to better decision making?” Answering the question proved difficult as marketers cited challenges and barriers to measurement including data quality, systems integration, and enforcing operational standards and procedures. However, another study, called the Closed Loop Reporting Benchmark Index, was conducted to measure companies that include revenue performance as part of their campaign results. This study found that the campaigns from companies whose marketing departments focused on revenue were two and a half times more effective than companies who did not.
Much like the gap between sales and marketing, which is lessening more and more over time and with proven success, the hospitality industry also has a gap to bridge between revenue management and marketing.
While many B2B marketers in other industries have figured out that measuring ROI and attributing revenue to their campaign performance drives better results and lowers the cost of customer acquisitions, the Hospitality industry still suffers from 15-25% in guest acquisition costs, and acquisition costs are six and a half times higher for OTAs than direct channels.
In fact, in 2016, hospitality guests spent $148B, yet the industry only took home $125B. Why is this? And more importantly, how can we fix it?
Enter Infor EzRMS and MRM
By leveraging the insight, analytics, and selling strategies in Infor EzRMS, marketers will be able to plan campaigns focused on channels that deliver the highest ROI, lower guest acquisition costs, and offset the high costs associated with OTA booking.
Infor EzRMS allows revenue managers to:
- Recommends appropriate selling strategies
- Helps maximize your yield and profit
- Get insight into competitive pricing throughout your online channels
- Measure revenue per channel
- Provide detailed demand forecasting information to help with sales and marketing initiatives
Infor MRM allows marketers the ability to:
- Plan and optimize campaigns with a shared marketing calendar
- Manage collaborative production in online workspaces
- Control marketing budgets and finances without complex spreadsheets
- Improve decision-making and return on marketing investment (ROMI) with immediate insights from real-time analytics
With the powerful combination of Infor EzRMS and Infor MRM, the hospitality industry can quickly and easily realize the benefits of their own closed loop reporting and bridge the gap between revenue management and marketing to achieve higher ROI and lower marketing costs.
Written by: Brian Wise, Account Executive, Infor Hospitality | Customer Experience