It isn’t Sexy and it works … Increase your bookings with these simple steps
As I write this article I want you to do a bit of research before you read any further. Go back over the last 2 weeks and look at how many direct enquiries you have had to your business, the number of emails sent back to them and then of course the sales/bookings that generated as a result.
If you closed or converted 90% plus of your enquiries (Well Done), you are not charging enough!!
If you closed or converted around 50% then there is significant room for improvement!
Now what I believe the number most of you will see will be closer to 30% and possibly less…
Leads and enquiries are a critical success factor to any business and just as vital to your industry. So why do you treat them with such flippancy, not really placing value on them as you should? If you consider the amount of money you spend every month on marketing and advertising (which is considerable) do you think you are maximising the return from that spend? Here’s an example.
Imagine you spend $1000 a month on advertising. That spend generates 3 direct enquiries a day (approx. 90 a month) which means each lead is costing you $11.00. Now remember you haven’t got a booking yet!
Assuming the conversion rates to bookings above:
- 90% means you should receive 81 bookings so each booking costs you $12.34 (you all wish)
- 50% means you should receive 45 bookings at a cost of $22.22 each (maybe 20% of you)
- 30% means you should receive 27 bookings at a cost of $37.04 each (where most of you are)
This is not meant to dishearten, but simply to inspire as there are so many things you can do to increase your conversion rate. In fact the quickest way to grow your business is to focus more of your effort on the leads you are currently receiving rather than trying to attract a lot more.
If you assume that an average booking above was for $100. Then revenues just from your current leads would look like this depending on your conversion rate.
Case 1: $8100 Case 2: $4500 Case 3: $2700
The difference in revenue is huge. Now remember that the difference in income is only related to how well you handle the initial enquiry…
Let me ask you this question: What could you do right now at little or no additional cost to increase your conversion rate of enquiries to bookings?
Here is a small list to consider, and I would be prepared to guarantee if you put these in place into your business you will see bookings and revenues grow accordingly:
- Reply to all enquiries quickly (straight away if you can as people have probably sent out a number of booking requests)
- Make sure your email response includes additional information about the property not just rates. Use images, links back to the website as well.
- Update people on upcoming events to get them across the line.
- If you can – it will increase conversion rate massively, pick up the phone and call them.
- Schedule a follow up call or email follow up a couple of days after the initial email asking if they are ready to book or what additional questions they may have.
- Follow Step 5 until they tell you to stop (often can take up to 8 times before people decide)
- Place contact in your Database whether they book or not
- Ensure they receive at a minimum a monthly newsletter from you to maintain relationship
What we do know is that a lot of people who do enquire end up doing nothing so the stronger the relationship you develop with them the higher the likelihood of them booking with you in the future.
Now take some action – apply the key points above and monitor the changes.
I hope this has given you some insight into how to improve bookings from the enquiries you currently receive. If it’s more enquiries you need that is a different story, and one our business can assist you with.
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