![Page 1: Using Data to Increase Booking Conversion€¦ · · ROI Focus . Booking Conversion Formulae Revenue = Traffic x Conversion x ABV ... A/B Testing Goal Increase of 44.14% . Heatmap](https://reader034.vdocument.in/reader034/viewer/2022050516/5fa06af813a11e265c1bdad4/html5/thumbnails/1.jpg)
Using Data to Increase Booking Conversion TTI Conference, Sept 2014
Frank Reeves Founder, CEO [email protected]
@AvvioTweets, #tticonf
![Page 2: Using Data to Increase Booking Conversion€¦ · · ROI Focus . Booking Conversion Formulae Revenue = Traffic x Conversion x ABV ... A/B Testing Goal Increase of 44.14% . Heatmap](https://reader034.vdocument.in/reader034/viewer/2022050516/5fa06af813a11e265c1bdad4/html5/thumbnails/2.jpg)
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)
![Page 3: Using Data to Increase Booking Conversion€¦ · · ROI Focus . Booking Conversion Formulae Revenue = Traffic x Conversion x ABV ... A/B Testing Goal Increase of 44.14% . Heatmap](https://reader034.vdocument.in/reader034/viewer/2022050516/5fa06af813a11e265c1bdad4/html5/thumbnails/3.jpg)
![Page 4: Using Data to Increase Booking Conversion€¦ · · ROI Focus . Booking Conversion Formulae Revenue = Traffic x Conversion x ABV ... A/B Testing Goal Increase of 44.14% . Heatmap](https://reader034.vdocument.in/reader034/viewer/2022050516/5fa06af813a11e265c1bdad4/html5/thumbnails/4.jpg)
Who do we work with?
![Page 5: Using Data to Increase Booking Conversion€¦ · · ROI Focus . Booking Conversion Formulae Revenue = Traffic x Conversion x ABV ... A/B Testing Goal Increase of 44.14% . Heatmap](https://reader034.vdocument.in/reader034/viewer/2022050516/5fa06af813a11e265c1bdad4/html5/thumbnails/5.jpg)
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
![Page 6: Using Data to Increase Booking Conversion€¦ · · ROI Focus . Booking Conversion Formulae Revenue = Traffic x Conversion x ABV ... A/B Testing Goal Increase of 44.14% . Heatmap](https://reader034.vdocument.in/reader034/viewer/2022050516/5fa06af813a11e265c1bdad4/html5/thumbnails/6.jpg)
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
![Page 7: Using Data to Increase Booking Conversion€¦ · · ROI Focus . Booking Conversion Formulae Revenue = Traffic x Conversion x ABV ... A/B Testing Goal Increase of 44.14% . Heatmap](https://reader034.vdocument.in/reader034/viewer/2022050516/5fa06af813a11e265c1bdad4/html5/thumbnails/7.jpg)
Agenda
Part 1 The KPIs of Direct Booking Conversion
Part 2 Improving Booking Conversion
Part 3 Conversion Driven Digital Marketing
![Page 8: Using Data to Increase Booking Conversion€¦ · · ROI Focus . Booking Conversion Formulae Revenue = Traffic x Conversion x ABV ... A/B Testing Goal Increase of 44.14% . Heatmap](https://reader034.vdocument.in/reader034/viewer/2022050516/5fa06af813a11e265c1bdad4/html5/thumbnails/8.jpg)
Part 1
The KPIs of Booking Conversion
@AvvioTweets
![Page 9: Using Data to Increase Booking Conversion€¦ · · ROI Focus . Booking Conversion Formulae Revenue = Traffic x Conversion x ABV ... A/B Testing Goal Increase of 44.14% . Heatmap](https://reader034.vdocument.in/reader034/viewer/2022050516/5fa06af813a11e265c1bdad4/html5/thumbnails/9.jpg)
Direct Business
£
Traffic
Website Booking Engine
![Page 10: Using Data to Increase Booking Conversion€¦ · · ROI Focus . Booking Conversion Formulae Revenue = Traffic x Conversion x ABV ... A/B Testing Goal Increase of 44.14% . Heatmap](https://reader034.vdocument.in/reader034/viewer/2022050516/5fa06af813a11e265c1bdad4/html5/thumbnails/10.jpg)
Direct Business
£
Traffic
Website Booking Engine
· Maximise Organic Traffic
· Aggressively compete for Paid Traffic
· Multi-Channel approach
· ROI Focus
![Page 11: Using Data to Increase Booking Conversion€¦ · · ROI Focus . Booking Conversion Formulae Revenue = Traffic x Conversion x ABV ... A/B Testing Goal Increase of 44.14% . Heatmap](https://reader034.vdocument.in/reader034/viewer/2022050516/5fa06af813a11e265c1bdad4/html5/thumbnails/11.jpg)
Direct Business
£
Traffic
Website Booking Engine
· Begin Sales Conversation · Generate BE leads
· Maximise Organic Traffic
· Aggressively compete for Paid Traffic
· Multi-Channel approach
· ROI Focus
![Page 12: Using Data to Increase Booking Conversion€¦ · · ROI Focus . Booking Conversion Formulae Revenue = Traffic x Conversion x ABV ... A/B Testing Goal Increase of 44.14% . Heatmap](https://reader034.vdocument.in/reader034/viewer/2022050516/5fa06af813a11e265c1bdad4/html5/thumbnails/12.jpg)
Direct Business
£
Traffic
Website Booking Engine
Maximise Conversion ·
Analyse Abandonment ·
Continuous Test & Improve ·
· Begin Sales Conversation · Generate BE leads
· Maximise Organic Traffic
· Aggressively compete for Paid Traffic
· Multi-Channel approach
· ROI Focus
![Page 13: Using Data to Increase Booking Conversion€¦ · · ROI Focus . Booking Conversion Formulae Revenue = Traffic x Conversion x ABV ... A/B Testing Goal Increase of 44.14% . Heatmap](https://reader034.vdocument.in/reader034/viewer/2022050516/5fa06af813a11e265c1bdad4/html5/thumbnails/13.jpg)
Booking Conversion Formulae
Revenue = Traffic x Conversion x ABV
Conversion =
Website C.R. x Booking Engine C.R.
![Page 14: Using Data to Increase Booking Conversion€¦ · · ROI Focus . Booking Conversion Formulae Revenue = Traffic x Conversion x ABV ... A/B Testing Goal Increase of 44.14% . Heatmap](https://reader034.vdocument.in/reader034/viewer/2022050516/5fa06af813a11e265c1bdad4/html5/thumbnails/14.jpg)
Key Performance Indicators
Traffic 10,000
Website Conversion 30%
Booking Engine Conversion 2%
ABV £360
Sample Hotel Performance
Direct Revenue = £21,600
![Page 15: Using Data to Increase Booking Conversion€¦ · · ROI Focus . Booking Conversion Formulae Revenue = Traffic x Conversion x ABV ... A/B Testing Goal Increase of 44.14% . Heatmap](https://reader034.vdocument.in/reader034/viewer/2022050516/5fa06af813a11e265c1bdad4/html5/thumbnails/15.jpg)
Part 2
Improving Booking Conversion
@AvvioTweets
![Page 16: Using Data to Increase Booking Conversion€¦ · · ROI Focus . Booking Conversion Formulae Revenue = Traffic x Conversion x ABV ... A/B Testing Goal Increase of 44.14% . Heatmap](https://reader034.vdocument.in/reader034/viewer/2022050516/5fa06af813a11e265c1bdad4/html5/thumbnails/16.jpg)
Booking Engine Conversion = 2%
Focus on Booking Engine Conversion
![Page 17: Using Data to Increase Booking Conversion€¦ · · ROI Focus . Booking Conversion Formulae Revenue = Traffic x Conversion x ABV ... A/B Testing Goal Increase of 44.14% . Heatmap](https://reader034.vdocument.in/reader034/viewer/2022050516/5fa06af813a11e265c1bdad4/html5/thumbnails/17.jpg)
Booking Abandonment
98%
![Page 18: Using Data to Increase Booking Conversion€¦ · · ROI Focus . Booking Conversion Formulae Revenue = Traffic x Conversion x ABV ... A/B Testing Goal Increase of 44.14% . Heatmap](https://reader034.vdocument.in/reader034/viewer/2022050516/5fa06af813a11e265c1bdad4/html5/thumbnails/18.jpg)
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
![Page 19: Using Data to Increase Booking Conversion€¦ · · ROI Focus . Booking Conversion Formulae Revenue = Traffic x Conversion x ABV ... A/B Testing Goal Increase of 44.14% . Heatmap](https://reader034.vdocument.in/reader034/viewer/2022050516/5fa06af813a11e265c1bdad4/html5/thumbnails/19.jpg)
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
![Page 20: Using Data to Increase Booking Conversion€¦ · · ROI Focus . Booking Conversion Formulae Revenue = Traffic x Conversion x ABV ... A/B Testing Goal Increase of 44.14% . Heatmap](https://reader034.vdocument.in/reader034/viewer/2022050516/5fa06af813a11e265c1bdad4/html5/thumbnails/20.jpg)
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
![Page 21: Using Data to Increase Booking Conversion€¦ · · ROI Focus . Booking Conversion Formulae Revenue = Traffic x Conversion x ABV ... A/B Testing Goal Increase of 44.14% . Heatmap](https://reader034.vdocument.in/reader034/viewer/2022050516/5fa06af813a11e265c1bdad4/html5/thumbnails/21.jpg)
Booking Conversion Funnel
![Page 22: Using Data to Increase Booking Conversion€¦ · · ROI Focus . Booking Conversion Formulae Revenue = Traffic x Conversion x ABV ... A/B Testing Goal Increase of 44.14% . Heatmap](https://reader034.vdocument.in/reader034/viewer/2022050516/5fa06af813a11e265c1bdad4/html5/thumbnails/22.jpg)
How?
![Page 23: Using Data to Increase Booking Conversion€¦ · · ROI Focus . Booking Conversion Formulae Revenue = Traffic x Conversion x ABV ... A/B Testing Goal Increase of 44.14% . Heatmap](https://reader034.vdocument.in/reader034/viewer/2022050516/5fa06af813a11e265c1bdad4/html5/thumbnails/23.jpg)
April 10th 2014
An Ultra Competitive Marketplace
Is Booking.com the most persuasive Website in the World?
![Page 24: Using Data to Increase Booking Conversion€¦ · · ROI Focus . Booking Conversion Formulae Revenue = Traffic x Conversion x ABV ... A/B Testing Goal Increase of 44.14% . Heatmap](https://reader034.vdocument.in/reader034/viewer/2022050516/5fa06af813a11e265c1bdad4/html5/thumbnails/24.jpg)
Selling Techniques & Book Direct Benefits
Benefits – Guarantee – Urgency - Value
![Page 25: Using Data to Increase Booking Conversion€¦ · · ROI Focus . Booking Conversion Formulae Revenue = Traffic x Conversion x ABV ... A/B Testing Goal Increase of 44.14% . Heatmap](https://reader034.vdocument.in/reader034/viewer/2022050516/5fa06af813a11e265c1bdad4/html5/thumbnails/25.jpg)
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
![Page 26: Using Data to Increase Booking Conversion€¦ · · ROI Focus . Booking Conversion Formulae Revenue = Traffic x Conversion x ABV ... A/B Testing Goal Increase of 44.14% . Heatmap](https://reader034.vdocument.in/reader034/viewer/2022050516/5fa06af813a11e265c1bdad4/html5/thumbnails/26.jpg)
A/B Testing
![Page 27: Using Data to Increase Booking Conversion€¦ · · ROI Focus . Booking Conversion Formulae Revenue = Traffic x Conversion x ABV ... A/B Testing Goal Increase of 44.14% . Heatmap](https://reader034.vdocument.in/reader034/viewer/2022050516/5fa06af813a11e265c1bdad4/html5/thumbnails/27.jpg)
A/B Testing
Goal Increase of 44.14%
![Page 28: Using Data to Increase Booking Conversion€¦ · · ROI Focus . Booking Conversion Formulae Revenue = Traffic x Conversion x ABV ... A/B Testing Goal Increase of 44.14% . Heatmap](https://reader034.vdocument.in/reader034/viewer/2022050516/5fa06af813a11e265c1bdad4/html5/thumbnails/28.jpg)
Heatmap Testing
![Page 29: Using Data to Increase Booking Conversion€¦ · · ROI Focus . Booking Conversion Formulae Revenue = Traffic x Conversion x ABV ... A/B Testing Goal Increase of 44.14% . Heatmap](https://reader034.vdocument.in/reader034/viewer/2022050516/5fa06af813a11e265c1bdad4/html5/thumbnails/29.jpg)
Price Only
A/B Testing through Booking Engine
![Page 30: Using Data to Increase Booking Conversion€¦ · · ROI Focus . Booking Conversion Formulae Revenue = Traffic x Conversion x ABV ... A/B Testing Goal Increase of 44.14% . Heatmap](https://reader034.vdocument.in/reader034/viewer/2022050516/5fa06af813a11e265c1bdad4/html5/thumbnails/30.jpg)
Price + Value
A/B Testing through Booking Engine
Goal Increase of 70.36%
![Page 31: Using Data to Increase Booking Conversion€¦ · · ROI Focus . Booking Conversion Formulae Revenue = Traffic x Conversion x ABV ... A/B Testing Goal Increase of 44.14% . Heatmap](https://reader034.vdocument.in/reader034/viewer/2022050516/5fa06af813a11e265c1bdad4/html5/thumbnails/31.jpg)
Responsive Design
![Page 32: Using Data to Increase Booking Conversion€¦ · · ROI Focus . Booking Conversion Formulae Revenue = Traffic x Conversion x ABV ... A/B Testing Goal Increase of 44.14% . Heatmap](https://reader034.vdocument.in/reader034/viewer/2022050516/5fa06af813a11e265c1bdad4/html5/thumbnails/32.jpg)
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
![Page 33: Using Data to Increase Booking Conversion€¦ · · ROI Focus . Booking Conversion Formulae Revenue = Traffic x Conversion x ABV ... A/B Testing Goal Increase of 44.14% . Heatmap](https://reader034.vdocument.in/reader034/viewer/2022050516/5fa06af813a11e265c1bdad4/html5/thumbnails/33.jpg)
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
![Page 34: Using Data to Increase Booking Conversion€¦ · · ROI Focus . Booking Conversion Formulae Revenue = Traffic x Conversion x ABV ... A/B Testing Goal Increase of 44.14% . Heatmap](https://reader034.vdocument.in/reader034/viewer/2022050516/5fa06af813a11e265c1bdad4/html5/thumbnails/34.jpg)
Part 3
Conversion Driven Digital Marketing
@AvvioTweets
![Page 35: Using Data to Increase Booking Conversion€¦ · · ROI Focus . Booking Conversion Formulae Revenue = Traffic x Conversion x ABV ... A/B Testing Goal Increase of 44.14% . Heatmap](https://reader034.vdocument.in/reader034/viewer/2022050516/5fa06af813a11e265c1bdad4/html5/thumbnails/35.jpg)
Re-investing to accelerate growth
£
Traffic
Website Booking Engine
![Page 36: Using Data to Increase Booking Conversion€¦ · · ROI Focus . Booking Conversion Formulae Revenue = Traffic x Conversion x ABV ... A/B Testing Goal Increase of 44.14% . Heatmap](https://reader034.vdocument.in/reader034/viewer/2022050516/5fa06af813a11e265c1bdad4/html5/thumbnails/36.jpg)
Traffic Budget = Conversion x A.B.V. x C.O.A.
The Cost of Acquisition (COA) formula for PPC
Digital Marketing Formula
![Page 37: Using Data to Increase Booking Conversion€¦ · · ROI Focus . Booking Conversion Formulae Revenue = Traffic x Conversion x ABV ... A/B Testing Goal Increase of 44.14% . Heatmap](https://reader034.vdocument.in/reader034/viewer/2022050516/5fa06af813a11e265c1bdad4/html5/thumbnails/37.jpg)
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%)
![Page 38: Using Data to Increase Booking Conversion€¦ · · ROI Focus . Booking Conversion Formulae Revenue = Traffic x Conversion x ABV ... A/B Testing Goal Increase of 44.14% . Heatmap](https://reader034.vdocument.in/reader034/viewer/2022050516/5fa06af813a11e265c1bdad4/html5/thumbnails/38.jpg)
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
Conversion Driven Digital Marketing
B.E. Conversion driving PPC Competiveness
![Page 39: Using Data to Increase Booking Conversion€¦ · · ROI Focus . Booking Conversion Formulae Revenue = Traffic x Conversion x ABV ... A/B Testing Goal Increase of 44.14% . Heatmap](https://reader034.vdocument.in/reader034/viewer/2022050516/5fa06af813a11e265c1bdad4/html5/thumbnails/39.jpg)
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
Conversion Driven Digital Marketing
Additional growth from new traffic
![Page 40: Using Data to Increase Booking Conversion€¦ · · ROI Focus . Booking Conversion Formulae Revenue = Traffic x Conversion x ABV ... A/B Testing Goal Increase of 44.14% . Heatmap](https://reader034.vdocument.in/reader034/viewer/2022050516/5fa06af813a11e265c1bdad4/html5/thumbnails/40.jpg)
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
Conversion Driven Digital Marketing
Additional growth from new traffic
![Page 41: Using Data to Increase Booking Conversion€¦ · · ROI Focus . Booking Conversion Formulae Revenue = Traffic x Conversion x ABV ... A/B Testing Goal Increase of 44.14% . Heatmap](https://reader034.vdocument.in/reader034/viewer/2022050516/5fa06af813a11e265c1bdad4/html5/thumbnails/41.jpg)
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%
Conversion Driven Digital Marketing
* From £21,600
Additional growth from new traffic
![Page 42: Using Data to Increase Booking Conversion€¦ · · ROI Focus . Booking Conversion Formulae Revenue = Traffic x Conversion x ABV ... A/B Testing Goal Increase of 44.14% . Heatmap](https://reader034.vdocument.in/reader034/viewer/2022050516/5fa06af813a11e265c1bdad4/html5/thumbnails/42.jpg)
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
Conversion Driven Digital Marketing
Total Growth + Total PPC Cost
![Page 43: Using Data to Increase Booking Conversion€¦ · · ROI Focus . Booking Conversion Formulae Revenue = Traffic x Conversion x ABV ... A/B Testing Goal Increase of 44.14% . Heatmap](https://reader034.vdocument.in/reader034/viewer/2022050516/5fa06af813a11e265c1bdad4/html5/thumbnails/43.jpg)
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.