Is getting the right product to the right person at the right place at the right time?

Now that we’re a couple weeks into 2019, are the revenue management plans you have in place going to maximize your profits this year?

NB: This is an article from Rainmaker

Are you taking all the factors affecting your pricing strategy into consideration? Are you offering the right room to the right customer? What does your channel mix look like? In a recent webinar we discussed “The 5 Rights of Revenue Management.” Every situation is different, and sometimes you may only need to focus on one of the below categories – but all five should have a place at the table when making the tough revenue management decisions.

Right Customer

Is your property accurately segmenting your guests? Segmenting will vary based on your specific hotel, but it is essential you have an idea of who is typically walking through your front door and booking your rooms. Are they paying your highest rate or fighting for discounts? When pricing your rooms and managing your customers you should be thinking about why guests are coming to your hotel, what is bringing them to your area and what type of traveler they are. All these factors affect your pricing strategy and the first step is ensuring you understand your customers.

Right Product

What mix fills your hotel? It’s important to maximize that mix to put the most profitable business into your hotel. Different guests require different room types and these room types need to be available to right person at the right time. For example, have two bed rooms available during high leisure travel times or offer a suite for a low upgrade fee when they are not in high demand. This may seem second nature, but it is essential that hotels use their inventory wisely to maximize their revenue potential.

Right Price

It’s no secret different customers are willing to pay different prices based on their specific needs. When pricing rooms, hotels need to take in to consideration the price you think your rooms are worth, what you can sell your rooms for and the demand for your product to maximize the RevPAR for your hotel. Take a step back and make sure your hotel is pricing based on demand and value.

Right Channel

One of the largest focuses for revenue managers today is channel mix. Are you offering the right room to the right person on the right channel? Although you may be offering the same rate across the board – the fees associated with certain channels will make some bookings less profitable. It is essential that you pay attention to these associated costs and fees to make sure you’re maximizing your revenue potential by utilizing the most profitable channels. Look at where your business is coming from and make sure your channel mix is optimal.

Right Time

The age-old question: Do you want to sell out first or sell out last? As you know, revenue management is no longer just about occupancy. If you sell out first, how much are you losing in rate? Could you have charged more? This opens the conversation on the “right” time to sell out your hotel and what rooms you need for each type of traveler at any given time. For example, do leisure travelers book further in advance? You’ll also want to analyze your stay patterns. Is your hotel always sold out on Wednesday? This prevents guests from booking a Monday – Thursday pattern. Your hotel should be analyzing your guests’ stay patterns to allow for the most profitable length of stay. Optimize your booking pace and aim to sell out last to make the most room revenue possible.

Read more articles from Rainmaker

Advertising new home sales to someone who recently bought a home or a new car to someone that just bought one is unlikely to give brands the results they want. These ads miss the importance of reaching the right person at the right time in the buying journey. Consumers receive and respond better when the marketing of products and services is most relevant to their current life experiences and needs. For example, someone who just bought a home may be considering home insurance or new furniture. However, someone who has owned a home for many years may be looking to  remodel. Those consumers' behaviors will be different. By taking the buyer's journey into consideration, brands are able to create advertisements that speak to their target audience's needs, with the right message at the right time.

Advertise to the Right Person

Conducting research on your target audience before planning a campaign can help you to create ads that best speak to their needs, interests, and pain points. Rather than running ads you assume are compelling or interesting, think about your target audience’s age group, what their needs and pain points are that are likely to drive interest in your products or services, and how you can create messaging that will relate to them. Finally, ask yourself whether you are marketing to people who are already familiar with your brand or if you are marketing to attract new customers. 

Advertising to the right person is crucial. If you don’t know who your audience truly is, there are a variety of ways that you can find out. If you have a CRM or any customer data - use this information to your advantage to uncover trends in their demographics- and psychographics. You can also conduct surveys and interviews to learn more and ensure you’re not making assumptions about who your target audience really is.  

Once you've identified who you are trying to reach, research where those people are. What radio stations do they listen to? What times are they listening? What websites are they on? What social media platforms do they use? And then find the right media that best reach your target audience.   

Advertise at the Right Time

Timing is everything, and marketing at the right time is just as important as speaking to the right audience. Even ads that were perfectly designed with your target audience in mind are unlikely to do their job if they are not addressing the needs reflective of that audience’s timing in their buyer’s journey. Advertising at the right time requires knowing your target audience and where they are in terms of making a decision on their upcoming purchase - and even more so, what matters to them at each of those stages.

Research is a big part of every buyer’s journey due to the easily accessible research online - from Google to blogs to asking friends on Social Media - consumers are heavily researching before making all kinds of purchases. For example, online shoppers may place items in their “shopping carts” even if they have no intention of buying them that day, just so they can compare prices and features across a variety of brands, before ultimately making a decision. 

One way to better understand if a buyer is nearing the point of purchase is by their online behaviors. For example, a consumer may return to a specific page or product on your website multiple times. Or they may put specific products in their “shopping cart”. By retargeting them with ads that remind them about their products, it helps push consumers closer to a purchase.

Life milestones and trigger moments in life, such as getting married, having a baby, or buying a home or car help brands to monitor specific behavior and  meet customers where they are at certain points in their lives. Targeting audiences that are likely to be in the market for certain products aligned with their lifestyles , as well as using data to filter out customers who have recently purchased , helps businesses target the higher intent audience, leading to a greater return on the investment.

Why Reaching the Right People at the Right Time is Important to Your Business's Success

Advertising to the right people at the right time is an essential to the success of any marketing campaign because it ensures personalized messaging that speaks to a particular consumer's current life situation. Due to the current pandemic, businesses are having to adapt their marketing strategies to speak to the times. Realtors are giving virtual home tours, fitness studios are offering live streamed classes to do at home, and restaurants are promoting their delivery and takeout services. While reaching the right people at the right time is very important, it’s also important to make sure you’re adjusting your efforts to the current times like businesses are currently doing during the COVID-19 crisis.

Small, mid-level and large market experience provide George with the framework to address "real world" challenges and opportunities. His optimism and candor combine for a no-nonsense approach to foster rapid growth for brands and companies. Working hand in hand with owners and marketing professionals to get the job done.

What does it mean to have the right product at the right place the right quantity at the right time?

Which function is responsible for getting the right product at the right time?

Which of the 4ps focuses on getting the right product to the right place in the right quantities at the right time?

What do you call the process of getting the right product in front of the right people at the right time and for the right price?