Revenue Management and Marketing · Revenue Management & Marketing ... Management Revenue ......

Revenue Management & Marketing Envisioning the New SynthesisEnvisioning the New Synthesis

September 23‐25, 2013Turnberry Isle Miami

Part 1: Organizational ConsiderationsConsiderations

Who Owns Demand?

Organizational Considerations

• Who can effect success of Revenue Management?Revenue Manager– Revenue Manager

– Operations Personnel• Corporate• Site 

• What department strategy needs to be in sync?• What department strategy needs to be in sync?– Marketing Strategy

• Traffic & Quality– Operational Strategy

• Selection Criteria (Screening)

Reporting Structure

Most Common Structure Today

President/COO Residential Management

Marketing Revenue  OperationsMarketing Management Operations

Organizational Considerations

• How can organizational structure mitigate these differences?– Reporting Structure– Measurements– Accountability for outcomes

Reporting Structure

Less Common Examples of Org Structure

President Res ManagementPresident Res  Management

Marketing Operations

Management

k Marketing

R

OperationsMarketing Operations

R Revenue Management

Revenue Management

Reporting Structure

Possible Future Structure

President/COO Residential Management

Revenue O ti i tiOptimization

Marketing Pricing Management Operations

Part 2: MeasurementPart 2: Measurement

What’s the real cost? 

Screening

Channels Price reductions

Revenue

Choosing the right tools

Channels

ContentCosts

Measurements

• Common Language (Dollars!)– Rent Increase

• Number of Leases touched• Average termg

– Bad Debt $$ Possible• Time horizon

l l l• Supplemental or Incremental– Buying Additional Demand Through Marketing

• By inventory typeBy inventory type• By marketing channel

Measuring Marketing

• Cost Per Lease• Mean Time to Move In• Gross Expected LeasesGross Expected Leases• Net expected Leases

Understanding ChannelsHigh cost per lease

Fast Traffic

Inefficient TrafficTraffic Traffic

High mean time to lease

Low mean time to lease

Efficient T ffi

Cheap T ffiTraffic  Traffic

Low cost per lease

Accountability

• Measures of Success– Try to measure events that manifest as revenue

• Dollars are the language of business• No ROI without knowing “R”

• Incentives– Why Pricing / Marketing / Screening should embrace this

– Aligning individual and collective rewards and goals

Part 3: ExecutionPart 3: Execution

Selling & Merchandising price/Adoption & Confidence

• Back to the basics of collecting the prospects needs tassessment

• Customize & Flexibility for the prospect

• Three Questions will be critical with each prospect

Fl Pl•Floor Plan

•Move in Date

•Lease Term

•Take the assumptions out!Take the assumptions out!

Defeating Objections

• Don't say “NO” Say “YES” at Price

• Prospects can choose their lease terms ‐ Flexible

• Offer move in dates further into the future

Empowering Leasers to Sell in an Revenue Management World

• Pricing Matrix

• No longer need to make exceptions

• Reasons to Follow up with Prospect

• Creating Urgency; Online Leasing• Creating Urgency; Online Leasing

• Closing tools ‐ Pricingg g

Functional Disconnect & Review Compliance

• Why Behind the What

• Review Daily / Weekly Pricing

• Empower the Team

For More Information Please Contact:For More Information Please Contact:Scott Villanisvillani@nrpgroup.com

Mary Herroldmherrold@jvmrealty commherrold@jvmrealty.com

Gina Johnsongjohnson@plpinc.net

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