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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 [email protected]
Mary Herroldmherrold@jvmrealty [email protected]
Gina [email protected]
#AptRevenue AptRevenue.com
