Today, data makes the world go round. In each industry, data are demanded to support business decisions. Right now, the word “Data” is among top buzzwords. Everybody wants to be data-driven. The more data, the better decisions. However, the truth is that it is not necessary to gather terabytes of data. More importantly, companies and hotels should focus on gathering the right data… and they can be sometimes big in size.
As mobile applications are another item that affects budget decision-making, setting the right key performance indicators is the way to prove that mobile application really is/is not worth the efforts. I previously wrote a short post defining the value of the mobile app, however, concrete success metrics can help you at the beginning. Let’s discuss some of them that might come in handy.
#1 The number of orders
The increased number of orders/upselled services is something that we often evangelize to be one of the benefits of having hotel mobile app. However, what is their real number? Which services have beeing ordered the most? Are the paid services ordered more often?
It is also worth to determine if the number of orders increased compared to the state when you didn’t have the app in place. If the number of orders in the app is high but total orders didn’t increase, you only saved the time of your staff. It might be important in hotels where everything or almost everything is free of charge, too.
Some hotels might use the mobile app only as a touchpoint on a way to purchase or order, however, it was built to drive direct revenue, too. You should be able to answer questions like what was the most profitable services? What portion of revenue was generated by particular departments (front desk, bowling, restaurant, wellness, etc.)? Is the revenue generated higher compared to the state when you didn’t have mobile app in place? Do you generate commissions from sales of services provided by your partners (rentals, skipasses, tours, trips, etc.)?
These questions will help you determine which services should be your draught horse (and you should extend their capacity to earn even more), which ones should be promoted more or which ones are not interesting at all and you should stop providing them. You can also determine the most valuable partners and find the similar ones to maximize the growth of commission earned.
The revenue also helps you determine if return on investment is positive or not. If you earn more than what you have to invest in the application, well done, the app actually brings the added value! If not, try it for another month and then plan how to make it more attractive or abandon the solution.
#3 Views and conversion rate
By checking out the views of particular services or pages included in the application, you can also determine what people are interested in the most. However, what is your conversion rate? If there are many people who viewed the particular service but there are only few orders, it might indicate several issues:
- your copy is not clear or interesting enough
- people don’t understand your offer
- people didn’t find info about the price or they don’t like the price
- your image is not persuasive enough
These are only some of the examples. However, in case you see this problem, you should try to speak to some of your guests and ask what they didn’t like about your offer. Afterwards, you should change the problematic elements, test them and see if any change happens.
The opposite scenario is represented by the case when people view particular service many times, however, the ordering is not allowed. Here, you should consider making the service orderable and thus increase the number of orders and/or revenue.
#4 Customer satisfaction
The application usually allows your guests to provide you with the real time feedback. However (e. g. in RoomAssistant), the feedback is not publicly visible. You can gain a basic understanding about how people feel about your hotel and its services. It is obvious that you want them to provide you with the best possible feedback. By using this metric, you should be able to answer questions regarding to what your guests like and don’t like about your hotel or which departments should work harder on the experience they provide.
There also might be additional indirect metric for you,. What do I mean? You know that some guests are not satisfied with your services, however, you have enough time to make them feel better until they leave your hotel. The question is how many unsatisfied customers you can turn to satisfied ones who will provide you with the positive public feedback.
#5 Response time
Response time doesn’t directly affect the value that mobile application brings to your hotel but it still defines the value you bring to your users. In a mobile world, people expect to receive the answer to their question or inquiry immediately. How is your staff doing? Are they pretty much real-time or do guests have to wait for their answers and eventually call or come in person to confirm their requests?
The funny fact is that almost each of abovementioned metrics affects another decision – if there will be a person responsible solely for the mobile app or not. In many hotels, management of the mobile app is a regular part of someone else’s job. However, if you see that having a dedicated person can improve your success metrics, don’t hesitate to hire a person who will take care of the application.
What other success metrics would/do you use? Share them in comments to make the life of our readers easier. I am looking forward to seeing your insights!