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Revenue Management & Marketing Envisioning the New SynthesisEnvisioning the New Synthesis
September 23‐25, 2013Turnberry Isle Miami
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Part 1: Organizational ConsiderationsConsiderations
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Who Owns Demand?
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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)
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Reporting Structure
Most Common Structure Today
President/COO Residential Management
Marketing Revenue OperationsMarketing Management Operations
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Organizational Considerations
• How can organizational structure mitigate these differences?– Reporting Structure– Measurements– Accountability for outcomes
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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
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Reporting Structure
Possible Future Structure
President/COO Residential Management
Revenue O ti i tiOptimization
Marketing Pricing Management Operations
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Part 2: MeasurementPart 2: Measurement
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What’s the real cost?
Screening
Channels Price reductions
Revenue
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Choosing the right tools
Channels
ContentCosts
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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
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Measuring Marketing
• Cost Per Lease• Mean Time to Move In• Gross Expected LeasesGross Expected Leases• Net expected Leases
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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
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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
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Part 3: ExecutionPart 3: Execution
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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!
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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
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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
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Functional Disconnect & Review Compliance
• Why Behind the What
• Review Daily / Weekly Pricing
• Empower the Team
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For More Information Please Contact:For More Information Please Contact:Scott [email protected]
Mary Herroldmherrold@jvmrealty [email protected]
Gina [email protected]
#AptRevenue AptRevenue.com