Success is very individual, depending on the type of hotel and the market situation. In general, a hotel with many customers is a strong base for acquiring business in the future. More customers would potentially lead to more definite bookings in the future. Conversely, few customers will likely lead to a struggle in sales.
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Four critical success factors
Every hotel with a high share of B2B business needs to monitor the four critical success factors. These are the number of customers, inquiries, win rate, and realization rate. The total impact will be significant with just a few more customers and inquiries, a slightly higher win rate, and a minimal gain in the realization rate. The starting point is to determine where the hotel stands today. Here is a list of things you need to find to go to the next step and set clear goals for future success.
- The estimated value of all contracts
- The number of customers
- Calculate average contract value
- The estimated value of all inquiries
- The number of inquiries
- Calculate average inquiry value
- Actual value of won inquiries
- Calculate the win rate
- The real realized value of all contracts
- Calculate the realization rate
Formulas to calculate the impact
Depending on your current status, you need to calculate the potential impact of improving the KPIs for the four critical success factors. You will also understand how much resources you can allocate to improve the KPI. You still need a reasonable return on your investment. You will calculate the impact of a change in the four critical success factors based on the figures above. Here are some formulas to measure the revenue impact.
- An additional customer: Average contract value * realization rate
- Another won inquiry: Average inquiry value * win rate
- An extra win rate percentage point: 1 % of the estimated value of all inquiries
- An additional realization rate percentage point: 1 % of the estimated value of all contracts
Set and track targets
The final step is to set targets for each of the KPIs and allocate resources to ensure that you achieve the goal. Then, once you have communicated where the hotel stands now and where you want it to be in the future, it is time to start the execution and continuously track the progress towards the goals, so you can take corrective action before it is too late.
Now, you want to speed up the process to reach the goal faster. The only way to do this is to provide the sales team with easy-to-use systems and tools to make them more productive.
Demand Calendar B2B Sales CRM
Did you have a hard time finding the information above, or did it take you more than a couple of minutes? A real B2B Sales CRM focuses on the critical success factors and provides all the information you need to drive B2B sales successfully. We have built Demand Calendar on best-practice workflows that feel natural for hotel salespeople, so the management can track progress and coach the sales team.