Measuring Marketing

Effectiveness

Measuring Marketing

Effectiveness

Todd Katler

Level One

Todd Katler

Level One

Topics For Today’s PresentationTopics For Today’s Presentation

Properly evaluating your leads

Where do you find the good leads (and how to

avoid the not so good leads)

How to increase lead conversion

Properly evaluating your leads

Where do you find the good leads (and how to

avoid the not so good leads)

How to increase lead conversion

Todd’s Golden RuleTodd’s Golden Rule

Conclusions are

based on actual

data, not anyone’s

opinion.

(And you won’t always like the facts.)

Conclusions are

based on actual

data, not anyone’s

opinion.

(And you won’t always like the facts.)

How do we maintain the Golden Rule?How do we maintain the Golden Rule?

You must eliminate

as much human

bias as possible

(say this with a thick,

Austrian accent).

You must eliminate

as much human

bias as possible

(say this with a thick,

Austrian accent).

This message was not endorsed

by Governor Schwarzenegger

This message was not endorsed

by Governor Schwarzenegger

At least Todd Didn’t pick a photo from

Kindergarten Cop.

Properly Evaluating Your LeadsProperly Evaluating Your Leads

• Definitions• Acceptable Measures• Sample Periods• Essential Computations

• Definitions• Acceptable Measures• Sample Periods• Essential Computations

Defining Leads Defining Leads

Contactors Non-Contactors

Renters who find your ads

and subsequently:

• Phone

• Email

• Web Chat

• Legitimate ‘Drive By’s’

• Renters who find your ads

but do not contact prior to

visiting

Is my guest card data/PMS software correct?Is my guest card data/PMS software correct?

Ad Source % Sourced Accurately

% Under-Reported in PMS % of Total Leases

Grand Total 29% -71% 100%

CraigsList.org 62% -38% 10%

Rent.com 59% -41% 12%

Apartments.com 53% -47% 8%

For Rent/.com 43% -57% 4%

Apartment Guide/.com 38% -62% 6%

Move.com 36% -64% 2%

MyNewPlace.com 17% -83% 3%

Company Website 11% -89% 56%

Across a selection of 10,000+ leases and

100,000+ guest cards, the source noted in the

PMS was compared with the originating source

of the guest card with the following results:

Across a selection of 10,000+ leases and

100,000+ guest cards, the source noted in the

PMS was compared with the originating source

of the guest card with the following results:

How much of my traffic am I actually counting?How much of my traffic am I actually counting?

Email & Walk-in: 90%

Email & Walk-in: 58%

Phone: 10% Phone: 48%

A national company evaluating using a contact center compared guest card traffic

between their test and control properties with the following results:

A national company evaluating using a contact center compared guest card traffic

between their test and control properties with the following results:

Control properties not using contact center

Test properties using contact center

What Do We Do About Non-Contactors?What Do We Do About Non-Contactors?

Ask yourself…Ask yourself… What would Arnold do?

Non-ContactorNon-ContactorTERMINATED

What Do We Do About Non-Contactors?What Do We Do About Non-Contactors?

Remove Non-Contactors from your evaluation

Know that each ad source is producing more leases

then can be accurately tracked; however, the same

logic is used across all ad sources

Print sources are probably unfairly underweighted in

this exercise due to the search nature of their

customers

Remove Non-Contactors from your evaluation

Know that each ad source is producing more leases

then can be accurately tracked; however, the same

logic is used across all ad sources

Print sources are probably unfairly underweighted in

this exercise due to the search nature of their

customers

How do we measure contactors?How do we measure contactors?

Non-Prospects Prospects

• Family

• Friends

• Vendors

• Existing Residents

• Wrong numbers

• Automated marketing messages

• People who start their

sentence with “How much

are your 2 bedrooms?” or

anyone else looking to lease

an apartment from you

What % of my ad source calls are non-prospects?What % of my ad source calls are non-prospects?

Ad Source GC:Call Ratio Ad Source GC:Call

RatioGrand Total 39% MyNewPlace.com 38%Yahoo local 10% Apartment Guide/.com 38%Apartment Marketer 19% Apartments.com 41%Move.com 20% Apartment Showcase/.com 44%For Rent/.com 22% Rent.com 49%Apartment Finder/.com 23% Banner 52%Google local 33% CraigsList.com 58%

Property/Corporate Web Site 37%

This is the rawest form of data which includes

0-second calls, hang-up’s, duplicates and

disconnects. In reality, the overall ratio is

closer to 65-70%

How do I determine my Prospect:Call Ratio?How do I determine my Prospect:Call Ratio?

Easy but inaccurate

• Multiply all your ad

sources calls by 70% to

get Prospect:Call ratio and

your emails by 95%.

• Multiply your web site

calls by about 40% and

emails by about 85%

Medium but not too painful

• Listen to all your

calls/read all your emails

for a month or so and

determine how many are

prospect by ad source.

• Evaluate at least 50

calls per source.

Easy but requires

implementation

• Use a contact center or

some other method that

can parse calls by intent.

How can I always monitor Prospect:Call ratio?How can I always monitor Prospect:Call ratio?

So far we have learned…So far we have learned…

I can’t measure my walk-in traffic very well

The data in my expensive software stinks

I am not be able to easily tell how many of my leads are

actually Aunt Sally calling her niece

Todd’s parents let him watch too many violent movies

growing up (sorry, Mom)

I can’t measure my walk-in traffic very well

The data in my expensive software stinks

I am not be able to easily tell how many of my leads are

actually Aunt Sally calling her niece

Todd’s parents let him watch too many violent movies

growing up (sorry, Mom)

Fear not – we can still answer some important questions!Fear not – we can still answer some important questions!

What’s worse? Todd’s

sarcasm or my acting?

Why I like cost-per-leadWhy I like cost-per-lead

Depending on a source’s cost-per-lead, conversion

becomes less important.

Depending on a source’s cost-per-lead, conversion

becomes less important.

Cost Per Lead

Conversion

1.5% 2.0% 2.5% 3.0% 4.0% 5.0% 6.0%

$10 $667 $500 $400 $333 $250 $200 $167

$15 $1,000 $750 $600 $500 $375 $300 $250

$20 $1,333 $1,000 $800 $667 $500 $400 $333

$30 $2,000 $1,500 $1,200 $1,000 $750 $600 $500

$35 $2,333 $1,750 $1,400 $1,167 $875 $700 $583

$40 $2,667 $2,000 $1,600 $1,333 $1,000 $800 $667

$50 $3,333 $2,500 $2,000 $1,667 $1,250 $1,000 $833

Lease:Lead ConversionLease:Lead Conversion

If you have a reliable way to aggregate lead data, you can

compare it to lease reports to obtain conversion data.

Phone data is often hard to aggregate because of the way

calls are handled on site.

Do not just use email data as some sources have very low

conversion from emails but high conversion from phone

calls.

If you have a reliable way to aggregate lead data, you can

compare it to lease reports to obtain conversion data.

Phone data is often hard to aggregate because of the way

calls are handled on site.

Do not just use email data as some sources have very low

conversion from emails but high conversion from phone

calls.

Where do the good leads come from and how do I convert them?Where do the good leads come

from and how do I convert them?

• Current industry trends• Visit Set Ratio and ad sources• Phone vs. Email leads• Phone lead characteristics• Social Networking for lead origination

• Current industry trends• Visit Set Ratio and ad sources• Phone vs. Email leads• Phone lead characteristics• Social Networking for lead origination

Conversion by ad source typeConversion by ad source type

Using visit data as a predictor of lease performanceUsing visit data as a predictor of lease performance

Average was 4.7%

conversion at 42% VSR

High VSR and 4.5% +

Conversion!Low VSR and Sub-3%

Conversion

How they contact you matters!How they contact you matters!

Phone leads convert to

lease at over twice the

rate of email leads.

Encourage Phone Contacts – Not Emails!Encourage Phone Contacts – Not Emails!

Email is understated

Phone is the key method displayed

Good ExampleGood Example

Encourage Phone Contacts – Not Emails!Encourage Phone Contacts – Not Emails!

Phone is buried between

the physical address and

fax?

Not So Good ExampleNot So Good Example

Besides the form being dedicated to email, why offer the

form and a direct email address?

Better Interactions = More Leases!Better Interactions = More Leases!

Longer calls

convert to a

lease 92%

more often

Average

leasing call is

1:44

Technology Solution to Call Duration IssuesTechnology Solution to Call Duration Issues

Purchase a DIMEDIME device for each leasing agent: Purchase a DIMEDIME device for each leasing agent:

DDevice to

IIncrease

MMeasurable

EEngagement

DDevice to

IIncrease

MMeasurable

EEngagement

What Drives Search BehaviorWhat Drives Search Behavior

90%+ of a prospective renter’s buying decision is based on 3 criterion:

Sub-Market or Neighborhood

Price

Pet Policy

This gives the renter typically between 5 and 15 properties that meet their

requirements.

Within these parameters, the remaining 9 – 10% are influenced by their

interaction with the community, external influences, amenities, etc.

90%+ of a prospective renter’s buying decision is based on 3 criterion:

Sub-Market or Neighborhood

Price

Pet Policy

This gives the renter typically between 5 and 15 properties that meet their

requirements.

Within these parameters, the remaining 9 – 10% are influenced by their

interaction with the community, external influences, amenities, etc.

How Does Social Media Fit InHow Does Social Media Fit In

There is no disputing that Social Media can be a

great way to interact with customers if managed

properly.

In my opinion, controlled properly, Social Media

could be used effectively for resident

retention/interactive with current residents.

There is no disputing that Social Media can be a

great way to interact with customers if managed

properly.

In my opinion, controlled properly, Social Media

could be used effectively for resident

retention/interactive with current residents.

Is Social Media Effective For Attracting Prospective Renters?Is Social Media Effective For Attracting Prospective Renters?

Level One Study:

The unique tracking numbers for every property were

reviewed, extracting those assigned to Facebook,

MySpace, You Tube and Twitter.

Guest cards originating from those sources were

compared to the volume provided by all other

sources for those same properties.

Level One Study:

The unique tracking numbers for every property were

reviewed, extracting those assigned to Facebook,

MySpace, You Tube and Twitter.

Guest cards originating from those sources were

compared to the volume provided by all other

sources for those same properties.

What did the study show?What did the study show?

In total, guest cards from Social Media sites accounted for the

following percent of all activity:

In total, guest cards from Social Media sites accounted for the

following percent of all activity:

.05%.05%(yep, that’s .0005)(yep, that’s .0005)

.05%.05%(yep, that’s .0005)(yep, that’s .0005)

• Assuming these leads convert at 2X the rate of all other sources, the

quantity of leads from Social Media sites needs to grow by a factory

of 40X before it has the same impact as your weakest ad source.

• Assuming these leads convert at 2X the rate of all other sources, the

quantity of leads from Social Media sites needs to grow by a factory

of 40X before it has the same impact as your weakest ad source.

In case that last slide upset you…In case that last slide upset you…