Mr. O'Rourke

Mobile Technology

The Importance of Analytics in Mobile Apps for Hotels

By Tom O'Rourke, President & CEO, O’Rourke Hospitality Marketing

Looking back on the state of the mobile app market over the last twelve months it is apparent that everyone has been focused on one question: “How many downloads did I get on my app?” While lots of downloads may seem impressive, but what is the actual value of that number? What does it tell us about our return on investment? The answers in the most simplified terms (respectively) are: minimal and not enough. By shifting the focus from downloads to what’s truly important we will find out exactly how well our app is performing. And just what is truly important? Behavior.

Now, with analytics for apps, we are able to track behavior, thereby making more informed decisions and higher functioning apps that meet both the needs of our customers, and our own business objectives. Analytics for apps brings behavior to the forefront, where it belongs.

Today, how many of us are actually taking advantage of mobile analytics? How many of us even knew they were available? The likelihood that that’s a large number is slim based on the fact that it hasn’t been around for long.

Behavior vs. Downloads

It’s not all about downloads when it comes to measuring the success of an app. I am reminded of the early 1990s, when we obsessed over the number of visitors to our website. We didn’t understand the importance of behavior tracking then. Today, the insights we gain from understanding behavior clearly allow us to make good business decisions, which leads to increased revenue.

“You hardly ever have to worry about keeping up with your competition if you keep up with your audience.”(i) Throw this statement by digital marketing expert Bryan Eisenberg against the wall and it sticks. His context may have been different but translates perfectly to mobile applications.

What desktop website behaviors have we seen? And how can we learn from them to make the most of our hotel mobile apps?

Let’s take a look at desktop website behavior with Mr. Eisenberg, who has been on the “download speed matters” soapbox for well over a decade. Eisenberg says, “A one-second delay could result in 7 percent fewer conversions, 11 percent fewer page views, or even a 15 percent decrease in customer satisfaction.”

That’s heady stuff when you think about that in terms of mobile apps. On-the-go users aren’t going to wait around while that pinwheel spins on their smart phone screen. The notion of slow service surely sends a shiver down the spine of any hotelier. And think about how that reflects on your property.

Assuring that your app is useful, measurable and populated with quality content is essential. “Useful” has many aspects, including the functionality. How’s your download speed, how intuitive is your layout? Of course, that’s just one piece of the puzzle that will have an effect on your users’ behavior.

We at Smartstay believe “behavior vs. downloads” must come to the forefront because of what was learned from desktop website behavior.

Setting Goals & Tracking Conversions

So, they downloaded your app. Now what? You want to find out who’s doing what. You want them to behave a certain way, like booking a room or sharing your offer. Advanced segmentation allows us isolate segments pertaining to overall objectives and tie them into our website goals. In other words, by choosing the actions to track, we can set up goals using our analytics.

There are four important goals we at Smartstay believe are critical for any hotel to measure on their hotel app:

1. App usage (opens)
   
2. Trip planning (guest benefit)
   
3. Booking (revenue generator)
   
4. Sharing offers (personalizing for social platforms)

As shown in the above chart this Smartstay customer, an oceanfront inn, saw 257 conversions across these four goals in a one-month period. The Trip Planning goal, for example, shows 66 conversions. In other words, the goal was met 66 times (including 10 times on July 10) – that’s our key performance indicator.

By selecting key performance indicators and applying advanced segmentation within analytics, we unveil customer behavior and the effectiveness of the app. From here we are able to put in place a more informed strategy for reaching our business objectives. If that objective is to increase wedding business and we set up a goal to track wedding leads through an RFP form, a useful set of key performance indicators would be:

• the number of app users interested in weddings;
• specific pages they visited and how long they stayed on a page;
• the number that bounced, or that only looked at one page of your site before leaving;
• the number that started to complete the goal (i.e., filling in the RFP form);
• the number that completed the goal (i.e., submitted the completed form);
• the number that abandoned the goal before completing it.

Analytics also show us where there is opportunity to add new goals. The same inn saw 282 visits to its spa page, with an average time on page of 1:02 (good) and a bounce rate of 229 (ouch!). A quick review of the page revealed that there was no call to action or special offer that might increase bookings. Now’s their chance to make that informed decision and improve performance.

Pictured here in this customized analytics dashboard, we see the inn’s most visited page during a specific time period is “Weddings.” We also see that 100% of users who started to fill out the form never finished. Here is another opportunity to revisit existing pages, ask questions and make strategic improvements.

Is the form too long? Too cumbersome? Is the page visually appealing? Can we remove clutter or write more enticing copy? Trying different things, and continuing to review the resulting behavior will get them to where they want to be.

Here and Now

Hoteliers need to be thinking about mobile app analytics now more than ever before. Skepticism over the value of apps can be removed with application of good analytics. Realistically, without setting goals and tracking conversions you cannot 1) understand what your guests are looking for, and 2) determine if they ever booked through the app.

Meanwhile, any uncertainty about the shift from desktop to mobile and the value of staking your claim among the first to utilize a hotel app can be relieved by the research now available. Morgan Stanley anticipates a 70% increase in global desktop Internet usage between 2007 and 2015 (see chart below). Concurrently, mobile Internet use shows an increase of 500%. That’s seven times faster growth for mobile over desktop. That should get your attention. It certainly got ours.

Take Aways

Remember, analytics for mobile apps shed light on opportunity. When the number of visits to a page are tracked against the number of bounces and abandoned forms, it’s clear when action needs to be taken. The inn with the popular spa page and no increase in their spa bookings can now make an informed decision about their app after reviewing the page design (Is it clean and appealing or cluttered and confusing?) and content (Is it engaging and useful?). In addition, they will also want to add a measureable call to action (a.k.a. a goal) to the page, whether it’s booking a special package rate or requesting a brochure.

Similarly, the analytics on the inn’s wedding inquiry form, which saw 100% abandonment rate, speaks loudly to the existence of a problem. The goal of getting the inquiry form submitted is not being met, in other words opportunity is being missed. By seeing this data and reviewing the inquiry form itself – its content, design, usability, relevance to the user, length –they can make informed decisions to improve the form and thereby increase the number of conversions.

Keeping in mind the following steps will help you clear through clutter and meet your business objectives:

1. Establish your business objective
   
2. Set clear goals that are aligned with the business objective
   
3. Set up your analytics to narrow in the data that are most useful to you.
   
4. Execute on the insights gained from the above.
   
5. Repeat.

Another look at the Morgan Stanley graphic above reveals that mobile Internet usage is projected to surpass desktop usage by2013. That’s not far off. Your guests are already there. You need to be there, too. Once there, don’t just hang back and expect the world to come to your door. Implement good analytics. Set your goals and track your conversions. Make those informed decisions that will bring the right customers to your door again and again.

References:
(i) Source: www.bryaneisenberg.com

Tom O’Rourke is an innovative and forward-thinking leader in the hospitality marketing industry. Entrepreneurial by nature, he founded O’Rourke Hospitality in 2001 and grew the business to become what it is today; an award-winning hospitality marketing firm specializing in hotel website design and development, Internet marketing, SEO services, and mobile marketing. His innate ability to see new possibilities and generate fresh ideas, combined with his passion to bring these ideas to fruition, differentiates O’Rourke Hospitality from more traditional agencies. Mr. O'Rourke can be contacted at 978-465-5955 or Tom@ORourkeHospitality.com Extended Bio...

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