Key performance indicators and how to market your tour company
If you are looking at the best way to market your tour company and to measure growth, you need key performance indicators (KPI’s).
When deciding what KPI’s to track when marketing your tour company, it is important to know the difference between a vanity metric and a KPI that leads to more bookings.
Vanity metrics are statistics that are tracked but never actually convert into bookings or more revenue, including Twitter followers and Facebook likes. The KPI’s that really matter are those which lead to bookings and an increase in traffic to your website.
It is also important to follow your customer through their journey with your business to see how smooth it runs from their point of view.
From landing on your website or social media profile, to sending an enquiry and making a booking, how easy is it?
During the booking process: If they have to send you an enquiry about their trips, how many of these enquiries fail to become a booking and why?
After making a booking: How many of your customers follow through to payment and turn up for your trip? What can you do to increase this conversion rate?
After taking a trip with you: How did they rate your trip? How many of them come back to you again and again? Did they recommend you to their friends and family?
If for example 500 website views lead to 25 enquiries about a tour, in turn leading to 5 bookings, you need to measure the conversion rates of each customer action.
Track your sales or bookings secured for future tours so that you can forecast future income. A sales report does not indicate revenue because a trip has not been taken. A customer may not yet have paid or may request a refund.
The Turnover report indicates revenue made on specific dates that a customer takes a tour with you.
If you don’t take a deposit or full payment for the trip, you must track the conversion between sales and turnover.
With inventory reports, track which activity was booked and how many times. This will allow you to see how popular a particular tour was on any given date or time.
Measuring customer retention is important to ensuring growth in any business. 20% of your customer base is likely to bring in 80% of your total business. The key here is ensuring that you focus on customer loyalty and retention.
To further market your tour company, why not partner with another company to enhance the experience of your customers. If you offer wine tours for example, partner with a restaurant that offers local produce so that you can stop off during the tour to allow your customers to sample their food.
Your partnering company will also help market your tours in return for a commission, to be agreed between you both.