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hard conversion rate vs lead conversion rate

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# 1
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Hi Everyone,

 

Its me again. This may be a silly question but I cannot find an answer anywhere.

 

So I am tracking 2 types of conversions for a hotel website (with 10 rooms available):

Conversion A - reached enquiry (gave in date to check availability & price)

Conversion B - booked (the actual sale, i.e. a room was rented)

 

So these are the numbers for 3 months:

Clicks = 2271

Conversion A = 700

Conversion B = 6

 

So if I use A, my conversion rate is 31.24.

And If I use B, my conversion rate is 0.27.

 

Which one is the conversion rate everyone talks about?

Which one should I try to benchmark with others in the industry, A or B?

What do you think of these conversions, is the campaign healthy?

 

Thank you to anyone who could help. I am struggling here!

 

 

 

2 Expert replyverified_user
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Accepted by topic author Monique Z
March

hard conversion rate vs lead conversion rate

Top Contributor
# 2
Top Contributor

Hi Monique Z,

A conversion is any action with a value. Conversion A is basically an inquiry. It will be added to the conversion count on your campaigns, etc. It would be interesting to be able to compare the number of inquiries vs rooms booked.

It's really up to you to decide what you want to track as conversions. If you track both, your revenue per conversion will be a little skewed because of all the inquiries, unless you segment the report by conversion type. If you want the AW UI to show you the average amount of the sale of booked rooms, I'd remove Conversion A. Then I'd set up a Sales Funnel goal on Analytics that starts with your landing page, goes through the booking process all the way to the sale. Then you can look at the sales funnel in Analytics to see how many people start the process but abandon it before booking.

For your last question, it's very hard to tel. A 30% CTR is great, but it depends on how others in your industry do with the same keywords how that turns into a QS. Your conversion rate is about 0.24%. That seems to be low. Of the visitors who began the reservation process, you have a 0.85% conversion. The bottom line for health of your campaign is whether the amount you spend per conversion is profitable for you.

Best of Luck!

 

Pete

 

petebardo -- Deadhead doing AdWords

hard conversion rate vs lead conversion rate

Badged Google Partner
# 3
Badged Google Partner

Like @petebardo said, the conversions you track are all up to you, and both can have some value in terms of your optimization efforts. You have to get the click before the inquiry, you have to get the inquiry before a booking.

 

In the short term, try to optimize the advertising to focus on the inquiry conversions. Users may not be willing to book right away, but at least they are showing interest. Clearly, that's better than just clicks. If you can create a remarketing list for those converters and offer them some incentive to return and actually book, then that will likely be more effective than trying to convince new users to book immediately. This campaign type and campaign goal may very well be "healthy" and working well. But, you may need more than one campaign, or more than one interaction per user to improve the total number of booking conversions.

 

Keep working on the website and the purchase funnel to see if you can further improve the inquiry to booking conversion rate over time. If a .85% inquiry to booking conversion rate is around the "standard" for smaller hotels, then you may not be able to improve that number much... However, as long as that conversion rate remains constant, the more inquiry conversions you can get, the more bookings you will get.

Tom

hard conversion rate vs lead conversion rate

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# 4
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Hey @petebardo and @tomhalejr

Thank you so much for your feedback.

 

 The sales funnel in analytics is a great idea, would love to implement that, but unfortunately the website uses a third party booking system which is not being tracked.  Loved this analysis 'Of the visitors who began the reservation process, you have a 0.85% conversion.', had not occurred to me to look at it like that.

 

I am currently working on remarketing, however I dont really have an offer for them.  I have a feeling the problem with booking is there are very few rooms available and most of them are booked most of the the time.

 

I don't seem to find the standard CTR CR etc for others in the industry. Is there a website for this?

On wordstream CR for travel is 2.57, but I cannot compare this small hotel with a website like booking.com.

 

Thanks againSmiley Happy!

hard conversion rate vs lead conversion rate

Top Contributor
# 5
Top Contributor

Part of the issue is almost hidden in your last comment... "most of [the rooms] are booked most of the time" - this is naturally going to reduce the conversion rate B since if there is no availability then there can be no booking.

 

As a result your campaigns may be quite successful in terms of attracting the right kind of visitors to the site, but this is not reflected in the conversion data.

 

I've got a similar issue with a boutique hotel account I manage and we did look at trying to link the occupancy rate to a script that would adjust the bidding and budgets - but some people are looking last minute and others are looking to book some time in advance. Last minute may have no availability and longer term may be fully open - so it's not really a workable option.

 

Someone making a date search is showing good intent and these are the kind of visitors you would want to attract so I would be tempted to track those conversions and optimise to get more of them... after all, as outlined above, it may not be their fault that they don't eventually book.

hard conversion rate vs lead conversion rate

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# 6
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Hi Steve @stickleback

What do you track in your conversions for this boutique hotel? Just those that make a booking, or those that show interest in booking as well? My problem is - how can I compare my CR to others in the industry if I dont know what they are tracking in their conversions Smiley Happy.

'Someone making a date search is showing good intent and these are the kind of visitors you would want to attract so I would be tempted to track those conversions and optimise to get more of them'  

How do you attract visitors making a date search? You mean you use dates as keywords? Can you give me an example?

 

Thank You! Smiley Happy

hard conversion rate vs lead conversion rate

Badged Google Partner
# 7
Badged Google Partner

"how can I compare my CR to others in the industry if I don't know what they are tracking in their conversions"

 

Maybe somewhere between .05% to 5% - Total visits : total bookings. (?) 

 

http://www.ehospitalitytimes.com/?p=78002

http://www.hotelnewsnow.com/Articles/19867/Increase-conversion-rates-to-boost-revenue

 

@stickleback hit the nail on the head. Your situation makes comparison to industry standards difficult. If you are at capacity with a limited supply of rooms, that's a completely different situation than most larger hotels. A .27% click : booking CR is fantastic, if you are at capacity and making money. Smiley Happy 

 

Why such concern over the industry standard conversion rate? Do you have to justify your actions to someone using this metric, or are you just curious?

 

 

 

Tom

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hard conversion rate vs lead conversion rate

Top Contributor
# 8
Top Contributor

Hi...

 

I use the availability search as a conversion - i.e. someone who gets to the point that they actually run a search to see if they can book a room. Often they cannot - simply because there are no rooms left on the dates they want - but these are the visitors I want.

 

So I look to see which ads and keywords bring those visitors and boost these just as you would with any other kind of optimisation process.  Becuase had the dates been available we have to assume that there would have been half a chance that they would have completed the booking.

 

We are certainly not going to get a completed booking from someone who doesn't get to that point - because that is an essential step in the booking process, so I am less interested in attracting more of this kind of visitor.

 

@tomhalejr raises a good question - why is this worrying you? You cannot compare yourself to other hotel groups who might have thousands of rooms. Rather you need to work on your own specific situation and if you are running at a good level of occupancy then you're doing well.

 

If the industry standard occupancy were 80% this probably wouldn't work for a small hotel with 10 rooms - the numbers just wouldn't stack. In the same way, other benchmarks would likely be equally meaningless.

hard conversion rate vs lead conversion rate

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# 9
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@stickleback @tomhalejr

 

Thank you so much for your input & encouragement! Yes just curiosity Smiley Happy - just to make sure the campaign is doing well Smiley Happy.  

 

What would I do without this community - seriously! Thanks again!

Experts in the Topic
stickleback
petebardo