Listen to this week’s discussion expanding on how Commercial Strategy came to be and how it can benefit your organizations.
Are you being bogged down by unproductive meetings while the rest of your industry is keeping up with rapidly evolving changes? Does your business constantly miss the mark? Mike Medsker shows the independent hospitality industry commercial strategies using Focal Revenue Solutions to keep the momentum of their company going even when there are dramatic changes in the market.
What is a Commercial Strategy?
A commercial strategy is a way businesses can approach the disciplines of sales, marketing, and pricing objectives to improve the ability to execute campaigns. By removing the silos between each discipline, decisions are can be made using the same set of data and criteria.
Sales needs to be working with marketing to drive those marketing qualified leads and then from there, take those marketing qualified leads and convert them at the highest rate as possible into sales qualified leads and then customers.
What happens when you do not have a Commercial Strategy?
You spend more time in meetings talking about data than executing your company campaigns and being strategic in a dynamic market. Don’t waste valuable hours staring at data, ask Impact Questions to get the answer from the data. Now spend those days saved by focusing on deploying better, more effective sales and marketing strategies than in meetings.
4 Ways To Implement A Commercial Strategy
- Democratize Your Data.
Identify a common analytics language that everybody can operate around in order to align the strategic priorities and then let them go execute.
- Think Beyond The Report
Focus on insights rather than reports. Using these insights allows you to take action based on reports.
- Enable Different Teams to Collaborate
Instead of just waiting to provide a forum for teams to engage between regular meetings
- Flywheel Momentum
Focusing on both the needs of the customer and of the business, allows them to gain valuable insight to provide a win-win solution.
Don’t miss out on the big picture and be stuck in reactionary mode by not deploying a commercial strategy approach, your company will lose impact whether it is a cost in investment or investment in time.
Tool of the Week – Education
Focal Revenue Solutions provides an 8-week course on Fundamentals of Commerical Strategy
You connect with Mike Medsker through LinkedIn
[Intro] This is the Omnicast Sales and Marketing Podcast for leaders that are ready to grow their businesses with your hosts. Tyler Jacobson and Susan Barry.
[Tyler] Welcome to the Omnicast Sales and Marketing Podcast. I’m your host Tyler Jacobson, your co-host. Tyler Jacobson of Omnifonic Digital Marketing here in Denver, Colorado. And my last year, my most recent encounter with nature was discovering a bug city made up of all sorts of different bugs underneath the crappy old lamp post in front of my house that I just replaced. And I had the option to destroy Bug City, but I thought, no, that’s that’s not good for that community. Let’s try.
[Susan] Well that is super gross. My name is Susan Barry. My company has high marketing. And I join you today from beautiful, albeit rainy Atlanta, Georgia. My most recent exciting encounter with nature was that I was sitting at the kitchen table with my husband eating lunch a couple of days ago. Our blinds to the French doors over our deck were open so we could see out. Watch the bird feeder and freakin’ giant hawk landed like two feet away from my husband’s head and sat there for like ten or fifteen minutes because he was stalking a fledgling dove that was under the deck. It was crazy. Maybe my story is not doing it justice, but that sounds like nine feet tall. It was amazing.
[Tyler] My wife was just showing me a video of one of her friends on Facebook there at a beach somewhere. I don’t know where it was. I wish I knew where it was. There was an eagle flying with a shark in its talons. She caught a video of this above a beach where there are people. And I’m like, please drop the shark, please drop the shark
[00:01:56] Drop the shark and then jump the shark, perhaps. All right. So, ladies and gentlemen, we are still in quarantine, and one of the things I’ve enjoyed the most. I have to say is getting the opportunity to attend conferences I might not normally be able to go to because they’ve been virtual. So one of them was for an organization that I’m a part of called Cayuga Hospitality Consultants. And that is where I first met today’s guest. Mike Medsker is co-founder and president of Focal Revenue Solutions.
[Tyler] All right. So, Mike, what I want to know, first off is what’s your most recent encounter with nature? If you have one.
[Mike] Absolutely, so not as exciting as either one of yours. I actually went backpacking about two weekends ago, about eight miles out, I think it was up in the middle of Rocky Mountains. Indian Peaks National Wilderness, if you’ve ever been. Amazing place to go. And we were getting set up for camp and all of a sudden we heard a big crash through the trees. And the next thing we know, we have momma and baby moose coming out. So we hightail it out of there. Wanted to make sure we didn’t get in the way of mom and baby and cleared out for a little bit and proceeded to watch them for the next twenty, twenty five minutes as they perused our campsite.
[Susan] Yeah. Not only is that as exciting, that’s way more exciting. And both of our stories put together., that is crazy
[Tyler] Yeah, bug city doesn’t hold a candle to that. All right. So tell us about how you got here. Tell us about your professional journey and a little bit about yourself.
[Mike] Absolutely. So I come from a hospitality background. Actually born and raised by a hotelier So, my Dad was in high school, ran a little 26 room inn down in southeastern Colorado. And I always tell everybody, amazing work experience as you’re growing up. Probably not the best investment in the world. So, they spent, I think it was about seven years working about 100 hour weeks. Doing all the hospitality things, you know, cleaning dishes, washing clothes, making beds, putting everything together before they they finally got sick and decided to move on to other pastures. But during that time, I really got my initial exposure to the industry and fell in love with the opportunity to just get to interact with people from around the world. And, you know, I found out that everybody has a really cool story and it’s just on you to really be able to tease it out of them. And so from there, my interest and kind of the desire to be in hospitality was planted. I got lucky enough in college to go down the right track and graduated with a degree in hospitality management. And then from there, did a couple of years in sales, realized that while I liked sales, particularly taking clients out and giving them nice bottles of wine, something a little bit more analytical. So I ended up going down the path of what’s called revenue optimization, which in the hospitality industry is very heavily focused on pricing. So, you know, I always tell everybody I was the guy that when you’re going into town for a special event, then I was jacking up the room rates and making people upset about my hotel. But I really fell in love with kind of supply and demand equilibrium and trying to figure out what’s the right price point to maximize revenue opportunities. From there, that kind of evolved through a couple of positions with the organization that I was with. And most recently, I was with a group called Two Roads Hospitality, which has since been acquired by Hyatt. I think it’s about 400 million dollar price point. So not a bad exit for our owners on that. And during that time, really started to engage with the technology that we were using from revenue optimization standpoint. And we found that we’ve spent a ton of time on pricing availability controls, but kind of missing the big picture as it related to figuring out how to go out and create new demand. So I spent the tail end of my time there are Two Roads really exploring a few different options for products that would help out with that. And when I found that there wasn’t one that I would have wanted to have and, you know, Director Revenue Roll decided to go out and build it. So about two and a half years and Focal and really excited me working with a lot of great partners across the independent hospitality industry.
[Susan] So you and I are both hotelier’s, Tyler is not. Can you talk about Focal? And in terms of how you would describe it to your grandma or how you would translate it to other industries, because Tyler only can translate grandma when it comes. No, just kidding. Just kidding. But can you give us through the layers of explanation for that?
[Mike] Absolutely. We help hotels make better decisions more quickly using data. Know, I think a lot of times of the hospitality space, hotels are making a lot of gut decisions. Right. And you have people that have been out of property for, you know, 15 or 20 years and they really understand the hotel and they really understand the market. But the challenges is that the market continues to grow and evolve. That understanding perhaps doesn’t keep up with where the market’s headed. So we, in essence, extract all the really granular data points that a hotel might have on you when you go in and check into a hotel. We understand. Where did you book your reservation? Which channel did you call? And did you book online? What type of price point did you purchase? Right. So did you buy the best available rate or did you come in on a triple A rate, for example, or perhaps you bought a package and then we can also tell you where you came from and what we call the booking lead time, which is then used to really compile pace, which is an indicator of how you sold more or less than you sold same time last year. We take all that information and we distill it in a way that really allows hotels to integrate these insights across their commercial strategy teams and really start to break down some of the barriers between sales, marketing and revenue optimization, which is essentially a pricing function.
[Tyler] So are you finding that these metrics that you’re using to back this decision making are these metrics? I mean, honestly, do you find that a lot of management teams simply just never they didn’t even know those metrics existed. They didn’t know that they could get this information, much less how to use it.
[Mike] We find that fairly often. I think even more so. Well, we find Tyler is that it just takes too long to compile this information. Right. And a lot of the individuals that are responsible for your strategy on property are spending 60 to 70 percent of their time just simply manipulating data and putting it into the right report that they need for their weekly revenue management meeting. And it’s when you have three out of five days of your week that are already gone. Just right off the top. It’s really hard to be strategic and go out and deploy more effective sales or marketing strategies. So we found that by really short circuiting that process, we can add a lot of value in that. To your point, know your question around these data points that maybe Hotelier’s didn’t even know existed? I think a lot of times are they’re aware that that information’s in the system and that they have the ability to get access to it. But I think what we really do is combine that information in a manner that allows hotel use to answer what we call IMPACT Questions at the click of a button. Right. So an impact question for a hotel might be, you know, does this corporate account only stay with us when we would have sold out anyway? Right. Or are we offering a discount and getting them to come in and stay at the hotel where we really need those rooms? So we’re really all about focusing in on, what’s the question that we’re trying to answer with our hotel partner. And then as a result, they can just go and click a button, get that answer, rather than spending three out of five days of their week trying to get that answer. They can now spend those three days focused on deploying better, more effective sales and marketing strategies.
[Susan] So earlier, Mike, you said the magic words that I hope we can dive into a little bit more deeply, and those were commercial strategy. Tyler and I talk a lot about how sales and marketing can and should intersect. And I remember hearing you speak at that virtual conference when you said that phrase commercial strategy, sort of all the hair on the back of my neck stood up and I was like, oh, this is what I do. This is the phrase I’ve been looking for. Can you tell us what that means? And for non nerdy weirdos, why that might make the hair on the back of my neck stand up?
[Mike] Absolutely. Yes. A commercial strategy to me is really the alignment of sales, marketing and pricing objectives and resources. Right. And really, that ensures that improvements in one area will really start to contribute to the next site. I use Amazon as an example all the time, which I know it’s like the most played out tired example of all time.
[Susan] Or the most universal.
[Mike] Yeah. And there’s a you know, there’s a reason why they’ve had this success across multiple industries that they’ve had. Right. And so Amazon has this whole flywheel approach where they start by identifying how can we offer a lower cost structure, which then allows us to create ultimately what the customer cares about. Right. Which is lower prices, better customer experience. And then that creates additional traffic for Amazon. Right. And as they create that, that brings more sellers to the platform, which then generates more selection, which generates lower prices. And as you start to work on each of these discrete items, it feeds back into other areas of the flywheel. Right. So to me, hospitality and commercial strategy, really, those are two subjects that hadn’t existed to date. But I think in general, we’re seeing that the world needs to start to move in this direction. And I think a lot of times what happens is if you’re not deploying a commercial strategy approach, there’s just a loss of impact for you, whether it be a cost investment or investment in time, really what you’re able to do with that. So I think at its most simple form, I would say it’s the alignment of the three disciplines. Now, there are a number of steps that you really need to take in order to get there, which we can certainly talk about as well. Any questions? I feel like that wasn’t super clear. So reign me in Susan.
[Susan] I think that the example that I think of on the hotel side, is when I see properties that I work with, have revenue strategy meetings, talk about need dates, and don’t include a marketing person to help impact those need dates. Or have a strategy meeting and a marketing person there. Then pricing for the next two weeks and never talk about marketing cannot impact something tomorrow. We cannot bring people in tomorrow but two months from now sure, you know, there’s an option. Does that sound right to you?
[Mike] Absolutely. Sounds right. You know, I think just to continue that further to right, there is there’s really a lack of cohesion between the three different disciplines. So I think oftentimes the revenue person is looking strictly at pricing and availability controls, but they don’t really have the visibility into the overall demand. So they don’t necessarily understand how many or people are shopping for the hotel online. Right. What does that look like? Channel by channel. And when you look at marketing, I think oftentimes they don’t have access to the information that they need to understand here are some of our need areas. Right. So, you know, for example, let’s say we have a whole in October, which is just in essence means we’re falling behind from booking pace standpoint and we need to go out and deploy a campaign that will help us to dig ourselves out of a hole. And so if marketing doesn’t have any visibility into our need dates or areas of opportunity other than in a meeting once a week at best. Right. Or, you know, hopefully not. But oftentimes once a month, then it’s very challenging for them to be able to tell what type of campaign should be deployed. Same thing with sales. So oftentimes there’s a lot of there’s a loss of visibility in terms of overall demand. And sales is just stuck in reactionary mode or they’re only responding to an hour of peace. But there’s really no emphasis or no focus on you’re working with marketing to drive those marketing qualified leads. Right. And then from there, take those marketing qualified leads and convert them at the highest rate as possible into sales qualified leads and then customers. And so I think oftentimes, just because everybody doesn’t have access to the information that they need in the hospitality space across all functions, what happens is we get together once a week, as you said, and we spend 45 minutes of that meeting reviewing pricing. And oftentimes, you know, that’s it’s forty five minutes of reviewing pricing for one or two days. Right. And so we miss out on this greater opportunity, which is to say, okay, what type of account should we be going after? What type of marketing campaigns should we deploy? And how do we make sure that we’re focused on actually growing demand as opposed to just harvesting what’s already coming at us?
[Tyler] So I’m not in the hotel business. That might be news to everybody.
But I the idea about pricing is is a really interesting one because your pricing is flexible. It is. It is a reaction in a lot of a lot of ways. And I’m curious and I don’t know if this can be summed up in the scope of this podcast, but how do you do responsive pricing? That one doesn’t leave money on the table and two doesn’t price you out of the market.
[Mike] So there are a couple schools of thought there. A lot of times what you see, Tyler, in the hotel industry is comp set based pricing, meaning that I’m going to look at the five hotels that are most similar to me in my market that I’m going to identify where they’re at. And then if I think I have a better product, I’ll try to come in a little bit higher. Right. If I think that maybe my product’s not quite as good, maybe some frayed carpet, I’m going to come in a little bit lower than the rest, the competitive set. So that in its most simple terms, is a strategy that a lot of people used to derive their pricing. Now, that leaves a ton of opportunity on the table because, you know, I think oftentimes by focusing in on what your competitors are doing, you’re not necessarily focusing in on your key competitive advantages and how you go out and find new customers that can recognize those advantages, right? Sure. I think you guys are probably both read a little bit of Seth Godin before. One of the things I love about Seth Godin, right. Is he’s all about pairing up the product and the market. Right. And you need to have a cohesive effort in order to ensure that at the end of the day, you’re able to deliver a tailored product to a tailored audience. And I think oftentimes in the hospitality industry, we focus strictly and on pricing as you and lever that we can pull. But when we go out and find a more aligned customer base, all the sudden we have the opportunity to charge oftentimes a lot more. The other factor that really comes into pricing is pace, which is an indicator of have we sold more or less through this point, the year for a given period of time? So, you know, if I were to look at October and say, how are we doing? I would take a look at the bookings I have on record for this upcoming October compared to what I had as, what, July 7 2019 or July 8 2019? I’ve said it by day of week and I would take that orders, OK? We’re either ahead or behind this year. Give a coronavirus, quarantine and everything that’s going on significantly behind, which is where some of the assumptions really start to break apart, because a lot of the data that we’ve used previously may not be as relevant as it was in the past.
[Tyler] So with I’m sorry, it’s called the commercial strategy, right?
[Tyler] OK, so what was that moment that you had that made you go? You know, this closes these gaps between sales, marketing, pricing, like. Yeah. What was that moment for you?
[Mike] You know, I think it really started when I was on the operator side and, you know, I saw companies like AirBnb be that were, you know, generating thirty three percent of the overall consumer lodging market share. Right. Is what they’ve been able to capture in the past six to seven years. And, you know, the question I had on that was how are they having this massive success without having any control over price point? Right. And the hotels are focused. Ninety five percent of their effort on where that hotel should be priced. And so I think it was seeing companies like AirBnb, like Expedia that were doing a far more effective job of getting their brands in front of potential customers and then converting those customers through the funnel. That was kind of the first aha moment. And then, you know, I think from there, what we’ve seen as, you know, as we started focal, we were very much focused on we’re gonna build you automated reports. Right. You can choose what to do with them from there. What we found is that what really resonates with our customers and it really in the past, it’s a year and a half where we started to find our footing is that our customers are starting to use our product and use the analytics to change the way they operate. Right. And so I wish I could say it was this big aha moment for me. And I came up with a commercial strategy and it deployed it everywhere. But it was really starting to see the way that our teams are engaging the data and the analytics and then figuring out where can we go next in order to ensure that that effort gets even farther along.
[Susan] Something that I hear and talk about. You know, I go back and forth on how I feel about this. But as this idea, you even mentioned it, you know, not having one meeting a week, but having everyone have access to all of the information in order to speed up decision making, or go to market. I’m not sure I agree. I almost think that we need fewer people involved in the decision making process in sales and marketing, at least in hotels, not more. We recorded an episode recently about how to make faster marketing decisions. And one of the things that Tyler and I talked about is the fact that everyone thinks that they’re a marketing expert because they experience marketing. So they think they know what they know what works because they know what works for them or they know what they think has worked on them. So I’m interested in this sort of idea of rather than giving more people say are more people of the ways in this decision making process. Is it that we need to give fewer people more authority and autonomy? What do you think?
[Mike] I, I completely agree with that last part on more authority and autonomy. I think the one of the biggest challenges we have, not just in hospitality, but in other industries, is that we’re so scared to grant authority and autonomy to just go out and make a decision. Right. The reason why I say that I would rather have everybody get access to that data and that information is that the only way you can really grant authority and autonomy is to make sure that everybody’s on the same page. Right. So I think by really spending the time to understand who you are as a brand and what you stand for and what you don’t stand for, having those difficult conversations, figuring out, then from a business results standpoint, where do we sit today? Right. Where some of our challenge areas, I think then it’s a lot easier to really grant that authority and autonomy and really start to allow people to just go out and execute. And I think oftentimes I can’t necessarily speak to other industries, but where hotels get stuck today is that we feel like everybody needs to come together in this weekly meeting, get a day to day and then figure out make decisions from there. Right. And oftentimes what happens is we really spend fifteen minutes being strategic and having a dialog about here, the marketing campaigns we might want to play, for example. And then we don’t go out and do anything on it until the following week’s meeting. Right. And by then she’s changed. We probably would have deployed a different campaign. So I think just by getting everybody into the same place, it really starts allow you to have people that just go out and execute. And I think part and parcel with that is very important, our framework for the way that you’re going to make decisions so tightly. You asked about pricing. There’s no reason why hotel management teams should be talking about pricing in the weekly revenue strategy meeting. Don’t care about it. Doesn’t make an impact. That’s something that doesn’t mean being part of a meeting. Right. But if we can sit down and agree that we won’t be the price leader in this marketplace and maybe it’s only the price leader on the weekends, you know, maybe midweek. We want to come in a little bit lower than some of the others are at kind of a set bandwidth for where we want to be. Now, listen, we can have one individual that just goes out, makes us decisions, reports back on what they’ve done, and that meaning becomes a whole lot more about a check in. OK, here’s what we’ve done and how that’s working and how can we course correct. Rather than having everybody kind of sit around and say, well, what do you think we should do?
[Susan] It’s interesting because I feel like my entree into the hotel business, things worked that way. Yeah, you would write a positioning statement and say, here is the competitive landscape. Here’s where we live. Go do your thing. And that has changed. It seems like we’ve gone backwards. And I don’t know why I have an idea. What do you think?
[Mike] Definitely wanna hear your idea. But yes, from my perspective, I think that there has been a strong emphasis placed on pricing. Right. This whole discipline of revenue manager ever optimization been around for about 40 years now. But it’s really taken off, let’s say, in the last 10 years in the last 15 years. And, you know, I think the unfortunate thing is that the whole revenue management movement, if you will, has been focused on pricing and availability controls. And we haven’t really step back to think about how pricing is just one small sliver of the overall marketing or commercial strategy pie. And so that’s, you know, from my viewpoint, probably the single largest detriment to hotels today. But I would like to see us get back to more of a place like it was. You know, when you enter the field where you were really sitting down to understand who we are as a property and then pricing just plays into that somewhere here.
[Susan] So here’s my hypothesis. This will probably make me lose all of my clients. But I think that in my observation, the change is the result of brands not owning real estate anymore. And so the brand has. So there you’re working at cross purposes. And the owners of the real estate don’t necessarily understand the dynamics here. Spending a lot of time explaining to your owner why you’re doing what you’re doing or just doing what the owner says, even if it’s not the right strategy. And because now there’s this layer of third party management, you know, most of the hotels when I worked on property that I worked in were owned and managed by the brand. I had never had this like third party management company and separate owner. And to do and to me that those different points of view are different. Different amounts of skin in the game are what have caused people to be afraid to make their own decisions and look at the broader picture versus like Thursday should be ten dollars less than it is now. What do you think? What do you think? What do you think? It’s going to blow my brains out.
[Tyler] I mean, it almost all represents everybody’s stake represents something different, right? Yes. You’re talking about and everybody is going to prioritize their responsibility above anybody else’s. And in that case, and it almost feels like it might be coming full circle with what Mike was talking about, which is this is where your revenue is coming from. This is what these kinds of people are. This is what their journey looks like. These are the price points they’re expecting around this. You know, how do you get. ] How do you take all of this data and then all of these different representations of steak and get everybody on that same page about autonomy actually looks more like teamwork than chaos.
[Mike] I couldn’t agree more. I think you summed it up nicely. You know, Susan, you probably seen it as well. The industry has a lot of finger pointing, right? So we sat down. We have these semiannual Check-In meetings. And a lot of times management companies are scared to show too much information to their owners. And, you know, it’s because they feel like their owners are going to come back and point the finger and say, you could have done X differently. I think it really comes from that place of not having aligned objectives. Right. And, you know, it’s interesting because management companies are incentivized, oftentimes based off of revenues. Right. Whereas the owners just like it at the bottom a lot. And they’re trying to understand, you know, what’s our EBITDA? How’s that going to impact last EBITDA?
[Tyler] What is EBITDA?
[Mike] Earnings before interest, taxes, depreciation and amortization. So in essence, the profitability, the hotel operating profit. Yeah. Or you consider any of your citing gross. So it’s really good that he’s not taking into account any of your financing costs.
[Susan] My owners care about GOP.
[Tyler] And I think that I you know, Susan, I’d be interested to get your take because I think oftentimes there really is fear, right, where management companies are sitting around to wait for their owners to tell them what to do, which is kind of a paradox, given that the owners are hiring the management companies to manage their assets. Right.
[Susan] Yeah. And then it’s a weird thing. You know, one of the projects that I’m working on professionally right now is helping to write a course about hotel investment. And my most of my career has been in hotel operations. So not on the development side, not on the investment side. Helping with this course I’ve learned more in the last two months, I’m being hyperbolic, but more in the last two months than I knew in the first 20 years. In my career about how an owner looks at it, a hotel asset versus how an operator does. I think that people don’t understand what an owner is trying to achieve. I know that line level staff dont. I’m pretty sure executive level staff don’t. I don’t even think the management companies do a lot at the times. And I don’t know if that’s a deliberate strategy or what the deal is. But there is definitely a gap between a knowledge gap in terms of, you know, how the price or what, you know, your average rate translates into asset value. Nobody has a clue how that works. Do you? Have you seen the same thing?
[Mike] I have. Yeah. You know, I think oftentimes it’s also complicated by the fact that you have owners of different objectives. Right. So you have to set or buy and sell. And they’re really looking for that cash flow. And you have others that’ll go in up an asset, reposition it and then look to spend it off. And, you know, in both cases, the goals are gonna be a little bit different. Right. I think there’s a lack of recognition, perhaps, in the role that management organizations can play in helping the owners get to where they need to be. And I think, as are oftentimes that, you know, owners maybe try to translate down a hotel level what they want or what they need. And I think management companies take it a little bit different from the way that it was intended or the way that ultimately they’re going to generate the greatest asset values.
[Susan] Must be, you know, bottom line, real estate companies do not speak hotel. They speak finance. So even if they think they’re telling the hotel what they want you to do, who knows what’s lost in translation? Tyler, are you still awake over there? Real deep in the weeds.
[Tyler] I’ve got to be honest, I don’t even know what a hotel is.
[Mike] A stake in the heart.
[Tyler] No, I just I honestly, I feel a lot of crossover here and I’m trying to I’m actually trying to interpret it on my end of it because I think I think there are a lot of just parables. That you can draw to any business here. Again, you have your channels, you have your, I guess, elasticity in pricing, depending on, you know, what time of the year it is and what people think they can bear. And now we’re talking about management teams and, you know, that misalignment that’s almost inherent at the top. But it when you don’t have that clarity, it seems to infect everything else. Right. And I don’t think that this is unique to hotels. That’s one of the reasons I love data, you know, because it does tell a story that really doesn’t care about your version of reality. It’s just that this is this is where our best, you know, customers come in at this time of the year. And this is their price tolerance. You know, I just I don’t know. I that’s my that’s my little, you know, Marv Albert, you know, color commentary there about just right. About. I just think that I just I don’t think. I don’t think it’s restricted to hotels. I see it across other organizations. I’m thinking about clients who I also see that with that.
[Mike] What other industries, Tyler, would you say you see that most frequently in?
[Tyler I don’t want to say, because if I say that and I can’t I mean, I think I think one.
I mean. It’s not industry agnostic to say when there are too many cooks in the kitchen and it spoils the soup, which is where Susan was going earlier. And I agree with that. You see a lot of problems kind of happen that way again when you have that misalignment. And I think that that’s kind of what the whole if there was going to be a moral to this story, it’s that, you know, that data should be aligning everybody’s priorities and every bit and and giving you guidelines around that autonomy. But if you’re not having that conversation and if everybody’s not involved in that conversation, is operating off the same facts, then you’re just not going to get there.
[Susan] And we’ve seen that. I think we’ve seen the challenge of everyone not operating on the same set of facts writ large across the United States every last few months. And before we wrap up, I have one last question for Mike. And that is, you know, folks are really, really having to pivot and rethink their businesses right now. And this is a two part question. Have you had to make any pivots and your business or are there any pivot that if you could wave a magic wand and see them take place, what would you ask for?
[MIke] Pivot’s that if we could wave a magic wand for the industry or for that? Either one. Either way. Either way. OK. Yeah. So the first question, you know, have we made any significant strategic pivots?
No, I think actually the current crisis with Coronavirus is really underscored our message, because a lot of hotels are now realizing that those reports that they’re spending three to three days out of every week compiling are stale by the time they’re compiled. Right. So we’ve had a lot of people express demand. And it really had a lot of inbound demand over the past few weeks with high quality management groups that have kind of underscored what we’re going after. Where we have made some changes on our development roadmap. So we’ve re prioritized some initiatives. If you look at the hospitality space and understanding of where your guests are coming from is more important now than it’s ever been. Right. And so geographic origin, we’re starting to break out the data a little bit differently in ways that allow you to see who’s actually booking versus who’s canceling versus the net of that, which is what the industry is used to reporting on. And then from a hospitality just big picture pivot standpoint, I think what I would love to see is this is something that, you know, every conference you’ve been doing for the last five or 10 years as well, you’ve heard how do we get sales, marketing and revenue management to better work together? And I think it really starts with that alignment of objectives. Right. And then identifying a common analytics language that everybody can operate around in order to really get to where they want to go. So I think to me, it’s really about breaking down some of the walls. I’d like to say democratizing data all the time. Right. And doing so in a way that really starts to align the strategic priorities and just then get out of people’s wealth or get out of people’s way. Let them go execute. So we shouldn’t be questioning every rate update. We shouldn’t be questioning it every two hundred dollars a marketing spend. Let’s just go execute. We don’t have enough time to sit around and make decisions by committee. I mean, you look at Ford and GM, right? They both were able to reconvert their assembly lines to produce PPE in the span of a month. Right. So if they can do that, these organizations that have been, you know, equipped to manufacture cars for hundreds of years now, I mean, why are we not, you know, as a hospitality industry able to pivot and address just a little bit more quickly than we had.
[Susan] That is such a great question? I wish we could solve it today. Thank you so much for joining us. And where can people find and follow you online?
[Mike] FocalRevenue.com or you could go to our LinkedIn and check out at Focal Revenue or Mike Medsker and push out a ton of content on the regular. Lot of it’s hospitality specifics. So if you’re not a hospitality geek, maybe worth checking out just to get some ideas about what our industry is going through. If you are a hospitality geek, I would love to connect. If you want, I want and kind of figure out what’s top of mind.
[Tyler] Cool. We’ll make sure that all that’s in the show notes as well so people can reach out and follow you and be hospitality geeks with you.
[Mike] I love it. Well, thank you both. It’s been fun.
[Susan] Thanks for being with us. And as always, this episode is available anywhere you listen to podcast, including our Website, Omnicastpodcast.com. There you’ll also find the bonus from today’s episode and all of the contact information for our good pal Mike and his company, Focal Revenue Solutions. Thanks so much.
[Outro] Thank you. Thank you for listening. The Omnicast Sales and marketing podcast, be sure to subscribe, rate and review on your favorite podcast platform. Find the show notes, leave comments or connect with Tyler and Susan at OmnicastPodcast.com