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3 Comments

  1. 1

    Karl

    It has always amazed me that they just don’t get it!

    Its’ like we are expected to sell a $80,000 Porsche to burger budget family.

    The insanity of it drive me nuts too. What, in a nation of 330 Million there aren’t enough quality tours out there?

    The marketing gig is a hard job to be sure but that is because of the way that system was set up a million years ago.

    Body Snatchers is the game plan; and that is why we haul so many tours without the means to purchase and stepping up to buy even an exit program for these tours is just that, a step up!

  2. 2

    Zippy

    The “Golden Rule” applies here (They with the gold make the rules).

    While a developer may not discriminate against consumers in the marketplace; nor can they allow marketers to engage in discriminatory or deceptive acts, they are completely free to “reward what you want repeated” and change their marketing compensation plans.

    If a developer has any form of reliable infrastructure to accurately measure some key aspects fo the consumer tour flow demographics, all they have to do is heavy load the back end compensation to marketing.

    Example: Developer uses some “Pre Qualification” services for all tour flow. (Not a credit check, no ding on consumers credit. See Experian, Equifax, etc) and gets a “Score” on each tour. A = Target age, target income, target marital, target stability, target credit worthiness, B = not so much but still good VPG’s, C = marginal but effective in podiums, D-E = terrible VPG’s. Change the marketing compensation FROM $xxx per tour (less gift) weekly + xx% VPG bonus monthly TO one half $xxx per tour (weekly) plus sliding scale $xx per A tour, $xx per B tour, $x per C tour and $0 per D-E-unscored tour (weekly) + xx% VPG bonus.

    When you reward A,B,C behavior with exactly what you are paying right now; and, you penalize D-E-unscored behavior with one half of what you are paying right now, those marketers will focus intently on finding more A-B-C. This means they will spend more on leads or focus more on key markets, focus more intently on quality training or simply stop the slackers/newbies from booking weak tours.

    You can also do the same without a scoring service by simply defining key parameters and openly discussing the results weekly to weaken “use versus them” resentment on pay day.

    Marketers can steer their programs in three key areas:
    1) Where to advertise and solicit: Less money mean drop weak areas
    2) To whom they adervtise and solicit: Leads, locations, approach
    3) What they offer: In public places no developer wants discrimination attacks. Offer a no gift complimentary tour for folks outside of target demos. “You qualify for the tour (everyone does) but to get this particular gift you must…” Or conversely, start low and after you qualify prospects load the gifts upward to what you normally give now. Let non-target-demo prospects walk themselves out by losing interest in the offer. Expensive tour gifts draw attention to booths or phone calls; but, that same excitement can be created in other ways while still starting low and adding up the more a prospect fits your target demo.

    And always have a training sales line for complimentary (no gift) tours. Good product training, good buzz, good customer relations, good protection from discrimination attacks. Sales on the front end and legal protection on the back end all revolves around the same element: How did you make the consumer “feel” throughout the process.

    Here’s the downside: It takes energy and effort and actual work to make these plans work. Too many sales lines scream like crazy for tour flow and don’t invest the effort into really truly managing the programs. “Get me more tours” resounds the halls on Monday and “These tours cost too much” echoes on Friday.

    You need Quality People, Diligent Efforts and Reward What You Want Repeated.

  3. 3

    Larry

    I read that the industry is now selling 6.4 Billion dollars in sales each year (down from our reported record in 2008/9 of $10.3 Billion).

    If that is true and at a 18% net closing ratio and a average selling price of $18,000 then industry wide we sell 355,556 new owners each year which means we must be touring just around 1,975,309 tours every 12 months.

    It was suggested by Scoop that:

    “upwards of 80% of all timeshare prospects shouldn’t be on tour in the first place”.

    Considering the diversity of ownership plans and the price points we sell I don’t agree with the 80% figure but I would agree with 30% and that tells me that we are touring 592,593 tours that “shouldn’t be on tour in the first place”.

    If the developer had to actually pay the sales reps for touring those UPS and paid a fair and livable wage of $25.00 per hour for doing so and that each of these tours requires at least 2 hours then that would cost developers about $30 Million (in wages) more in marketing/sales costs.

    And by having to pay that livable wage for those tours that would end the practice of “garbage in, garbage out”.

    P.S. A $25.00 per hour livable wage @ a 40 hour work week @ 52 weeks is only $52,000 per year gross and of course most sales reps don’t work a full 40 hour week but I point this out for anyone who thinks $25 per hour is outrageous and that in my example we’re only talking about paying the $25 for each hour spent on tours who “shouldn’t be on on tour in the first place”.

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