The Metrics That Matter For Luxury Escapes As A Marketplace (Adam Chat Clip)

23 Nov 2021 · 2 min

Watch on YouTube

1:54

This content was created by Max Brun. This content was uploaded by Max Brun. This is a YouTube clip titled "The Metrics That Matter For Luxury Escapes As A Marketplace (Adam Chat Clip)" (posted 2021-11-23). It contains a short interview-style exchange between an interviewer (Speaker A) and a respondent (Speaker B, likely Adam per the title) discussing key marketplace metrics for Luxury Escapes. Speaker B outlines potential North Star choices (packages/rooms booked), emphasizes conversion rate and average order value (AOV), and focuses on increasing repeat purchase frequency (current customers buy ~1.39 times/year) through personalization and expanded offerings to raise AOV and booking frequency.

Chapters

What is the North Star metric that you're focused on and maybe some of those other KPIs as a marketplace?
We haven't historically focused on a North Star. It will evolve as we— the couple of things we look at, we look at, obviously, if you're looking at a basic, really basic North Star, which we haven't made official, but sort of what I look at is particularly packages booked or rooms booked, which is a pretty common North Star for an Airbnb. I think Airbnb has has rooms booked or nights booked. But that's a pretty common north star for travel. But the other sort of factors we look at is obviously conversion rate is a big one, especially as we get more marketplace focused. AOV is a big one, obviously contradicts with conversion to some extent. But as we get more and more, I guess you call it, well, not so much vertical, as we get more horizontal, are we selling the transfer, the flight, the hotel experience, the other hotel, the other flight, rather than just the hotel, which is what we do now. So certainly AOV to be going, can we get AOV from $2,000 to $5,000 to more than that potentially? So that's a big one. So conversion AOV is a big one. But if you look at some of our parts, it's rooms booked, but then how do we get conversion rate and AOV up significantly? And then how do we get customers booking more frequently? So we haven't talked about it. Personalization is a big theme, what we're working on. We're just bringing on a really good personalization team, expanding it, I should say. And how do we get customers buying more regularly? Our customers who do purchase buy 1.39 times per year, which is pretty good but should be higher. So we've got a lot of rusted-on Luxury Escape addicts, but we obviously haven't sold them what they want to— haven't been able to sell what they want. So can we get that 1.39 to 2 or 3? So how do we— can we get it? And our super rusted-on customers might buy 20 times a year, but that's rare. How do we get the average customer up from 1.39 to 2 to 3? That's another big challenge for us. So repeat rates, AOV conversion, so 3 things we're really looking at.