#MAMConf14 Integrating Marketing, Revenue Management and Customer Analytics Bryan Pierce, Director of Revenue Management, Holland Partner Group Devin Merrill, Vice President, Analytic Applications, Property Solutions Josh McDonald, Director of Marketing, Holland Partner Group Moderator: Elaine Williams, Owner, E Williams Consulting

#MAMConf14 Business Intelligence shows great promise "The emerging field of business intelligence shows great promise within multifamily for helping operators find ways to market and sell more effectively in a variety of ways. Combine Marketing and Revenue Management to generate and measure more demand Unifying marketing and revenue management practices gives owners the potential to understand the nuances of demand, as well as how to generate more demand that can be converted at a higher price. Leverage tools to understand and improve the buying process Customer knowledge and segmentation-including social media tools-can provide simple, clear areas where operators can better understand today's buying process and how to create a great buying experience that makes it easier to rent at communities using better data." Session Synopsis

#MAMConf14 Example Scenario – The Situation Uncovered Exposure Forecast: 10 units of uncovered exposure over the next 90 days

#MAMConf14 What do you do? – Costly Alternatives 1.Lower price 2.Increase marketing spend 3.Lower screening threshold – Free Alternatives 4.Improve lead conversion rate 5.Improve property reputation 6.Improve renewal rate Example Scenario – The Options

#MAMConf14 Align your marketing processes with real data to allow your RM system to reach stronger performance Why “buy” (literally) more traffic? Effectively manage what you already have to start with. Align lead management touch points to when your traffic actual makes the “buy” decision. Ratings & Reviews impact your traffic, leasing volume and rent growth What sources give the most benefit – over the long term (18-24 mo). Think retention and increases. Data-driven Marketing

#MAMConf14 Lower Price and “buy” demand Demand can by “bought” by lowering the rent from $800 to $725 Over the next 12 months, that will decrease potential revenue by $1,500 Cost: $1,500

#MAMConf14 Align lead management touch points to when your traffic actual makes the “buy” decision. Effective Lead Management

#MAMConf14 Why “buy” (literally) more traffic? Effectively manage what you already have to start with. Marketing Optimization Average follow-ups per lead Our competitors (industry average) follow-up with only 59% of their leads Holland lead follow-up is almost 4 times per lead (376%) Average time to follow-up 82.4% of all leases signed within 2 days of the initial tour 94.2% of all leases signed within 9 days of the initial tour # of Follow- Ups Per LeadAverageAvg. ATR % 4.0 – % 3.5 – % 3.0 – % 2.8 – % Holland3.87.3% 2013 Average Monthly Results

#MAMConf14 Increase Marketing Spend Marketing spend can be increased to cover the 10 units of forecast exposure If the minimum cost per lease is $99, this alternative will cost $1,490 to cover the exposure Cost: $3,500 Improve Lead Conversion Rate Assume there are 133 leads expected in the next 90 days and the current conversion rate is 8% this will create 10 leases An increase in conversion rate of 7% will cover the 10 exposed units

#MAMConf14 What sources give the most benefit – over the long term (18-24 mo). Think retention and increases. Long-term value by Lead Source

#MAMConf14 Lower Screening Threshold Lowering the screen score threshold will increase the demand pool, but not without potential costs and risk Potential costs may be incurred due to the risk of higher delinquency, skips, and evictions In this example, 10 leases can be gained by moving the acceptable threshold from 60 to 40 This will lead to an expected increase in the skip rate of 3% or 6 units If the average turn cost is $600 per unit, the additional cost is $3,600 Cost: $3,600

#MAMConf14 Ratings & Reviews impact your traffic, leasing volume and rent growth Social Media tools and SEO can tell us buying tendencies about the website visitors Use this information to better target your renewal incentive Reputation Impact

#MAMConf14 Asset class impacts (key takeaway) Reputation Impact

#MAMConf14 Q & A Contact Info Bryan Pierce Devin Merrill Josh McDonald Elaine Williams Thank you!!