B L
EFFECT
Moneyball, a best-selling book
based on true events, chronicled the
penny-pinching Oakland Athletics’
extraordinary run to win their division
championship using statistical analysis
called sabermetrics (Moneyball).
Competing with deep-pocketed
teams, the A’s made a game-changing
move that completely altered their
business model; they began basing
all of their recruiting and game-time
decisions solely on statistical analysis
of measurable factors like number of
runs and on-base percentages, rather
than star quality, scout instincts, or
overall athleticism.
By analyzing objective, fact-based
data on player performance, the A’s
won back-to-back championships—
not with League MVPs and first-
round draft-picks, but with cast-off
veterans and affordable rookies.
They built a winning strategy that
permanently shifted the way front
office management evaluates players.
Fifteen years later, the vast majority
of professional sports teams employ
statisticians and analysts to turn
player data into actionable coaching
insights.
Wouldn’t it be great to have that level
of insight at your hotel properties?
Imagine what you would learn if you
had a full-time statistician analyzing
your employees, guests and product
offerings, and then developing a plan
based on those daily insights. What
might they find, and what might you
decide to do differently?
Incremental revenue consulting
firm Frontline Performance Group
(FPG) conducted a case study at
client property Boca Raton Resort
& Club A Waldorf Astoria Resort
that validated the Moneyball Theory.
The property implemented IN-
Gauge, FPG’s revenue optimization
and performance management
software, to collect real-time data
analytics from its most critical
customer touchpoint—the frontline.
By leveraging actionable data, the
property eliminated subjectivity and
relied solely on facts to successfully
make certain key business decisions.
The following managerial actions
have been scientifically proven more
effective using hard data than by
relying on other factors. Each action
below is followed by actual results
from Boca Raton Resort & Club A
Waldorf Astoria Resort case study—in
true Moneyball fashion, the numbers
speak for themselves.
1. Accurately quantify the value of
each employee:
Build the ultimate team, free
of subjectivity or bias. Evaluate
the effectiveness of your agents,
not on immeasurable qualities
like personality, appearance or
likeability, but based on hard
numbers like conversion, average
revenue per product, and total
sales. These objective statistics
allow you to identify top and
low performers, understand
their strengths and weaknesses,
and measure their overall
contribution to your bottom line.
After analyzing these insights,
you can properly recognize
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