"How do you measure a booking that has no or low commitment?"
This question was asked at a recent webinar, now available on-demand:
"Why Companies Need a Bookings Policy, and How to Create One"
Please add your thoughts about it below. Thanks!
Bookings vs Customer Signings & Customer Lifetime Value
Answers
Very carefully. I have steered clear of calling something a bookings without a commitment. I generally use the terms customer signings and may use the metric (customer life time value) to approxiate the value of customer signings. I would also ensure that it was communicated that way to avoid confusion.
Deposits are always helpful, if someone is willing to issue a deposit they are likely to carry through. Allow the return period enough time that you haven't already started to purchase material or items for the event. I'm thinking of this in terms of running a full service hotel. We had banquet rooms and once you staff, purchase food/beverages, it's on. In that case we had a stringent enough cancellation policy that we could retain the deposit at certain points.
Filed Under:
Accounting