Creating Loyalty & Value with Data

So, your data collection is now great, every guest that flows through the hotel is tracked and profiled from reservation to check out. Their guest profiles are a magnificent accumulation of big data, small data, third party data, and transactional data. You have a complete 360-degree view of your guest. What now? How do you take the relationship to the next level?

The first step is realising that your guest has shared their personal information with you in the belief that they will get something out of it. As with any relationship, this one is a two-way street. Your aim may be to fill rooms and keep guests coming back, equalling more revenue; but your guest isn’t interested in your revenue targets. They’re only going to give you what you want, if they get something in return, and they’re unlikely to keep returning based on the odd impersonal promo email. What you have to offer must be timely, relevant, and most importantly, valuable.

Based on previous stays (detailed in part 1), we can almost predict Mr Jones’ future behaviour. We know that he stays for the classic car show, what type of room he usually books, when he makes his reservation, and that he only has the occasional bottle of water from the minibar. So how do we create value for Mr Jones to ensure that he keeps coming back to the same hotel each year?

There are many different ways to add value, but what you offer has to be relevant, timely and worthwhile. This is where you can leverage your data to predict what is most likely going to excite your guest. Here are some examples of how data can help shape what you offer, when you offer it, and how likely it is to influence your guests’ decisions.

  • Third-party data tells you that discounts of below 10% are thought not to have any influence on consumer behaviour.
  • Big data shows you that conference guests tend to make their reservations between 6-8 weeks prior to an event, and generally book standard rooms.
  • Transactional data shows that on average the guests only spend between 5-10 dollars on items from the minibar, and little to nothing in dining outlets (likely because there is food and beverage available at the conference).
  • Small data gives you the information needed to send off your offer to email addresses and companies.

You can start to see how data can put you in the right place at the right time, with the right message. Utilising your data to create personalised conversations will drive better results that are measurable and trackable. When accompanied with good service, the extra effort you put into collecting and using data to inform business decisions will be noticed by guests. They will begin to see that there are benefits to giving up their information when they are rewarded with great offers when they need them; and your hotel’s bottom line will feel the love too.

Missed out on Part 1? Building Meaningful Relationships with Data explores the pieces of information that contribute to a relevant and meaningful conversation.

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