Extending the Value of CRM Investment

By Bernard Ellis Vice President of Industry Strategy, Infor Hospitality | March 29, 2015

According to Gartner, the customer relationship management (CRM) market is projected to increase to $36.5 billion by 2017. Businesses across all industries are looking to improve customer interactions through technology, but this is particularly critical for hoteliers who are losing ownership of customer relationships to online travel agencies (OTAs) that are outspending them on CRM technology and marketing. CRM applications have the ability to enable real-time connections between hospitality companies and their customers, and benefits are only compounded when solutions are integrated with advanced platforms for revenue management, mobility and business intelligence.

Targeting the Right Guest with the Right Offer

Long gone are the days of “spray and pray” when sending customers every marketing offer imaginable, despite its relevance, was the best way to maximize return. Today’s generation of guests expects a more personalized experience that allows them to interact with the hotel property in real-time. This is where CRM technology plays an essential role. By selecting the latest in marketing management solutions to help drive multi-channel and multi-wave campaigns, hoteliers can deliver promotional packages that take guest preferences, demographics and relevance into account. In today’s increasingly competitive market, delivering the right offer to the right customer with the appropriate timing is essential to facilitate higher acceptance rates. Increased acceptance indicates greater guest satisfaction, ultimately impacting both revenue and the overall guest experience to help boost top line profits.

When selecting a CRM application, hoteliers should look for functionality that will allow the organization to build interaction profiles in real-time as customers engage with the property or chain. By automatically storing information on individual preferences and past responses, hoteliers have the necessary insight to send offers that are most likely to elicit a response. This makes the guest feel as if they have a more personal relationship with the property because offers are always timely and applicable, which helps to drive the customer’s loyalty to the brand. A CRM system that simply automates email creation is no longer adequate. Communications must be meaningful and dynamic versus static, and “learn” from each interaction in order for hoteliers to maximize the return on offers and realize their full benefit.

Consider this illustration. Mr. X is a VIP guest and frequent patron at a luxury resort. Almost any property management system will display his VIP status and preferences to resort employees, and some more modern ones will show purchase history. However, without an integrated CRM application, that is usually where the information stops. Without more guidance from a CRM application, employees will miss opportunities to present him with offers during multiple interactions throughout the day. If the property equipped users with a real-time CRM system, information on this guest would not only be displayed, but it would also be accompanied by recommendations for relevant deals or experiences of interest.

Synchronizing Marketing and Revenue Management

Coming up in January 2018...

Mobile Technology: Relentless Innovation

Technology has become a crucial component in attracting and retaining hotel guests, and the need to enhance a guest’s technology experience is driving a relentless pace of innovation. To meet and exceed guest expectations, 54% of hotels will spend more on technology in 2018, and mobile solutions in particular will top the list of capital investments. Many hotels are integrating mobile booking, mobile keys, mobile payments and mobile check-in into their operations. Other hotels are emphasizing the in-room experience, boosting bandwidth and upgrading flat screen TVs to more easily interface with guest mobile devices. And though not yet mainstream, there are many exciting technology developments on the near horizon. The Internet of Things (loT) is taking form in some places, and can be found in guest room control systems, voice activation systems, and in wearable sensors that can be used for access and payment options. Virtual reality headsets are available at some hotels so guests can enjoy virtual trips to exotic locations or if off-property, preview conference facilities and guest rooms. How long will it be before a hotel employs a fleet of robots for room service, or utilizes a hologram as a concierge, or installs gesture-controlled walls that feature interactive digital displays? Some hotels are already using augmented reality for translation services, or interactive wall maps, or even virtual décor. This pace of innovation is challenging property owners and brands to stay on top of the latest technology trends while still addressing current projects. The January Hotel Business Review will explore what some hotels are doing to maximize their opportunities in the mobile technology space.