Extending the Value of CRM Investment

By Bernard Ellis President & Founder, Lodgital Insights LLC | 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

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Coming up in January 2019...

Mobile Technology: The Future is Now

Mobile Technology continues to advance at a relentless pace and the hotel industry continues to adapt. Hotel guests have shown a strong preference for mobile self-service - from checking-in/out at a hotel kiosk, to ordering room service, making dinner reservations, booking spa treatments, and managing laundry/dry cleaning services. And they also enjoy the convenience of paying for these services with smart phone mobile payments. In addition, some hotels have adopted a “concierge in your pocket” concept. Through a proprietary hotel app, guests can access useful information such as local entertainment venues, tourist attractions, event calendars, and medical facilities and services. In-room entertainment continues to be a key factor, as guests insist on the capacity to plug in their own mobile devices to customize their entertainment choices. Mobile technology also allows for greater marketing opportunities. For example, many hotels have adopted the use of “push notifications” - sending promotions, discounts and special event messages to guests based on their property location, purchase history, profiles, etc. Near field communication (NFC) technology is also being utilized to support applications such as opening room doors, earning loyalty points, renting a bike, accessing a rental car, and more. Finally, some hotels have adopted more futuristic technology. Robots are in use that have the ability to move between floors to deliver room service requests for all kinds of items - food, beverages, towels, toothbrushes, chargers and snacks. And infrared scanners are being used by housekeeping staff that can detect body heat within a room, alerting staff that the room is occupied and they should come back at a later time. The January Hotel Business Review will report on what some hotels are doing to maximize their opportunities in this exciting mobile technology space.