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