5 ways to use a hotel CDP to drive business performance

Are you trying to get a more comprehensive view of your guests only to find out that your guest data is disorganised and stored in different systems? 

With everyone talking about personalization, you don’t want to fall behind. However, at the same time, you don’t know where to start with the messy data at hand.

That’s where a Customer Data Platform (CDP) becomes a crucial part to your hotel business performance. Why? Because a CDP can provide the necessary insights into customer behaviour that are crucial for driving revenue and operations.

According to McKinsey, CDPs help companies increase revenue by up to 10%, while also reducing marketing costs by over 20%. In addition, CDPs enable hoteliers to understand their guests' needs and preferences better to deliver personalised experiences that lead to improved loyalty and greater satisfaction.

If you want to learn more about how a CDP can be of value to your accommodation brand and how to use it, keep reading.

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‍What can a Customer Data Platform do for hotels?

A CDP is a data storage platform that collects, stores, and integrates guest data from all your hotel's sources. This data can include demographic information, booking history, preferences, purchase patterns, and any other relevant customer insights. 

By utilising this comprehensive set of customer data, hoteliers not only can get a deeper understanding of their guests but they can develop more effective marketing campaigns that target the right customers with the right message at the right time.

CDPs also give hoteliers the ability to streamline their marketing operations, allowing them to target more effectively and ultimately drive up revenue. Hotels have seen an average 10% increase in revenue after implementing a CDP system. 

Furthermore, CDPs enable companies to save costs as they reduce the need for manual data entry and eliminate errors associated with outdated data sources.

Why is a Customer Data Platform important for the hotel business?

There are several challenges that hoteliers need to overcome to effectively leverage guest data, and a CDP is key to facilitating this process.

Firstly, there is the challenge of data accuracy. It is essential to ensure that all guest data collected is accurate and up-to-date to generate meaningful insights. Secondly, there is a need for proper data governance to ensure that customer data is secure and protected.

Finally, there is a deep need for comprehensive customer profiles. A CDP helps hotels create a 360-degree view of their guests that captures all the relevant data points and can derive actionable insights. This is especially important for hoteliers as they must access this data to personalise the experiences that will drive loyalty and repeat visits. 

With a CDP in place, before the guest arrives, you already know what kind of services they prefer from the guest data, and you can utilise that information to tailor your communication and offer services they prefer during their stay.

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How to Leverage Guest Data for Business Performance

Being in the top management of a hotel company, you need to understand that guest data is important to improve business performance because it allows hotels to gain valuable insights into their customers' behaviour and preferences. 

With this data, your team can deliver personalised experiences that lead to improved loyalty and satisfaction, which can potentially drive revenue growth and cost savings. It also enables them to identify opportunities for improvement by recognizing patterns in customer activity.

Here are 5 ways to leverage guest data and a CDP for hotel business performance:

Centralise your guest data:

Consolidate guest data into a centralised database or Customer Data Platform (CDP). This enables a unified view of each guest and facilitates comprehensive analysis and guest segmentation. You will see each guest profile filled with the right information, not just past purchases but the campaigns they received, feedback, and more.

Do a guest data analysis: 

Utilise hotel data analytics techniques to uncover valuable insights from guest data. Identify patterns, trends, and correlations that can inform decision-making and drive targeted strategies. For example, you can analyse your guests' devices to find out how many are using a certain operating system and choose a communication channel that works best for that device. 

Identify revenue optimisation opportunities:

Analyse guest data and get insights to grow your revenue. Utilise pricing strategies, upselling and cross-selling techniques, and targeted promotions to maximise revenue per guest. If you see a buying pattern in your guest data, you can offer similar services to catch their attention.

Want to know more details about how guest data can increase revenue for your property? Read this article.

Spot areas for process optimisation: 

The centralisation and analysis of data done with a CDP will help you to Identify areas for process optimisation, resource allocation, and service enhancements. All of this is based on guest feedback and guest preferences. 

You will know which areas need more resources and improvement and accurately allocate the budget or the staff for it.

Identify and connect with your loyal guests:

Utilise guest data to build and strengthen customer loyalty. You will be able to clearly identify the preferences of your loyal guests, their favourite services, promotions, and regular interactions. And connect with them in order to boost their loyalty. 

Get inspired and learn how to create an effective loyalty program here.

What are some best practices for using a CDP in a hotel?

Here are some key best practices to consider:

Collect data from different sources:

Gather relevant guest data from various sources, including website interactions, booking systems, PMS, loyalty programs or review managers. Integrate this data into your CDP to create a unified view of each guest. 

The more information you have on your guest profiles, the better you can understand your guests and make data-driven decisions. 

Clean database regularly:

Regularly clean and standardise guest data to ensure accuracy and consistency. Bookboost’s CRM has a CDP in its core that can match and merge guest profiles, eliminate duplicate records and resolve any data discrepancies, ensuring reliable analytics and personalised marketing efforts.

Automate marketing efforts:

Automate marketing campaigns using the data and insights derived from your CDP. Use your hospitality CRM to set up triggered messages, such as personalised welcome emails or post-stay surveys, to deliver timely and relevant communications.

Protect data security:

Prioritise guest privacy and adhere to data protection regulations. Implement robust security measures to safeguard guest data within the CDP, ensuring trust and compliance.

By adopting the Customer Data Platform, hotels can gain invaluable insight into their customers and use this information to drive business performance. 

With a CDP, you will be able to make informed decisions based on accurate customer data, allowing you to deliver better experiences that will result in enhanced satisfaction and loyalty, both key metrics for the business.

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