How a Customer Data Platform For Hotels can enable Business Performance
Highlight the impact of a CDP on revenue generation, profitability, and overall business performance, emphasizing how it enables data-driven decision-making, enhances guest experiences, and drives direct bookings.
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In this digital era, it is essential for hotels to have a comprehensive and integrated view of their customers in order to remain competitive. A Customer Data Platform (CDP) can provide the necessary insights into customer behaviour that are crucial for driving business performance. According to recent studies, CDPs help companies increase revenue by up to 10%, while also reducing marketing costs by over 20%. Moreover, CDPs enable hoteliers to understand their guests' needs and preferences better in order 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!
What is a Customer Data Platform 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 can develop more effective marketing campaigns that target the right customers with the right message at the right time.
The use of a Customer Data Platform (CDP) can bring significant benefits to hotels. With the help of CDPs, accommodation brands are able to gain valuable insights into their customers' behaviour and preferences. This means that hoteliers can better understand their guests' needs and deliver personalised experiences that will result in improved loyalty and satisfaction.
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CDPs enable companies to save costs as they reduce the need for manual data entry and eliminate errors associated with outdated data sources.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 CDP important for the hotel business?
There are several challenges that hoteliers need to overcome in order 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 in order 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 need access to this data in order to provide personalised experiences that will drive loyalty and repeat visits.
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.
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 for hotel business performance:
Centralised Data Storage:
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. In this case, CRM (Customer Relationship Management) integration with CDP work hand in hand, CDP unifies customer data, and CRM manages the interaction with the customer using the data.
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.
Analyse guest data to identify revenue optimisation opportunities. 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.
Analyse guest data to improve operational efficiency. Identify areas for process optimisation, resource allocation, and service enhancements based on guest feedback and preferences. You will know which areas need more resources and improvement and accurately allocate the budget or the staff for it.
Guest Loyalty and Retention:
Utilise guest data to build and strengthen customer loyalty. You can implement personalised loyalty programs, targeted rewards, and proactive communication to enhance guest retention and repeat business.
By effectively leveraging guest data, hotels can make informed decisions, deliver personalised experiences, optimise revenue, and foster guest loyalty. It is crucial to prioritise data privacy and security while implementing these strategies to build trust with guests and ensure compliance with regulations.
Best Practices for Implementing and Maintaining a CDP for Hotels
Here are some key best practices to consider:
Data Collection and Integration:
Gather relevant guest data from various sources, including website interactions, booking systems, and loyalty programs. Integrate this data into your CDP to create a unified view of each guest.
Data Cleansing and Standardisation:
Regularly clean and standardise guest data to ensure accuracy and consistency. Eliminate duplicate records and resolve any data discrepancies, ensuring reliable analytics and personalised marketing efforts.
Automation and Orchestration:
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.
Privacy and 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.
Overall, CDPs enable hotels to save costs while increasing revenue by targeting more effectively and streamlining marketing operations. Investing in this tool is a crucial step for any modern hotel seeking to get ahead in today's digital landscape as it will deliver invaluable insights by using your most precious asset: guest data.
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