Have you ever looked for a specific product, but ended up buying one or two products more? Products that were just in the right place, at the right time. Sounds familiar, right? What about upgrading your hotel experience, from a standard to a superior room? Just because this option was attractive and logical. Well.. nothing is an coincidence, we are talking about the strategy cross selling and up selling. We are taking a closer look at the hotel industry that implements these kinds of strategies. What is necessary to offer these products in the right place, at the right time?
Let’s begin by explaining these two terms shortly. Cross selling is selling additional products to current customers who are already purchasing one or more products from the supplying company. In addition, up selling is the act of selling a more expensive product to your customer (Peelen & Beltman, 2013). A good example of a hotel that uses cross selling and up selling within the booking process, is the hotel chain called IBEROSTAR Hotels & Resorts. After selecting your room type in the preferred price range, you can select additional services, like the cultural experience, sport experience or a cava with strawberries (Iberostar Hotels & Resorts, 2016). In the case of IBEROSTAR cross selling and up selling are ways to get more customer engagement. The more the customers spend on the booking process, the more points they earn in return. These points can be hand in against discount on the next booked trip.
For knowing where and when to put your cross- and up sell products, data is a critical aspect. Transactional data shows us what, where, how much and how often our customers spend. Lifestyle data focuses more on who our customers are, where they live and what their interests are. The last aspect is behavioral data, which shows us how customers behave on offline and online channels (Matthews, 2016). Analyzing data, provides you with information to improve your cross- and up sell strategy. Through these kinds of data, it is possible to meet the needs of your customer in a more individual aspect. For example, does your customer values luxury? If the answer is yes, it is possible to cross sell a champagne bottle at arrival, or give them the opportunity to upgrade their room.
The conclusion is that in a world of big data everything is possible. For cross- and up selling products, data makes it possible to meet in the needs of your customer. It helps you to provide the right products in the right place, at the right time.
Iberostar Hotels & Resorts. (2016). Retrieved September 30, 2016, from https://portal-interactiv.com/BookingEngine/HotelResult.aspx?codiconc=176&fechaini=12/10/2016&fechafin=14/10/2016&numerohabitaciones=1&edP0_0=30&edP0_1=30&adultohab0=2&ninohab0=0&bebehab0=0&numeropersonas0=2&idiocodi=2&css=&origen_soporte=IBE&pTokenID=ECH
Matthews, D. (2016, September 1). How connected data is targeting consumers. Retrieved September 30, 2016, from Raconteur: http://raconteur.net/business/how-connected-data-is-targeting-consumers
Peelen, E., & Beltman, R. (2013). Customer relationship management. Pearson.