How customer profiling can help hotels in outstanding competitors

This blog will focus on a problem many hotels have, namely: they have no idea how to outstand their competition. Not knowing how to outstand competitors leads to lower income and therefore less profit. Customer profiling is the perfect opportunity for hotels to be better than their competitors, purely by totally knowing their (potential) guests and their behavior. But what exactly is customer profiling? And how can it help a hotel by outstanding their competitors?

Customer profiling makes use of readily available, reliable and variable variables. They provide only a limited insight into the customer as a buyer, as customs and as an organization or person. Customer profiling gives you a better understanding of your guests. With all the information that has been gathered while creating a profile, you discover how, when, where and what to communicate to your guests. You get to understand exactly who they are. This leads to another benefit, which is a better response rate (Peelen & Beltman, 2013). Long story short: it compares the current customer base against the prospect marketing database (Apteco, 2016).

Building a customer profile takes several steps. The first one is to identify the target customers as the analysis selection. According to Apteco (2016), these are the customers or businesses whose distinguishing characteristics you are interested in identifying, and the backdrop population that you are profiling against. It could potentially be the whole data base, however, this is mostly known as the base selection. Step two is about choosing the variables to profile. During this step, one focuses on the customer characteristics that are wished to be explored and which will enable the hotel to identify its target customers. During the last step, one builds the profile and interprets the profile report. It is very important to interpret the profile report well, because only then one will completely understand the needs and wants of their (potential) guests.

As mentioned in the second paragraph, customer profiling comes hand in hand with a lot of benefits for hotels. However, the hotel will only benefit from customer profiling when it is done well. Customer profiling is not an easy job and for that, I would recommend every hotel to have that one special person/team that focuses on the profiles of the customers.

 

Bibliography:

Kirk, R. (15 September 2016). How to Create a Customer Profile (and Find the Best Prospects). Retrieved 30 September 2018 from:

https://www.apteco.com/blog/how-create-customer-profile-and-find-best-prospects

Peelen, E., & Beltman, R. (2013). Customer relationship management. Harlow: Pearson Education.

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