How mobile marketing has changed CEM in the digital arena of the hotel industry.

Mobile Marketing has generated about 21% of the profits that were made in the Hotel industry in 2014. Mobile Marketing is a growing phenomenon within the Hotel industry and many hotels are now using it to engage with their customers and to make their experience in their hotel better. Many hotels were hesitant at first to start using mobile marketing and implement mobile apps and website to engage with customers. Hilton was the first hotel that started doing online check-ins, which was an enormous success and made the check-in experience easier and quicker for their guests.  Many hotel chains follows their example and implemented this feature too. (Johnson, 2016)

The ultimate promise of mobile marketing is to integrate some form of the organisation’s presence into the everyday lives of its customers, according to Peelen & Beltman (2013). Customers are able to bring their mobile devices everywhere they go, therefore they will be able to connect with your brand everywhere they go through mobile marketing. This will offer a possibility for the hotels to engage more with their (potential) guests and bring them extra experiences.

Mobile marketing has given people the opportunity to look at hotels whenever and wherever they are. So therefore this opened a big chance for the hotel industry to engage with their customers. For example mobile devices make it possible for the hotels to know their customers location and therefore they could make more relevant offers to them. (Horwell, 2015) People are starting to prefer their mobile devices over other methods to access the internet. Therefore it is crucial for the hotels to use mobile marketing to engage with their customers, since that is where they are at. (Hospitality Technology , 2015)

The use of mobile apps and mobile websites makes it easier for guests to interact with a hotel, before, during and after their stays. Virgin Hotels opened a hotel in which they got features that make the guests be able to interact with the property via a mobile app. These features were for example changing room temperature, or changing the TV channel, but it also provided entertainment. It can also provide guests with information about the environment for example restaurant or attraction recommendations. These things can increase the customer experiences and improve the customer relationship with the hotel. (Mandelbaum, 2015)

So to conclude, the use of mobile marketing has changed the way that hotels engage with their guests within the digital arena. The hotels are able to connect with their guests everywhere they go, when they carry their mobile devices. This opens up for several opportunities that change the way they engage with them. Engaging successfully with their customers via mobile marketing will increase their customer relationship and create a better experience for their guests.

 

References

Horwell, V. (2015). Time to Bring Hotel Marketing to Mobile. Retrieved from Hotel Business Review: http://hotelexecutive.com/business_review/2463/time-to-bring-hotel-marketing-to-mobile

Hospitality Technology . (2015). How Hotels Are Engaging Guests on Their Mobile Devices. Retrieved from Hospitality Technology : http://hospitalitytechnology.edgl.com/news/How-Hotels-Are-Engaging-Guests-on-Their-Mobile-Devices103531

Johnson, K. (2016). 5 MOBILE APP MARKETING STRATEGIES FOR HOTELS. Retrieved from Pulsate: http://academy.pulsatehq.com/mobile-app-marketing-strategies-for-hotels

Mandelbaum, A. (2015). 3 Successful Ways Hotels Are Using Mobile Apps to Engage Guests. Retrieved from HospitalityNet: http://www.hospitalitynet.org/news/4070473.html

Peelen, E., & Beltman, R. (2013). Customer Relationship Management. United Kingdom: Pearon Education Limited.

How can the use of big data influence the hotel industry in the future?

To have a good relation with you customer you need to know the needs and wants of your customers. Via customer engagement management hotels try to create strategies how to get an established relationship with their guests. With data mining they try to create a better customer intelligence, which  can help them to create their customer engagement strategies. There are many different places from with data can be gathered, that can be analysed by data mining techniques. (Peelen & Beltman, 2013)

Knowledge will give you the power to gain competitive advantage. The more you know about your customers, the better you will service them and meet and even exceed their expectations. Hotels gather quite a lot data about their guests, though they do not always know what they can do with it. There is simply too much data for them to process, which makes data mining quite overwhelming for them. These enormous quantities of data is called ‘big data’.  Recently there are some developments in way to manage big data. Which means that it will be possible to make more sense out of all this data. (Big data needn’t be a big headache: How to tackle mind-blowing amounts of information, 2012)

In the hotel industry and especially luxurious hotels it is important that they exceed the expectations of their customers. A successful big data strategy can lead to an increase in customer satisfaction and can also improve the productivity and efficiency of employees. It will also be a way for hotels to increase their revenue, since they are able to personalize prices and rooms to their guests.  For Example Marriot, the hotel chain, is using big data analytics for a while now to anticipate the best price for their rooms to have optimal occupation rates in their hotels. They use improved algorithms that can handle the data fast and combine various data sets with each other that make it possible to have better insights to improve all levels in decision-making. (van Rijmenam, 2016)

Another Hotel chain that used big data to improve their customer satisfaction is Denihan. This American chain used big data analytics software to increase their profit and revenue for their hotel rooms by combining their own data sets with other data sources like blogs, social networks and review sites. They used likes and dislikes to change their room prices and optimize it. They used this for example during a special event in 2013, where they were able to double their room rates for a week. (van Rijmenam, 2016)

So with the developments in big data analytics will make it possible for the hotel industry to use these data quantities to improve their customer intelligence. With this they can increase customer satisfaction, set optimal rates for their products and services, make their operations more efficient, they will be able to increase employee efficiency and productivity, and more.

 

References

Big data needn’t be a big headache: How to tackle mind-blowing amounts of information. (2012). Strategic Direction, Vol. 28 Iss 8 pp. 22 – 24.

Peelen, E., & Beltman, R. (2013). Customer Relationship Management. United Kingdom: Pearon Education Limited.

van Rijmenam, M. (2016, april 23). Why Hotels Should Apply Big Data Analytics To Provide a Unique Guest Experience. Retrieved from Datafloq: https://datafloq.com/read/hotels-should-apply-big-data-analytics-guest/81

The importance of customer journey mapping in the hotel industry.

In the hotel industry it is crucial to engage with your customers to have good customer relationships. From the first moment that your customer makes contact with your hotel till way after their first stay at the hotel, you will have contact with them on a regular basis. Your customer will go through different stages during this time which is called ‘The customer Journey’. With customer journey mapping you could improve your customer relationships by finding out how the guests experience your engagement with them during every stage.

Customer journey in the hotel industry goes as follows:

  1. Travel idea / inspiration
  2. Research
  3. Booking / purchase
  4. Stay at the hotel
  5. Post-stay

In all these different stages the hotels communicate differently with their (potential) customers and they have a different goal during all the stages. For the hotels it is important to get more insight in what their customers experiences are during this journey. They need to make sure their customers feel like they are taken seriously and that they get a memorable and valuable experience out of it. (Peelen & Beltman, 2013)

It is important to have a good customer journey mapping strategy since this enables you to identify the expectations and desires of individual customers. It will also provide you with more appropriate services and products at each stage in their customer journey. It is important to make persona’s for your various types of customers that you receive at your hotel, since they all have different wants and needs during their journey. Afterwards you could determine which persona is the most important to you by ranking them in importance. Later on you could start identifying the different steps in their journey by determining which moments were most important for the persona and finding out what they desire and expect.  (Dent, n.d.)

Identifying what your customers want and expect will increase the customer value and customer satisfaction. By mapping the customer journey, the hotels can figure out what the most important touchpoints are,  between them and their customer, and they could improve these by enhancing the customer experience with solutions for detected problems.  By enhancing their customer experience there is a higher chance that they will become loyal to your brand. They will also become more likely to recommend you to other potential customers, and they also are more likely to spend more at your hotel through for example upgrading their room or making more use of room service, which will result in more revenue. (Dent, n.d.)

To conclude, customer journey mapping will result in improving your communications with your customers. It is an important factor for the customer engagement management of a hotel to make sure that the customer journey of their guests meet their expectations and desires. Since this can result in many benefits for the hotel, by getting more loyal customers, more customer satisfaction (which will lead to positive recommendations), and more revenue.

References

Dent, J. (n.d.). Customer Journey Mapping: A Walk In Customers’ Shoes. Ascend Contributor.

Peelen, E., & Beltman, R. (2013). Customer Relationship Management. United Kingdom: Pearon Education Limited.

 

 

 

Mobile Hotel app as tool to improve customer relationships?

To be successful in the industry a hotel needs to attract new customers to grow their market share and at the same time preserve their existing customers. To do this hotels need to create certain customer engagement management strategies to improve their customer relationships.  Customer Engagement management is the management of the relationship between customer and company. In this day and age almost everyone uses smartphones and mobile app on a daily basis, this could be a tool to improve customer relationships.

In 2015 Marriot launched a mobile app on which their guests could use a request option.  With this Request option they could request certain services as extra towels and pillows. There is also an online chat function available between the guests and the host of the hotel. According to Marriot (2015) 75% of the people who travel bring mobile devices and this is even higher amongst young travellers. Apps like this could also be used for room service- and/or housekeeping requests, or wake up calls.

It is important to engage with your customers in the proper way. According to Marketo (2016) customers are the most valuable asset in your company, therefore it is important to use the right techniques when you engage with them. As stated in Marketo’s  5 principles of engagement marketing, you should connect with guests as individuals, based on what they do, continuously over time, directed towards an outcome, and everywhere they are.

With what is mentioned a mobile hotel apps could be a useful platform in which hotels can engage with customers in an effective manner. Since the guests could request services of the hotel there are options for personalization. For returning customers they could use it to modify the app based on that personals previous behaviour. They could implement a feature that would engage the customer long-term by making them engage continuously over time, and since it is on their smartphones they could use it everywhere they are.

In the customer intimacy strategy from the CRM strategy of Treacy and Wiersema (1996) it is stated that the wishes of customers are what counts. To be able to do this you need to know your customers, and know what they want. (Peelen & Beltman, 2013) Through a mobile hotel app you could already easily take your guests requests before they arrive at your hotel, which could result in higher customer satisfaction and an improved relationship with your customer. The mobile app can be an fast and easy tool between customers and their hosts to communicate and improve services in the hotel.

To conclude, a mobile app for hotel requests could be a useful tool to for the customer engagement management in hotels. It could help with CRM strategies and improve customer relationships. Since most of the guests are already using their mobile devices to the hotel’s it is only logical to engage with them through it.

Bibliography

Marketo. (2016). The 5 Principles of Engagement Marketing. Retrieved from Marketo: file:///C:/Users/Gebruiker/Downloads/The-5-Principles-of-Engagement-Marketing-Marketo%20(2).pdf

Marriot. (2015, May 13). Travelers Can Ask Anything, Anytime, Anywhere with the New, Industry-leading Mobile Request Chat Feature from Marriott Hotels – Now Available on the Marriott Mobile App. Retrieved from Marriot: http://news.marriott.com/2015/05/travelers-can-ask-anything-anytime-anywhere-with-the-new-industry-leading-mobile-request-chat-feature-from-marriott-hotels-now-available-on-the-marriott-mobile-app/

Peelen, E., & Beltman, R. (2013). Customer Relationship Management. United Kingdom: Pearon Education Limited.