Personalization in the Hotel Industry
The ever-growing need for targeted communications
In previous blogs and White Papers, we’ve quoted 2017 saying from The Economist that ‘The world’s most valuable resource is no longer oil, but data[1]’.
But data on its own cannot create the personalized communications and one-to-one marketing approach that are so important to modern hotel guests and critical for promoting loyalty.
In this new White Paper, Michael Toedt explores the significance of personalization to the hotel industry – especially in post-pandemic times as hotel groups strive to differentiate themselves from the competition – and how collecting Big Data is just the starting point for making this happen.
In modern society, individuality is king
If there is something that hotel guests (and consumers in general) do not like, it is being treated as ‘just another number’. People are now more self-aware than they have ever been. We recognize that we are all individuals with our own thoughts, opinions, likes, and dislikes.
And in today’s age of Artificial Intelligence (AI) and machine learning, we expect to be treated as such by the brands with which we interact. Indeed, research from McKinsey & Company shows that 71% of consumers say they now expect personalized communications and 76% get frustrated when they are not on offer. [1] Some customers go beyond frustration, with Twilio segment’s ‘2021 State of Personalization Report’ finding that 45% of consumers will take their business elsewhere if a brand fails to offer a personalized experience. [2]
The importance of an individualized approach can be explored by considering the well-known marketing model, Maslow’s Hierarchy of Needs. This is all about using insights gleaned from data to understand what is important to your customers, their needs, and the factors that influence their purchasing behaviors.
Once you have this understanding in place, it becomes easier to create tailored marketing messages that resonate with each audience segment you wish to target.
For example, a budget hotel chain looking to attract young families is not likely to focus on its dining experience or gym/spa offering (if they have one).
Instead, they are more likely to create key messages around value for money, the child-friendly features to be found in their properties, COVID-19 safety and hygiene measures, the hotel’s family entertainment program, and perhaps a babysitting service. In terms of Maslow’s Hierarchy, this case would fall firmly into the lower three segments of the pyramid, representing Safety, Biological & Physiological, and Love / Belonging needs.
The Esteem and Self Actualization need segments would not enter the equation here – but they certainly would for a 5-star luxury resort looking to attract wealthy couples. Clearly, a completely different approach and set of marketing messages would be required for each of these groups.
To continue reading please follow this link to the free download!
[1] - McKinsey & Company. “The value of getting personalization right—or wrong—is multiplying..” - November 2021.
[2] - Twilio segment. 2021 State of Personalization Report 2021. - 2021
[1] - The Economist. “The world’s most valuable resource is no longer oil, but data.” - May 2017.
About dailypoint
dailypoint™ is a leading Data Management and CRM platform for the hospitality industry, offering a sophisticated solution that aggregates data from various sources into a unified guest profile. Utilizing AI, it processes data through 350 steps to create the Golden Record, a central guest information repository for personalized service throughout all hotel tech systems.
This cloud-based SaaS solution comprises 16 modules and is supported by the dailypoint™ Marketplace with over 200 partners, aiming to enhance the customer journey and improve operational efficiency across hotel departments.
It includes a Privacy Dashboard for GDPR compliance, highlighting its commitment to data protection.
Headquartered in Munich, Germany, and with offices in the UAE and the US, dailypoint's global presence is bolstered by a network of sales and distribution partners.
Its excellence in redefining hospitality data management and customer engagement was recognized when it was named the preferred CRM partner by The Leading Hotels of the World in Fall 2023.
For more information visit dailypoint.com.
Nadja Weindl
Director Marketing & Communication
+49 89 1893569-12
dailypoint™
