Are you trying to get a more comprehensive view of your guests only to discover that your guest data is disorganised and stored in different systems?
With everyone talking about personalisation, you don’t want to fall behind. However, at the same time, you don’t know where to start with the messy data at hand.
That’s where a Customer Data Platform (CDP) becomes a crucial part of your hotel business performance. Why? Because a CDP can provide insights into customer behaviour that are crucial for driving revenue and operations.
According to McKinsey, CDPs help companies increase revenue by up to 10%, while also reducing marketing costs by over 20%.
A CDP is a data storage platform that collects, organises, and integrates guest data from all of your hotel’s systems. This can include demographic details, booking history, preferences, and behaviour from sources like your PMS, CRM, and OTAs.
Unlike standalone systems, a CDP provides a complete and unified view of your guests by consolidating and cleaning data from multiple sources. For example, while a PMS manages reservations and a CRM tracks guest interactions, a CDP bridges these systems, eliminating silos and ensuring that data is always accurate and actionable.
Hoteliers can use this unified data to understand their guests better, create more effective marketing campaigns and ultimately drive up revenue. In fact, hotels have seen an average 10% increase in revenue after implementing a CDP system.
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 the right approach, hotels can use this information to enhance operations, drive revenue, and foster loyalty. Here’s how:
Guest information often comes from many sources, such as booking systems, loyalty programs, and online reviews. To gain a clear picture of each guest, it is essential to bring all this information together in one place.
A CDP helps create a unified profile for each guest, showing not just their booking history but also preferences, feedback, and interactions.
It also ensures that the data is accurate and has no duplicates. Reviewing and standardising your database with a CDP means you can rely on the information when making decisions.
If your data is not centralised, it can create silos and lead to a dirty database. Check out the 3 common data management problems hoteliers face here. You might want to avoid them.
Once your data is centralised, analysing it can reveal meaningful patterns and trends. By examining guest preferences and behaviours, hotels can learn which services or experiences matter most.
For example, looking at how guests interact with different devices helps you tailor communication to the platforms they use most.
Similarly, understanding guest activity during their stays can help you create personalised recommendations and offers that are more likely to resonate.
Guest data also provides insights that can support your revenue strategies. By understanding booking habits or preferences, hotels can design targeted promotions or suggest upgrades that guests are likely to find appealing.
For example, if you notice that a segment of guests regularly books spa treatments, you could promote related packages to them in advance. This approach not only increases revenue but also makes guests feel understood.
Data isn’t just about understanding guests; it can also improve your internal operations. Analysing patterns in guest feedback or preferences can help identify areas where resources are needed most.
For instance, if guests frequently mention long wait times during check-in, allocating more staff during peak hours could enhance the experience. Likewise, knowing which amenities are most valued can guide investment decisions, ensuring resources are used effectively.
Understanding guest preferences and behaviors allows hotels to build stronger relationships with their most loyal customers. A CDP enables hotels to track repeat guests’ favorite services, special requests, or memorable interactions.
Using this information, you can create meaningful connections, whether through personalised greetings, exclusive offers, or thoughtful gestures that make them feel valued. When guests feel appreciated, they are more likely to return and recommend your hotel to others.
Beyond this, loyalty has a direct impact on customer lifetime value (CLTV), which is the total revenue a guest generates during their relationship with your hotel. Loyal guests tend to book more frequently, spend more on premium services, and even act as brand ambassadors, introducing new customers through referrals.
Get inspired and learn how to create an effective loyalty program here.
Studies show that about 78% of organisations using CDPs have observed significant improvements in customer engagement. Centralised guest data has not only led to increased efficiencies but has also contributed to more business growth.
But the journey doesn’t end here. As technology continues to evolve, CDPs are expected to become even more advanced, offering new ways to enhance guest experiences and streamline hotel operations.
For example, by integrating CDPs with systems like spa management tools, point-of-sale (POS) platforms, meetings and events (MICE) management, and food and beverage (F&B) operations, hotels can create an even more effortless experience for their guests.
These integrations allow hoteliers to go beyond standard personalisation and address specific guest preferences, such as offering a favorite wine at dinner or ensuring their preferred spa treatment is available.
If you’re looking to learn more about CDPs, check out our latest whitepaper for free here!
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