In a world powered by data, misinformation can be more detrimental than no insights at all.
NB: This is an article from Avvio
Alongside the many metrics intended to measure performance, guest retention is one of the most valuable for hoteliers to monitor, with statistics showing that a 5% increase in customer retention can result in profits boosting by 25% to 95%, and how a hotel strengthens its guest loyalty can be make or break for a business.
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Guest retention not only measures how successful a hotel is at acquiring new guests but also how successful they are at satisfying existing guests and encouraging return visits.
Below, we dispel a few common misconceptions surrounding guest retention with facts to reveal the truth behind those myths and uncover what could be impacting your bottom line.
● A marketing strategy alone isn’t enough
Yes, a marketing strategy is powerful and effective not only to build upon your brand’s awareness but to attract new guests. However, where many hoteliers fail is their focus lies heavily on acquiring new guests but falls short when a customer retention strategy doesn’t coincide with the marketing strategy.
When it comes to marketing, it’s key to fully understand your audience and analyse what your competitors are doing. The power of data science and predictive personalisation can help you to ensure you deliver a curated brand experience at every stage of your guests’ journey, both old and new.
In an earlier blog, we discussed how you can create a personalised customer journey using technology and smart content.
● Satisfaction means loyalty
Hoteliers need to nurture relationships with their guests during and after their stay. Why? Because the cost of acquisition for an existing guest is much lower than a new booking, as well as statistics show that existing customers are 50% more like to try new products/services and spend 31% more than returning customers. But, just because a guest has stayed with you before doesn’t mean they will stay again. Past guests begin a new customer journey post visit, one that needs to be acknowledged in your strategy.