There’s been a lot of buzz over the past few years about the explosion of big data.
NB: This is an article from Revinate
And that explosion has created a new world of data-driven hospitality, where the convergence of hotel marketer data, analytics, and guest expectations for personalized communications and service are redefining the way hotels connect with their guests.
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Read on to discover five pivotal reasons why data is now the heartbeat of modern hotels.
1. Better data leads to better insights
Not having access to diverse and abundant data presents considerable challenges for hotel operators. Limited data restricts your ability to identify patterns and make informed decisions that not only benefit the customer experience, but your bottom line as well. For example, if your hotel has access to a small data set, you may struggle to identify nuanced booking behaviors that impact your business. Or you may not be able to personalize experiences because you lack a clear understanding of evolving guest preferences.
The greater the volume of variable data you have at your disposal, the richer the insights you can obtain from it, and the better you understand your guests’ behaviors and interests. An expansive pool of variable data can cover a spectrum of areas, from understanding visitors’ reasons for travel, to booking lead times, to factors that influence repeat visits. And it empowers you to do things such as identify which guests prefer rooms with scenic views or enjoy spa services. Armed with this information, you can tailor your marketing efforts to promote specific features and amenities, enhancing the guest experience and simultaneously boosting customer loyalty.
In addition to the need for abundant data, the type of data you use is important as well. Zero-party data is information that customers proactively share with you, like feedback and information about their interests. First-party data is data directly collected from guest communications, including booking history and online interactions. Second-party data is data collected by another company, and purchased by your business in a private transaction. And third-party data is purchased or acquired from external sources on an open marketplace.
Many companies are moving away from third-party data due to concerns about privacy and regulatory compliance. And second-party data is often less relevant than your own customer dat. Zero- and first-party data are the only types that ensure accuracy and reliability. They allow you to narrowly focus your communications, making them indispensable for hotel marketing strategies.
2. Clean data leads to precise targeting
In addition to abundant data, you need clean data. When your database isn’t clean, it’s like trying to solve a puzzle with missing, torn, or duplicate pieces. You end up with an inaccurate image, and it’s nearly impossible to envision the completed picture as a whole. A hotel data model filled with dirty data may include multiple entries for the same guest, for example, Mark Davis may appear as “Mark Davis,” “M. Davis,” and “Davis, Mark” in the database, making it challenging to create a comprehensive guest profile.
Messy databases also include incomplete or inaccurate contact information, outdated preferences, and more. Stale and inaccurate hotel marketer data not only wastes valuable resources, but it can lead to irrelevant guest experiences and communications that may have a detrimental effect on your hotel’s reputation.