images of people and technology icons reflecting importance to hotels of a crm to help guest recognition and loyalty

Hotel operators take customer loyalty very seriously, but not every hotelier is in a position to provide a traditional guest loyalty program.

NB: This is an article at SHR

These conventional programs require significant overhead to operate efficiently, from training hotel workers to offer and redeem points to maintaining the servers that collect guest information. However, this no longer has  to be the case thanks to modern Customer Relationship Management (CRM) technology.

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Operators have needed help with the perceived costs and challenges associated with implementing a high-quality loyalty or guest recognition service. Still, today they can use cutting-edge CRM technology to gather the insight they need to reward guests for their bookings.

Once in place, a high-quality guest recognition program can be automated almost completely, but getting there may require a departure in perspective from the majority of the industry.

The Basics of Recognition

There are many advantages to offering guest loyalty programs at your hotel, from creating incentives for travelers to book with you while providing a more enjoyable booking experience for guests once they are on the property. However, few of the trappings of traditional loyalty programs foster loyalty. According to the Harvard Business Review, just 42 percent of brand executives believe their customer loyalty strategies effectively retain consumers’ business. Suppose the hospitality industry wants to begin truly rewarding guests for their bookings. In that case, it must have the courage to break from its fixation on the term “loyalty” and instead focus on guest recognition.

Providing personal touches that recognize the value of each guest sounds like it may require more operating bandwidth compared to offering a traditional points-based system for guest redemption, but the opposite is often the case. Hotels can use their CRS and CRM data to discern a great deal of insight into guest preferences, booking habits, and aspirations. This knowledge helps hotels align a set value of available perks with the guests who value them. Doing so could manifest in upgraded rooms, complimentary amenities at check-in, or a flat discount on their rate.

Many of these forms of recognition require little additional effort or investment to execute. Every hotel can recognize guests at check-in, either by name or by offering specific amenities or services based on their past preferences. Delighting a guest with complimentary slippers in the guestroom that are the right size could be the tipping point that leads a traveler to post a positive review.

These small moments of recognition are far more memorable than earning a reward based on points. These allow hotel guests to feel seen by hotel operators and create a human connection between them and the property. Inviting loyalty members to visit your hotel outlets by offering free F&B credits or complimentary spa services is much more impactful. It speaks to the spirit of hospitality, not having guests plan out points-based redemptions.

Read rest of the article at SHR