Customer Centricity to Improve Your Value Proposition
Accustomed to the right classic product, at the right price, in the right channel, on the right customer, it is time to take a technological leap and market intelligence to centralize the hotel’s activity on the customer 1 to 1. This may seem a priori science fiction today, along with the interpretation of data, a knowledge of learning and a reaction in real time on the movements that occur on the market.
The natural evolution of the hotel market requires product, commercial and marketing specialisation in a “nerve centre” such as the traveller. We move from working on a standardized categorization of segments, enriched with market information, to work on customer needs identified in real time and on a value proposition based on the traveler’s perception. To be able to work under the Customer-Centric Revenue Management maxim is what allows hotels to adapt their product to the market, strengthen their value proposition and optimize it on the maximization of profits. This model works on 4 fundamental pillars:
- Adopt the customer’s point of view. Knowing the client’s needs and proposing a product that fits the perception of each type of traveler is what allows the hotel to be relevant. Intelligence lies in knowing how to build trust in the traveller and not in trying to force the reservation of a product created on conjecture and not on reality.
- Analyze their behavior in the purchase decision. Being able to interpret the traveller’s current situation in relation to the hotel allows him/her to communicate with it on the basis of a specific message sent at the right time. The maturation or nurturing of the hotel with respect to the potential client will be one of the key tasks of the hotel’s marketing department. Therefore, analyzing all the information in relation to the traveler will increase the conversion ratios.
- Know the expectations of each customer segment. Being able to identify and discriminate between different segments of demand will favour the approach of differentiated strategies on the expectations that, from the marketing or commercialisation department, are generated in the traveller. It is important to take into account which are the stimuli that affect the traveler in a previous way and to analyze if our product manages to cover them or even surpass them.
- Know the price elasticity of the market. Price, as a fundamental aspect in the traveler’s decision making, must be one of the main parameters to be taken into account. Balancing the price elasticity on the market, both in terms of competition and demand, will help to make the most interesting proposal in terms of price for the traveller. If the client of our hotel is very sensitive to price we will have to take this factor into account.
At an operational level, Customer-Centric Revenue Management proposes a strategic process that combines factors such as price, distribution channels and the achievement of customer loyalty. In this way, we seek to improve the value that can be contributed from the hotel so that we are aligned with the traveler who really interests our establishment. Taking advantage of the large volumes of data we work with in the hotel and printing business intelligence will favour the internalisation of knowledge in favour of improved results.
We encourage all accommodations to work under the Customer-Centric Revenue Management philosophy. This approach allows to take advantage of the advantages offered by the market in terms of information and will optimise the ROI on distribution, marketing and marketing in order to achieve objectives.