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Remaining Relevant

Hoteliers leverage technology, data to put out right message at right time in right format via right channel.

By Derek Gale, Senior Editor -- Hotels, 10/1/2008

As anyone with an e-mail account and a favorite hotel brand or airline can attest, there is a fine line between a company maintaining a relationship with customers and over-communicating. It’s one thing to notify your customer base of special offers well suited to them; it’s another to send frequent mass messages that amount to nothing more than run-of-the-mill advertising. To today’s e-mail user, such messages might as well be spam.

Kimpton Hotels recently updated the look and feel of its monthly e-newsletter, increasing open-rate. In addition, Kimpton now offers its five e-newsletters in mobile versions for its loyalty program members.
“This continual fight to be relevant remains a big issue for everyone,” says Lincoln Barrett, vice president of CRM and multi-brand marketing for IHG. “Consumers are fighting a constant barrage of communication… e-mail or whatever. You have to be true on what is relevant to customers and get down to a personal level.”

Outrigger Gets Personal

Honolulu-based Outrigger Enterprises Group recently retained interactive marketing relationship firm ClickSquared Inc. to help the company both manage guest data and create personalized, timely, relevant marketing messages based on that data.

To start, ClickSquared will build a database using information from all Outrigger sources, from property management and reservation systems to the call center and on-property spa or restaurant outlets, says Cabot Woolley, ClickSquared’s vice president of travel and hospitality. The database then will be automatically updated in real-time with each customer action or transaction, creating detailed customer profiles that can be used to trigger outgoing messages.

As for the messaging itself, “even our best guests, if they love us and love Hawaii, may see us a couple of times a year,” explains Rob Solomon, chief marketing officer for Outrigger. “Most people don’t have an opportunity to travel to Hawaii every month. So, we know they don’t want to hear from us every week, or every other week, or every month. Probably the most they want to hear from us is [a few] times a year. It’s a simple thing, but in today’s world, it’s smart to get it right and to understand when they want to hear from us and how often.”

Solomon cites a few major U.S. air carriers and their overzealous e-mail communication with customers as an example of getting it wrong. “I hear from each of them about every other day,” he says. “If not for professional curiosity, I would just block them.”

His goal for Outrigger is to “put more discipline into ensuring the communication we send is relevant and timely. We want to [communicate] with selectivity. We are investing in quality content. If we accomplish nothing else, we feel this will be a highly appreciated service from our guests.”

Solomon also notes that when the company talks to its customers, he wants it to do so with not only offers, but also with interesting information and timely, event-driven opportunities—“things they will want to share with friends and colleagues,” he says. “Letting the guest know that here is an experience that is available—it’s not an advertising come-on, it’s a service. If we serve up the right information at the right time, it has a great value in its own right,” he explains.

Offers, meanwhile, should be simple and powerful, Solomon says, like a note asking for a lapsing customer to come back and providing a US$100 e-coupon as an incentive. “One, it’s addressed to me. Two, it’s timely and true. Three, here is a relevant benefit and a simple but warm-and-fuzzy message,” he says. “One hundred dollars is a good investment for bringing a customer back. It’s simple and to the point.”

He believes Outrigger customers have an appetite for the right type of information, and that as long as the company respects its guests’ time and intelligence, and uses technology to smartly stay in touch with them, brand messages will be well-received and add long-term brand value.

IHG Keeps Project In-House

IHG’s Barrett, meanwhile, focuses his team on getting to a position to deliver relevant content at the right time via the right channel to increase incremental revenue without inundating customers with unwanted messaging.

To do this, a business case was made for a major CRM infrastructure project that includes IHG’s global IT department building a new CRM platform with a central data repository and integrated marketing automation tools, plus an enhanced loyalty database with a more flexible, open-architecture environment so the company can more readily harness information across the enterprise.

The project has been a long time coming, Barrett says, as IHG previously has had disparate systems and rather fragmented data assets because of its growth by acquisition.

“We have not had one customer database for people in or not in Priority Club,” Barrett says. “This will get all customer data in one area, where it will live in a more flexible environment, and we will add to that campaign management [functionality] that will increase efficiency and speed to market.”

As part of its lifecycle marketing focus, IHG will leverage that campaign management functionality to put out personalized marketing messages throughout the guest stay cycle—from pre-stay to post-stay communication.

“We’re trying to leverage the technology platform we are building to make sure that we are able to recognize [guests] consistently and persistently across their travel,” Barrett says.

That includes messages and offers being triggered as guests approach new status tiers, Barrett says. “It’s not mass communication—it’s personalized to you based on your lifecycle and your transactional record.”

When the infrastructure project is finished, IHG will be able to more effectively serve communication across e-mail, the Web and SMS messaging, Barrett says.

New Look For News

San-Francisco based Kimpton Hotels & Restaurants also is focusing on sending the right message in the right format. To help do so, the company recently updated the look and feel of its monthly e-newsletter. The new template scraps the former table of contents and showcases larger horizontal photos, larger type and more white space.

“We felt like it needed an update and a fresh, new look,” says Natalie White, Kimpton’s vice president of customer marketing and relationships. “We tested the new look versus the old one, and the open-rate increased significantly.”

In addition, Kimpton now offers mobile versions of its five newsletters (the monthly newsletter plus topical newsletters on food and wine, health and hedonism, one dedicated to women and one for the gay and lesbian community) to new loyalty program members, an option that has been well received, White says.

“We saw through surveys that people wanted this. Everyone’s got a mobile device—it’s a world of PDAs,” she notes. Soon, the company will begin offering the option to all Kimpton InTouch members, White adds.

Direct comments to: derek.gale@eedbusiness.com

Kimpton Hotels recently updated the look and feel of its monthly e-newsletter, increasing open-rate. In addition, Kimpton now offers its five e-newsletters in mobile versions for its loyalty program members.


 

Online Private Communities Replace Focus Groups

While other hotel companies like Hyatt and Fairmont are busy with the recent launches of their own loyalty program travel communities and social networking sites, IHG is expanding its private online community initiative.

These private communities, composed primarily of Priority Club Rewards loyalty program members, but now expanding to include others as well, are designed to integrate the voice of regular customers into the organization, prompting specific customer-driven changes. IHG launched its first of these online communities in the United States in 2007, and after noting the quality of insights gained from it, expanded the program globally.

“We look at private communities as a microcosm of our database,” says Lincoln Barrett, vice president of CRM and multi-brand marketing for IHG. “We use them to host chat sessions with executives across the board—it’s just a forum to ask what’s on customers’ minds, engaging them in a dialogue about issues of the day and give them more active involvement in decision-making relative to how we operate the business.”

Barrett says such communities offer immediate response, versus traditional focus groups, which can take a long time to organize and can be quite costly. He gives the example of doing usability testing on a new Web site design—instead of organizing a focus group and/or commissioning a full-scale usability study, he says IHG can have a site loaded within a private community and then receive active feedback on whether or not the company is heading in the right direction.

Another added value comes from members of such communities contributing original content, such as hotel or resort photography, Barrett says. “We use a lot of user-generated photography in our marketing campaigns to members of [our loyalty] program,” he says.

Postcards and e-mails triggered based on customer activity feature photos that members have submitted as the main art element. “We don’t have to pay for stock photo rights, and we don’t have to search outside our community for a photo that works,” Barrett notes.

Kimpton Updates CRM Software

San Francisco-based Kimpton Hotels & Restaurants, which relies on GuestWare 3.0 CRM software and a GuestWare Enterprise database to manage guest data and execute on CRM initiatives, is now using a reformatted guest recognition arrivals report to help front desk associates more effectively prepare for the arrival of loyal guests with specific preferences.

Natalie White, Kimpton’s vice president of customer marketing and relationships, says the latest update provides more detailed guest information to all Kimpton properties, versus isolating individual property comments within a guest profile.

“Prior to this update, we always had a report where we could share a guest profile at all hotels, but the hotels could put in their own information in a certain section, and they were putting great nuggets about guests in that section, which was missing from the report. Now, we’re putting that into the report so we’re not missing small but important details on our guests when they visit another property,” White says.

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