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Information Does not Equal Knowledge: Oracle Hospitality Suite8 and Hotel Guest Loyalty

By: Steven Lee, Director, Consulting Services, JAPAC F&B

In today’s competitive hospitality landscape, it is insufficient to simply offer a good product at a good value. Hoteliers seek to maximize revenue opportunities through targeted marketing campaigns in order to build customer loyalty. It is imperative to have a 360 degree view of your customers in order to evaluate their true enterprise value, to give rewards for loyalty, and to offer consistent services.

Case in point: When I stay at a resort, I may enjoy a spa treatment, dine at the restaurant, and play a round of golf. In most establishments today, there is a high chance that my profile data is stored in several different databases, each capturing my spending behavior independently. However, when the hotel decides to reward its top spending guests, I may not qualify if the hotel measures loyalty solely on hotel room revenue or room nights.

If you were a VIP guest of the hotel, how would you feel if you were treated like a regular walk-in customer when you booked a spa treatment? It would be an awkward experience if everyone else in the hotel greets you by your name, yet you are asked to fill out a registration form at the spa. Should they not recognize you the same way the concierge does?

Suite8 enables CRM with a rich customer profile and a complete customer transaction history in its core database. Whether you are booking a room, a spa treatment, or a table for two, the “Guest Recognition” feature provides hoteliers with pertinent information about customers at a glance. Customer activities and spending history are tracked across the resort so that you get a true picture of the value each specific guest to your establishment.

And guest recognition extends even beyond CRM. Throughout the Suite8 application, users can view similar information. Whether you are a guest services agent at the front desk or a maître d’ at the restaurant, being able to access pertinent guest information such as his last visit date and his favorite beverage, can truly enhance the guests’ experience at your property. Guest comments from previous stays are also conveniently accessible at all times, so that you can avoid the embarrassment of making the same mistake twice. If you made a comment on your last visit that the room was noisy, wouldn’t it be nice if you were offered an upgrade and a quiet corner room upon your next check-in?

So what is an effective measure of the value of a customer? Is a guest who splurges on a single visit necessarily more valuable than another guest who spends less but visits frequently? A method adopted in Suite8 to measure customer value is the “RFM” index:

  1. Recency” – How recently did the customer purchase?
  2. Frequency” – How often do they purchase?
  3. Monetary” – How much do they spend?

This RFM score gives the operator an immediate insight to the customers’ spending behavior. It is automatically indexed daily so that information is always updated.

For example, Mr. Jones has an RFM score of 2-5-1. He appears to be a regular customer who had not checked in at your hotel for a while now. He also appears to be cost conscious. Perhaps sending him an email about an upcoming “early-bird” promotional rate would be an effective way to reach out to him. To help you manage this effectively, Suite8’s CRM is able to identify and target customers based on granular details, such as spending and stay patterns, mailing preferences, demographics and so on.

So what differentiates Suite8’s CRM from the profile data stored in most other property management systems? Albert Einstein once said that “information is not knowledge”; this is especially true in today’s age of Big Data. Most hospitality solutions offer great advancements in the ability to capture and store information about the guests. However, without an effective CRM solution in place, the data counts for nothing more than a slower search performance and larger disk storage. Suite8’s CRM is the foundation upon which you build brand loyalty, retain and reward customers, offer tailored marketing and increase revenue opportunities.

In the hospitality industry, it is typically the little things that count. A system that empowers the hotelier with a simple and yet intuitive CRM, puts them leagues ahead of their competition.

Have questions? We love to hear from you. Email us at oraclehosp_ww@oracle.com.

**Please note, Oracle Hospitality Suite8 is only available in EAME (Europe, Africa, and the Middle East) and Asia-Pacific.**

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