CRM and Web Development SpecialHoteliers acknowledge that there is an opportunity to capitalise on the trend of online customer empowerment and enable the customer to define the relationship on their terms.

Published: 24 Jul 2008

CRM and Web Development Special

Hoteliers acknowledge that there is an opportunity to capitalise on the trend of online customer empowerment and enable the customer to define the relationship on their terms.

From Preferred Hotel Group's perspective, its Director, Marketing - Europe, Middle East & Africa, Chris Fradin admits this and says it is paramount that we engage with our guests on their own terms and not assume we know what they want to know.

So what does it take to make this happen?

"We constantly invest in the on-going development of our brand websites to make the experience as engaging as possible for our guests, whether new or returning. Web 2.0 is a key part of this ongoing relationship management. Guests want to be able to interact with the brand any which way they choose and through blogs, forums, photo galleries, stories and the like. Some non-PHG hotel websites I have seen recently are no more than a misty shop window to their property, when their website really should be a fully interactive experience which lives and breaths the hotel brand, engaging the guest and pulling them in to ask more questions," said Fradin, who attended EyeforTravel's Travel Distribution Summit Europe 2008 in London in May, told EyeforTravel.com's Ritesh Gupta in an interview.

Fradin also spoke about segmentation, personalisation and measuring results etc. Excerpts:

Ritesh Gupta: In the hospitality industry, different customer segments should easily identify areas on the hotel website that "speak to them." Which is the best way to address this segmentation?

Chris Fradin: Careful segmentation of the many diverse customer groups is absolutely key in the hospitality industry.

Firstly you need to understand the different kinds of guest – remembering that they will often be the same person, only in a different mindset. Then, you need to ensure that they way you talk to them is relevant to their mindset and needs.

At Preferred Hotel Group we have different websites which clearly speak to guests driven by specific experiences: Preferred Hotel Group (corporate, B2B customers); Preferred Hotels & Resorts (ultimate, indulgent luxury); Preferred Boutique (intimate luxury); Summit Hotels & Resorts (smart, local luxury); Sterling Hotels (value experience). The words, images, functionality and usability of any specific website must resonate with the guest as s/he searches for his/her personal experience.

Ritesh Gupta: It is important to understand that customer service is only one aspect of e-CRM and is primarily a reactive function aiming to improve performance and efficiency, while e-CRM as a whole is a proactive long term strategy. What's your viewpoint regarding the same?

Chris Fradin: e-CRM is a vital element of the overall CRM approach by any company. Hospitality companies must engage their guests at every touch point to ensure that the brand promises are met and exceeded. Guests need to be engaged and this is only guaranteed when every touch point is singing from the same hymn sheet: print advertising; online advertising; websites; email newsletters; voice reservation agent; customer agent; hotel receptionist; the concierge; the food & beverage staff… All play an integral part in the entire relationship and if successful, guests will come back for more. Clearly, achieving this can be a challenge for any company – done properly it will bring rich reward.

Ritesh Gupta: Do you think the results of personalisation, however, are a bit harder to pin down, and those initiatives can be detrimental if the company does not obtain permission from the guest?

Chris Fradin: Guests staying at luxury properties want to feel like they are the only important guest in the building. Personal service is what sets our properties apart and it is guest expectation that this level of service is received – it's a given. Clearly, if the level of service by one person in the chain, from a potential of say 20, then the results may vary a great deal and it would be difficult to identify where the chink the armour was. I would argue that if a customer has requested a certain service or amenity then that knowledge should be used to its advantage during the next stay to enhance the experience and ultimately deliver a truly 1-2-1 service subsequently.

Ritesh Gupta: Which is the best way to engage your customers through personalisation, customisation and relevance?

Chris Fradin: The key to engaging your customer is to nurture a long-term relationship through collecting as much relevant data as possible and investing time, money and energy analyzing habits and learning from guests. Smart segmentation of guests will allow targeted messaging and continued testing to ensure that the right message is hitting the right people in the right way. Only by promoting relevant offers to the right audience will a customized message be effective.

Ritesh Gupta: What according to you is the key in developing true one-to-one relationships and customer experiences across a varied customer base?

Chris Fradin: You need to acquire new customers and listen to them, together with your current customers and understand their needs. By listening you will understand what makes them tick, the knowledge of which will allow you to segment your database and begin to truly personalize your messaging. Through relevant customization of offer, message and call to action a long-term relationship can be developed. The first step has to be smart segmentation.

Ritesh Gupta: The biggest impressions made are by customer-facing employees providing great service. Experts feel hiring the right people and training them to care about the guest is really the best way to build relationships. Do you think this is happening in hotels?

Chris Fradin: The biggest challenge that hotels have is the fluid nature of staffing within the industry. It's like painting the Forth Bridge – as soon as all staff have been fully brought up to speed, one member of the team leaves and the training has to start again. At Preferred Hotel Group we ensure to train all new hotel staff on our marketing, sales and distribution tools and techniques. This rings true for both new and existing hotel staff members on an on-going basis to ensure that staff are engaged with Preferred's programmes and opportunities and can pass this onto the guest.

At the end of the day the staff at the coal face are absolutely fundamental in the delivery of the brand promise and managing + exceeding guest expectation. Guests these days are all about the experience and the successful delivery of great service is key.