How Combining Data & Psychology Can Increase Hotel Revenue
Humans are, in some ways, predictable – something that can come in very handy for businesses who can take advantage of a visitors’ cognitive bias and make better decisions about the products and services they offer.
According to a recent article featured on tnooz.com, Graham Cooke, CEO for Qubit, touched on how brands need to use both data and psychology (human predictability) to get to know their customers in order to succeed in such a competitive industry. And if that statement isn’t motivating enough, there are two other majors reasons as to why travel marketers should include and combine both the use of heuristics and data in their business strategy. One, research proves that consumers are expecting, if not demanding, highly personalized experiences. And two, the good news, for those businesses that can deliver, is that customers are typically willing to spend more when they receive such custom-tailored service.
And there are many studies and the stats to back this up. According to Revinate, 86% of consumers report personalization plays a role in their purchase decisions, with 48% say they buy more when marketers leverage their buying behavior. Over 80% say they would be open to switching loyalties if they found a service that better catered for their needs. For the hoteliers that do strike the right note when it comes to personalization, they can expect to see a 6% increase in revenues.
Data can really give an immense advantage to your hotel business, and by adding a layer of heuristic on top of this will significantly increase your revenue opportunities. Once you know a guests expectations and preferences you will be in a better position to make their stay a ‘special’ one. When presented with a customized and personalized hotel experience that touches them directly, guests are less likely to be sensitive to price and are willing to spend more than they initially intended.
A genuine understanding of how customers think and feel will be key to making sure you serve up the right experiences that get that guest to book directly with you, again and again, increasing the lifetime value of that guest. Astute hoteliers that utilize modern technology and marketing effectively can capitalize on those basic human psychological triggers not only helping to show their hotel to best advantage but also boost the hotel’s bottom line in the process.