Cutting through the jargon

Noetic helps you to jump to what’s important for your business

Here’s a useful glossary of terms that are significant to us and how we define them. Many are widely used (and misused) in the hotel industry. What would you like to re-define for your business? Maybe Noetic can help?

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Noetic

/nəʊˈɛtɪk/ adjectiveFORMAL: relating to mental activity or the intellect.

From the Greek adjective noētikos, meaning “intellectual,” the verb noein “to think” and the noun nous, meaning “mind.” We believe in the intelligent application of technology which is why we chose our name. Whether it is using data to predict who the best lifetime customers will be, or connecting disparate technologies together so that the right information is available at the right time across all your channels, we take an intelligent approach to all we do. Noetic is different because it has more digital nous.

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Nous

/naʊs/ nounINFORMAL: practical intelligence and good judgement, intuitive apprehension

From the Greek meaning mind. Our digital nous gives our customers a competitive edge. Our services may sound similar to other marketing agencies but they are underpinned by innovative technology and fresh approaches that deliver significantly better results.

Find out more about our technology…

 

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Acquisition

/ˌakwɪˈzɪʃ(ə)n/ noun: hotel bookings obtained

All new customers are acquired in only two ways, direct or indirect, via OTAs, tour operators, contract and the like. Direct bookings have the benefits of costing less to acquire, have a higher propensity to book again, cost less to service and have a higher lifetime value than indirect. But, they also take more effort to acquire, than indirect bookings which is why most hotels rely on OTAs to fill their rooms, at huge expense.

Acquisition (whether direct or indirect) is what you do because your CRM programme doesn’t deliver enough repeat business. The question is, how much could you save if your CRM was better?

Find out more about our ‘Acquire’ programme…

 

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Attribution

/atrɪˈbjuːʃ(ə)n/ noun: the action of regarding something as being caused by a person or thing

Understanding the journey bookers and guests took to find you is gold dust for your marketing decision making. Attribution seeks to understand the impact of each marketing contact the customer has had with your business. Many in the hospitality industry only look at last-click attribution and overestimate the impact of the last ad a booker saw before making a booking. Noetic gives you the competitive edge by giving you a much more nuanced understanding of the effectiveness of each marketing action you take.

 

 

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Occupancy /ˈɒkjəpənsi/

 /ˈɒkjəpənsi/ noun: occupancy meaning the proportion of a hotel that is occupied or used

All room occupants are *not* the same, but if you focus on occupancy as a metric, you can be forgiven for thinking they are. Consider this: who would you rather fill the room (if you only have one available) a first-time booker or a customer who has stayed five times before?

 

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CMR

/sə-ɛm-ar/ acronym: customer managed relationship

A fundamental acceptance that the guest ‘owns’ the relationship. A philosophy that starts and ends with the understanding that the Guest interacts when they want to, where they want to, how they want to and that the brand is there to support the Guest do what they want, more easily. At Noetic this approach leads to CRM that leads to fewer ‘offers’, fewer discounts and also, fewer unsubscribes, more engagement and higher lifetime value.

Find out more about Noetic’s approach to CMR and CRM… 

 

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CRM

/sə-c:m-ɛm/ acronym: customer relationship management

The collective term for the tools and approaches that businesses use to increase profits and improve customer satisfaction. Noetic uses CRM to maximise repeat business for our clients. More bookings via CRM – which is incredibly cost-effective when done well (often less than 1% per booking v 20%+ for an OTA booking – means a smaller requirement to acquire expensive new customers. You should consider ‘acquisition’ as the thing you only have to do because you don’t have enough repeat direct guests.

Find out more about Noetic’s approach to CMR and CRM… 

 

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RevPAR

/rɛvpɑː/ acronym: revenue per available room

A useful hotel industry performance metric almost always misapplied in practice. Calculated by dividing a hotel’s total room revenue by the number of rooms and the number of days in the period being measured. Health warning: Using this metric for anything beyond working out whether the business can cover the mortgage on the building almost inevitably leads to damaging customer relationships by ignoring them and preferring to sell the a room at any cost to anyone – ie. treating the guest as if they are simply a replaceable commodity.

Not to be confused with TrevPAR is its jazzed up younger sibling – which means total revenue per available room. TrevPAR takes a wider view by dividing the total net revenues of a hotel by the total available rooms, but those who use it as a key metric are making the same mistake that RevPAR users do.