Whilst we use the term CRM (customer relationship management) we believe in CMR (customer managed relationship). It’s the customer who ‘owns’ the relationship.
Good CRM is about helping customers to want to engage in a long-term relationship with your hotel and making it easy for them. This usually means doing less, but doing it better. Getting it right means spending less money and getting more repeat bookings with higher lifetime value.
We use booker and guest data to uncover behavioural patterns. We use those patterns to run automated programmes in four related areas to support customers’ natural buying behaviours, all with the aim of maximizing long-term gross profit for the hotel.
Noetic's counterintuitive approach to customer relationship management delivers significant benefits because we use customer data intelligently to really understand a hotel's guests and bookers.
CRM should support an equal relationship between the hotel and its customers so that both parties get what they want but it usually doesn’t work this way. Customers typically surrender their contact details only to be bombarded with emails and irrelevant, irritating offers.
Hotels need to think carefully about what their customers want because when you do customers are happy to receive your marketing communications. Your marcomms should be there to help the customer; getting it right helps the hotel grow repeat business.
Respecting the customer is essential to avoid damaging your business with well-intentioned but value-destroying marketing campaigns. We set firm criteria for when it is mutually beneficial to contact a specific customer based on your CRM data. If it isn’t of value to your customer, then it doesn’t go out.
One of our key metrics for the success of campaigns is the unsubscribe rate. If a customer goes to the trouble of unsubscribing it is a strong indicator that your well-intentioned campaign has damaged your relationship and your business. (When was the last time your CRM manager started a report with the unsubscribe rate?) What you chose not to do can be as powerful as what you do.
Repeat business always costs less than acquiring new customers. We all know this…but too often hotels ignore it, especially if they are dependent on OTAs to fill rooms. But did you also know that repeat customers are usually less price-sensitive and they rarely need to be incentivised with discounts?
Regardless of how amazing your hotel is, not all your customers will become regulars. Understanding whether a guest or booker wants or needs to book again is essential to avoid wasted effort and investment in guests that will never come back.
Noetic1 uses customer data to accurately predict who has the potential to become repeat customers so you can focus your efforts on them.
A mantra at Noetic is that we only do (expensive) acquisition until a hotel has enough (low-cost) repeat bookers and guests. Having to spend less acquisition is a direct result of getting your CRM right.
If you don’t consider your acquisition programme as a requirement driven by your CRM programme, then you’re doing both wrong.
Our methodology combines booking behaviour data, in-hotel guest behaviour and post-stay customer satisfaction insights. Our surveys are fully automated and have been optimised to ensure a high response rate.
How satisfied a guest is with their experience is highly predictive of future bookings. Which is why customer satisfaction survey results and declared future behaviour is fed back into our acquisition planning, so we can compare it to what actually happens.
Our media team can see which keywords and combinations are more likely to be used by first-time bookers who will go on to make repeat bookings. Our Bidding Engine knows the likely future value of the booker, not just the value of the booking and optimises bids and spend accordingly.
We don’t bid on the booking, we bid on the predicted future value of the booker, and that’s why our acquisition algorithms perform better than the results media agencies achieve.
We don’t send discount offers when we don’t need to. For example, if a customer is expected to rebook within 90 days of their last stay, we won’t email them with an offer before 90 days has elapsed. And we only run incentive campaigns for customers who deviate from our predictions. This protects the relationship with customers whilst also avoiding devaluing your hotel and reducing gross profit, with unnecessary discounts.
At Noetic, successful campaigns are not measured by the volume of emails sent or offers claimed but by delivery of small targeted campaigns, low unsubscribe rates and high conversion to purchase.
Our approach to CRM delivers performance that goes above and beyond the industry standard results. For one client:
lower cost acquisition
than it was paying