November 11, 2020
A Business Intelligence Tool that Maximizes Upsell Efficiency
Jos Schaap | ROOMDEX
Sales Funnel analysis has long been a critical tool for hoteliers looking to maximize conversion in the acquisition of new customers. The funnel is a metaphor for the steps a prospect goes through from start to purchase. As a group of prospects move through the process, the group gets smaller as people drop out of the process. The perfect funnel doesn’t look like a funnel at all. It looks like a cylinder, meaning that all the prospects who express some interest eventually convert to sales. Analysis means looking at where the funnel narrows and determining how to maximize conversion every step of the process to the next.
The Problem with Big Data
When set up correctly, a hotel operation can generate lots of data: consumer preferences, booking details, seasonality, distribution channel variables, compset rates, etc. The hospitality industry is rich in data, but the truth is that even some of the biggest brands have a hard time turning that data into valuable actions.
That’s why Business Intelligence (BI) tools are so valuable. BI has revolutionized both Customer Acquisition and Marketing. Now revenue managers and hotel marketers are attuned to variables that they may have ignored in the past. However, until now, upselling has been largely ignored by Business Intelligence tools, whose focus has been on customer acquisition only. ROOMDEX has fixed that oversight.
ROOMDEX makes your life easier with business intelligence upsell reporting
When done properly, upselling results in more incremental revenue and a better guest experience. Traditionally, upselling sat with front-desk agents and was widely accepted to be a manual, tedious process with a low conversation success rate. However, with ROOMDEX’s business intelligence tool, understanding upsell performance across your hotel business has never been easier.
As with all great BI tools, our goal was to take the complex and make it simple to understand. Here’s a first look at our Reveal upsell business intelligence tool in action.
Our RevealTM Business Intelligence dashboards give hoteliers with an at-a-glance analysis of the upsell buying funnel at your property. A hotelier can readily view a breakdown of upsell funnel metrics as guests filter through from top to bottom and evaluate the conversion success rate.
Metrics available in our RevealTM BI reporting tool
- Total Reservations: The total number of reservations active during a selected time range
- Attrition: The total number of cancellations and no shows
- Active Reservations: All active reservations currently booked for the hotel in the period
- Evaluated: This is where the magic happens. This metric displays the total number of guests that are deemed most eligible to receive an upgrade offer. Leveraging AI and machine learning, our UPGRADE OPTIMIZER intelligently evaluates which guests should receive a upsell offer.
- Emailed: All guest reservations that received a pre-arrival email with an upsell offer. The timing, tone, and regularity with which you upsell is the key to the success of your efforts. The beauty of our application is that it does not require the hotel to determine the upgrade offer price. Instead, our UPGRADE OPTIMIZER does the hard work for you! Based on all data collected, ROOMDEX calculates with its sophisticated algorithm the best price for the guest at hand and sends pre-arrival guests email offers tailored to their specifics needs and persona to maximize conversion
- Click-through: The number of guests that received an upsell email and proceeded to click through
- Accepted: Probably the one metric that hoteliers will look at first – accepted. These are the guests who followed through on the upsell email offer and purchased an upgrade.
Customers can also organize and filter data by source, origin, market segments, and more to allow hotels to view which areas perform better or less so when compared to others metrics. In addition, provided in the table form for convenience, users also have the option to further review specific upsell revenue transactional performance.
Change how your hotel competes in the marketplace with automated upsell
In our current times of low demand and lower-than-usual occupancy, upselling is an easy and effect way maximize revenue. ROOMDEX wants to help you simplify the hotel room upgrade process. Our automated upselling platform is an effective and efficient way to upsell and promote upgrades – and the path to achieving higher ADRs (and less free upgrades). And with our Business Intelligence reporting system, customers quickly, compare and analyze data from a myriad of sources to provide actionable insights.