November 3, 2020
Intelligent Upselling Powers the Digital Experience
Paul Peddrick | ROOMDEX
Consumer expectations around the digital experience are increasingly exacting. Customers are used to doing pretty much everything online, from banking, shopping, planning travel – you name it. Due to the transformative power of digital technology, consumer habits have changed forever.
Why is the digital consumer experience important?
Your guests are booking online, have used rideshares like Uber & Lyft, and made their way through the airport with digital boarding passes. In the past, basic quality service and fair pricing met customer expectations. Today is different. Digitally enabled travellers expect interactions that are instantaneous, seamless and personalized. So how what does this mean to hoteliers?
Simply put, by choosing a digital-first strategy, hotels can close the gap between what digital customers already expect and what many hotels actually deliver. In doing so, hotels can make a considerable impact on customer lifetime value.
The digital experience and the power of upselling.
As travellers, we are primed to buy things. There are seldom times when our purse strings are looser. Having said that, no one really enjoys a sales pitch. For most guests, hotel upselling can come across as a pushy sales tactic. It often has little or no relevance to your price point or need.
For your staff, upselling is a tedious process that requires a lot of manual work in order for it to be efficient. Most upgrades are usually a case of trying to balance the house. Each day your front desk team will decide which present and future arrivals that need to be moved from their overbooked category to an available superior room category. By the time an agent can successfully upsell a guest dozens of reservations have already been moved leaving a lot of money on the table. But, it doesn’t have to be this way.
With digital upselling, you can make upgrading as easy as possible. If executed successfully, it can increase your average order value (AOV) and generate awareness about other products you sell. Long-term, it can increase customer lifetime value (CLV) and reduce churn.
How to upsell to the digital guest using email.
Email marketing is still one of the most effective ways to reach your customers. Research shows customers who buy products marketed through email spend 138% more than those who do not receive email offers. In fact, according to a study by Campaign Monitor for every $1 spent on email marketing, $44 is made in return, which equals a whopping 4400% ROI.
However, creating high-converting upsell emails requires you to find the perfect blend of when to send, who to send it to, and what to suggest. While this may sound complex, at ROOMDEX, we can help you do just that. With our UPGRADE OPTIMIZER upsell app we can create and deliver a frictionless digital upsell experience that converts efficiently. Here’s how.
We make it relevant.
Matching expectations has a considerable impact on customer experience and lifetime value. Leveraging AI and machine learning, ROOMDEX intelligently calculates the best price and sends pre-arrival guests email offers tailored to their specifics needs and persona. By providing more guests with the opportunity to upgrade to a room that is superior to the one they booked, the hotel can gain significant high margin revenue.
We keep it simple.
At ROOMDEX we believe, less is more. While many hotels may want to include a lengthy pre-arrival story or promote everything the hotel may have to offer – email upsell communications should be short and simple.
We time it right.
What you upsell depends greatly on when you upsell. When timed correctly, an upgrade offer meets the needs of the buyer when trust is highest. With our UPGRADE OPTIMIZER upsell app we consider multiple data points and send it at the right time prior to arrival.
The easiest way for an hotel to upsell is to provide a room upgrade. No need additional arrangements are required and empty rooms provide the highest margin. However, to maximise conversion among today’s tech savvy travellers, hotels need to effectively predict and prescribe actions for their customers. The best systems use machine learning algorithms to make such predictions.
At ROOMDEX we can help you significantly increase guest satisfaction as well as ADR, RevPAR and profit. “The most immediate return for least input would probably be the upgrade software,” says Daniel Tennant, GM Aries Living. “There is no hardware investment and there are no integrations to manage and it provides another layer of service to our guests – completely contactless, great digital experience, allowed guests to check in early, provides room upgrade options.”