Thought Leadership

Customer satisfaction has always played an integral role in the success of any business, but none more than those within service-based industries. The success of any hotel hinges on its ability to curate memorable guest experiences and lasting customer satisfaction. Customer relationship management (CRM) software was designed specifically to help support and achieve such guest satisfaction goals.

A modern CRM consolidates valuable guest data, such as transaction data, bookings, stay history, email open rates, etc. into one easy-to-access centralized location. Armed with such information, a sales team can collaborate with marketing to deliver targeted and useful content to prospects and returning guests.  

With that in mind, most hotels made the natural conclusion that the CRM can support and drive upsell activities. When it comes to upselling, a CRM does an excellent job of communicating with guests’ pre-stay, on-property and post-stay. But, alas, this is where the upselling journey ends.  

CRM upselling tends to be one-way. The CRM is more of a marketing tool that makes offers visible to guests, but it cannot guarantee or fulfill an upgrade until the day of arrival. It also requires a set of manual activities or data inputs by the front desk to ensure the offer is actioned and that the guest receives the offer they originally accepted.

Upgrade offer prices are not reflective of demand. As the CRM does not leverage revenue management, it cannot offer dynamic priced upgrades, and instead rooms are offered at a flat fee. Not only is a flat fee blind to current demand but it does not align with your customer’s price point, which makes them less likely to convert and purchase.

When it comes to upselling successfully, the problem isn’t just that you need an enticing offer, it’s that you need to be able to guarantee pre-arrival upsell transactions (immediately), at a price that reflects demand. This requires two very complicated algorithms that a CRM simply cannot handle: True Availability and Dynamic Pricing.

In summary, CRMS are excellent in doing what they were intended to do.  But upselling optimization isn’t about a sexier email offer for your guest.  It’s about immediate guaranteed satisfaction.  Don’t accept that your CRM can do everything and settle for “upselling light.” Employ a real automated upselling solution in coordination with your CRM and drive real revenue and cost efficiencies.

Read the full article in Hospitality.Net here. 

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