The Key to Successful Cross-Channel Marketing: The Preference Center

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2 The Key to Successful Cross-Channel Marketing: The Preference Center Introduction With the emergence of new technologies that allow people to be connected almost anywhere, and the reduced effectiveness of traditional direct marketing channels, marketers are continually looking for more effective ways to speak to their customers. Increasingly, marketers are employing cross-channel orchestration strategies to reach prospective customers, and have embraced as the primary communications channel. While marketing is not new, its resurgence can be attributed to: 1. Its low cost 2. Its near universal reach 3. The ability to personalize and tailor messages to increase relevancy 4. The ability to time delivery to fit observed click-thru behaviors 5. The ability to trigger real-time responses to specific actions There is, however, one potential downside to marketing as the centerpiece of a crosschannel strategy: oversaturation. The high volume of delivered to the average inbox requires that messages be highly relevant to the guest if the marketer has any hope of the being read and acted upon by the recipient. To make communications relevant, the sender must have precise information at his or her fingertips about each guest s preferences and propensities. But where do you get this information? How do you encourage prospects and guests to give it to you? A well planned and thought-out preference center can make all the difference across all channels. What Is a Preference Center? A preference center is a data capture page that allows guests (and potential guests) to specify their preferences. As an example, what type(s) of travel do they prefer? How do they prefer to receive communications from you , direct mail, SMS? What type of activities do they enjoy while vacationing golf, tennis, spas, fine dining? Collecting this information is the first step to help you create more relevant and targeted messaging. The Devil is in the Details Setting up a preference center is more than just setting up a webpage with a list of random fields to collect generic (or already known) information. You ll first need to think through HSMAI / ClickSquared Page 1

3 your communications strategy: how you plan on using the information (promotions, invites to special events, up-selling opportunities, etc.) will drive the type of information you gather. Think about what data give you insights into your guests and their needs. This data includes anything from dining preferences, activity interests, upcoming life events (marriage, anniversary, birthday, etc.) as well as pertinent demographic, psychographic and geographic details. Examples include: o Favorite activities o Vacation interests and aspirational destinations o Preferred travel timing o Who they travel with (solo, friends, spouse, family, pets, etc.) o Size of household o Mobile number and permission to use it o Type and frequency of communications they prefer o Social media subscriptions o Birthday Getting this data (in addition to the data you already have) enables you to create more relevant messaging. For example: - Knowing that someone is interested in golf, spa or culinary experiences will allow you to tailor messages (and offers) based on those interests. - Is there a desire to visit Europe on their next vacation? If so, then tailor your messaging based on this goal rather than dishing up discounted offers to Mexico. - Is this traveler an empty nester? Segment them for couples travel maybe in the off-peak season and save the kids stay free offer for somebody else. - Collecting mobile numbers for text messaging can allow to you target on-property guests with a last minute dining promotion or to remind them of a spa appointment or tee time. - Knowing how many of your guests are using Twitter or Facebook can help inform your strategies for those channels. - Zip codes (and area codes) help you to better target prospects within driving distance for last-minute inventory sales or special events. Having guests specifically opt-in to these types of communications allows you to offer last minute (local) discounts that don t cannibalize destination traveler RevPAR. Preference Center Best Practices: 1. Limit the amount of information you request. Look at your overall marketing strategy and use that as your guide to decide what data to request in the preference HSMAI / ClickSquared Page 2

4 center. Ask only for the information you need and will use to execute your communications strategy. 2. Don t try to collect it all at once. Allow your guests to share only the data they are comfortable sharing don t force them to fill in every field. As you build trust, they ll usually be willing to share more. 3. Tell guests how the information will be used. If you plan on using guest preference information to send promotions, special offers, newsletters, etc., then tell them so. Give them the ability to choose which communications they prefer, and designate the frequency at which they would like to receive them. Always give them an opportunity to opt out. Tell your guests that their information will not be shared; if it will be, tell them that too. Transparency is the key to building trust between your brand and your guests. 4. Send Receipt of Confirmation. This will assure guests that their information has been received/updated and gives you an opportunity to ensure that the address/mobile SMS number is valid. 5. Don t stop. Periodically send a follow up with your guests who haven t completed their entire profile, and remind them of the advantages in doing so. Also, don t assume preferences never change, or that your guests will automatically advise you when they do. Periodically remind the guest of the preferences they have shared, and prompt them to update as preferences and interests evolve. You can do this without being obnoxious. 6. Consider other ways to better understand your guests. If their past transactional history indicates that they are a frequent golfer or spa visitor, make sure their customer profile in your marketing database reflects this, even if they have never indicated this in the preference center. Integrate surveys (or even engaging onequestion, real-time polls ) into communications in a manner that enables you to gather actionable guest-specific insights. Use data appends to understand demographics and psychographics. Understanding that the guest fits an Active Adventurer profile instead of a Luxury Leisure profile allows you to tailor messaging to fit their lifestyle and interests. Driving Traffic Marketers know they need detailed guest data but the trick is getting guests to visit the preference center to actually share their information. This can be done in a variety of different ways: - Use to ask people to fill out information in exchange for a coupon, points, a free service or special gift. - Send a postcard with the same special offer. This is especially effective for guests for whom you do not have an address. HSMAI / ClickSquared Page 3

5 - Make sure there are highly visible call to action buttons on your site encouraging people to go to the preference center when visiting. - Use Facebook, Twitter or other social media sites to offer discounts or run contests in exchange for some basic information. - Run a contest asking guests to text to a short code. Ask them to opt-in to mobile text messages or ask them to share their addresses to be part of the contest. - Have your registration staff gather basic information at check-in. In summary, provide an opportunity for your guests to access the preference center wherever and whenever you touch them. And regardless of the tactics you employ, remind them of the advantages of sharing information to ensure future communications are always relevant. Making Use of Preference Center Information: Creating Messages that Sell The only thing worse than not capturing your guest s preferences is to collect the information and then fail to use the data in any meaningful way. In fact, this is the primary reason why many guests don t bother to share their preferences in the first place they have little confidence that doing so matters. Your guests have taken the time to tell you what they want, what they like, and perhaps as importantly, what they don t like. Your job is to create messages and offers that reflect that information. When devising and other cross-channel communications, keep in mind these crucial elements: 1. Make the Message Personal: The messages should make the guest feel as if you ve really taken the time to find out what s important to them and that you want to ensure a first-class experience. Be sure to use the information they ve provided to tailor your offers and promotions. 2. Timing is everything: It s not only the message that s important timing plays a big role. A guest receiving a special offer to play the award-winning golf course two weeks after an extended stay doesn t do anybody any good. 3. Don t Change the Channel: Your guest has already told you how they like to receive information so listen to them. Getting a great promotion through when they prefer to receive text messages tells them you re not getting the message! To enhance your marketing programs and create even more relevant messaging, combine the information you get from the preference center with other customer behavior data including: - Past activity (opens, clicks, links, etc.) - Web behavior (frequency of visit, categories of interest, properties viewed) HSMAI / ClickSquared Page 4

6 - Reservation source - Reservation behavior (how far in advance do they usually book?) - Survey responses - PMS transactional data Creating Campaigns Leveraging Preference Center Information After all necessary data has been compiled and a cross-channel program has been created, it is time to launch a campaign. Consider the following examples of how to incorporate information you can collect using preference centers and other sources. Example #1: A Leading Hospitality Firm In addition to gathering explicit data through its preference center, a leading hospitality firm also uses behavior data to develop more effective, relevant campaigns. Looking at guest inquiry data gives the firm the information it needs to customize its communications. For example, suppose a user visits the firm's website and does a search for a property in San Francisco. The firm then uses that information to help tailor the next it sends. That Lists other featured properties (that fit the traveler s profile) located in San Francisco. Lists alternate destinations (also fitting the traveler s profile) that are close to his or her original destination. Includes any last-minute rental deals in the area. By gathering and presenting information relevant to the original inquiry (and that fit gathered preferences), the communications are more engaging, and significantly increase the likelihood that the guest will take action. Click-thru and open rates are dramatically higher than those achieved with one-size-fits-all s. Example #2: A Hawaiian Destination Specialist A major Hawaiian destination specialist makes sure it has as much information about a traveler s interests and preferences before making any recommendations. Is this your first time to the Islands? When is your expected travel date? Which Island(s) are you planning to HSMAI / ClickSquared Page 5

7 visit, or are you unsure? Do you already have a preferred travel professional to assist in your plans? Knowing the answers to these and other basic questions ensures this destination specialist communicates in a way that is relevant building trust for an ongoing relationship. Example #3: Experiential Leisure Resort Destination A major US travel resort destination offers its guests a variety of experiences, ranging from luxury options to others that are more targeted to a price-sensitive economy traveler. The challenge, of course, is making sure the right guests receive the right offer. Offering the luxury segment an economy-oriented experience will at best down-sell and, at worst, disillusion the guest altogether. On the other hand, offering the higher-priced luxury experience to those with more modest travel budgets may make those guests dismiss the destination as beyond their means. Through carefully crafted recommendation modeling based on preference center information, prior stay information and targeted data appends, this destination is able to determine the experience most likely suited for the individual guest, and tailors its offers accordingly. By providing the same information available to the call center, guests can be better served consistently across channels. Example #4: Sovereign Bank Preference Centers Preference centers are not exclusive to travel and hospitality. Sovereign Bank (Sovereign) is a regional bank serving the East Coast. So that the bank may better communicate with its customers, Sovereign has created a preference center that can be easily accessed throughout its website. The preference center also allows the bank to gather actionable information on its prospects, including: Name State address Relationship desired (business or personal) Products and services about which the visitor would like more information Preference center entries automatically trigger an welcoming the prospect and provide product and service information specific to the visitor's profile. As a result, Sovereign is able to convert more prospects to customers (and more effectively win new business from its existing customers) through a series of orchestrated and relevant crosschannel communications aligned with declared preferences and interests. HSMAI / ClickSquared Page 6

8 Conclusion When creating cross-channel campaigns, many marketers still use the traditional spray and pray method in which they send one-size-fits-all communications to everyone in their database without considering individual interests and preferences. For campaigns to be successful, the content, channel, and timing of guest communications must be tightly tailored to the individual guest. Gathering information about your guests through preference centers is the first step in building a meaningful guest dialogue. By combining preference information with data you already have (or can readily obtain), you can evolve to a more comprehensive understanding of each guest and create campaigns that are so relevant that your guests consider your marketing communications a value-added, differentiating service. About HSMAI HSMAI is the hospitality industry source for knowledge, community, and recognition for leaders committed to professional development, sales growth, revenue optimization, marketing, and branding. With a strong focus on education, HSMAI has become the industry champion in identifying and communicating trends in the hospitality industry, and bringing together customers and members at annual events, including HSMAI's Affordable Meetings. Founded in 1927, HSMAI is an individual membership organization comprising more than 7,000 members worldwide, with 40 chapters in the Americas Region. For more information on HSMAI, contact the Hospitality Sales & Marketing Association International, 1760 Old Meadow Road, Suite 500, McLean, Va ; (703) ; fax (703) , or visit the website at About ClickSquared ClickSquared is a premier provider of and cross-channel database marketing solutions. With innovative offerings ranging from self-service to highly automated, real-time customer engagement and loyalty programs, ClickSquared s innovative SaaS marketing platform orchestrates and delivers analytics-driven, relevant and personalized customer communications across , direct mail, social, mobile and web channels. Leveraging a team of marketing, technology and vertical-industry experts that are passionate about our clients success, ClickSquared enables organizations of all sizes to maximize the return on their marketing investment. For more information on ClickSquared, visit the company s web site at HSMAI / ClickSquared Page 7