Gavin Hawthorn Head of CRM and Loyalty Whitbread Hotels and Restaurants
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1 Gavin Hawthorn Head of CRM and Loyalty Whitbread Hotels and Restaurants
2 "A CRM journey in a global, non-sport organisation
3 What we ll be talking about Whitbread, now and in the future My background and the CRM brief The CRM journey we have embarked upon How we have approached it Some success and some pitfalls Some parallels with your sector
4 An overview of Whitbread Over four centuries, we ve always been proud to be one of Britain s most enduring business success stories. Since 1742 we ve been giving our customers just what they want: great value for money. It s now more than a decade since we said goodbye to our brewing and pubs heritage. In that time we ve grown to become the UK's largest hotel and restaurant group. Today our well-loved brands Premier Inn, Beefeater Grill, Brewers Fayre, Table Table, Taybarns and Costa Coffee can be found in 25 countries around the world... More than 10 million people every month eat, sleep & drink Whitbread.
5 My background 18+ years experience working with blue chip suppliers across the travel and service sector Roles have always centred around:- Customer Marketing Business to Business Marketing Provision and Distribution of Customer and Marketing Analysis Stakeholder Management I have deep experience in the following:- Customer Loyalty Schemes Strategic Partnerships Business to Business Marketing Platforms Relationship Management hotel owners and franchisee communities Specification and build of CRM change programs
6 The assignment is aligned to Whitbread s strategic focus and ambition to be a customer focused organisation Whitbread has embarked on a journey to become the most customer focused hospitality company. Anywhere. We ll do this by providing outstanding value and making everyday experiences feel special - so that our customers come back time and time again. 6 6 The role of CRM and Loyalty is to focus on and support the feel special and the come back time and time again of WHR s mission
7 From the beginning, it was clear we had a real opportunity to get closer to our customers Richard O Neill Budget Businessmen - segment value 610m - Small price sensitive companies - Individual decision making - Motivated by Loyalty & Value for Money I like Premier Inn You have a great Team & Product So I give you lots of my business I take trouble to give you feedback I even recommend you BUT You don t care that I stay often You don t listen to my comments You don t reward me You just send me a bill Non loyal guests get a better deal Addressing this opportunity was never going to be possible with our disparate customer data records:- 2.5 million booking customer records 17,000 Businesses and 120,000 card-holder records in Business Account 10,000 + records in sales-force, our current sales database 1,000,000 million Premier Inn brand records 450,000 restaurant brand records 50,000 records in guest relations 7
8 But we knew we had to build new capabilities for the business to support the vision 1. Better targeted activities, delivered faster meaning improved returns Ability to market to unique guests and businesses Ability to deploy ongoing campaigns, smarter and quicker Support sales-force optimisation Deliver targeted customer interaction activities 2. Campaigns effectively tracked leading to tighter targeting Improved accuracy of campaigns Better reporting & higher visibility More focused campaigns through better and faster modelling The ability to track these campaigns 3. Consolidated customer data meaning efficient targeting and data protection compliance Guest insight and analytical capability Trigger s / SMS capability / Sales activities More internal efficiencies around data Data Protection and privacy compliance achieved Increase in Revenue Circa XXX m p.a. Decrease in costs Circa XXX p.a. Guest Satisfaction increases 8 8
9 This is a huge undertaking with customer data in a number of different places and with no common transactional linkages Our mission is to move from disparate and unwieldy customer data to a structured and accessible tool for use by all areas of the business 9 9
10 Our goal is to ensure we identify our guests when they first transact with us, enrol them in the right program then communicate and build relationships Guest profiles & transactional history Data Entities ATOS Guest Recommend BART MIMI Customer enrichment Buying behaviour Whitbread Customer Building relationships Interaction behaviour Choice of communication channels Sales Force Marketing programmes Loyalty My PremierInn Business Account 10
11 We have made good progress so far on ensuring we build the right systems for the job by looking at the future requirements across the entire business 1. Full requirements gathering across WHR 2. Detailed interviews 3. Full analysis of current marketing, sales & recognition practices Central Support Customer Facing All achieved through integrated work streams in all key areas 11 11
12 This groundwork really helped us to get to the right solution with the right partner on board Commercials Capability Fit Partner Strong relevant references Experience with our solution 12
13 We also made sure we recruited from outside to deliver the rights skills for the task Gavin Hawthorn: Function Head 18 years CRM, loyalty, marketing and insight IHG / Hyatt Hotels / Hertz and United Airlines Owns, delivers and manages WHR CRM and Loyalty capabilities and activities Norman Bekker: CRM manager 20 years CRM, loyalty, & consulting BA / Hilton / Forte Le Meridien/ ICLP Mark Murphy: Loyalty manager 5 years Loyalty and Marketing Ladbrokes Plc Sarah Dixon: B 2 B manager 15 years marketing, B 2 B Polaroid, Easyjet, Santander Kathryn Harvey: E-CRM manager 15 years CRM and communications Numerous agencies, Wine Society Data and insight Loyalty Program Business to Business Marketing Communications Owns, delivers and manages CRM data / reporting environment (as I.T. Partner) Owns, delivers and manages Guest Loyalty Scheme Owns, delivers and manages Business to Business relationships and partnerships Manages segmented communications / agency and processesto all segment groups 13
14 To ensure adoption and change throughout the business we have also developed our capability to win hearts and minds TOC is our way of making sure our team members embrace and support customer process changes changes Just as we have successfully done with BART and MIMI 14
15 Insert video here
16 We are now delivering the first major initiatives as phase 1 deployment commences Test Environment - Customer analysis - Customer targeting - Full Welcome Back deployment CRM Enhanced Marketing - Premier Inn Leisure - B2B (Business Account) -Brand Cross Sell Sales-force deployment - National and local teams Jan Feb March April May June Test Environment Customer Analysis - Premier Inn transactional data -Validation and testing of segmentation Operational CRM -Websites - Call Centre - Operations 16
17 With annual incremental revenue targets of circa XXX million against the key CRM work streams at maturity 1 CRM Leisure Support 2 Business Account targeting Retired Holidaymakers / Retired Sightseers / Mr & Mrs Jones / The Greys / Young Value Seekers / Brand-led Trippers Better off Small Business / Price Sensitive Corporates Targeted release of distressed inventory Event and preference based targeting Increased frequency / restrictions Targeted account growth Account conversion Account acquisition activities 3 Retention Better-off Small Business / Price Sensitive Corporates / Corporate Foot-Soldiers / Budget Businessmen Recognition and Win-back initiatives 4 Sales activation 5 Cross sell Price Sensitive Corporates (National and local ) All segments Support national and local sales targeting Revenue based activities Sleeper diner increases Ancillary products 17 *Excludes restaurant initiatives also in scope
18 To get traction through the business we also developed a number of Quick Wins across the business 1 2 Recognition to increase guest measures Early access to Premier Offers to our own customers Project Welcome Back: targeted recognition of repeat guests Increased every single Premier Inn guest measure against control group hotels Significant impact on intention to re-visit, warmth of welcome and staff care Exclusive early access Premier Offers:- limited to subscribers Delivered 75% increase in bookings from customer s Increased open rates by 60% 3 4 Effective communication of Business Account Initiatives to engage staff in data capture in restaurants Benefits messaging and Offer to drive activation: Research to identify key benefit drivers 30 day stay activation offer increased spend by > 20% Restaurant capture program:- Data capture programs have accelerated lists to >450 k Successful trial of bounce-back voucher incentive 18
19 And for the first time, we now have the capability to efficiently market to all of our brand customers in one place, by segment and channel Audience Audience Audience 19
20 There have been some key success points and pitfalls to date Success.. Partner with I.T. from day 1 and co-support with project governance Be clear on the vision and ensure it is aligned with the business Engage the Executive in a way they can relate to Deliver at least one quick win to each target stakeholder group Let the marketing leader get the credit for some of the success Put a personality on the change management Pitfalls Don t try and deploy in more than 2 areas at once Don t use jargon, talk about data or show flowcharts outside the group Don t show too many stages of the journey in one session Don t get drawn into turf wars unless you really have to Don t believe traditional or digital agencies who say they get it unless they can really prove it.
21 Some striking parallels with the sports sector? Yes and No, I guess. Disparate customer data true customer loyalty Disjointed booking journey Committed partnerships Perishable goods Critical customer mass Ancillary revenue opportunities Revenue streams outside seat sales Block forward bookings Less alternatives Both seem to point to a real opportunity for more effective leveraging and commercialisation of customer relationships
22 Questions / ideas? We d love to chat, so feel free to drop us an Gavin.hawthorn@btinternet.com Normanbekker@gmail.com Or find us on linkedin.com
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