The Impact of Hotel CRM on Customer Loyalty

Explore Tech September 7, 2022

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Hotel Customer Relationship Management (CRM) involves the implementation of a software solution to build and strengthen customer relationships, generate quality leads, and boost sales in the hospitality industry.

Customer service is an essential aspect of the hospitality industry. One can even go as far as to say that customer service forms the core of an industry that relies on guest satisfaction for its success. 

The three types of CRM systems include operational, analytical and collaborative, each of which plays a significant role in ensuring a positive guest experience. It enables hotels to automate and streamline their efforts to promote clear communication and customer loyalty. 

Benefits of Hotel CRM Software

Let’s take a look at some of the benefits of CRM software in the hospitality industry.

Track Occupancy

With the help of a CRM room occupancy tracking feature, hotels can avoid inevitable human errors, such as accidental double bookings. 

Centralized Database 

A CRM provides a centralized database where authorized users can access relevant guest information, which marketing and sales teams can use to re-target customers and invite them back.

Boost Customer Engagement

With a CRM system, guests can be contacted and engaged with information about offers or events during their stay. Guests can also provide feedback via a simple form or phone call, thereby enhancing customer experience and making them feel valued.

Enhance Customer Loyalty

CRM software helps hotels earn customer loyalty. CRM features, like real-time reporting, personalized notifications, and communications based on customer purchase history, make it easier to upsell and cross-sell.

Boost Conversions

A hotel CRM provides you with the status of a customer or a prospect in the buyer journey, and this helps a sales representative to understand the journey and then pitch accordingly. For example, suppose a potential customer has asked for an offer for their birthday. In that case, the sales representatives can use this information to pitch a customized package to that guest during that time, thereby increasing sales. 

Increased Efficiency

A hospitality CRM helps the marketing, customer service, and sales team collaborate efficiently. It also allows hotel managers to delegate and assign work, avoiding miscommunication and confusion.

Automated Communication

Hospitality CRM software enables you to distribute automated communication related to personalized offers, birthday or anniversary wishes or sending out feedback forms after check-out.

The Impact of CRM Systems on the Hospitality Industry

There are a few critical areas where CRM software can significantly impact the hospitality industry.

Customer Communication

One of the most prevalent uses of CRM software in the hospitality industry is maintaining good communication with leads and customers. 

Although this is not an invitation to engage in a constant barrage of spam emails, hospitality, and travel professionals can employ customer data and marketing automation to send customers curated information they might find helpful and interesting.  

Examples of these communications include quarterly updates with relevant news, personalized tips, and hotel promotions. 

On its most basic level, CRM software simplifies the process of scheduling and distributing effective reminders that will increase brand awareness of a hotel year-round.

Leveraging Data

The variety of information hotels can leverage with CRM software is endless, and much of it can be used to communicate more effectively and provide better service to regular customers and potential guests. 

Hotel and hospitality managers should pay close attention to information such as purchase history, past interactions with your branded content, or even offers that have been viewed but not purchased. 

The more this data is leveraged, the easier it is to create personalized guest communications to continue conversations, generate consistent interest in a property, and keep guests coming back. This is especially true if one sends well-timed exclusive deals or promotions to your most loyal patrons.

Streamline Backend Processes 

Hotels can better categorize numerous essential processes that affect customer satisfaction by using the data stored within the CRM platform.

By connecting CRM software with an ERP (Enterprise Resource Planning) system, hotel management can combine data insights from various departments to create a streamlined, cost-effective process of communicating with customers and delivering optimal products and services.

Dive into ExploreTECH to find the best RMS for your hotel

With the extensive range of CRM systems and Integrations available to the travel and hospitality industry, the ExploreTECH marketplace allows users to explore and review the various solutions available to them, and discover the  technology that best suits their unique requirements. 

Each CRM solution provider has particular benefits and features, so it is worth investigating and comparing them all via the platform.