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Upselling Your Way To New Revenue: Recognizing the Power of a Data-Driven Upsell Strategy
Amy Devlaliwalla
Regional Director of Business Development,
Nor1, Inc.
– Silicon Valley Meets the Hospitality Industry
• The Nor1 team is a blend of Silicon Valley’s and the Hospitality Industry’s best and brightest
• Offices in Santa Clara, California, Frankfurt, Germany, and opening soon, Singapore.
• Nor1’s goal is to align itself directly with the Hotelier and to make available and optimize the use of the latest technology of Silicon Valley focusing on generating incremental revenue and increasing guest satisfaction
• Every Nor1 product & service is built by listening closely to property level staff and their guests as well as combining proven hospitality methods with state of the art technology
• Nor1 patents and patents pending are focused on perishable inventory serving a variety of industries
Nor1 provides cutting edge revenue optimization tools to leading hotels and resorts of all sizes
Embraced by Major Brands and Independents as a Powerful Tool to Drive Incremental Revenue and Increase Guest Satisfaction
Hotel Chains & Management Companies
Independent Hotels & Resorts
What is Upselling?
Upselling refers to revenue potential that goes above and beyond a traditional guest booking. With each upsell offer given to a guest, the hotel has the opportunity to provide a valued service while increasing its profit margin.
Why Is Upselling Critical?
1. Creates greater utilization of fixed assets
2. Delights the Guest – Enhanced guest experience 3. Leveraging the resultant data (and derived statistics, such as willingness
to pay) across the enterprise • Revenue Management (Pre-confirmation) • Marketing • Loyalty • Property Level Operations
We believe a significant percentage of future profits can be derived from the upselling approach we advocate. The push for greater occupancy and ADR magnifies upselling opportunity.
What Approach Is Necessary?
1. Coordinated mechanism to make consistent upsell offers (Integration across guest touch points) and that collects all transaction outcomes.
1. Mature Decisioning Intelligence mechanism that utilizes the data from the
above transactions, coupled with property level intelligence to generate offers sets that drive revenue (profit), & guest satisfaction.
2. Ability to funnel the “learnings” from above into the decision making surrounding other functionalities.
Nor1 is the Technology Leader in Upsell Solutions
Providing an End-to-End Upsell Platform
Mathematics
Machine Learning
Data Mining
Probability Theory
Statistics
Customer Behavior
Management Science
Operations Research
Mathematical Programming
Optimization
Stochastic Programming
Game Theory
Simulation
Economics
Computer Science Decision Science
Artificial Intelligence
Dynamic Programming
Big Data
Profiles Predictive Modeling
Personalization Business Intelligence
Experimentation
3 Levels of Analytics for Decision Making
Traditional Business Intelligence
Predictive Business Intelligence
Real-Time Decision Intelligence
Collection Analysis - Identify your data points, organize them, create reporting that works for you and share that data with all departments.
Invest in CRM (Customer Relationship Management) -Have a
healthy holistic view of customer information and where that information resides.
Upsell & Cross-Sell -Find hidden relationships in the data that
can provide a competitive advantage (for example – predictive analytics can help analyze customer spending, usage and behavior).
Initial Steps to Moving Your Needle
Initial Steps to Moving Your Needle Customer retention- Place focus on efforts of maintaining
continuous customer satisfaction, rewarding customer loyalty and minimizing customer attrition.
Direct Marketing – Identify at your property the most effective
marketing and communication channels and timing that should be used to target a given customer.
Regression Models - A mathematical equation as a model to
represent the interactions between the different variables in consideration
Mathematics
Machine Learning
Data Mining
Probability Theory
Statistics
Customer Behavior
Management Science
Operations Research
Mathematical Programming
Optimization
Stochastic Programming
Game Theory
Simulation
Economics
Computer Science Decision Science
Artificial Intelligence
Dynamic Programming
Big Data
Profiles Predictive Modeling
Personalization Business Intelligence
Experimentation
3 Levels of Analytics for Decision Making
Traditional Business Intelligence
Predictive Business Intelligence
Real-Time Decision Intelligence
Personalized Commerce is the NOW of Guest Satisfaction!
Age: 36 Likes: trendy restaurants, extra pillows, traveling with friends Travels: 5 business trips, 3 girlfriend getaways, 3 solo adventures
When information such as transactional data, purchase history or travel preferences is utilized to create a dynamic customer experience, a deeper personal relationship develops.
How Well Do You
Know Me?
Personalized Commerce Is:
Personalized Commerce Is:
Personalized Commerce Is:
Guest Profile
Behavioral Profile
Trip-Based Persona
How does PRiME work? Using predictive modeling methods, created by Nor1’s analytics team, PRiME combs through millions of past bookings and hundreds
of independent variables to identify distinct personas.
Profiles & Personas: A New Data Construct
Understanding Guests and Properties
Targeted Offer
Classification Regression Optimization
Real-time transaction
data is merged with
historical buyer data and
statistically classified in
real-time.
Price sensitivities and
product preferences are
described with
simultaneous equations,
capturing the interactions
between product
assortment and price
sensitivity.
Millions of possible
product and price
combinations are
evaluated in less than 70
milliseconds, and the
optimal pricing and
merchandising is
returned.
Decision Process in Real-Time
How much more are you willing to make on existing bookings?
$28+ IS THE AVERAGE PRICE
PAID FOR EARLY CHECK IN
$36+ IS THE AVERAGE PRICE PAID
FOR LATE CHECK OUT
$9 IS THE AVERAGE PRICE PAID
FOR A HIGH FLOOR
809,320 REQUESTS HAVE BEEN MADE FOR KING SUITE UPGRADES
Every Statistic Points in the Same Direction
Examples of Mobile Usage in Travel
Nor1’s growing footprint spans 6 continents, 100 countries, 500+ cities and 30+ currencies.
Results – Incremental Revenue. Happier Guests.
THANK YOU!
Amy Devlaliwalla Regional Director of Business Development,
[email protected] www.nor1.com