Retailers are some of the savviest marketers around. With an entire year’s worth of profitability riding on their holiday marketing plans, what are they doing to maximize revenue? And what can hotels learn from retailers?
A recent article in the Wall Street Journal pulled the curtain back a little allowing hoteliers to take a peek. Here are the highlights:
- With budgets under intense scrutiny, marketers are mining their customer data bases and reaching out to customers with targeted communications.
- Persuading a satisfied customer to return is cheaper than attracting a new one. Now, in the struggle to do more with less, this concept is becoming even more important.
- Acquiring a new customer costs five to seven times as much as maintaining a profitable relationship with an existing customer.
- Data base marketing and search efforts are taking money from traditional media. (For the second year the Gap is foregoing TV advertising in favor of online promotions and targeted emails.)
Just like the retail industry, hotel marketing is becoming increasingly sophisticated and targeted. Mining customer data bases, sending relevant messages and actively managing customer relationships are all becoming more important.
Retailers are responding to the recession and adjusting their marketing plans to maximize their ROI.
What adjustments are you making?
Safe Travels – Madigan Pratt