when crm will achieve its potential

I was in the audience of a CIO panel discussion and finally heard a hotel CIO (Scott Gibson of Best Western) give the real truth on hotel CRM. It cannot currently be as useful as promised…at least not with current technology. I was disappointingly not able to get his exact words, but I believe that is what he meant.

Hotel CRM is valuable, desirable, and a reality. But the pie-in-the-sky story often told is not a reality under the current operational requirements for acquiring the data. Talk to any person responsible for aggregating all that data and doing something meaningful with it and the first thing they will tell you is how inaccurate it is (with the possible exception of CRM and BI vendors). Preferences are missing or based on what the system “thinks” preferences are. I heard a story from a Marriott GM where a guest asked why he kept getting a refrigerator in his room. It was because he ordered a refrigerator twice in one month while traveling with his family. Based on those two stays the CRM system updated his profile with refrigerator as a preference.                                                                                                                                        image courtesy of Fergus McIver
A good portion of the guests address, phone, and email data is missing or inaccurate. If a guest does not want the hotel to have information then they don’t give it or they provide bogus information. I won’t go down the road of the calls hotels receive when an irate guest calls about an email receipt from his hotel stay sent to the email account he and his wife share (I hope you get the picture). Once a hotel does have the information it becomes the responsibility of the front desk staff to ensure it is accurate when a guest checks in, which has proven to be a generally unreliable method for collecting and perfecting data. There is also the problem of all the profiles that frequent travelers have to maintain and the multiple reservation mechanisms that exist (hotel’s website, Orbitz, Hotwire, etc.). It’s just not realistic to expect every brand and every venue to obtain and update this information accurately. CRM will continue to be at the top of the technology list for hotel executives, but it will continue to be a solution that has great potential.

As a side note I had a mentor that said, “Potential is just a French word for that’s too bad”. Rather CRM has opportunity which can be achieved when it gathers data based on a “customer opt-in approach”. Dream with me for a moment…

What if when I arrive at the hotel my preferences are sent from my mobile device (let’s say an iPhone just for fun) to the hotel PMS. Before arriving I tell my iPhone what information I want to share with the hotel. As I arrive I have the option to check into my room from my iPhone (or kiosk or front desk) and receive a message giving me my room number and directions on how to get to my room. I also receive “something” (barcode, security number, insert new technology) that allows me to use my iPhone to access my room. I’m offered a quick preferences and services review which I can bypass or complete. I go to my room where the temperature is preset (technology exists to set my home thermostat from my phone now) and my visual preferences (curtains open or curtains closed) and physical preferences (number of blankets, towels, and pillows) have been taken care of based on my reservation (remember I had the option to change those preferences at check in). If I’m traveling with my family I have the option to add mobile numbers that will also receive the “something” to access the room.

The “something” sent to my iPhone also allows me to pay for items at the restaurant, gift shop, and vending machines for the duration of my stay. If I add other mobile numbers I have the option to activate or reject charge privileges when I provide those number.

From this first interaction the hotel knows what time I entered the hotel, what time I got to the room, if I purchased something before I went to the room and possibly what transpired between all those times (if hotels want to activate elevator and hallway access with the “something” the guests travel path is also tracked). I told the hotel what information I wanted to share (name, phone number, email, address) which is always accurate because it’s on my iPhone. There are probably some operational gaps in this scenario and the technology is further out than I would like, but CRM will only leave potential behind and grasp opportunity when data integrity it is driven directly by the “customer opt-in approach”.

Kudos to Scott Gibson for having the vision and tenacity to tell it like it is at a technology conference.

more on RFID in hospitality

A good question came in as a comment from David Wold and I thought I’d take a stab at it in a post versus just as a comment.

Comment: How accurate do those things get with location? Meaning, to find someone in the building, they would probably need bulkier active RFID chips and not the smallest cheapest passive ones. That might bulk things up but still be OK. But can they pinpoint location? From what I know, they can tell you that something is present or in the area but not exactly where it is. For example, with inventory, you can get the full contents of a pallet at your receiving dock in an instant but you may not know which boxes have which parts without opening them up to look. For the spa, you might know Chrystal is in the sauna, but if there are 5 other women in there, it might be hard to know which one is her. Plus the employees would have to walk around with geeky looking receivers to find the women (getting hotter, no now its getting colder). Maybe a combination of a longer range active RFID with a shorter range passive RFID to roughly find and then zero in on the client…

First, the RFID chip size is actually very small and the active RFID chip fits in a wristband quite nicely. Here is an example of a reusable wristband from Precision Dynamics Corp, a leading provider of RFID technology to hospitality venues. These are durable, waterproof, and can be personalized in color and logo. Very easy for the spa guest to keep track of and return. The total cost of the band is fairly low being reusable.

In the specific example of implementing location services for a spa knowing the “exact” location of the guest is not really necessary. The guest is generally confined to a fixed space and will be in either a public room (sauna, locker room, etc.), private area (massage room), or unmonitored area (hallway). Access to these areas would be tracked by an RFID scanner that captures the time a guest enters and leaves each room. As spa guests do not generally linger in hallways a venue would not need to implement an RFID system that was constantly scanning for guest location in all areas. The staff could simply validate the last room a guest entered to find their current location. If a guest’s last tracked location was exiting a room then it is likely they are already on their way to the next appointment.

Also, if the spa captures the guest’s picture it is not a requirement for staff to carry a hand held device to access the guest picture/profile or location. Since the spa is generally a confined area and staff is usually coming from a location with a computer, they could review the guest picture and schedule before leaving to remind them of their next appointment. Another operational scenario is to have staff print the guest’s itinerary with picture so they could identify them by name when requested to provide a reminder of their appointment.

however, this comment brings up a viable option of having real time location services with RFID and how that may change the guest experience, as well as project cost. I’ll tackle this question in the next post so stay tuned.

For more information about kevin sturm Consulting please visit my website.

relax your spa staff with RFID

A few weeks back Chrystal treated herself to a pregnancy massage with another “expecting” friend at Burke Williams Spa in San Jose, CA. The day spa offers a pregnancy package with a lavish milk bath, which Chrystal and Christy thoroughly enjoyed. Chrystal loved it and was definitely more relaxed afterwards. But upon her return from the spa she said that although the guests were becoming more relaxed the staff seemed harried.

When she checked in she did not fill out any paperwork simply signed in and was presented with a key and keychain for her locker. Her schedule was in the computer and on a printout. Throughout her three hour visit she had spa employees pop into the public areas (like the quiet room, sauna or hot tub) and ask, “Do you have an appointment and 2:00 PM?” or “Are you so and so.” If the person was there they informed them of their next appointment time and location. Chrystal had two problems with these very common operations. First, keeping track of a key at a day spa is an inconvenience. At one point Chrystal accidentally grabbed Christy’s robe and then could not get in her locker, as her key was in her robe. Second, consistently having employees ask me if I’m someone I’m not does not equate to the experience associated with a high-end spa.

I know Chrystal would go back to Burke Williams Spa if given the opportunity, but the prices may not be in line with the “experience”. We have a place in Santa Barbara where she can get the same massage treatments for 1/3 the price (maybe less) and many spas where she can get exactly the same treatments for the same price. At core a spa must be measured on the value and quality of the services it offers. But if those services are equal to competing spas then what incentive does a customer have to return?

Answer: A unique experience.

What if Chrystal’s experience instead went like this. After making her spa reservation she had the option to complete the majority of the information online (some HIPPA stuff may be only allowed on a form) and was able to note any preferences, allergies, etc. When arriving at the spa, the information she provided online is complete on the form and she is asked to take a quick profile picture and then sign the form (waiver and legal stuff). She is presented with her schedule of services and a small Breast Cancer Awareness wrist band outfitted with an RFID tag. She is assigned a locker number that can be opened with her wrist band. After relaxingly loosing track of time in the sauna a staff member pops in to let her know it is time for her milk bath. The staff member speaks directly to her and knows her by name, though has never seen her before. This happens throughout her day and both her and the staff are relaxed and enjoying her time.

With the growing number of guests willing to spend money for a unique experience, this story brings customers back. It is not only possible but simple to make a reality. Just about every spa already has a loyalty program and most of them accept a small profile picture to associate with the guest, so that part is done. Implementing location services using RFID is becoming more mainstream with vendors like Motorola, PDC, and Microsoft leading the way. Guest information is linked to the RFID wrist band, which is small, inexpensive, completely waterproof, and even stylish if so desired. The entire staff has access to the guest’s picture and knows where each guest is at all time because of RFID scanners at each door. An added benefit is the spa gets automated guest preferances by reporting each room that a guest goes into and the amount of time they spend in it (this has to free up at least one administrative job). This information is also golden when it comes to personalized marketing with solid Business Intelligence data.

If your spa has a restaurant there is an added option to interface Point of Sale (POS) with Loyalty and allow guests to buy food and other items available for sale with their wrist band. LifeTime Fitness, a specialist in the “health and fitness experience” uses photo recognition at the POS as an added security measure. It also means the customer doesn’t have to carry anything with them.

Implementing location services with RFID obviously is not free. But balance it against the decreased cost of manual system entry and paying staff to herd customers, and the revenue opportunity of very effective personalized marketing campaigns and I believe you’ll find the numbers make sense.

You can call any of the vendors above if you want to look at implementing location services. Or, if you want someone to help you create a memorable guest experience give me a call or send me an email. I’d love to help!

For more information about kevin sturm Consulting please visit my website.