Hitec 2012 tutorial next best action to drive bookings rev par
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Presented at HITEC 2012. The good news for hoteliers is that there are encouraging signs in the economy and according to recent reports RevPAR continues to trend up. However, that does not mean hoteliers don’t need to continue to focus do a better job on attracting, converting customers and driving higher on property spending and engendering loyalty for repeat purchase. It’s not for a lack of data on the customers – the data exists in reservation systems, loyalty databases and information that consumers are sharing on social networks. But very few have been able to harness this data in any meaningful way. Marketers have long attempted to connect with customers through traditional campaign management tactics, inundating customers with irrelevant and inconsistent offers and experiences. The result is unhappy customers, low offer conversion rates and excessive customer churn. To succeed, marketers must deliver a set of intelligent and coordinated messages across all channels, including inbound channels such as the contact center and Web, and outbound channels such as email, social media and mobile to deliver the right offer to the right person at the right time. Marketing organizations looking to make a significant impact on the customer experience and drive effective return on marketing investment are turning to a Next-Best-Action approach.
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Hitec 2012 tutorial next best action to drive bookings rev par
- 1. © 2009 Ness Technologies Using Next-Best-Action to Drive Higher Booking Conversion and RevPAR
- 2. www.ness.com Today’s Speakers Thomas Kaplan National Account Executive Glenn Gruber AVP, Travel Technology Solutions Ness Technologies
- 3. www.ness.com Hotel Distribution and Merchandising Challenges The Power of Next Best Action & Real Time Decisioning Q&A Agenda
- 4. www.ness.com Number of Online Researchers and Bookers Are Growing
- 5. www.ness.com Something Doesn’t Track Researchers 5:4 Bookers Lookers 4,500:1 Bookers We are not giving people what they want Source: eMarketer, Pegasus Solutions
- 6. www.ness.com So We Try So Many Things
- 8. www.ness.com Right Channel • Right Offer • Right Time • Right Guest Booking But the Key is…
- 9. www.ness.com Hotel Industry Reliance on OTAs Source: DigitalIQ Index: Hotels 2012, L2 ThinkTank
- 11. www.ness.com Pre-Stay Arrival On- property In destination Departure Post Stay Six Hospitality Touch Points Adapted from RockCheetah LLC
- 13. www.ness.com Persona Purchase Channels Loyalty Database Purchase History Email/IP address Semantic Data Social Media You Already Have a Lot of Data
- 14. www.ness.com Is This What We’re Down To?
- 15. www.ness.com Don’t Confuse Hope with a Plan
- 16. Pega: NBA & Decisioning Solution Optimize Customer Value Through Next- Best-Actions & Decision Management
- 17. 17 © 2012 Pegasystems Inc.
- 18. 18 © 2012 Pegasystems Inc. Marketers Face Big Challenges
- 19. 19 © 2012 Pegasystems Inc. The Shift to Real-Time Marketing Marketing Program Optimization Web, social, mobile, call center, etc. Next-Best-Action Inbound and outbound coordination Personalized marketing programs MarketingEfficiency Multi-Channel Campaigns Campaign Management Mass Marketing Single business process Multi-channel and multi-wave Feedback loop Outbound campaigns Reporting and KPIs Centralized management of campaign processes Manual approach Email and basic channels Marketing Effectiveness Real-Time Marketing
- 20. 20 © 2012 Pegasystems Inc.
- 21. 21 © 2012 Pegasystems Inc. Typical Offer Management Decisioning Based Offer Management Eliminating Averages Offers Budget Based on Average Customer Value in a given Customer Segment Personalized offers allow balancing budget, customer needs and customer satisfaction Offer based on individual customer value
- 22. 22 © 2012 Pegasystems Inc. Our Offer Jim Johnson Jane Doe John Smith Campaign-based Marketing • Start with an offer • Use segmentation to select customers • Matches organisational structure • Executed in advance • Low/medium customer relevance Jim Johnson Jane Doe John Smith Next-Best-Action Approach For each customer determine which proposition (offer) is most appropriate for that customer at a point in time Offer 3 Offer 2 Offer 1 A More Relevant Approach to Marketing Offer 2 Offer 3 Offer 1 Next-Best-Action Marketing • Evaluate each customer • Find best offer for customer • Executed at moment of truth • Matches customer expectations • High customer relevance Traditional Approach …And Pega does Both!
- 23. 23 © 2012 Pegasystems Inc. Complimentary Approaches to Analytics Re-Use Existing Offline Predictive Models Augment with unified Predictive Models Extend with Self- Learning, Adaptive Models Predictive & Adaptive Models can be used independently or together in a Champion- Challenger approach
- 24. 24 © 2012 Pegasystems Inc. End-to-End Decision Management Capabilities Control Planning, Simulation, Monitoring, and Management Customer Driven Agent Assisted Outbound Channels DeliveryDeployment Centralised Decision Hub Existing Disconnected Data Sources: Rev. Mgt. System / Loyalty System/ CRM Existing Apps: Strategy Next-Best-Action Strategies Collaborative Strategy Design & Reuse Insight Third-party Predictive Models Offline Predictive Models Adaptive Models
- 25. 25 © 2012 Pegasystems Inc. Next Best Action If there are no risks, what sales proposition should be made and in what way? Upgrade Propensity Disc. Xtra Night Propensity Double Points Propensity Upgrade Eligibility Xtra Night Eligibility Double Points Eligibility Upgrade Proposition Xtra Night Proposition Double Points Proposition Best Offer Is there a retention risk? If so, should we invest in client retention based on perceived lifetime value? If so, how to retain? Value Prediction Retention Proposition 1 Retention Proposition 2 Champion Challenger Retention Matrix Retention Prediction What is the purpose of the interaction? Call Reason Service Strategy Is there a conversion risk? If so, how to respond? Mitigation Strategy Long Term Value Risk Prediction Exposure Current Arrears Value Prediction Decisioning Strategy Illustration
- 26. 26 © 2012 Pegasystems Inc. Case Study: Vodafone Goals and scope ̶ Optimize customer experience and customer value ̶ KPIs on revenue and margin stimulation and reducing churn and cost of retention ̶ Consistency across enterprise- 18 Companies Group standard for centralized decisioning ̶ Quality: Improved NBA driven dialogues for cross sell and retention ̶ Quantity: improved targeted NBA communication across all channels (contact center, retail, web, IVR, outbound, mobile…) ̶ Agility: improved business command and control to change strategies quickly Approach and results ̶ Hundreds of millions of additional profit annually ̶ >225M Vodafone customers have experienced NBA- driven interactions ̶ Implemented 8-10 countries in first two years, 12 countries currently live
- 27. 27 © 2012 Pegasystems Inc. Pega NBA - Decision Management Benefits Faster time-to-market: Leverages the power of predictive and adaptive decision models to drive smart and targeted marketing outcomes that take the next best action. Better decision outcomes: Decision changes can be tested and simulated to understand accuracy and impact Increased automation: Manual, redundant decisions are eliminated by automating decisions that drive key business processes Integration with all of your disparate marketing technologies and coordinate all activity in one unified platform. Improved decision visibility and control: Business users can author, monitor, and audit decision changes
- 28. 28 © 2012 Pegasystems Inc. The Result: Elevate Your Goals Optimize Customer Lifetime Value
- 29. www.ness.com
- 30. www.ness.com Let’s meet now Come to the Ness Technologies booth #1851 Ping me after the conference ► glenn.gruber@ness.com ► 781.249.4049 ► Twitter: @ggruber66 Let’s Continue the Conversation