Loews Hotels & Resorts recently announced that it is implementing a CRM solution that will provide a single view of guest history, value, behavior, desire, intent and engagement at 23 of its locations.
The new solution will tap into first and third party data sources to deliver “one-to-one marketing across all digital channels.” These channels include email, Web, display ads, mobile, social, video and search.
While this effort is laudable – and reinforces the value of being able to provide sophisticated guest intelligence, reporting, and analytics – it can create a “too much of a good thing” phenomenon where the brand could potential bombard guests with too much information.
Of course, the main driver for this effort is to enhance marketing and up-sell opportunities for Loews. However, if you saturate a guest with offers through every possible digital channel, it could potentially turn them off.
The key is being able to leverage this system beyond just for marketing. The goal behind a new CRM system should be to simply help the guest. This can include developing targeted offers based on the guest’s true preferences, and pleasing the guest through the entire stay cycle.
In addition, consumers are becoming savvier about how targeted digital marketing actually works. If they are watching a music video on YouTube, and then see an ad for that particular band or musician on Facebook immediately after, they often feel like they are being tracked – or worse, spied upon by brands.
This all requires a very delicate balance because too much of a good thing can be bad. Other hotel brands should certainly try to emulate what Loews is doing with this new system. The strategy should always be to please the guest, and not bombard them with marketing offers.