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. 1. © 2009 Ness TechnologiesUsing Next-Best-Action to DriveHigher Booking Conversion andRevPAR
  2. 2. www.ness.comToday’s SpeakersThomas KaplanNational Account ExecutiveGlenn GruberAVP, Travel Technology SolutionsNess Technologies
  3. 3. www.ness.comHotel Distribution and Merchandising ChallengesThe Power of Next Best Action & Real Time DecisioningQ&AAgenda
  4. 4. www.ness.comNumber of Online Researchers andBookers Are Growing
  5. 5. www.ness.comSomething Doesn’t TrackResearchers5:4BookersLookers4,500:1BookersWe are not giving people what they wantSource: eMarketer, Pegasus Solutions
  6. 6. www.ness.comSo We Try So Many Things
  7. 7. www.ness.comIt’s Exhausting
  8. 8. www.ness.comRight Channel• Right Offer• Right Time• Right GuestBookingBut the Key is…
  9. 9. www.ness.comHotel Industry Reliance on OTAsSource: DigitalIQ Index: Hotels 2012, L2 ThinkTank
  10. 10. www.ness.comInspirationResearch/PlanBookExploreShareThe Traveler Life Cycle
  11. 11. www.ness.comPre-StayArrivalOn-propertyIndestinationDeparturePost StaySix Hospitality Touch PointsAdapted from RockCheetah LLC
  12. 12. www.ness.comBusinessTripFamilyVacationWeekendwith the GuysConferenceRomanticGetawayPersona-lization
  13. 13. www.ness.comPersonaPurchaseChannelsLoyaltyDatabasePurchaseHistoryEmail/IPaddressSemanticDataSocialMediaYou Already Have a Lot of Data
  14. 14. www.ness.comIs This What We’re Down To?
  15. 15. www.ness.comDon’t Confuse Hope with a Plan
  16. 16. Pega: NBA &DecisioningSolutionOptimize CustomerValue Through Next-Best-Actions & DecisionManagement
  17. 17. 17 © 2012 Pegasystems Inc.
  18. 18. 18 © 2012 Pegasystems Inc.Marketers Face Big Challenges
  19. 19. 19 © 2012 Pegasystems Inc.The Shift to Real-Time MarketingMarketing Program Optimization Web, social, mobile, call center, etc. Next-Best-Action Inbound and outbound coordination Personalized marketing programsMarketingEfficiencyMulti-Channel CampaignsCampaign ManagementMass Marketing Single business process Multi-channel and multi-wave Feedback loop Outbound campaigns Reporting and KPIs Centralized management ofcampaign processes Manual approach Email and basic channelsMarketing EffectivenessReal-TimeMarketing
  20. 20. 20 © 2012 Pegasystems Inc.
  21. 21. 21 © 2012 Pegasystems Inc.Typical Offer ManagementDecisioning BasedOffer ManagementEliminating AveragesOffers Budget Based on AverageCustomer Value in a givenCustomer SegmentPersonalized offers allow balancing budget, customer needs and customersatisfactionOffer based on individual customervalue
  22. 22. 22 © 2012 Pegasystems Inc.Our OfferJim JohnsonJane DoeJohn SmithCampaign-based Marketing• Start with an offer• Use segmentation to select customers• Matches organisational structure• Executed in advance• Low/medium customer relevanceJim JohnsonJane DoeJohn SmithNext-Best-Action ApproachFor each customer determinewhich proposition (offer) ismost appropriate for thatcustomer at a point in timeOffer3Offer2Offer1A More Relevant Approach to MarketingOffer2Offer3Offer1Next-Best-Action Marketing• Evaluate each customer• Find best offer for customer• Executed at moment of truth• Matches customer expectations• High customer relevanceTraditional Approach…And Pega does Both!
  23. 23. 23 © 2012 Pegasystems Inc.Complimentary Approaches to Analytics Re-Use Existing OfflinePredictive Models Augment with unifiedPredictive Models Extend with Self-Learning, AdaptiveModels Predictive & AdaptiveModels can be usedindependently or togetherin a Champion-Challenger approach
  24. 24. 24 © 2012 Pegasystems Inc.End-to-End Decision Management CapabilitiesControlPlanning, Simulation,Monitoring, andManagementCustomer DrivenAgent AssistedOutbound ChannelsDeliveryDeploymentCentralised Decision HubExisting Disconnected Data Sources:Rev. Mgt. System / Loyalty System/ CRMExisting Apps:StrategyNext-Best-ActionStrategiesCollaborative Strategy Design& ReuseInsightThird-partyPredictive ModelsOffline PredictiveModelsAdaptive Models
  25. 25. 25 © 2012 Pegasystems Inc.NextBestActionIf there are no risks, whatsales proposition shouldbe made and in whatway?UpgradePropensityDisc. XtraNightPropensityDoublePointsPropensityUpgradeEligibilityXtra NightEligibilityDoublePointsEligibilityUpgradePropositionXtra NightPropositionDoublePointsPropositionBestOfferIs there a retention risk?If so, should we invest inclient retention based onperceived lifetime value?If so, how to retain?ValuePredictionRetentionProposition 1RetentionProposition 2ChampionChallengerRetentionMatrixRetentionPredictionWhat is the purpose of theinteraction?CallReasonServiceStrategyIs there a conversion risk?If so, how to respond?MitigationStrategyLong TermValueRiskPredictionExposureCurrentArrearsValuePredictionDecisioning Strategy Illustration
  26. 26. 26 © 2012 Pegasystems Inc.Case Study: Vodafone Goals and scope̶ Optimize customer experience and customer value̶ KPIs on revenue and margin stimulation andreducing churn and cost of retention̶ Consistency across enterprise- 18 Companies Group standard for centralized decisioning̶ Quality: Improved NBA driven dialogues for cross selland retention̶ Quantity: improved targeted NBA communication acrossall channels (contact center, retail, web, IVR, outbound,mobile…)̶ Agility: improved business command and control tochange strategies quickly Approach and results̶ Hundreds of millions of additional profit annually̶ >225M Vodafone customers have experienced NBA-driven interactions̶ Implemented 8-10 countries in first two years, 12countries currently live
  27. 27. 27 © 2012 Pegasystems Inc.Pega NBA - Decision Management Benefits Faster time-to-market: Leverages the power of predictive and adaptive decisionmodels to drive smart and targeted marketing outcomes that take the next bestaction. Better decision outcomes: Decision changes can be tested and simulated tounderstand accuracy and impact Increased automation: Manual, redundant decisions are eliminated by automatingdecisions that drive key business processes Integration with all of your disparate marketing technologies and coordinate allactivity in one unified platform. Improved decision visibility and control: Business users can author, monitor, andaudit decision changes
  28. 28. 28 © 2012 Pegasystems Inc.The Result: Elevate Your GoalsOptimize Customer Lifetime Value
  29. 29. www.ness.com
  30. 30. www.ness.comLet’s meet nowCome to the Ness Technologies booth #1851Ping me after the conference► glenn.gruber@ness.com► 781.249.4049► Twitter: @ggruber66Let’s Continue the Conversation

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