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The Benefits and Challenges of using Customer Data for Marketing

Through the lifecycle of each customer, you collect a lot of data. Data from customers just visiting your website and their footprint being captured in analytics or customers that may sign up to your hotel's newsletter through your website or customers that follow you on social networks to name a few. There are so many benefits to the collection of all this customer data however collecting customer data also poses many challenges. In my blog today I will discuss some of the benefits and challenges your hotel may face when using customer datasets for marketing. 

Benefits of using Customer Data for Marketing

1) Understanding your Market

One of the biggest benefits of collecting your customer's data besides creating a customer database is it can help your hotel understand the way in which your customers behave. Understanding this makes it much easier to understand where your customers come from, what they are looking for, how they like to interact with your hotel, and what specific product or service they want from your property. Understanding your customer can then help you communicate better to your target market and improve your marketing communication.

2) Personalisation 

In today's society personalisation is a must as customers now expect this. As I mentioned in my 'Big Data'blog, companies now combine their sets of data with AI technology to improve our daily lives with more personalized experiences. Hotels now use cookies to recommend products that are relevant to their audience. Understanding your customer also allows you to segment your marketing strategies according to customer types and offer a more personalised marketing experience. 

3) Marketing Strategies

Your digital marketing strategy is key to success in today's society. According to Ouellette (2022) while brick and mortar shops still dominate, online sales were 4 trillion in 2020. Online sales continue to grow year on year and as the generations grow with technology, online sales will only increase further. If you want to outrank your competitors on search engines or increase your conversions you need to understand the data you are collecting on your customers. You can do this in analytics which we spoke about in our first blog. This data will be able to tell you how your customers respond to a campaign, where they are coming from, what technology they are using to reach you, and ultimately help you build a more effective marketing campaign. 

Challenges of using Customer Data for Marketing

1) General Data Protection Regulation (GDPR)

The benefits of using customer data are amazing and can really help your business but they do come with a lot of responsibility in terms of GDRP. GDPR outlines the guidelines for the collection, storage and use of data that your hotel must follow with your customer database. With the rise of an Omni-channel approach to marketing, there are more regulations to follow and new regulations constantly. As compliance with these regulations are so important, many hotels need to hire an individual just to deal with data protection and compliance. 

2) Omni-channel 

With the rise of Omni-channel, there is an increase in the amounts of consumer data at a hotel's disposal however this can be a challenge as it is time-consuming to try to understand the vast amounts of data and correlate it. The issue with timing is that it can take you weeks or months to understand some sets of data and by the time you understand them it may be no longer applicable to a campaign. In marketing, you need to have real-time analytics to help you build and adjust your campaigns.

3) Technology 

With all the sets of data your hotel collects, there is no one piece of technology available to read it all and give you the answer you need. You need to be proficient in reading and understanding data from a multitude of different sources like google analytics, SEO research tools, Meta analytics to name but a few. This is where many hotels need to hire a specialist or a company that can help them with this. 

While there are benefits and challenges of using Customer Data for Marketing, it is so important you try. The world is at your fingertips now and if you are not confident to go out and take a piece for yourself, Premium Digital can help you. Contact us today to set up a consultation. 

For more information on "The Benefits and Challenges of using Customer Data for Marketing" you can read more Premium Digital blogs.

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Written by Philip Kelly

References: 

• Ouellette, C., 2022. Online Shopping Statistics You Need to Know in 2022. [online] OptinMonster. Available at: <https://optinmonster.com/online-shopping-statistics/#:~:text=The%20majority%20of%20shopping%20happens,came%20from%20a%20mobile%20device.> [Accessed 5 March 2022].