For travel and hospitality companies, understanding the customer landscape is crucial for long-term success. However, a recent report from Skift reveals that 57% of these firms face significant challenges in unifying customer data. This fragmentation can stifle effective marketing strategies and impact customer experiences negatively. The consequences of neglecting this issue could result in lost revenue and a fractured relationship between brands and their customers.

In today’s digital marketplace, where competition is fierce, having accurate, real-time data solutions is no longer optional; it is essential. Personalization, customer retention, and loyalty are key focal points for brands aiming to maximize revenue potential. Yet, the presence of data silos and fragmented information often impedes the creation of a unified customer profile. Travel and hospitality businesses must recognize these hurdles and implement strategies to overcome them.

The Importance of a Unified Customer Profile

To achieve a complete understanding of the customer, travel companies should aspire to develop a 360-degree view of their client base. This encompasses more than just basic account details; it includes customer interactions across multiple touchpoints such as social media, online reviews, and booking history. Sadly, many organizations fail to take a holistic view of their customer data, leading to missed opportunities.

It is also vital to broaden the definition of a ‘loyal customer.’ Loyalty should not merely be measured by those enrolled in a loyalty program. Frequent travelers and long-time customers should receive equal attention, as they contribute significantly to revenue. Brands must utilize customer data platforms effectively to identify and engage with these individuals, encouraging them to join loyalty programs through targeted incentives.

An example of effective transformation can be seen in Wyndham Hotels and Resorts. The company worked with Amazon Web Services and Amperity to consolidate its customer data, overcoming previous silos. They discovered that a significant number of loyalty program members were not consistently using their loyalty IDs, revealing an opportunity to enhance targeted marketing.

Brands Effectively Using Unified Data

Wyndham’s collaboration illustrates how leveraging a unified customer view can lead to valuable insights. By stitching together fragmented data, they gained a clearer picture of customer behavior, enabling more effective marketing initiatives. Around 90% of Wyndham’s digital advertising budget is now directed at customers identified through Amperity’s platform, leading to a double-digit return on advertising spend.

Alaska Airlines has also set a commendable precedent in utilizing customer data. They perform real-time analysis of seat inventories to offer business class upgrades to customers likely to accept. This approach not only enhances customer experience but also optimizes the company’s revenue per flight. By analyzing broader travel journeys and targeting non-loyalty customers for program enrollment, Alaska Airlines boasts a 200% conversion rate for its loyalty program.

Addressing the Challenges of Data Fragmentation

Despite the clear advantages of unified customer data, many organizations still struggle to implement effective solutions. According to AWS findings, 82% of organizations aim to achieve a comprehensive customer view, yet only 14% feel they have succeeded. This disparity underscores the importance of addressing the underlying problems created by fragmented customer profiles.

One significant challenge is that individual customers often have multiple accounts due to different email addresses or usernames. Users may travel under various personas for personal or professional reasons, complicating marketing efforts. The inability to recognize a single customer across these multiple profiles can lead to wasted marketing resources and missed revenue opportunities.

The Path Forward

The conclusion is simple: Firms in the travel and hospitality sector must start prioritizing unified customer data. Organizations can leverage advanced technologies and customer data platforms to create streamlined customer profiles. By merging fragmented datasets, companies can uncover essential insights that lead to personalized marketing campaigns, ultimately increasing both customer satisfaction and loyalty.

The collaboration between industry leaders like Amperity and AWS showcases that the journey towards achieving a true 360-degree customer view is not just a possibility; it is feasible with the right strategies and technologies in place. By addressing data silos, organizations can unlock untapped potential within their databases, enhancing overall brand engagement and driving revenue growth.

In summary, as the travel and hospitality sectors continue to evolve, understanding the importance of customer data unification cannot be overstated. Companies that invest in this critical area today will position themselves for success in an increasingly competitive landscape.