In the competitive landscape of travel and hospitality, gaining a deep understanding of customers is vital for success. However, a staggering 57% of companies in the sector face challenges in unifying customer data, as reported by Skift in 2023. This fragmentation not only disrupts marketing strategies but also detracts from customer experiences, compelling brands to reconsider how they handle and leverage data.

For travel and hospitality operators, embracing real-time data solutions is no longer optional; it is critical. Brands have adopted loyalty programs not merely to identify their customers, but to foster lasting relationships that enhance customer lifetime value. However, due to data silos and fragmented information, many brands find it difficult to create a comprehensive single profile for each customer.

The implications of this disconnect are significant. Poor data management can lead to subpar holiday experiences for customers, ineffective marketing targeted at the wrong groups, and lost revenue opportunities from loyal clientele. A brand’s ability to understand loyalty IDs and utilize modern technology for achieving unified customer views can dramatically enhance customer experiences, drive retention rates, and ultimately boost revenues.

Achieving a 360-Degree Customer View

So, what does a true 360-degree view of a customer encompass? It should include a comprehensive set of data: customer account details spanning multiple platforms, net promoter scores (NPS), survey responses, website interactions, and app engagement metrics, among others. Understanding that loyalty extends beyond formal program participants is crucial. Loyal customers may include repeat buyers or long-term customers who have not enrolled in loyalty programs but demonstrate brand affinity.

Advanced customer data platforms (CDPs) are instrumental in helping organizations identify these loyal customers, providing opportunities for personalized offers and encouraging them to officially join loyalty programs. Nonetheless, the challenge remains that disparate data sets can obscure a customer’s complete journey with a brand.

For instance, a single customer may have multiple accounts associated with various email addresses, names, or phone numbers. These inconsistencies can create fractured customer profiles, leading to missed opportunities to engage genuine loyal customers, but new technologies are making it possible to overcome these challenges.

How Brands are Unifying Data Today

Take Wyndham Hotels and Resorts as an example. By partnering with Amazon Web Services (AWS) and Amperity, Wyndham effectively addressed their data silos, leading to a robust unification of customer data. This collaboration unveiled previously unseen opportunities, revealing numerous loyalty program members who often visited without utilizing their loyalty ID, alongside the behaviors of non-loyalty guests.

Wyndham’s marketing strategy has seen a remarkable transformation, with about 90% of its digital spend now directed at a unified customer view within Amperity. This focus on smarter targeting has resulted in double-digit returns on ad spend, highlighting the financial benefits of effective data utilization.

Alaska Airlines presents another strong case for leveraging customer data innovation. The airline optimizes the travel experience by conducting real-time analyses of available seating options and predictively targeting customers likely to upgrade. By utilizing data across multiple trips, Alaska Airlines aggressively markets to non-loyalty customers to encourage enrollment in its loyalty program. This approach has yielded an almost 200% conversion rate for their loyalty program.

The Importance of Unification

Cloud provider AWS has highlighted that while 82% of organizations aim to accomplish a 360-degree view of their customers, only 14% have successfully achieved it. This statistic underscores the challenges companies face, with fragmented data often inhibiting effective marketing strategies. The need for comprehensive data solutions is clear—disjointed information can paralyze a brand’s ability to execute targeted marketing campaigns and deliver tailored customer experiences.

Organizations must leverage advanced customer data technologies, like those offered by Amperity, to consolidate fragmented data into unified profiles. This capability not only enhances brand engagement but also leads to greater revenue opportunities through personalized interactions.

In summary, the travel and hospitality industries are at a critical juncture. The ability to unlock unused customer data can redefine how brands engage with their clients, enhancing experiences and fostering loyalty. As companies invest in technology that integrates and analyzes customer data, they will position themselves for sustainable growth and success in an ever-competitive market.