Thursday, November 1, 2018

A Lesson in Hotel Loyalty That Goes Beyond Just Points

Colin Nagy, head of strategy at Fred & Farid, a global advertising agency, writes this opinion column for Skift on hospitality, innovation, and business travel. "On Experience" dissects customer-centric experiences and innovation across hospitality, aviation, and beyond. You can read all of his columns here.

The hospitality industry can be overly obsessed with trends, the latest shiny technology and the idea of big data. 

But an iconic and instructive example of just how the industry is based on people and their effort can be seen with Hector Ruiz, who serves as hotel ambassador for The Carlyle Hotel in New York. As much as change and evolution are necessary in modern hospitality, maintaining tradition and personal service is a reminder of what should never be discarded.

Ruiz has worked at the hotel for 27 years and is recognized as the go-to contact for the hotel’s most loyal guests. He’s an elegant figure when we meet, dressed in a perfectly cut navy blue suit, presiding over the daily flurry of arrivals and to-dos in the hotel. When taking me on a walkthrough of a few guest suites and the common areas, he was constantly assessing every space with a detailed eye, attuned to the rhythms and movements the hotel with muscle memory. 

Every small element was noticed down to the positioning of the L’Olivier-arranged flowers and his graciousness extended to not being the slightest bit flustered with a restless, crying child within earshot as we were conducting the interview. He was unflappable and erudite when discussing his history with the hotel, and his observations of the industry. 

Raised in Puerto Rico, Ruiz moved to New York at the age of 12. He began working for the hotel developer and real estate investor Peter Sharp as a personal assistant and then moved into the hotel business, where he has been uniquely positioned to watch it evolve. But he maintains that though, there has been a sea change in behaviors, there are timeless elements to the craft. 

Ruiz immersed himself in the workings of the hotel. “I worked across every discipline at the hotel, from purchasing to valet, to reservations, to housekeeping,” says Ruiz, citing the need for a hotelier to have deep familiarity with the inner workings of a hotel and how it works at the molecular detail. “It takes everyone to achieve the goals of a hotel.” 

And while hotels are obsessed with the latest approach to CRM and mining big data, Ruiz takes a much more simple approach: guests can ring him on his cell phone for reservations, and he keeps a detailed notebook of arrivals, key things to do, and key clients to keep in touch with. Much of his day is spent making personal calls to clients or their assistants, and performing what he calls “air traffic control,” making sure they know when people are arriving, and matchmaking guests with their preferred suite or room. 

“Much of this job is pattern recognition,” said Ruiz. “If there’s a frequent guest that always stays with us a certain time of year and they aren’t here, its good to check in on them to see how they are.” He sights the personal touch as being vital, and it is how many of The Carlyle clientele prefer to engage. “Tech has simplified a lot of modern life, but much of our clientele don’t like all the changes,” says Ruiz. In many cases, they prefer to see the hotel as a constant over time. And therein lies a lot of its appeal. 

Ruiz said hospitality has changed in many ways since he began his career but in many cases, the principles stay the same. “Touchpoints are essential in a hotel and in providing service, he says. With many guests opting to be more self-reliant, sometimes we have fewer points in a guest’s stay. This makes it necessary for the front-line staff to share information and to communicate effectively.” He cites his role as like a quarterback, working with the teams from the morning standup, partnering with the GM, and also adjusting on-the-fly throughout the course of the day. 

Ruiz also cites the need to drill deeper to provide the best service. For example, it is not enough to send a complimentary bottle of wine to a guest’s room. It is necessary to see if they liked it and how they responded to it. This small gesture is an opportunity to observe preferences and improve. “Everything needs a feedback loop.” 

He alludes to some of the special things the hotel does for guests over time. Repeat guests will have embroidered pillows, stationery, and embroidered robes coming with more stays. They are physical and tangible nods to loyalty in a world of points hoarding and pseudo loyalty. A very frequent guest even had a say in the decor and remodeling of his favorite suite in the hotel. 

Ruiz also says that true service extends far beyond the walls of the hotel. He will regularly call other properties to introduce a guest, their likes and preferences, serving as a diplomat of sorts to ensure that his regulars are treated well in other locations. 

And while The Carlyle is finding favor with a younger audience as it builds under the Rosewood ownership, a lot of the audience staying at the hotel have been loyal for years. The hotel serves a role in their lives, even in stressful times as life goes on. 

Ruiz said one of the favorite parts of his job is “lessening burdens.” He mentions a guest that was in the hotel recovering from cancer treatments, who wrote him appreciatively to say the hotel had been a refuge from a stressful time in life. In fact, some of the hotel’s clientele that can’t travel anymore regularly call him to stay in touch.

One thinks that in a world of constant change, it is nice to have a hospitality experience, one that has hosted heads of state and the great and good, doesn’t need to change or iterate. Ruiz concurs, “At The Carlyle, we are used to doing things a certain way…unless a client wishes otherwise.” 

Photo Credit: Hector Ruiz, a 27-year veteran of the Carlyle, seated in the lobby of the hotel. Carlyle



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Unraveling the Web of Airline Distribution: New Skift Research


Our latest Skift Research report examines the complex, and at times intimidating, world of airline distribution. This network is an essential part of how airlines transport their passengers across the globe.

Airline distribution is a complex web of intermediaries, each evolved to best fit its niche of customers. This broad distribution network includes online travel agencies, metasearch sites, traditional offline travel agencies, and travel management companies.

In addition to customer-facing intermediaries, global distribution systems (GDS) are back-end aggregators of inventory and play a large ‘behind-the-scenes’ role in enabling the inventory of travel agencies (offline and online) and travel management companies.

In this report, we review the long, and at times contentious, relationship that the GDS have had with the airlines they serve.

We also define four key questions through which we can better understand the future of airline distribution: 1) Does the world still need the Global Distribution Systems? 2) What is the new distribution capability and how will it impact air travel? 3) Can airlines really de-commoditize bookings? and 4) Does Silicon Valley have a role to play in airline distribution?

Preview and Purchase

What you’ll learn from this report:

  • How to untangle the complex and interlocking airline distribution landscape
  • A study of GDS market dynamics, including customer fragmentation, technical integrations, and booking fees
  • An overview of the New Distribution Capability: what it is, why it is needed, and an update on its adoption by the industry
  • Why airline ancillaries are so important to industry toplines and why they have become a sticking point with distributors
  • A view into potential disruption that could come out of Silicon Valley

Subscribe to Skift Research Reports

This is the latest Skift Research report aimed at analyzing the fault lines of disruption in travel. These reports are intended for the busy travel industry decision-maker. Tap into the opinions and insights of our seasoned network of staffers and contributors. More than 200 hours of desk research, data collection, and/or analysis goes into each report.

After you subscribe, you will gain access to our entire vault of reports conducted on topics ranging from technology to marketing strategy to deep dives on key travel brands. Reports are available online in a responsive design format, or you can also buy each report a la carte at a higher price.



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Research firm Ipsos buys social listening platform Synthesio

listening

Market research firm Ipsos announced on Tuesday it is acquiring social listening platform Synthesio, the latest in a series of industry-wide mergers and acquisitions of social platforms.

Deal terms were not made public. Synthesio’s platform, featured as a Leader in the most recent Forrester Wave report on that sector, allows brands to monitor what is being posted about them and competitors in social media, and to discern trends.

How they will combine. Synthesio CMO Chris Vitti said in an interview that his company, as a technology firm, complements Ipsos, which has primarily been a professional services firm delivering research about markets and customer opinions.

He noted that Ipsos has been employing Synthesio technology, among others, while Synthesio’s small professional services practice for analyzing its social listening data can now become a larger offering.

This will better position Synthesio to differentiate itself with account management and human added-value, Vitti said, with a continued orientation around social media intelligence. Some other social platforms like Sprinklr, he said, are moving to become full engagement suites oriented around social media, while others — like NetBase — are getting into business intelligence.

Synthesio will become known as “an Ipsos company,” and will maintain its central office in New York City, as well as four branch offices in other cities around the world.

Why this matters to marketers. This acquisition continues a trend by social media vendors to expand their point solutions through merger or acquisition, adding new channels or new ways to interpret their data. This is creating a new landscape of social media tools with multi-purpose offerings available to marketers.

In September, social community/customer care platform Lithium merged with social media management firm Spredfast to create a combined social management and customer care platform. This month, social intelligence firms Crimson Hexagon and Brandwatch combined into an enlarged social-based market intelligence platform. Last year, Brandwatch purchased content and influencer tracking platform BuzzSumo.

Last week, content marketing firm Skyword merged with marketing insights platform TrackMaven, and in 2017 Sprinklr announced it was evolving into a customer experience platform.

This story first appeared on MarTech Today. For more on marketing technology, click here.


About The Author

Barry Levine covers marketing technology for Third Door Media. Previously, he covered this space as a Senior Writer for VentureBeat, and he has written about these and other tech subjects for such publications as CMSWire and NewsFactor. He founded and led the web site/unit at PBS station Thirteen/WNET; worked as an online Senior Producer/writer for Viacom; created a successful interactive game, PLAY IT BY EAR: The First CD Game; founded and led an independent film showcase, CENTER SCREEN, based at Harvard and M.I.T.; and served over five years as a consultant to the M.I.T. Media Lab. You can find him at LinkedIn, and on Twitter at xBarryLevine.



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Study confirms brands’ worst fears about unsafe content

Photo © Bloomicon / Shutterstock.com

Brand safety has been an issue since the beginning of the internet. However in the past several years it has gained more importance and urgency, with incidents and advertiser concerns growing.

A new study from brand safety platform CHEQ, media agency IPG Mediabrands and automaker BMW aimed to quantify the risk to brands that appear next to “unsafe” content. In short, the study found being associated with unsafe content had a significant, negative impact on brand perceptions, consumer trust and intent to buy.

Not just a survey. The study’s methodology makes makes its findings more credible than if were simply the product an abstract survey of consumer sentiment. There was an initial screening survey, then participants were exposed to ads beside negative or unsafe content. Then there was a follow-up survey to measure brand sentiment:

The full process is described as follows: “We displayed 4 different types of content alongside the ads ranging from safe to generally unsafe, brand averse and vertical averse . . . We displayed BMW and Hulu brand video ads to the test group, while the control group was shown various PSA ads. . . We displayed the content on both desktop and mobile to make sure we captured and reflected consumers’ genuine ad viewing experience.”

Consumer sentiment declines across the board. The results confirm brand marketers’ fears. Below are some of the summary findings:

  • Consumer perception of brand quality declines by 7X vs. the control group not exposed to the unsafe content
  • There’s a 2X decline in purchase intent for those exposed
  • Consumers are 50 percent less likely to recommend the brand
  • Consumers are 2.8X less interested in associating themselves with the brand
  • Consumers are 3X more likely to believe that the brand isn’t “in the know”

There are additional findings in the report, consistent with these negative perceptions and sentiment. For example, many of the study participants assumed the placement of the brand ads near negative or unsafe content was intentional. They also view these ads as an “endorsement” of the unsafe content.

Perhaps more troubling for advertisers is the finding that “content that clashes with the brand,” but isn’t inherently offensive or unsafe (e.g., the two lower examples in the graphic above) still causes problems. Measures of brand empathy, reputation, quality and trust all suffered in those circumstances as well.

Why it matters to brands. While platform algorithms and AI technology can screen for certain types of unsafe content — to minimize (but probably not eliminate) negative or unsafe placements — it’s much more challenging to control for the latter scenario: otherwise safe content that “clashes with the brand.” This appears to be a far more nuanced problem that machines alone probably cannot solve.

As the report ominously concludes, “Once the consumer has viewed ads alongside unsafe content, the damage to the brand is already done.”


About The Author

Greg Sterling is a Contributing Editor at Search Engine Land. He writes a personal blog,

Screenwerk

, about connecting the dots between digital media and real-world consumer behavior. He is also VP of Strategy and Insights for the Local Search Association. Follow him on

Twitter

or find him at

Google+

.



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Few marketers require performance guarantees for branded content


Less than a third of marketers and agencies are requiring performance guarantees for the branded-content campaigns they purchase from publishers, even as the tactic becomes an increasingly significant part of marketers’ strategies.

Of the client and agency marketing executives surveyed at the Digiday Content Marketing Summit in August earlier this year, just 31 percent said they currently ask for campaign performance guarantees from publishers. Such guarantees can be used to ensure campaigns deliver on a range of requirements, such as content views, click-throughs, time spent on page or email signups.

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