upselling your way to new revenue: recognizing the power ... · recognizing the power of a...

Upselling Your Way To New Revenue: Recognizing the Power of a Data-Driven Upsell Strategy

Amy Devlaliwalla

Regional Director of Business Development,

Nor1, Inc.

– Silicon Valley Meets the Hospitality Industry

• The Nor1 team is a blend of Silicon Valley’s and the Hospitality Industry’s best and brightest

• Offices in Santa Clara, California, Frankfurt, Germany, and opening soon, Singapore.

• Nor1’s goal is to align itself directly with the Hotelier and to make available and optimize the use of the latest technology of Silicon Valley focusing on generating incremental revenue and increasing guest satisfaction

• Every Nor1 product & service is built by listening closely to property level staff and their guests as well as combining proven hospitality methods with state of the art technology

• Nor1 patents and patents pending are focused on perishable inventory serving a variety of industries

Nor1 provides cutting edge revenue optimization tools to leading hotels and resorts of all sizes

Embraced by Major Brands and Independents as a Powerful Tool to Drive Incremental Revenue and Increase Guest Satisfaction

Hotel Chains & Management Companies

Independent Hotels & Resorts

What is Upselling?

Upselling refers to revenue potential that goes above and beyond a traditional guest booking. With each upsell offer given to a guest, the hotel has the opportunity to provide a valued service while increasing its profit margin.

Why Is Upselling Critical?

1. Creates greater utilization of fixed assets

2. Delights the Guest – Enhanced guest experience 3. Leveraging the resultant data (and derived statistics, such as willingness

to pay) across the enterprise • Revenue Management (Pre-confirmation) • Marketing • Loyalty • Property Level Operations

We believe a significant percentage of future profits can be derived from the upselling approach we advocate. The push for greater occupancy and ADR magnifies upselling opportunity.

What Approach Is Necessary?

1. Coordinated mechanism to make consistent upsell offers (Integration across guest touch points) and that collects all transaction outcomes.

1. Mature Decisioning Intelligence mechanism that utilizes the data from the

above transactions, coupled with property level intelligence to generate offers sets that drive revenue (profit), & guest satisfaction.

2. Ability to funnel the “learnings” from above into the decision making surrounding other functionalities.

Nor1 is the Technology Leader in Upsell Solutions

Providing an End-to-End Upsell Platform

Mathematics

Machine Learning

Data Mining

Probability Theory

Statistics

Customer Behavior

Management Science

Operations Research

Mathematical Programming

Optimization

Stochastic Programming

Game Theory

Simulation

Economics

Computer Science Decision Science

Artificial Intelligence

Dynamic Programming

Big Data

Profiles Predictive Modeling

Personalization Business Intelligence

Experimentation

3 Levels of Analytics for Decision Making

Traditional Business Intelligence

Predictive Business Intelligence

Real-Time Decision Intelligence

Collection Analysis - Identify your data points, organize them, create reporting that works for you and share that data with all departments.

Invest in CRM (Customer Relationship Management) -Have a

healthy holistic view of customer information and where that information resides.

Upsell & Cross-Sell -Find hidden relationships in the data that

can provide a competitive advantage (for example – predictive analytics can help analyze customer spending, usage and behavior).

Initial Steps to Moving Your Needle

Initial Steps to Moving Your Needle Customer retention- Place focus on efforts of maintaining

continuous customer satisfaction, rewarding customer loyalty and minimizing customer attrition.

Direct Marketing – Identify at your property the most effective

marketing and communication channels and timing that should be used to target a given customer.

Regression Models - A mathematical equation as a model to

represent the interactions between the different variables in consideration

Mathematics

Machine Learning

Data Mining

Probability Theory

Statistics

Customer Behavior

Management Science

Operations Research

Mathematical Programming

Optimization

Stochastic Programming

Game Theory

Simulation

Economics

Computer Science Decision Science

Artificial Intelligence

Dynamic Programming

Big Data

Profiles Predictive Modeling

Personalization Business Intelligence

Experimentation

3 Levels of Analytics for Decision Making

Traditional Business Intelligence

Predictive Business Intelligence

Real-Time Decision Intelligence

Personalized Commerce is the NOW of Guest Satisfaction!

Age: 36 Likes: trendy restaurants, extra pillows, traveling with friends Travels: 5 business trips, 3 girlfriend getaways, 3 solo adventures

When information such as transactional data, purchase history or travel preferences is utilized to create a dynamic customer experience, a deeper personal relationship develops.

How Well Do You

Know Me?

Personalized Commerce Is:

Personalized Commerce Is:

Personalized Commerce Is:

Guest Profile

Behavioral Profile

Trip-Based Persona

How does PRiME work? Using predictive modeling methods, created by Nor1’s analytics team, PRiME combs through millions of past bookings and hundreds

of independent variables to identify distinct personas.

Profiles & Personas: A New Data Construct

Understanding Guests and Properties

Targeted Offer

Classification Regression Optimization

Real-time transaction

data is merged with

historical buyer data and

statistically classified in

real-time.

Price sensitivities and

product preferences are

described with

simultaneous equations,

capturing the interactions

between product

assortment and price

sensitivity.

Millions of possible

product and price

combinations are

evaluated in less than 70

milliseconds, and the

optimal pricing and

merchandising is

returned.

Decision Process in Real-Time

How much more are you willing to make on existing bookings?

$28+ IS THE AVERAGE PRICE

PAID FOR EARLY CHECK IN

$36+ IS THE AVERAGE PRICE PAID

FOR LATE CHECK OUT

$9 IS THE AVERAGE PRICE PAID

FOR A HIGH FLOOR

809,320 REQUESTS HAVE BEEN MADE FOR KING SUITE UPGRADES

Every Statistic Points in the Same Direction

Examples of Mobile Usage in Travel

Nor1’s growing footprint spans 6 continents, 100 countries, 500+ cities and 30+ currencies.

Results – Incremental Revenue. Happier Guests.

THANK YOU!

Amy Devlaliwalla Regional Director of Business Development,

amy.devlaliwalla@nor1.com www.nor1.com