1. Have a long-term strategy
Many hotels do not have an email strategy. Emails are at the bottom of the to-do pile. Mostly, emails are used to send out blanket offers. But a strategy is essential to wringing the real value out of email marketing. First, emails are a one-to-one channel. Even if you send to a list of 150k names, each recipient sees it as a direct communication from your brand. Second, emails are an opt-in channel with an incredibly high ROI if done properly. Third, email performance is measurable and trackable. You know what went right and what went wrong, so you can constantly fine-tune your campaigns.
Use data points and the customer journey
There are many ways to build an email strategy. We begin with the list and the guest profile data points that can be used for segmentation. We also map out the customer/guest journey. People enter your marketing funnel at different times with different expectations. Some may be web leads who are still researching their vacations. Others may be past guests who originally booked through an OTA but now have an understanding of your brand experience. If you do not collect data on guests, specifically names and emails and information about their stay and accommodations, it will not be possible to use automation to its fullest extent. And automation is one of the strengths of email marketing.
The goal is to reduce reliance on discounts
The goal of any hotel e-marketing strategy should be to reduce reliance on room discounts. Instead, emails should promote brand awareness and the benefits of the brand hospitality experience.
A hotel in Miami has emailed me eight times in the past eight months. Every single email has been about a seasonal deal or discount in the range of 25% to 40% off the current rates. That's absurd! I have been a full rate customer who booked direct with them when I stayed at their property. Why do they insist on bringing me back there at at discount? What if I don't want or need a discount? Furthermore, I start wondering if there is something wrong with the hotel.Vikram Singh
Build out your strategy in a calendar
A content calendar will hold you accountable to your strategy. Map out your strategy month-by-month and include content topics. Topics should always be relevant to your audience and their stage in the guest lifecycle. So, you might send web leads general information about the destination but past guests might be more interested in hotel upgrades or a unique local event.
2. Build relationships
Hoteliers have a unique relationship to their customers. Unlike merchants, a hotel's customers are guests who purchase a brand experience that goes beyond a utilitarian place to sleep. It's important for hoteliers to avoid the trap of engaging with customers as transactions. Because email is a direct form of communication, it is ideal as a channel for building relationships. Your guests are interested in relevant communication; they have opted into it. Put your brand experience on display and engage your audience in stories that are authentic and tailored to their interests.
3. Send segmented campaigns
Segmentation can boost your ROI if done properly. CRM software provider Revinate stated in its first Hotel Email Marketing Benchmark Report that segmented emails result in a 20% higher open rate, a 70% higher click-through rate and 73% higher revenue per recipient than non-segmented campaigns.
An example of segmentation would be sending a last-minute travel offer to people who live within a short distance of a hotel. Staycations target local residents. You can target families with children for summer travel.
Segmentation depends on the data points attached to your guest profiles. Many hotels have skimpy guest profiles: just the name, date of prior stay, and resort stayed at. Consider sending out a survey that asks guests for information so that you can provide more relevant travel information and offers. Do not include more than five questions in your survey and tell recipients upfront how many questions there are and how long it will take to complete the survey. For example: "Please answer 5 short questions so we can send you offers you'll love. The survey takes no more than 3 minutes."
4. Don't send too often
There's no short answer to the question of how often hotels should send emails. It depends on your brand and the quality of your offers and content. Generally, once to twice a month is enough. Do not skip a month because consistency is a factor in deliverability.
If you are sending too often, you will see low open rates and high unsubscribe rates. Revinate reported in its Benchmark study that hotels in Europe, the Middle East, and Africa (EMEA) see the highest engagement and conversions, but those hotels send about half as many emails as North American hotels.
- One-time campaigns from hotels in EMEA have an average open rate of 18.5%, a CTR of 2.7% and a conversion rate of 0.63%.
- One-time campaigns from North American hotels have an average email open rate of 15.6%, respectively, a CTR of 2.2% and a conversion rate of 0.53%.
- A one-time campaign can be a newsletter, announcement, or offer. It is not an automated campaign.
5. Avoid constant discount offers
Constant discounting cheapens your brand and erodes your room rates. I am not a revenue manager, but my feeling is this: If you must constantly discount your pricing by 50% to 60%, your pricing structure is too high and guests do not see value delivered. Hoteliers have known since 2003 that discounting does not deliver more business. Discounting persists because hotel rooms are perishable. You can't replace a lost room night. Airlines face the same dilemma with unsold plane seats.
The prevailing wisdom is that reducing room rates entices new consumers to enter the market and buy more rooms. This has never worked for the hotel industry, and it won't work in this era of proliferating hotel room discounts and Web-based travel deals, because new consumers do not enter the market in response to hotel discounting. Instead, existing consumers simply get more for less, and hotel revenues fall.Cathy Enz, Cornell University
Further, discounting drives consumers to OTA sites to book. Think about it. If the mentality is "get it cheap," consumers will turn to OTAs because they do not realize hotels offer the same rates. The common misconception if that OTAs always have the cheapest rates. Hotel discounting has created a frugality mindset that makes it very difficult for hotels to keep their revenues intact.
Whenever possible, add value instead of discounting pricing. Hotels can also use this tactic to fight OTAs, to some extent.
6. Give your subject lines CURVE appeal
CURVE stands for curiosity, urgency, relevance, value, and emotion. The CURVE approach recommends making sure your subject lines have two or more of these attributes.
Sometimes, it is best to be extremely straightforward in your headline. An offer should be stated clearly. Make sure it is relevant to your audience and represents a real value. This you might send a romance package to people who traveled as couples. Or you could send it to families with free babysitting thrown in.
7. Use dedicated landing pages
Dedicated landing pages can increase conversions by up to 400%. A dedicated landing page is a campaign-specific webpage that drives visitors to complete a single action, usually in the form of a "book now" CTA. Dedicated landing pages are powerful because:
- The messages in the email and landing page match. The landing page delivers exactly what is promised in the email.
- A dedicated landing page has only one call-to-action. This is the optimal number of choices to get conversions. No secondary CTAs distract visitors from the main objective.
- A dedicated landing page has no navigation. Visitors cannot wander off the page to the rest of the site.
- Dedicated landing pages have a compelling heading, copy that can be skimmed, engaging media content, trust proof such as reviews, and a strong call-to-action.
- Landing pages can be built by non-developers using software like Instapage or Unbounce.
Gateway landing pages
Gateway landing pages are not dedicated landing pages. Gateway landing pages act as an enticing invitation to something more. It could be an overview of hotels that have something in common (for example, they are all adults-only) or a grouping of hotels by location.
- Gateway landing pages can be built to attract users to the website. So, the gateway landing pages may provide hotel overviews and users then drill down deeper into the main site for more information on a specific hotel or sub-brand and to book.
- Gateway landing pages can be built with dedicated landing pages for each choice. In this case, instead of leading to the existing site, the gateway page leads to individual landing pages for each hotel.
Gateway landing pages on a website might include location pages with hotels in those areas, category pages, keyword pages that describe a product or service. Because we are sending to a targeted group (email recipients), we would not use keyword pages. Instead, we would use location or category pages designed specifically to be relevant to the email structure and/or offer.
Core landing pages
Core landing pages are not dedicated landing pages. Instead, they are part of the main website and can be found through the site's navigation. Core landing pages can include category and sub-brand pages that link out to specific properties. They can also be room type pages.
Why do dedicated landing pages covert so well?
Think of your email campaign as an invitation to learn more. Most often, recipients are not planning a vacation when you email them. They are probably in the inspiration phase. When they click on "learn more" in the email, they are making a low commitment that is appropriate for their stage in the sales funnel.
The landing page's job is to be a selling page. It should contain all the information needed to move a prospect from "thinking" to "acting." Salesmanship of this sort requires focus. You can't sell a Chinese menu of properties. You have to zero in one one.
The other reason dedicated landing pages are conversion powerhouses is that they are uncluttered and free of distractions. Most pages on the website have too much information to create a clear and convincing sales pitch for one desired action. Visitors can be easily distracted or wander off into the site's navigation.
8. Limit calls-to-action
Email recipients can process between five and seven ideas. But this does not mean you should include five offers or five hotels in your email. Ideally, all email campaigns will have just one call-to-action. And the landing page will be completely geared for that call-to-action.
9. Use web forms to get leads
It's astounding how many hotels do not have a web form on their site to collect leads. Or, they bury the web form as a nondescript "subscribe now" somewhere below the fold. Ewww, these hotels are missing out on pure gold.
Website lead forms collect contact information from people who are interested in knowing more about your hotels. These people have never stayed in your hotel. They represent a fresh source of new guests who book direct. Wowzie.
Further, every list will experience churn. New web leads will replace some of these un-subscribers, but you have to approach them differently in your email marketing if you want to get optimal results.