S TAY I N G I N T O U C H W I T H O U R G U E S T: T E C H N O L O G Y T R E N D S

HMD 226
Dr. Jungsun (Sunny) Kim

7 TRENDS
Customer
Engagement
Technologies

Consumerization of IT

Cloud Computing

Big Data

Social-Mobile
Convergence

Green IT

Data Security &
Privacy

2

1. Customer Engagement Technologies (CETs)
• Operators have realized that customer engagement is a more strategic way of building a deeper and enduring relationship between the customer and the company/brand.
• Although the concept of customer engagement is in the development stage, most executives from 17 business sectors reported they believe high customer engagement is necessary for a company’s future growth.
• In particular, technology is seen as an increasingly important tool for improving customer engagement
– CETs are defined as technologies or applications which can be utilized to create deeper and more meaningful connections between a company and its customers to enhance the overall quality of the guest experience, drive customer loyalty, and ultimately result in increased sales and profitability.
3

Examples of CETs from the Hotel Industry
2 Year

1 Year

Current

Mobile website

59.6%
42.7%

Mobile app

Tablet/iPad at concierge

5.6%

Kiosks
Room control devices

28.1%

16.9%

5.6% 9.0%

18.0%

18.0%

18.0%

Room lock access via guest mobile0.0% 14.6%
Tablet/iPad in-room amenity

20.2%

23.6%

13.5%

23.6%

20.2%

9.0%

10.1%

7.9% 6.7%

33.7%

Interactive digital signage
Tablet/iPad for check-in

22.5%

48.3%

Static digital signage
Check-in on guest mobile

19.1%

10.1%

22.5%
12.4%

11.2%

7.9%

15.7%

19.1%
18.0%

(Source: A study conducted in 2012 by Drs. Kim & Connolly)

4

Will you use any customer engagement technology for your project?

5

2. CONSUMERIZATION OF IT
• Customers prefer to bring their own mobile technology devices (BYOD) rather than having a hospitality company provide the technology. This means that companies must be prepared to accommodate these devices in terms of:

– Power (i.e., charging and docking stations)
– Internet bandwidth for multiple devices
– Ease of Internet connectivity
– Comfortable work environment
– Useful and intuitive apps that can enhance guest experience and convenience
– Incentives and instructions to download apps
6

An Example from the Hotel Industry: As a hotel guest, would you prefer to bring your own tablet or have the hotel provide one for you? (n= 751)

10%

Bring my own tablet (n=675)
Tablet provided by the hotel (n=76)

90%
• Among 751 respondents who own tablets, 90% expressed they prefer to bring tablets when they stay at a hotel, and only 10% prefer to use tablets provided by a hotel. • Consumers’ preference for using their own tablets could be explained by the following reasons:  Consumers most likely take their tablets with them while travelling and staying at hotels for use in transit
(e.g., on airplanes or in airports) and because of the level of personalization and customization of their own devices (i.e., downloaded apps; music, video, and reading content; and data).
 Consumers can use and download any apps via their own tablets, but limited apps are available on tablets provided by hotels.
(Source: A study conducted in 2013 by Drs. Kim & Connolly)
7

Search for your company’s app and evaluate it!

8

3. SOCIAL-MOBILE CONVERGENCE
• Unlike the traditional ROI approach (i.e., measuring the return in dollars), returns of social media and mobile investment should be measured in the number of visits
(or check-in), the time spent with the application, the quality of comments, and the number of updates about the company or brand.
• These measurements can be then used to measure key marketing outcomes such as changes in customer awareness, engagement, and eWOM.
• Companies using social media and mobile should develop a more comprehensive assessment to evaluate customer value beyond their purchases as part of their loyalty programs. 9

Example: Social media-Mobile-Loyalty