Digital Transformation: Why the Most Important Thing to Measure is the Hardest Thing to Measure
I hope that you like my LinkedIn newsletter. Every week, I'll share tips, ideas, and strategies to help your hotel open its digital front door.
I don't want you to miss an issue, if you haven't subscribed yet, just click the "Subscribe" button in the upper right corner above.
If we are not connected yet, then take a minute to?connect with me on LinkedIn.
Measuring the most important digital things can be challenging for many hotels because they are often complex and multifaceted, but it is important to try to find ways to measure them accurately and meaningfully to make informed decisions and drive progress.
Often the most important things to measure might be abstract or intangible, making it difficult to come up with a concrete way to measure them.
When we measure digital performance there are two sets of data, we look at.
1.??????Key Performance Indicators (KPI)
2.?????Metrics
These two sets of data are equally important in the right context. KPIs and metrics are built on the same principles but are not used for the same purpose.
One of the key principles of digital transformation is to identify new alternatives for people and technology to work in harmony.
In this article, we will look at how to use KPIs and metrics to help your hotel achieve one of the key principles of digital transformation.
Digital Transformation: Why the Most Important Thing to Measure is the Hardest Thing to Measure
Key Performance Indicators (KPI)
Within my digital transformation partnership programs for hotels, I look at Key Performance Indicators (KPIs) that measure the performance and progress of a system and its objectives.
Why systems and not goals?
For most hotels goals represents the results they want to achieve. A system represents a process that leads to those results.
No, I am not saying that goals are not important. Goals often represent a momentary change, and in a local market, many hotels are fighting to reach a similar customer base.
This means that in the principle they end up setting very similar goals. And the battle for customers boils down to commodities like price, quality, service, and features. Even within this battle, some hotels always come ahead. But it is not due to their goals since they are like other hotels in, but they have implemented a system that has a different focus.
The key in my digital transformation partnership programs for hotels is to create systems that differentiate from the competition and provides cost-effective alternatives.
Metrics
Metrics are specific quantitative digital measurements used to track performance-specific processes at an operational or tactical level.
They are important indicators that help monitor progress.
Here are some relevant metrics that we use in context with our system.
Website traffic: This measures the number of visitors to your hotel's website and can be a good indicator of the reach and popularity of your site.
Conversion rate: This is the percentage of visitors to your hotel website who take a desired action, such as making a purchase or filling out a form. A high conversion rate can indicate that your website is effective at converting visitors into customers.
Bounce rate: This is the percentage of visitors to your hotel's website who leave after viewing only one page. A high bounce rate can indicate that your website is not engaging visitors or that it is not meeting their needs.
Customer lifetime value: This is a prediction of the total value that a customer will bring to your hotel over the course of their relationship with you. This can be an important metric for hotels that rely on repeat customers.
We also have looked at vanity metrics like social media followers and email subscribers, but it is important to see these metrics in context with engagement.
The most complex Key Performance Indicators (KPIs)
The most complex key performance indicators (KPI) that are important for digital transformation are trust and relationships.
It is extremely difficult to measure the importance and value of trust and relationships.
But there are some key performance indicators (KPI) that we can focus on in context with our system and the customer experience.
Net Promoter Score (NPS)
NPS measures how likely customers are to recommend your hotel's product or service to others. This is a good indicator of overall customer satisfaction and loyalty.
Customer Effort Score (CES)
CES measures how easy it is for customers to do business with your hotel. A low CES score indicates that customers are having to put in a lot of effort to get their needs met, which can lead to frustration and dissatisfaction.
First Contact Resolution (FCR)
FCR measures how well your hotel can resolve customer issues and inquiries on the first try. A high FCR indicates that customers can get the help they need quickly and efficiently, which can improve their overall experience.
Time to Resolution
Measuring the time it takes to resolve customer issues can give you an indication of how efficiently your hotel can address customer needs. Shorter resolution times can lead to a better customer experience.
Customer Retention
Tracking customer retention rates can help you understand how well your hotel can keep customers over time. A high retention rate can be a sign of good customer experience.
Focus on the most meaningful data for your hotel
Today we have digital tools and new advanced technology that will provide hotels with a bird’s eye view of the customer experience.
And today it is the digital customer experience that will make your hotel thrive. Customers have more access to information and alternative ways when it comes down to where and how to choose a relevant product or service.
We are at a point today where hotels are required to provide a frictionless digital customer experience.
Hotels need to understand all the digital touchpoints within the customer journey. On the surface, this might sound like an overwhelming task for most hotels.
Traditional hotel metrics, key performance indicators (KPI), and metrics play an important role, but we are now looking at the digital customer experience that goes beyond this type of data.
We are now looking at digital experience analytical tools that help hotels understand what the customer did and why they did it.
The good news is that Google already has in place a new tool that will help hotels measure the things that will matter for the digital customer experience.
领英推荐
Google Analytics 4
In July 2023 Google will no longer support Universal Analytics but move on to an event-based data model to deliver user-centric measurement.
Google Analytics 4 uses machine learning to generate sophisticated predictive insights about user behavior and conversions, create new audiences of users likely to purchase or churn, and automatically surface critical insights to improve your marketing.
Google Analytics 4 is a new?property?designed for the future of measurement:?
Analysis paralysis
Measuring relevant data is important, but many hotels have looked at obscure metrics that have not been helpful in the digital transformation process. But hotels are not alone in making this mistake, all of us made this mistake.
We all at one point did some keyword stuffing until we learned better and more effective techniques and strategies.
The purpose of data today is to support a meaningful digital transformation where humans and technology work in harmony.
Artificial Intelligence and Machine Learning
Artificial intelligence (AI) and machine learning can help hotels with more meaningful data by allowing us to process and analyze large amounts of data quickly and accurately.
This will help hotels discover patterns and trends that would be difficult or impossible for a human to detect.
For example, AI can be used to analyze data from social media or booking transactions to identify patterns and make predictions. By providing more meaningful insights from data, AI can help hotels make better decisions and solve complex problems.
Meaningful data will help hotels focus on what matters
We are now at a tipping point for digital transformation. The evolution of technology is at a point where digital tools and services can be utilized to create harmony between humans and technology.
Hotels will have access to digital tools and services that will help them focus on what matters both for the customer experience and the hotel.
Some of the data we have looked at and particularly metrics will become less important in understanding meaningful data and the customer journey.
Consequences for a hotel that does not understand digital transformation and the value of the most meaningful data
Digital transformation will change how hotels measure data, and it will change the future of the hotel culture.
Understanding the value of meaningful data is key to the existence of your hotel in the future.
Here are some consequences of not understanding digital transformation and the most meaningful data:
Loss of competitiveness: Hotels that do not embrace digital technologies risk falling behind their competitors and losing market share.
Decreased productivity: Without the use of digital tools and processes, hotels may experience decreased efficiency and productivity.
Difficulty attracting and retaining talent: In today's job market, many job seekers prioritize working for brands that are at the forefront of technological innovation. If a hotel is not adapting to digital transformation, it may have difficulty attracting and retaining top talent.
Reduced customer satisfaction: Customers today expect hotels to offer convenient and seamless digital experiences. If a hotel is not able to meet these expectations, it may struggle to retain customers and may see a decline in customer satisfaction.
Loss of revenue: If a hotel is not able to adapt to digital transformation, it may struggle to remain competitive and could see a decline in revenue as a result.
Digital Transformation Framework Partnership for Hotels
Hotels today must invest in people and technology in a context that adds value to everyone involved.
?Don’t continue to neglect or take the people's transformation for granted. Technology is a digital tool that will help your hotel when implemented in collaboration with your employees.
Partner with your employees and they will help with retaining and hiring people.
I also invite you to work with me as your hotel partner to help implement a new innovative digital transformation framework that opens the digital gateways to more direct bookings without competing with the OTA.
Through value innovation, I help hotels with cost-effective alternatives that are focused on eliminating and reducing factors the hotel industry competes on. I also help lift employee and customer value by raising and creating elements that hotels never offered before.
Shoot me an email at: [email protected]
Are Morch?is a digital transformation coach helping hotels open their digital front door, reimagine their processes and culture, and transform experiences in a fast-paced world!
_________________________________________________________________________
I hope you enjoyed The Hotel Digital Transformer newsletter, and that it was helpful!
I also share other hotel and digital transformation data. Let's connect!
Profiles:
Groups:
Blog: