Are you obsessed already?
Yeah, I know the title is controversial. A storm hit this platform (as well as other social media channels) when Qualtrics announced that their software would turn
Critics advocated it took marketing a "step too far." While some definitely made valid points (I won't repeat the whole discussion here), I found the company had showed guts by stating it this bluntly. Be what it may, in our highly competitive world, you need to put the customer first (not only in your tagline obviously). In this post, I want to highlight 5 KPIs that any business in the travel and tourism industry can measure as a first step into becoming a more data-driven company.
Average Response Time
As consumers, we live in the "now," purchase decisions are made in the blink of an eye. When it comes to booking your next trip, a lot of emotion affects the buyer journey. Oftentimes, people want some extra information that was not quite clear on the website or they want to check if any extra discounts may apply. If you can't guarantee 24/7 customer interactions, you're already playing a losing game. Today, average response times in the travel and tourism industry are just above 2 minutes. If you want to beat the competition, make sure to keep it below this threshold. Put in place tracking systems (on phone, mail and other customer interactions) that can feed that data into a central (data) repository.
Booking conversion rate
This KPI also stresses the importance of acting "on the spot." People that are making decisions often want to conclude the process ASAP. Being in the race to influence that decision will be critical. Sure, you can leave those tricks up to platforms like booking.com but larger hotels might consider implementing trackers to check conversion rates on other channels as well.
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Online rating
We're not telling anything new if we say that many people check online ratings before they book anything. A growing proportion of people is even cross-checking ratings across platforms (booking.com, tripadvisor, google, facebook, ...). Making sure you act on that feedback in a timely fashion will only make your business more future-proof. However, we still discover many organizations are handling this wrongly, aggravating the situation even more. Repeat reactions or cross-validations of customer feedback can therefore be crucial in fully grasping and adequately handling feedback.
Net Promotor Score (NPS)
A widely used metric - not specific for the travel and tourism industry. However, a very interesting metric and also one that is "hard to ace." Although the metric has received some criticism (there seems to be some cultural element to rating businesses), it still is considered the "gold standard" to measure customer satisfaction. Not sure how? Have a look at Qualtrics or other software that has these standard measures included in some of their packages.
Repeat business
If NPS is the gold standard, repeat business surely is the the most obvious indicator of customer satisfaction. That being said, loyal customers should NEVER be neglected. Dive deeper into who they are and what cultivated their loyalty, become intrigued by what they have to say, do your research.
Are your, in turn, intrigued by what we discussed in this newsletter? Speak up and comment or reach out to us with a DM.