How to Segment Your Guests: 5 Basic Tips to Boost Conversions

Understanding your guests is key to standing out as a hotel. But with diverse demographics and travel styles, a one-size-fits-all approach simply won’t cut it. This is where guest segmentation comes in, a powerful strategy that allows you to personalize your offerings and communication to resonate with each guest on a deeper level.

This article explores the power of guest segmentation for hoteliers, from understanding its core benefits to implementing a successful segmentation strategy within your hospitality CRM.

How Does Segmentation Work in Hotel Marketing?

Imagine treating every guest the same, regardless of their travel style. Today’s travelers crave personalization. For this, guest segmentation is the most accurate answer.

It’s a powerful marketing strategy that groups guests based on shared traits, like age or the purpose of their trip, for example, to deliver a more relevant experience.

This empowers you to resonate with each guest on a deeper level. The benefits? Undeniable. Studies show that businesses that adapt their offerings to customer segments generate 10% to 15% more revenue than those that don’t.

Furthermore, organizations with effective market segmentation strategies enjoy a 10% higher profit than companies whose segmentation wasn’t as effective over a 5-year period.

The good news? You don’t need to be overwhelmed – the average company uses just 3.5 different segmentation criteria. And you can use different tools to help you achieve this, among the most popular ones, a CRM system.

How Do You Start on Hotel Guest Segmentation?

In this section, you will find six basic tips on how to conduct guest segmentation.

1. Enrich Your Guest Data

To truly understand what segments need to be created, you need to gather your data into one place. Where to? Your CRM or CDP. Gather rich guest data through website forms, bookings, and feedback surveys. Analyze this data to identify patterns and define your segmentation criteria.

Remember, your guest data is your best asset. Discover how a CRM can help you increase revenue here.

2. Start with the Basic Segments

Begin by creating a few broad segments based on basic demographics like solo travelers, couples, or families. Another basic way to start is by focusing on first-timers and returning guests. This allows you to practice and refine your segmentation skills.‍

3. Leverage Segmentation Filters

Now, you are ready to go further in your segmentation. For this, your CRM will be highly useful. Most CRMs let you segment guests based on demographics, booking history, behavior, and more, allowing you to create highly targeted guest profiles for personalized experiences.

4. Get Insights on Your Segmentations

Once the segmentation is created, you must dedicate time to understanding the differences between the segments. These findings will help you to craft content, campaigns and initiatives that adapt to your guests. If complaints are more popular in one segment than in another, there is a clear sign that something needs to be fixed.

5. Create Specific Content

If you have the segments and you have learned from them, but you don’t spend time creating different messages, everything will be in vain. Craft custom email campaigns, website content, and even in-room promotions tailored to each segment’s needs.

Sending irrelevant content is one of the critical mistakes that can ruin your guests’ experience. We’ve identified 6 crucial mistakes you need to avoid here.

6. Measure and Refine

Track the performance to identify what resonates most effectively. Monitor the impact of your segmentation strategy on key metrics like booking rates, guest satisfaction, and revenue. Analyze the results and refine your segments and messaging over time.

Three Examples of Audiences

Here are three examples of audience segments:

1. Business Travelers

This segment prioritizes efficiency and convenience. Highlight your hotel’s proximity to business districts, on-site business amenities like workspaces and meeting rooms, and loyalty programs with perks for frequent business travelers.

2. Luxury Seekers

Target guests who love luxury. Highlight your hotel’s fancy rooms, special features like spas and great restaurants, and personal attention from the staff. ‍

3. Families

Attract families with children by highlighting your hotel’s kid-friendly amenities like pools, game rooms, and on-site activities. Offer family packages that include bundled pricing for children’s meals or complimentary access to attractions.

Get ideas for 9 audience segments you can create today.

How Is Guest Segmentation Applied through the Guest Journey, from Pre-Booking to Post-Stay?

The beauty of guest segmentation lies in its automation potential. Imagine creating 10 unique guest journeys – one for each of your key segments. With the right hotel CRM platform, these journeys can run automatically. For example, if you use Bookboost’s CRM, the system triggers personalized messages, campaigns, and reminders based on the guest’s segment, freeing you from manual interventions.

By implementing guest segmentation throughout the entire guest journey, you can create a truly personalized experience for each guest, leading to higher satisfaction, loyalty, and, ultimately, increased revenue for your hotel.

Start segmenting today, and watch your guest satisfaction and revenue grow fast!

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