In our previous blog, we have showed you how artificial intelligence in hotels can automate concierge services via automation and machine learning! As said, this is going to be a blog-series; we will discuss about– how AI can in hotels can improve brand relevance. So, let’s continue! Before we can develop solutions to stay relevant in the consumer’s mind, we need to know what we, as marketers and brand strategists, are up against and better understand what AI and machine learning brings. Artificial intelligence and machine learning are already transforming the technological landscape in hotels and helping the hoteliers to make their brand more relevant by attracting more millennial travelers than ever. From digital concierge service to image-recognition software and self-driving cars (few hotels have adopted already), what was once the stuff of science fiction is now becoming a reality already!
Higher expectations means more personalized marketing opportunities. What does this mean for marketers? The further integration of technology into the physical world creates new consumer interactions that are even more simple and instantaneous. Put another way, high consumer expectations will be higher than ever. This will pose a challenge for brands—and a great opportunity.
A big part of the opportunity for marketers is how AI will help us fully realize personalization—and relevance—at scale. With platforms like Search and YouTube reaching billions of people everyday, digital ad platforms finally can achieve communication at scale. This scale, combined with customization possible through AI, means we’ll soon be able to tailor campaigns to consumer intent in the moment. It will be like having a million planners in your pocket.
We’re getting closer to a point where campaigns and customer interactions can be made more relevant end-to-end—from planning to creative messaging to media targeting to the retail experience. We will be able to take into account all the signals we have at the customer level, so we can consider not only things like a consumer’s color and tone preferences, but also purchase history and contextual relevance. And all of this will be optimized on the fly in real time.
How AI is Transforming Digital Marketing to Keep a Brand Relevant
1. Data Crunching
According to IBM, 2.5 quintillion bytes of data are generated every day. Out of which, only 33% of the total data we produce being actually valuable for marketers. As such, together with Big Data analytics, AI plays a crucial role to sieve and classify data to figure out what is relevant for the modern-day marketer and his brands.
For instance, Marriott International has 20 years’ worth of hotel booking data collected over the millions of visits to their desk and site. AI enables Marriott to improve the user experience for their millions of guests, at individual level (custom-tailored recommendations). From relevant product recommendations to understanding search language (voice and text) through machine learning, Marriott delivers a customised experience to each guest.
2. Predictive Analytics
Let’s take a real-life example! We all have seen, been there or at least heard about Four Seasons Hotels and Resorts, right? With AI analysing the data, we not only make sense of it faster but we can also use it to predict what our consumers like. With sufficient data about guests, their marketing needs or their future actions can be predicted with AI. A famous example of predictive marketing is the way Four Seasons Hotels and Resorts created an AI-enabled concierge service, which won the International Hotel Awards in 2016. Utilising data from over 1.25 Mn guests, Four Seasons Hotels and Resorts found some interesting insights:
People prefer to talk to a chatbot rather than a real-time customer executive to solve the queries. 36% guests staying in Four Seasons Hotels and Resorts have used either once or twice the AI-enabled concierge services. 59% millennial travelers in Four Seasons Hotels and Resorts have used Virtual Reality and IoT during their stay. All the aforementioned factors have assisted Four Seasons Hotels and Resorts to stay more relevant and develop a better guest-base via AI.
3. Consumer Experience
When it comes to AI ameliorating consumer experiences, chatbots are definitely a highlight. A chatbot is a form of AI that is able to simulate human conversation through either voice commands or text chats or both. Trends in customer service are changing with an entire tech-savvy generation preferring to solve their customer service issues in ways such as FAQs, forums and online chat services. With more than 34 000 chatbots on Facebook Messenger, it is evident that businesses are now capitalising on this opportunity to create new revenue streams using AI and trying to make a brand more relevant than ever.
Many industries including hospitality, airline, clothing, and design are utilising this space to connect with their consumers. Chatbots do not necessarily stop at providing feedback but play a valuable role in turning consideration into purchase. For instance, the chatbot of Sephora on Kik acts as a store guide providing you product reviews while you are shopping in a physical store. It is evident that neither man nor machine can work in silo. Digital marketers of the present day need to work in tandem with machines to make decisions with the power of AI.
How AI can Improve Brand Relevance in Hotels
A lot of people are objecting to Facebook’s data sharing and keeping tabs on the activity. Well, this has been going on for a while and not just Facebook; Google does it, LinkedIn does it, cookies from websites gather information on you & your activity while you’re on that website. It’s really not fair to single out Facebook, but people are looking for someone to blame so this will change how data is collected on us, but it won’t go away – we marketers and advertisers need this information. As consumers navigate across the internet, they leave behind millions of signals about their intent, context, and identity. Machine learning is an effective way to process complex data and surface insights that matter to marketers.
We can utilize these digital footprints to render hyper-personalized recommendations to the users and assist them in their hotel booking journey. Hotels can quickly solve problems when they identify customer issues /dissatisfaction patterns early on. AI programs can recognize a consumer’s voice across a range of touchpoints to predict their emotional state so the hotel can respond with the most appropriate tone of voice or solution. For example, if a customer is angry, the system can direct the representative to offer additional benefits or discounts and generate a positive experience instead. Also, AI can– reduce consumer ‘choice clutter’. Shoppers tend to get confused and angry when presented with too many options. By tracking customer browsing patterns and reviewing previous purchase history, AI can target buying options to help the right customer find the right products. It can target even further by analyzing factors like weather, location, age and gender, and make recommendations that are more personalized and relevant.
Furthermore, by applying AI to the content creation process, brands can also go beyond generic forms of communication to design campaigns that truly engage audiences holistically. Although brands may have access to a vast amount of content or boast massive content creation capabilities, without appropriate segmentation and targeting, even a well-designed campaign may prove to be unsuccessful. With the capabilities of AI, brands and marketers can offer specially curated content to each individual customer that focuses on solving a specific problem for them. Such a customer-first approach to marketing can thus result in enhanced KPIs, better decision making, more leads, and more conversions for the brand.
So, now you know how Artificial Intelligence in hotels is improving the brand relevance and aiding the hoteliers to improve guest experience by engaging the guests in myriads of new ways like VR, digital concierge service, and Internet of Things.
This is 3rd and the final part of the AI blog-series! So, now, do you also wish for a better guest engagement in your hotel via AI services and products? Do you ponder over implementing AI in your hotel but are unable to? It’s never too late! Schedule a demo with us and we will tell you more about AI-enabled chatbots & voice-based services and how can you utilize them to bring in more guests and redefine your customer experience and take it to a whole new level.