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Hotel Industry News |
Sunday July 6th, 2008 |
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Client DNA The New Gold Standard for Business Development - By Carol Verret |
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If you hate cold calls, the dilemma is how to find new business without using a list or a directory. What do you do to locate new clients that fit the revenue management strategy? Hint: Answering the phone and closing inquiries isn't it! |
New Business Development or prospecting for business that fits the revenue management strategy is becoming more of an issue for hotel sales as demand softens. Anyone who receives the Smith Travel report for the US as a whole cannot help but notice that the demand index of occupancy began softening in the late third and fourth quarters of last year and has continued to do so Year to Date 2007.
While the REVPAR index has softened somewhat, it is only a matter of time before softening demand begins to exert downward pressure on rate growth in many markets. As the economy as whole is forecasted to experience a slower growth rate in 2007 and new supply in the pipeline comes online, there will be more pressure on hotel sales departments to develop new business.
What is Client DNA and how can it make the New Business Development process more efficient and effective? The DNA of a person determines what that person looks like and how they are 'wired' - the same principles apply to clients.
In the last election, both political parties developed the DNA profiles of their member and drilled it down into even specific precincts so tat they could tailor their message to the preferences and habits of their members. For example, Republicans in some key precincts tended to buy their morning coffee from Dunkin Donuts or other fast food outlets while Democrats in the same precinct tended to go to Starbucks more often. Could I make this up!?
Just as the DNA profiles told the political parties about the buying habits of their members, so can client DNA give hotel sales people information about the buying habits of potential clients and how they are wired. With this information, it is easier to locate potential new clients and craft a message that appeals to their DNA.
Developing client DNA by market segment and opportunity periods is a process. The following are the first steps:
• The DNA of Existing Clients. Who are they? Do they represent a particular industry or client group? Where does the booking originate geographically? What is the position of the person who booked the business? How did they locate the property? This is key, what was their 'tipping point' in selecting you and your hotel over the competition - that answer might surprise you!
• Get Into their World: How do they access information about hotels? What is the process they use in making lodging decisions? What associations or publications do they access to provide them tools to make judgments about the suitability of a property for a particular event? How did your property get on their 'radar screen'?
• Communication: How did the lead for this current client come to you? How did it originate - phone, email, referral? What is the client's preferred form of communication?
• How Can You Plug Into Their World? What info do they need from you to make a good decision? Hint: It is not a letter with bullet points of amenities like irons and boards, coffee makers, etc.! What will keep you on their radar screen so that you and your hotel are at the top of their mind when they are ready to 'buy', make a decision on their next function?
How do you find out this information? Ask the contacts at your existing good accounts the above questions - most people, if they like you and your hotel, are delighted to have the opportunity to talk about themselves. Delineating the DNA of current clients tells you how to locate and approach new accounts like them. Remember, in approaching prospective new clients, it's all about them not about coffee makers and irons and boards!
In the next article in the series, we'll discuss that approach without ever making that cold phone call and how to attract them to you!
Look for the next webcast coming in April: I Hate Cold Calls II' "Creating Communities of Clients"
Carol Verret And Associates Consulting and Training offers training services and consulting in the areas of sales, revenue management and customer service primarily but not exclusively to the hospitality industry. To find out more about the company click on www.carolverret.com. To contact Carol send her an email at carol@carolverret.com or she can be reached by cell phone (303) 618-4065.
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