Why IPTV should play a much bigger role in a hotel’s Marketing Mix

I have written before that the value of an IPTV system in a hotel today should not solely be viewed from a ROI perspective. The real value of in-room systems lies in the capability to provide differentiation through turning a TV into a hotel brand ambassador that will help with building a loyal customer base.

I want to elaborate on that here as there are many more not (yet) so obvious areas where a hotel can employ their IPTV system to facilitate highly personalised services and cross-sell / up-sell opportunities.

This is a long way away from the old days where in-room entertainment was little more than VOD plus some hotel info. The customisation capabilities of good IPTV systems today, and the insights they can provide, should make them an invaluable part of a hotel’s mix of marketing tools.

Let’s not forget that a hotel room delivers a captive environment second only to being on an aircraft. While digital signage can only engage people for just a minute or two, if that, a well designed, technically superior IPTV system can engage guests for hours and provide a temporary escape – which is something guest are not adverse to in a hotel room, just as they aren’t on an aircraft. Unless you are staying in the honeymoon suite that is. Lean back rather than forward is the name of the game here, so hotels should satisfy guests’ susceptibility to indulge in the most personalised way possible.

Being IP based, naturally, an IPTV system has a wealth of data available at the back end that gives a hotel invaluable behavioural data to mine and use. Working hand in hand with a rich and intuitive user interface, the backend can provide very granular information on guest behaviour.

Showing which TV channels are most watched or radio stations are most listened to, and at what time of the day, is data that can be used to populate a loyalty profile that automatically makes the preferred channels top of the list when the guest stays the next time. 

In-room dining consumption data can be used to promote additional items a guest may like and offers another avenue to provide highly personalised complimentary items to foster loyalty.

Data from hotel services usage that is captured through workflow management software can give the hotel an idea whether a guest wants extra bottles of water in a room, rather have a limousine transfer to the airport than take a taxi and which selection from the pillow menu is preferred.

The list goes on: from movie genre preferences and gift shopping records that can be used for future promotions, to bookings of spa treatments and dining reservation records: if it is a service that is on the IPTV system, it is possible to mine the data at the backend.

Speaking of which: an intelligent backend management system is a must for any IPTV system in order for a hotel to manage it properly and get the most value out of it. It should be a web-based system with intuitive navigation and user access management facilities to allow different staff within a hotel to manage different parts of the system in a timely manner.

The backend system should also have the capability to translate extracted data into useable information in order to facilitate cross-referencing with other guest data that is captured at all customer touch points, such as hotels’ e-marketing tools.

This is where it really gets interesting - together, these data sets have the ability to not only provide a richly personalised guest experience on all levels, it also increases marketing productivity and effectiveness and adds to revPAR. And last not least, it will greatly enhance overall brand consistency and value. It’s a great opportunity for hotels to utilise customer data to gain insights to guest behaviour and preferences without invading their privacy.

Who would have thought there is still so much value in the old IR remote control?