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The Impact of Social
  Media & ORM on
  Revenue



RJ Friedlander           @rjfriedlander
CEO, ReviewPro
March 2013               @reviewpro
About ReviewPro
  • Nearly 5,000 clients in 70 countries trust ReviewPro to improve guest satisfaction
    and increase revenue




March 2013                                                                           2
What are we going to talk about?
  • Online reputation management as a proxy for tracking and
    improving guest satisfaction


  • How innovative hoteliers are leveraging the social web to improve
    the guest experience


  • Can increasing your online reputation drive revenue growth?


  • How we help hotels manage their online reputation


  • Key takeaways


March 2013                                                              3
More things change, More they stay
the same




March 2013                           4
More things change, More they stay
the same




March 2013                           5
Introduction to Online Reputation
Management




             Listen                    React                        Revenue

 • Reviews are no longer   •   Positive Reputation is about:   • Increase Reviews
   targeted                •   Communication                   • Increase Distribution
 • Wider audience          •   Internal actions                • Steal Market Share
 • Understand Sentiments   •   Highlighting positives          • Add ORM to Revenue
 • Monitor multiple        •   Establishing trust                Metrics
   sources                                                     • Drive Revenue
March 2013                                                                               6
Opportunity to leverage the social web

             Know everything that is being said online about your
             hotels – “ 24/7 Mystery Shopper”

             Identify areas of improvement based upon
             quantitative & qualitative customer feedback


             Get your team on the same page


             Benchmark your guest satisfaction indexes against
             your direct competitors

             Maximize online distribution sales and increase
             direct bookings

March 2013                                                          7
The future of measuring customer
satisfaction




                         Global Review   Semantic
                            IndexTM      Analysis



                                         ONLINE     EDUCATION
             REPORTING     ALERTS
                                          TOOL      & SUPPORT



March 2013                                                      8
What are we going to talk about?
  • Online reputation management as a proxy for tracking and
    improving guest satisfaction


  • How innovative hoteliers are leveraging the social web to
    improve the guest experience


  • Can increasing your online reputation drive revenue growth?


  • How we help hotels manage their online reputation


  • Key takeaways


March 2013                                                        9
Product improvements: Olivia Plaza
Hotel
                                                  • Used semantic
                                                    analysis to improve
                                                    breakfast offering

                                                  • Significantly reduced
                                                    the number of
                                                    negative reviews and
                                                    comments




         “
             Our overall ratings improved considerably after we
                      implemented these measures.
                            - Ricardo Samaan, Olivia Plaza Hotel

March 2013                                                                10
Service improvements: CitizenM Hotels
  • Checkout includes guest satisfaction check:
    – Negative: A manager is involved to resolve problem
    – Positive: Receptionist encourages sharing
      experience in review

    • Higher volume of positive reviews and negative reviews are minimized
      because guests do not leave the hotel with a negative feeling




“
     We get people saying, „I usually don‟t write a review, but my stay at citizenM
     was so special because you did this specific thing that made me think WOW.‟
                                                       - Diego Sartori, CitizenM



March 2013                                                                     11
Service improvements: Corinthia
Hotels            • Use their Twitter account to
                                            provide service to their guests




“
      We‟re turning negatives into positives. We‟re transparent in reacting to issues in
      front of everyone. That helps our customers trust us.
                                                       Jason Potter, Corinthia Hotels
March 2013                                                                           12
What are we going to talk about?
  • Online reputation management as a proxy for tracking and
    improving guest satisfaction


  • How innovative hoteliers are leveraging the social web to improve
    the guest experience


  • Can increasing your online reputation drive revenue growth?


  • How we help hotels manage their online reputation


  • Key takeaways


March 2013                                                          13
Quantifying the impact of ORM on
revenue


“                                            “
             Guests are willing to pay 38%       A 1-point increase in a
             more for hotels whose online        review score equates to a
             reviews indicate top-level          9% increase in average
             service                             daily rate.
                                  comScore                            Expedia




March 2013                                                                 14
Study by Cornell University

      • Basis of the Analysis:
         – More than 930,00 samples reviewed over the period of 2 and a
           half years
         – Luxury, Upscale and Midscale establishments
         – In 11 key markets across the UMS and Europe
              Specifically Madrid, London, Rome, Berlin, Milan, Prague,
               Chicago, Los Angeles, New York, San Francisco and Miami
      • The study therefore reaffirms the impact of Online Reputation on all
        offline and online Distribution channels.




March 2013                                                                     15
Competitive Quality IndexTM (CQI)




March 2013                          16
Competitive Quality IndexTM (CQI)




March 2013                          17
Revenue Optimizer
    • Use the CQI™ alongside other industry metrics(STR,
      TravelClick):
      – Identify if you are achieving fair share of market from a quality
        perspective
      – CQI is calculated by dividing the GRI with the Competition
        Average GRI




March 2013                                                                  18
Revenue classification of “Chain A”




March 2013                             19
Revenue Opportunity
                                                                                  Revenue Opportunity

    • Key trends to analyze further
    ReviewPro Indexes
    82.6% i Cleanliness
    80.6% h Value
    77.1% h Location
    Semantic Mentions
    Room        (“Dirty”, “Small”, “Dark and Depressing”)
    Room        (“Poor Service”, “Wifi Horrible”, “Slow”)

    •   Possible Internal Actions:
        - Set up alerts on ReviewPro for all Managers to be up to date
           on all reviews from guests to maintain high CQI™
        - Set up the monthly reports and Snapshot to be up to date on    Scores     Nov
           trends within your hotel                                      CQI       110%
        - Identify whether you have an opportunity to increase rates     RevPAR     78%
        - Benchmark CQI™ against other metrics in the market
        - Add the GRI™ widget to the hotel website to drive direct
           bookings




March 2013                                                                                              20
How it looks in ReviewPro




March 2013                  21
Detail of your weaknesses vs. the
competition




 • The Semantic Analysis for the competition enables you to:
  – Which concepts you have posistive and negative mentions

  – Identify exactly what your competitors customers are saying about specific concepts for the competitor
    hotels

March 2013                                                                                               22
Management & Brand Reports
    • Reports Available
      –   Executive Summary
      –   Quality & Operations
      –   Sales & Marketing
      –   Brand Reports




March 2013                       23
Snapshot
 • Daily & Weekly Update of Online Evolution
   –   GRI Evolution
   –   Number of Reviews
   –   Number of Semantic Mentions
   –   Social Media Mentions
   –   Competition GRI Update




March 2013
What are we going to talk about?
  • Online reputation management as a proxy for tracking and
    improving guest satisfaction


  • How innovative hoteliers are leveraging the social web to improve
    the guest experience


  • Can increasing your online reputation drive revenue growth?


  • How we help hotels manage their online reputation


  • Key takeaways


March 2013                                                          25
Key takeaways
    • The social web provides guest insights that can be turned into
      action across the organization

    • Proactively managing online feedback can significantly improve the
      guest experience

    • The Global Review IndexTM is the leading barometer for online guest
      satisfaction benchmarking

    • The impact of social analytics plays a key role in helping you to
      maximize revenue




March 2013                                                                  26
Contact

                                        R.J. Friedlander
                                        CEO

                                        rfriedlander@reviewpro.com
                                        Twitter: @rjfriedlander
                                        Skype: rjfbcn
                                        Mobile: +34 610 459 003
                                        Website: www.reviewpro.com




             Visit our booth: Hall 7.1c, Stand 101 (just outside the eTravel Lab)



March 2013                                                                          27

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The Impact of ORM & Social Media on Revenue Growth

  • 1. The Impact of Social Media & ORM on Revenue RJ Friedlander @rjfriedlander CEO, ReviewPro March 2013 @reviewpro
  • 2. About ReviewPro • Nearly 5,000 clients in 70 countries trust ReviewPro to improve guest satisfaction and increase revenue March 2013 2
  • 3. What are we going to talk about? • Online reputation management as a proxy for tracking and improving guest satisfaction • How innovative hoteliers are leveraging the social web to improve the guest experience • Can increasing your online reputation drive revenue growth? • How we help hotels manage their online reputation • Key takeaways March 2013 3
  • 4. More things change, More they stay the same March 2013 4
  • 5. More things change, More they stay the same March 2013 5
  • 6. Introduction to Online Reputation Management Listen React Revenue • Reviews are no longer • Positive Reputation is about: • Increase Reviews targeted • Communication • Increase Distribution • Wider audience • Internal actions • Steal Market Share • Understand Sentiments • Highlighting positives • Add ORM to Revenue • Monitor multiple • Establishing trust Metrics sources • Drive Revenue March 2013 6
  • 7. Opportunity to leverage the social web Know everything that is being said online about your hotels – “ 24/7 Mystery Shopper” Identify areas of improvement based upon quantitative & qualitative customer feedback Get your team on the same page Benchmark your guest satisfaction indexes against your direct competitors Maximize online distribution sales and increase direct bookings March 2013 7
  • 8. The future of measuring customer satisfaction Global Review Semantic IndexTM Analysis ONLINE EDUCATION REPORTING ALERTS TOOL & SUPPORT March 2013 8
  • 9. What are we going to talk about? • Online reputation management as a proxy for tracking and improving guest satisfaction • How innovative hoteliers are leveraging the social web to improve the guest experience • Can increasing your online reputation drive revenue growth? • How we help hotels manage their online reputation • Key takeaways March 2013 9
  • 10. Product improvements: Olivia Plaza Hotel • Used semantic analysis to improve breakfast offering • Significantly reduced the number of negative reviews and comments “ Our overall ratings improved considerably after we implemented these measures. - Ricardo Samaan, Olivia Plaza Hotel March 2013 10
  • 11. Service improvements: CitizenM Hotels • Checkout includes guest satisfaction check: – Negative: A manager is involved to resolve problem – Positive: Receptionist encourages sharing experience in review • Higher volume of positive reviews and negative reviews are minimized because guests do not leave the hotel with a negative feeling “ We get people saying, „I usually don‟t write a review, but my stay at citizenM was so special because you did this specific thing that made me think WOW.‟ - Diego Sartori, CitizenM March 2013 11
  • 12. Service improvements: Corinthia Hotels • Use their Twitter account to provide service to their guests “ We‟re turning negatives into positives. We‟re transparent in reacting to issues in front of everyone. That helps our customers trust us. Jason Potter, Corinthia Hotels March 2013 12
  • 13. What are we going to talk about? • Online reputation management as a proxy for tracking and improving guest satisfaction • How innovative hoteliers are leveraging the social web to improve the guest experience • Can increasing your online reputation drive revenue growth? • How we help hotels manage their online reputation • Key takeaways March 2013 13
  • 14. Quantifying the impact of ORM on revenue “ “ Guests are willing to pay 38% A 1-point increase in a more for hotels whose online review score equates to a reviews indicate top-level 9% increase in average service daily rate. comScore Expedia March 2013 14
  • 15. Study by Cornell University • Basis of the Analysis: – More than 930,00 samples reviewed over the period of 2 and a half years – Luxury, Upscale and Midscale establishments – In 11 key markets across the UMS and Europe  Specifically Madrid, London, Rome, Berlin, Milan, Prague, Chicago, Los Angeles, New York, San Francisco and Miami • The study therefore reaffirms the impact of Online Reputation on all offline and online Distribution channels. March 2013 15
  • 16. Competitive Quality IndexTM (CQI) March 2013 16
  • 17. Competitive Quality IndexTM (CQI) March 2013 17
  • 18. Revenue Optimizer • Use the CQI™ alongside other industry metrics(STR, TravelClick): – Identify if you are achieving fair share of market from a quality perspective – CQI is calculated by dividing the GRI with the Competition Average GRI March 2013 18
  • 19. Revenue classification of “Chain A” March 2013 19
  • 20. Revenue Opportunity Revenue Opportunity • Key trends to analyze further ReviewPro Indexes 82.6% i Cleanliness 80.6% h Value 77.1% h Location Semantic Mentions Room (“Dirty”, “Small”, “Dark and Depressing”) Room (“Poor Service”, “Wifi Horrible”, “Slow”) • Possible Internal Actions: - Set up alerts on ReviewPro for all Managers to be up to date on all reviews from guests to maintain high CQI™ - Set up the monthly reports and Snapshot to be up to date on Scores Nov trends within your hotel CQI 110% - Identify whether you have an opportunity to increase rates RevPAR 78% - Benchmark CQI™ against other metrics in the market - Add the GRI™ widget to the hotel website to drive direct bookings March 2013 20
  • 21. How it looks in ReviewPro March 2013 21
  • 22. Detail of your weaknesses vs. the competition • The Semantic Analysis for the competition enables you to: – Which concepts you have posistive and negative mentions – Identify exactly what your competitors customers are saying about specific concepts for the competitor hotels March 2013 22
  • 23. Management & Brand Reports • Reports Available – Executive Summary – Quality & Operations – Sales & Marketing – Brand Reports March 2013 23
  • 24. Snapshot • Daily & Weekly Update of Online Evolution – GRI Evolution – Number of Reviews – Number of Semantic Mentions – Social Media Mentions – Competition GRI Update March 2013
  • 25. What are we going to talk about? • Online reputation management as a proxy for tracking and improving guest satisfaction • How innovative hoteliers are leveraging the social web to improve the guest experience • Can increasing your online reputation drive revenue growth? • How we help hotels manage their online reputation • Key takeaways March 2013 25
  • 26. Key takeaways • The social web provides guest insights that can be turned into action across the organization • Proactively managing online feedback can significantly improve the guest experience • The Global Review IndexTM is the leading barometer for online guest satisfaction benchmarking • The impact of social analytics plays a key role in helping you to maximize revenue March 2013 26
  • 27. Contact R.J. Friedlander CEO rfriedlander@reviewpro.com Twitter: @rjfriedlander Skype: rjfbcn Mobile: +34 610 459 003 Website: www.reviewpro.com Visit our booth: Hall 7.1c, Stand 101 (just outside the eTravel Lab) March 2013 27

Notas del editor

  1. Our vision is to transformDoesanyoneknowhowlongtheoldestcontinualyyfunctioning hotel in theworldis?!00 year, 150 years?Actually, itisthe XXX hotel in Japanwhichis 7XX yearsold and has been in thesamefamilyfor XXX generateionsThekeystosuccesshavealwaysbeenthesameBeen a radical change in thekey drivers tohowwemeasureguestsatisfaction and thefactorsthatinfluenceconsumersdecisión making and drive revenue…. Infact, accordTransition: butifyouwanttofillyour hotel, firstyouneedtogettheattention of potential new guests and convinceyouroldonestoreturn
  2. We’re also providing a lot of insight into the individuals mentioning the hotel with our integration with Klout…A key part of marketing could be social influence scoring. Klout has established themselves as a market leader in showing which social media users have the biggest ability to sway online influence. This can be HUGE when building a marketing or PR campaign…
  3. We’re also providing a lot of insight into the individuals mentioning the hotel with our integration with Klout…A key part of marketing could be social influence scoring. Klout has established themselves as a market leader in showing which social media users have the biggest ability to sway online influence. This can be HUGE when building a marketing or PR campaign…
  4. DanGood news for ReviewPro users. ReviewPro in process of rolling out new performance measure in reporting: Competitive Quality Index. Essentially equivalent of Melia’s Quality Penetration Index, provides way to measure guest review performance relative to competitors. Measured in same way hotels measure market share of rate, occ & revPAR: as an index, with 100 being fair market share, anything over being more than fair MS and anything below being under fair MS. Here’s sneak peak, with graph showing the hotel’s performance against competitors. In Phase 1 you will be able to export this metric with ReviewPro’s other key metrics to integrate into revenue management reporting. In Phase 2 you’ll see graph pictured. And in Phase 3 you’ll be able to import revenue data into ReviewPro to compare GRI and CQI with metrics like rate, occ and revPAR index.
  5. Dan
  6. Chris