It has been established that for hotel business to be optimised and to turn out higher profits, it is essential to implement a first-rate CRM solution. Hotel software provides varied options to a hotel, helping the business operate in a systematic manner. It manages to dictate the workflow making the organisation a lot smoother. However, just adopting a CRM strategy is not enough, you need to measure its success to see if it has really benefitted your hotel business. If you do not know how, here are the 3 basic things to look for to assess your CRM’s performance.
Net Revenue Change
If you are spending big bucks on a hotel management software system, it is sure to achieve the bottom-line – more revenue and more profits. The CRM system gives you detailed reports of present revenue v/s past revenue. This is nothing but a comparison between sales before and after CRM implementation. If there is a substantial increase in income, it means that your sales team has benefitted hugely by this addition. It is necessary to keep track of how they have managed to achieve better results and focus on that prerogative.
Length of Each Pipeline Stage
Let’s focus on a more detailed metric of the CRM system. The sales or lead pipeline is a key feature that you will find on the CRM software for hospitality management. This gives us a step-by-step view of every stage of a lead’s journey – right from acquisition to closure. It is obvious that automation is going to speed up the process and move things faster on the pipeline but you have to carefully gauge how much time is spent on each stage. This gives you a clear picture of what has changed after CRM was introduced. Increased efficiency more or less translates to higher productivity. It is also important to note that sales processes should be measured against costs. If the investment is reaping more than enough benefits, it is safe to say your spending is justified.
The third and final vital item to be monitored is the closure rate. You need to ask yourself a few tough questions – Has your closure rate increased considerably? Is your average deal size bigger? Are the sales agents converting more deals than before? If you get positive answers, it is surely a good sign. All sales agents have their task cut out for them. Using CRM’s features, they can do a better job of converting leads. It is in your best interest to formulate a report showing sales statistics of up to 6 months before the CRM strategy was executed to know where your sales number stand. Increase in closure rate is a must, otherwise, there is no profitability in applying CRM initiatives in your hotel business.
Apart from these 3, you can also look at differences in upsell rates, customer lifetime value, campaign incomes and the like to get a better grip of how your CRM operation has been. CRM software for hotel industry is surely a step in the right direction but only if you can turn that into higher income.