Holiday, hotel and travel firms need to do a better job of communicating with their customers in a meaningful way, as consumers rate them just marginally above average compared to firms in all industry sectors, according to the new Customer Intimacy Index produced by database marketing specialist GI Insight.
Holiday, hotel and travel firms rank seventh, receiving subpar marks from consumers aged 45 and above – despite the fact that most firms in this space have extensive opportunities to gather the sort of unique customer data that enables them to send personalised, well-timed and relevant communications.
Level of knowledge of the individual
The 2013 GI Insight Customer Intimacy Index, compiled from a survey of over 1,000 UK consumers, scores a range of sectors according to the level of knowledge of the individual that companies in those industries demonstrate in their customer communications.
Andy Wood, GI Insight’s Managing Director, comments: “The latest Customer Intimacy Index suggests that organisations in many sectors are doing a particularly poor job of engaging older consumers – including those in the holiday, hotel and travel industry.
Making poor use of customer data
“Companies providing tourism, hospitality and passenger transport services were rated a little above average overall with a score of 105, but businesses operating in this space – many of which have frequent flyer and loyalty programmes – should be doing better than mid-table in the Index, even if their transactions are less regular than some other businesses. Most have the means to gather and utilise customer data to communicate with individual consumers more effectively, but clearly some are either choosing not to or making poor use of whatever information they have to hand.”
The Index indicates that industries with frequent transactions and strong loyalty programmes – which give firms the best opportunity to gather and employ consumer data – are generally the most successful at relating to their customers in a relevant way.
Women have high expectations
The index also shows that women have particularly high expectations. Companies across all sectors are finding it considerably more difficult to convince female consumers that they are using their data effectively to personalise and tailor customer communications, with women scoring all firms 10 points lower than men. The only sectors in which women ranked the companies they deal with higher than men were supermarkets and clothing.
Other key findings included:
- consumers under the age of 45 rate the firms they deal with more highly than their elders, with 25-34-year-olds giving all sectors the highest average score of any age band – an unambiguous 116;
- older consumers are markedly less impressed with the levels of personal engagement achieved by the companies that communicate with them, with respondents in the 45-54 age group giving all sectors a particularly low score of 72 – 28% below the average.
Importance of establishing strong relationships
Andy Wood, GI Insight’s Managing Director, comments: “In the face of continuing tough times, it is more important than ever for companies to establish strong relationships with their customers using data gathered from multiple touch points.
“Overall, most companies are falling especially short of the mark when it comes to older consumers and, as a result, many businesses risk alienating customers who have greater disposable income. The sheer volume of consumers from older demographics means these people remain a key economic engine that brands ignore at their peril.
“Too many companies are simply failing to communicate with all their customers in an informed and tailored way – especially those with more spending power. Consumers today expect businesses to know who they are and have some idea of what their needs are – and to reflect that knowledge in their interactions with them. This Index indicates that companies in most sectors need to do more to convince consumers they know them well and value their business.”
2013 Customer Intimacy Index
Sector | Score |
Supermarket | 132 |
Bank | 125 |
Mobile service company | 116 |
Entertainment provider | 114 |
Smartphone provider | 111 |
ISP | 109 |
Holiday, hotel & travel | 105 |
General insurer | 103 |
Utilities provider | 100 |
Clothing company | 100 |
Food brands | 99 |
Charities | 86 |
Home furnishings/DIY | 89 |
Computer/tablet manufacturer | 78 |
Car manufacturer | 76 |
Alcoholic drinks | 62 |
About GI Insight
GI Insight) specialises in database marketing and loyalty schemes, having created and managed more retail loyalty programmes than anyone else in the UK. The Leicester-based company offers a full range of database marketing services including consultancy, database design/build/host, data capture, analysis, segmentation, profiling, campaign execution and measurement, available as a whole or on a ‘pick and mix’ basis. The analysis and interpretation of your sales and customer data enables you to influence customer behaviour. This knowledge helps you to reliably increase profitability by:
- getting more new customers (acquisition);
- getting existing customers to spend more per transaction and spend more often;
- reducing Customer Attrition (retention).
For more information click here