I’ve been doing a lot of work helping clients plan e-mail campaigns lately. In my experience, what separates great e-mail from mediocre e-mail is the level of personalization and customization. The more relevant you can make your offer, the better ROI you’ll get, and the happier the recipient will be.

Collecting guest preferences should be an ongoing process, but it’s helpful to get some basic details when a person first signs up for your e-mail newsletter.

This is sometimes called a “Preferences Center” — and I wanted to take a look at how a few major hotel brands are building theirs. (Warning: large screenshots below!)

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With all the hype over social media during the past several years, e-mail has taken a backseat role in many ways.

That’s a shame. E-mail remains a very powerful marketing tool when used correctly. It can serve as the cornerstone of permission-based relationship marketing — the concept Seth Godin explained in his 1999 book Permission Marketing.

E-mail usually has a higher psychological value than other social media communication. If you are consistently delivering value in your messages people will listen to what you have to say. They may even take action.

This may sound like just theory, but in this article I will show you concrete examples of how hotels are using e-mail marketing to make money. We will look at ways your hotel can use email, how to build your list and create a campaign, benchmarks for testing, and finally some case studies of other hotels.

Part 1: Ways your hotel could use email

Use it as a direct response tool. When done correctly, e-mail allows you to communicate with laser-like focus to specific groups of people. This is one of the best ways your hotel can drive direct bookings.

Use it as an automated sales force. More than any other marketing tactic, email lends itself well to automation. You can create a powerful sales system, and then sit back and let it do the work for you. (At the end of this article, there is a case study of how the Broadmoor Hotel in Colorado used this tactic to generate $245,000 in revenue from a $15,000 investment.)

Use it as a feedback and research tool. Many hotels send an automatic survey link to gather guest feedback. That’s a good start. But I think there are also other ways you can use e-mail to get feedback… not only on the guests stay, but also for new ideas and other market research. This depends on the type of list that you have developed, but the potential is there. Be creative about it.

Use it as a relationship building tool. You can send loyal guests special offers. You can notify them of new amenities or features. You can provide insider information. You can use email to give your organization some personality. The opportunities are endless for building top of mind awareness.

Use it to provide superior guest service. There is so much potential for hotels to use e-mail to improve their guests’ experience. A series of e-mails could be triggered whenever someone makes a reservation: leading up to the stay, and then following up after they leave. Putting everything on autopilot insures every guest has an excellent experience interacting with your hotel. It reduces staff busywork and the potential for errors.

Use email to communicate with other important stakeholders. Email communications don’t always have to be sent to guests. There are other groups you should focus an equal amount of time on.

Fairmont Hotels understands this. Nearly half of their email newsletters are written for and sent to other businesses. One newsletter goes to administrative assistants that handle corporate bookings. Another goes to travel agents. Reaching and working with these people plays a large role in generating revenue.

Thought: What business partners should you be communicating with?

Part 2: Plan your list building strategy

Even aside from the ethical considerations, getting the best results from your email promotional efforts requires you create a list organically and with the explicit permission of your prospects.

• You can include a signup form on your website. Just keep it short: email & first name is best.
• Your front desk staff can ask for addresses during check-in or check out
• You can leave a letter of invitation in their room

However you plan to collect email addresses, make sure there is a strong benefit for the person signing up.

The prospect of receiving generic updates from your hotel may or may not be enough. Exclusive discounts or preferred service is more compelling.

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“E-mail has the highest ROI of marketing vehicles, producing $57 for every dollar spent.” – OgliveyOne Worlwide, Jeanniey Mullen

Email marketing is a very efficient tool for many hotels, and it’s important we don’t lose sight of this. My recent case study of how a hotel used email marketing was one of the most popular posts here this month, so I know many of you want information on this topic.

Here are some of the most compelling benefits email marketing can provide your hotel:

1. Email is cost-efficient and fast

2. Email is an effective branding tool for creating top-of-mind awareness

3. Email builds loyal relationships with existing guests through personalized communications

4. Email can assist in providing superior guest service

5. Email is a powerful direct-response vehicle

6. Email provides the ability to send highly targeted offers to very specific audiences

7. Email drives action and profits

8. Email can function as an automated sales force

9. Email encourages direct bookings

10. Email makes tracking metrics easy

11. Email makes testing different messages simple

12. Email encourages guest feedback

I’m working on a few detailed comprehensive posts on email marketing for the weeks ahead. I plan to mix some best practices with case studies of hotels that have used email marketing successfully.

What has been your experience with email marketing?

What’s your #1 question about using email to reach your guests?

Today I read an email marketing case study on Monmouth Plantation, a historic luxury Mississippi inn. Because of the recent economic crisis, the hotel had been using special (low) room rates in their email newsletters to generate business.

Recently, however, they decided to focus on selling their lavish experience – and less on the price. They began sending email promoting sensory-overloading experiences.

For example, read the description of their $1,900 Gourmet Package offer that included two nights of accommodations, a tour of three historic mansions, a carriage ride through the quaint downtown area, and in-room massages:

“Upon arrival, guests will be greeted and escorted to their rooms where chilled champagne, chocolates and flowers await their arrival. That evening guests gather in the dining room for hors d’oeuvres and wine; a host/hostess will give a history of the antebellum home. Dining under 17th century chandeliers on the Empire table with beautiful china, silver and first-class service is the highlight of this package. The chef will greet each guest and invite culinary conversation. After-dinner drinks featuring the Southern signature drink, mint julep, will be served in the study nightly. A private hot air balloon ride over Natchez is the featured activity in this package.”

The result? The email open rate increased 15% and their promotions enjoyed a 30-40% click-through increase.

Today’s homework: How could you use “sensory overload” to sell your hotel’s experience in your email promotions?