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.

Read more…

“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?

I’m excited to announce the arrival of my new email newsletter, Hotel Marketing Ideas.

What it is: A monthly email with highlights from this blog, along with any other information about hotel marketing I think you may like.

Who it’s for: People who like this blog’s content, but don’t want to receive the daily updates I currently provide via email and RSS

When it’s coming: The first issue will be published the first week of July

Instead of asking you all to sign up, I’ll be the first to tell you this isn’t for everyone. I’m publishing it for the hotel owner or marketing manager that is interested in trying new tactics and technology to promote their hotel online.

If that’s not you, please ignore this message. If it sounds like something you’re interested in, you can sign up using the link above.

As I said earlier, cutting price should not be your first reaction to an economic slowdown.  Instead, you should maximize profit by reaching out to your best guests.

Of course, you’ll need a guest intelligence system that tells you who these people are.

But assuming that is already in place, how can you reward your best guests?  Here are some ideas that have worked for others:

• Idea 1: Develop special birthday and anniversary packages.  Send them to your guests on their special day using email or direct mail.  This has proven very cost effective for many hotels.
• Idea 2: Create seasonal specials packages.  Partner with local businesses to offer a specially-priced package on an area attraction.  Send this to guests that have stayed at your hotel in the past.  With joint ventures like this, everyone involved benefits.
• Idea 3: Send “We haven’t seen you in a while” followup messages.  For guests that used to stay regularly, but haven’t for a while, send them an email or postcard with a special offer to come again.  Offer a free breakfast or glass of wine at your hotel bar.  Tell them you miss their business, and look forward to seeing them again.

Again, to execute these ideas, you’ll need an intelligent database like we described earlier.  As you can see, the creative freedom you have to develop truly unique promotions is directly proportional to the quality of information you have to work with.

Let me ask you this: How do you reward your best guests?