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The Crucial Role of Analytics in Shaping Business Strategy: How a Resort F!cked Up It’s Marketing

Just recently I was invited to take a look at the online performance of resort that was previously doing really good. As usual, I asked a copy of their PMS guest data for the past 2 years.

Analytics provides the lens through which businesses can discern the often-complex interplay of factors driving their success. This understanding is crucial, especially when trends that seem odd at first glance begin to emerge. By delving deep into the data, businesses can uncover the cause and effect behind these trends, guiding strategic decisions that align with their most profitable avenues.

The Power of Analytics in Understanding Customer Segments

Consider the case of a resort that, upon a thorough analysis of its customer base, discovered that families with more than two kids represented its highest-yielding segment. The data revealed a striking insight: the average spend per stay of these families was over four times higher compared to couples. This finding should have been a beacon for strategic planning, highlighting the importance of catering to and expanding this lucrative segment.

A Shift in Strategy: The Lure of Trendiness

Driven by a desire to tap into newer, seemingly more vibrant markets, the resort shifted its social media strategy. It embraced trending music clips, fast-paced advertisements, and activities tailored for romantic getaways, aiming to attract a younger, trendier clientele. This pivot, though well-intentioned, was fundamentally misaligned with the resort’s core revenue-driving segment.

The Consequences of Ignoring Data-Driven Insights

The results of this strategic shift were telling—and unfortunate. Sales and revenue began to decline, a direct consequence of alienating the very segment that had been the cornerstone of the resort’s financial success. The marketing communications that aimed to make the resort trendy for young couples and singles did not resonate with families, who previously saw the resort as an ideal getaway tailored to their needs. This misstep resulted in millions of dollars in lost revenue, a stark reminder of the cost of neglecting analytics in strategic decision-making.

Lessons Learned: The Imperative of Analytics-Informed Strategy

This tale serves as a poignant lesson for businesses, particularly in the hospitality industry. The allure of chasing new market segments, especially in the quest to appear modern and trendy, must be carefully weighed against the insights drawn from data analytics. Understanding what drives revenue, who your most profitable customers are, and how best to serve them is fundamental. Analytics provides the roadmap for strategic decisions, ensuring that efforts are aligned with the most lucrative opportunities.

Conclusion: Embracing Analytics for Sustainable Success

In conclusion, the importance of thorough analytics in business strategy cannot be overstated. It is the foundation upon which successful, data-driven decisions are made, guiding companies toward sustainable growth and profitability. As demonstrated by the resort’s experience, failing to leverage analytics can lead to costly missteps. Businesses must prioritize a deep understanding of their data, allowing them to navigate the complexities of customer preferences and market trends with confidence and precision.

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