How to Determine The Value of Mobile App in Your Hotel

App Analytics

If your hotel consider itself to be an early adopter of modern technologies, you probably purchased (or think about purchasing) the mobile app. In case you are not just throwing money away (I assume you probably not), you definitely think about how it can help you achieve your bottom line – profit. One (and the easiest way) is to purchase the app and see if your services are sold. However, when they are not, you might be in a position to consider the mobile app to be useless for your hotel. But should direct profit be the only measure of app success? Certainly not.

The following paragraphs will teach you how to avoid shortsightedness of direct profit by putting “broad” glasses on your head. So let’s dive into several tips that will help you figure out if your app is really worth it or worthless.

 

First, segment your guests…

Here comes the first crucial step. If you really want to know the value the app brings to your hotel, you should definitely compare 2 segments created from your guests – guests who used mobile app vs. guests who didn’t use mobile app. This is the place where magic happens. Create a spreadsheet consisting of your guests and their behavior (purchases, visits, money spent) and add usage variable to this spreadsheet. This will allow you to compare these two types of guests even with the use of statistical methods such as t-test or Mann-Whitney test. You can also find some associations in your data. Statistical testing of hypothesis will give you confidence in results and assure you that differences are not only random.

 

Now it is time to find the real value

The fact is that people might not be comfortable about buying things via mobile devices. But they can still find information about the product you offer and purchase it in person on the front desk. You can compare segments you created in previous step and watch if there are any changes in number of ordered products/services. If there is some (and you statistically proved it)… BIG TIME! Now you can see that nevertheless direct purchases might reach low number, indirect ones might achieve a serious level.

If we are talking about money, what about number of visits in your hotel? How many people come to your hotel repeatedly? Compare those two segments and figure out if there is increased repetition rate in segment of people who uses mobile app. Remember, that you can still improve this number with special offers that are relevant to the mobile app user.

Let’s introduce you to another opportunity. As a hotel owner or manager, you certainly care about guest’s satisfaction. Now you can compare, if there are any differences between app users vs. non-users. Is any of the segment happier than other? Do people who use your mobile app recommend your hotel more often? This is the question you should be able to answer.

 

One more thought…

If you see you can extract value from usage of the app in your hotel, you should start to push it more in order to expand the number of users. We have already mentioned some tricks to persuade your guests about using your app in one of our previous posts.

 

Which of mentioned tips are you going to use? Do you have more ideas about how to determine the value of app usage? If yes, don’t hesitate to let us know in comments.

 

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Marketing Specialist and PhD. candidate
Lukáš takes care of questions connected to modern marketing, analytics and optimization of processes.

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