Customer Engagement v/s Revenue
Segment | % Fully Engaged | Average amount spent |
---|---|---|
Luxury | 33% | $910 |
Upper Upscale | 26% | $553 |
Upscale | 28% | $556 |
Upper Midscale | 21% | $378 |
Midscale | 19% | $310 |
Economy | 12% | $176 |
Engagement boosts profitability.
According to Gallup Survey 2014, engaged customers are comparatively less price-sensitive, because their emotional connection with the brand justifies the premium pricing. Surprisingly, 33% luxury guests spent almost twice compared to other customers, and were much more likely to pick hotels that delivered premium experiences.
Interestingly, the survey also mentions how over 55% luxury guests were willing to pay extra for improved multimedia, comfort and Internet services. In other words, engaged customers not only spend more, but can also become your biggest brand advocates.