Data-driven: Trust, transparency and exceptional experiences in hospitality

NEVER has data held greater value than it does today. The business models of millions of companies in thousands of industries rely on it. However, as the severity and regularity of data breaches increase and transparency about what is collected and why decreases, public trust has plummeted. Data is said to have surpassed oil as the world’s most valuable resource. That’s because it has become invaluable for businesses in every industry, allowing them to better understand customer habits and preferences and, therefore, how to engage them.

Today whenever we visit a website, click on a social media link, or schedule an appointment or reservation, our online data profile grows. Every industry is embracing data, including hospitality. Whenever we make a reservation, order or pay via QR, or use a third-party delivery app, data is collected. While we’re aware as consumers this is happening, it’s rarely clear what is being collected, why and where it is stored.

There has long been uncertainty over who owns the data. ​​Third-party tech companies and hospitality operators both claim ownership – but whose data is it really? How can data collection become more trustworthy and transparent? And why should Singaporeans feel compelled rather than uncertain about sharing approved data with their favourite restaurants, bars and cafes?

Direct is best

Much of the battle over data hinges over third-party technology companies. Third-party delivery platforms offer marketplaces that succeed if they can monopolise demand. Venues – whether restaurants, bars or cafés – pay to access that demand. The third party uses the data it collects through diner orders to ensure those diners are loyal to the platform, not to the individual venue.

Through third-party platforms, venues can access an often vast customer base, but without access to this data, they can’t understand, communicate or build relationships with their diners. Without data, personalised marketing and loyalty – which is what Singaporeans demand today – is impossible. Third-party platforms often falsely argue that personal information is too sensitive and confidential for a venue to manage.

A direct approach allows venues to provide the experiences diners demand, and reduces third-party fees too. It doesn’t come at the expense of security. Venues that deploy hospitality tech use the software to not only improve their operations, but keep guest data safe. Data is complex, but its purpose is simple: helping venues provide the experiences that drive revenue and retention. Operators want to understand who their guests are and what they want – from their favourite dishes and how often they visit, to their allergies and their birthday.

Venues aren’t trying to access their medical records or bank details. They’re accessing data that enables them to establish a better understanding of their guests to provide the truly meaningful and personalised experiences.

Building trust, transparency and safeguards

Singaporeans are strong supporters of local players. By sharing their data with venues, rather than third parties, they can make that support tangible, whilst also getting some benefits in return. That’s because data collection itself is not the problem. The lack of transparency and consent is.

In fact, Singaporeans are actually happy to share their data. According to SevenRooms’ research, 57 per cent of Singaporeans are happy to share their personal data with a restaurant, bar, cafe or hotel for personalised experiences while 67 per cent are happy to do so for health and safety purposes. Meanwhile, 68 per cent hold hospitality venues to “a higher standard” post-pandemic. Data is what enables venues to meet and exceed their increased and evolving expectations.

Crucial to these expectations is personalisation. Consider, for example, Spotify and Amazon. Through customer data, they provide tailored playlists and shopping carts to personalise the experience of every customer. Through this approach, they’ve strengthened their leading industry position. Data has the same potential in the hospitality sector, too.

For example, data is what tells a venue that Guest A visits once a month, orders the same bottle of Merlot and has a shellfish allergy. With those insights, the venue knows not to promote shellfish in its marketing to that customer, but that an offer of a free or discounted Merlot might be all that’s needed for the guest to visit more regularly.

Those are the experiences guests demand and are willing to share their data for – if venues communicate what they collect and why, and seek permission to do so. If a guest can make an informed decision, has to opt in rather than be auto-enrolled, and can opt out at any time, there are significant benefits to sharing their data with their favourite venues.

The ability for venues across Singapore to access customer data is a privilege, not a right. Venues must respond to that privilege with technology that adheres to compliant data protection, data access, data portability, and governance. Businesses must still have a sense of personal responsibility. After all, guests are entrusting their data to them willingly. However, the right software ensures the safety of that data, so the venue can focus on what it does best – offering best-in-class hospitality to their guests.

The data revolution is providing venues with endless opportunities to personalise guests’ dining experiences to drive loyalty, repeat business and revenue. When venues communicate transparently about what they collect and why, and consumers make an informed decision to share their data willingly in exchange for the benefits, data has immense potential.

With more and more operators across Singapore utilising technology to capture valuable insights and build direct, meaningful guest relationships, it is clear that data will continue to play an integral role in driving the local hospitality industry. But consumers must trust that their data is being used only with their express permission, stored with the most sophisticated safeguards, and that they are the primary benefactors of its collection.

The writer is CEO and co-founder at SevenRooms, a guest experience and retention platform in the hospitality sector.