By David Warman, HSMAI Ideas and Team Executive
Revenue managers (Revenue Management) of hotels face increasing expectations to drive results through true data-driven decision-making. The pandemic has heightened these expectations.
Influencing outcomes requires process and intention beyond collecting data and making observations.
What are the characteristics of revenue insights leaders?
Insightful storytelling can transform a tactical data wielder into a strategic revenue insights leader.
It takes more than collecting data to make an impact.
- Curiosity: insatiable curiosity to continually ask why this and why that.
- Data obsession: They want to see and understand numbers; they are not satisfied with opinions or points of view.
- Hypothesis-driven: They create hypotheses to challenge the status quo.
- Impact Orientation – They are not satisfied with the observations.
- Expertise in telling the story of data: they know the power of a story and appeal to all types of audiences.
It is through storytelling that the power of knowledge changes an organization.
- An idea is not an observation; it changes the status quo. A powerful insight:
- It influences opinions;
- Directs the strategy;
- It forces action.
The good news is that there is a usable formula for creating powerful insights:
- Identify opportunities.
- Start with current performance and evaluate.
- Be a great listener.
- Talk to business leaders at all levels; opportunities can be discovered through listening and observing.
- Brainstorming: Gather people into groups—such as sales leaders, marketing leaders, and digital leaders—and brainstorm the opportunities they see in the business.
- Estimated value: With more opportunities, determine which ones are the most powerful by estimating their value and then begin the process of finding data to support the chosen opportunities.
- Identify the barriers: Each of the chosen opportunities will have barriers that prevent achievement. These are often based on strong emotions such as conflict, tension, fear, or worry. It's important to identify these, as they will become central to the data narrative.
- Hypotheses: Now it's time to test hypotheses, for example, "I think doing X will improve Y." Revenue leaders are in a position to validate their hypotheses. For each hypothesis, a team can apply the treatment to a select group of customers or channels using AB testing or a pre-post model. If you really force a hypothesis, it often doesn't come true. The beauty of a null hypothesis is that it's another way of looking at an opportunity.
- Influence through storytelling: Stories are a huge influencer, and great stories are told over and over again year after year. People's stories about the fundamental reason they did something that was discovered years ago can be inspiring and informative.
- Identify the audience: Are there biases in the group? Prepare for any resistance. Identify personality types. Divide them into four categories: analytical, emotional, demanding, or contemplative. Identify their learning style. Are they visual learners? Are they just looking for three points? Do they prefer a verbal story? Plan the presentation method: a Word document? A PowerPoint presentation? Or simply a whiteboard to speak directly to the group and write key messages?
- Create a headline: Draw listeners into the story. It needs to be compelling to grab attention. It's a short phrase or statement that provokes action. Combine data and ideas into a compelling story that attracts preferred stock.
- People involved: without implications, everything that has a story is an interesting fact.
- Actionable Recommendation: Drive the story toward a recommendation to leverage the information. Insights with implications turn knowledge into action.
Aspiring revenue insights leaders can use insights and stories to influence people to take action and will end up having a much greater impact in their role.
Believe me, Insight experts increase revenue… and profitability!
