Creation of 19% projected net profit increase for a hotel chain and reduction -68% the current monthly maintenance cost

Overview & Challenges

A hotel chain wanted to improve its internal technology and its external online strategy. Internally our client was managed by an expensive, non integrated multi-platform, located in the same hotel headquarters. Externally our client had a poor online presence, with low numbers of touch points, bad reviews and the main distribution channel had expensive commissions for each new booking.

Strategy Designed

A Simastec team came to assess the change of the company. The proposed plan includes measures like:

 

(1) Reduce its CCA (cost of client acquisition): on one hand, creating key performance indicator, preparing a software to visualize in a easy way graphically. On the other hand, we detected that near 90% of distribution was done by 3rd parties channels charging 21% commission on average; so try to reduce it by go over them with own online marketing channels.

 

(2) Search a new integrated, cloud, mobile-compatible and cheaper solution to manage the external sales and the internal management of the company. In order to reduce the complexity for the long-term of the company, decrease the risk and improve the efficiency of the process. After that, give a deep training to maintain the software, reducing the suppliers maintenance costs.

 

(3) Improve the online presence: increasing the numbers of touch points and the corporate branding -including the website and social networks-.

Technologies Applied

Business Intelligence, ERP, Cloud, IT Strategy, Mobility, SEO and SEM, Social Networks, System Integration, Training, Web Development

Impact

After that approach Simastec: first, decrease the technology implementation cost s in -40% and the current monthly maintenance cost in -68%. Second, it improved the online presence: increasing +1,5 over 10,0 points the average public review score by customers, increase the engagement and an average of +92,5% the number of participants in client social networks (Twitter followers and Facebook likes) and in terms of Google Search Engine Optimisation it was converted from non appearing in the 1st page of search results, to appear in the 1st results position, going over the main tour operators as Booking, Trip-advisor, etc. Third and finally, it created a projected net profit increased of 19% per year.

 

 

Our commitment to confidentiality prevents us from disclosing the identity of our clients and their confidential information.

Conversion to a Profitable Business with 9x more Projected Revenues and reducing in 87% its Client Cost of Acquisition

Overview & Challenges

A tech company offering a cloud PAS (Product As a Service) wanted to improve its strategic and technological situation. It was immersed in a un-profitable business with a high credit leverage. The company didn’t have control about the product design, which contains a high level of complexity in its multi-platform structure.

Strategy Designed

A Simastec team came to assess the turnaround process of the company. After audit the client in terms of strategy and technology, working jointly with the client team it was created a plan including these measures:

 

(1) Reduce risk:

- Negotiating with all their tech suppliers to re-gain the copyright and control of their product.

- Create standard procedures to avoid these problems with futures suppliers.

- Collecting a 360º client multi-channel feedback to understand the target client preferences and improve the differentiation strategy from competitors.

- Implant business intelligence software to understand the business by the client and improve their key factor performance indications.

 

(2) Reduce cost:

- Centering the product development investment doing always little prototypes asked by the clients with fast feedback.

- Reducing the cost of client acquisition by a multi-channel test detecting the most ROI distribution channel.

 

(3) Increase revenues:

- Product diversification: defining strategic partnerships to increase the client revenue per client and reduce even more their client acquisition doing cross-selling with those partners.
- Increasing the numbers of touch points to the online distribution channel and automating the process of content publication and client following.
- Reducing the bottlenecks in the online distribution channel.
- Changing the pricing of the product

Technologies Applied

Business Intelligence, Business Modeling Software, Dedicated Hostings, Mail Marketing, Mobile Development, Process Automatization, SEO and SEM, Streaming Software, Social Networks, Web Development

Impact

After the implementation of the plan with the client, Simastec had re-design and tested an strategy to create a profitable business model with 9 times more projected revenues, removing completely its credit leverage in 5 years, reducing its client cost of acquisition in 87% and capturing again the product development control.

 

 

Our commitment to confidentiality prevents us from disclosing the identity of our clients and their confidential information.

Case Study

Reduce technology complexity in a retail distributor.

 

 - How we do it?

Testimonial

"The project was great with Simastec. Speed and results, all in one."

 

- Hotel Chain Client