Experts of Experience: The World’s Most Customer-Obsessed Hotel Brand

Hosted by Mission.org

Episode Overview: In this episode of Experts of Experience, hosts Lacey Peace and Rose engage in a comprehensive discussion with Casper Overbeck, the multifaceted CDO, CPO, and CXO of CitizenM Hotels. The conversation delves into CitizenM’s customer-centric strategies, innovative use of emerging technologies like AI and GPT, and the recent acquisition by Marriott. Casper shares insights into creating exceptional customer experiences, managing rapid growth, and integrating digital solutions seamlessly with human interactions.

I. Introduction

The episode kicks off with an introduction of Casper Overbeck, highlighting his extensive roles at CitizenM Hotels and the brand's impressive expansion from 10 to 37-38 locations.

Casper Overbeck [00:00]: "When I started SITS&M, we had 10 hotels and now we are 37, 38."

II. Casper Overbeck and His Role at CitizenM

Casper elaborates on his diverse titles—CDO (Chief Digital Officer), CPO (Chief Product Officer), and CXO (Chief Experience Officer)—and his pivotal role in shaping CitizenM’s digital and customer experience strategies.

Lacey Peace [08:08]: "Your title is CDO, CPO and CXO. Right? Did I miss anything?"

Casper Overbeck [08:24]: "One of the little mistakes that I made because sometimes it's good to be a bit more specific. So you could add membership as well to the job title."

III. Growth and Challenges of CitizenM

Casper discusses the rapid growth of CitizenM Hotels and the accompanying challenges, particularly in managing technological complexity as the company scales.

Casper Overbeck [08:53]: "We were growing and growing and at a certain point you see that you build up legacy in your tech and your digital setup. And then at a certain point you are trying to solve issues by reducing complexity, but by solving them you're actually adding more complexity."

IV. Customer Experience Strategy

Central to CitizenM’s success is its unwavering focus on customer experience. Casper emphasizes creating "moments of magic" by solving customer issues while maintaining simplicity in the customer journey.

Casper Overbeck [00:27]: "Are the moments of magic. You are trying to solve issues and trying to reduce complexity, but by solving them, you're actually adding more complexity."

Lacey Peace [04:18]: "The stay, this... the experience is the product."

V. Acquisition by Marriott: Reasons and Implications

The acquisition by Marriott is a significant milestone for CitizenM. Casper explains the rationale behind the acquisition, highlighting cultural alignment and the strategic advantages of joining a global hotel conglomerate.

Casper Overbeck [13:00]: "We were already talking for quite a while... Marriott came by and now suddenly you're talking about the biggest hotel group in the world."

He further details the benefits, including access to Marriott’s vast Bonvoy membership system and opportunities for future growth while ensuring the preservation of CitizenM’s unique brand identity.

Casper Overbeck [15:10]: "They have indicated that they really want to do everything to preserve what makes our brand unique."

VI. Loyalty Program: Development and Integration with Marriott

One of CitizenM’s standout initiatives is its innovative loyalty program, My Citizen Plus. Casper recounts the program’s inception during the COVID-19 pandemic, its evolution, and its seamless integration with Marriott’s Bonvoy program post-acquisition.

Casper Overbeck [17:44]: "We listened to the customer needs... price security and availability security."

The program offers members guaranteed availability and consistent pricing, along with perks like late checkout and discounts on food and beverage options. Casper notes the program’s rapid growth, reaching 50,000 members, and its unique approach compared to traditional loyalty schemes.

Casper Overbeck [17:44]: "You get it instantly. You don't need to stay with us multiple times."

VII. Lessons from Launching Loyalty Program During COVID

Launching a loyalty program amidst a global pandemic presented unique challenges. Casper shares valuable lessons on maintaining simplicity, focusing on core customer needs, and iterating based on feedback.

Casper Overbeck [21:50]: "Start simple... we wanted to make it special and vibrant, but it was too complicated to organize."

He emphasizes the importance of flexibility and learning from initial trials to refine the program effectively.

VIII. Digital Transformation at CitizenM

CitizenM’s commitment to digital innovation is evident in its streamlined operations and guest interactions. Casper describes the transition from traditional front desks to self-service kiosks and the development of the Mamba app to empower staff.

Casper Overbeck [28:15]: "We now have an employee app. We call it Mamba."

This digital overhaul not only enhances operational efficiency but also ensures that human ambassadors can focus on creating personalized and meaningful guest interactions.

IX. AI Implementation: Current and Future Uses

AI plays a crucial role in CitizenM’s strategy, both internally and externally. Casper outlines current applications, such as automating financial processes and enhancing customer service through AI-powered agents that achieve a 95% success rate in customer satisfaction.

Casper Overbeck [40:46]: "AI can solve a lot, but can they also be empathetic? Can the tone of the voice be right? And now I find out that it actually is possible."

Looking ahead, CitizenM plans to leverage AI for incident management and further integration within Marriott’s systems, aiming to enhance personalization and operational efficiency.

X. Balancing Technology and Human Connection

A recurring theme is CitizenM’s philosophy of using technology to augment rather than replace human interactions. Casper underscores the importance of maintaining a warm, human touch despite digital advancements.

Lacey Peace [27:35]: "You're taking technology to allow humans to connect in a more human way."

Casper Overbeck [33:04]: "We have a lot of AI solutions, but it's about how they connect to create a consistent customer journey."

This balance ensures that guests receive both the efficiency of digital tools and the personalized attention from knowledgeable staff.

XI. Future Plans and Growth Strategy

Post-acquisition, CitizenM aims to optimize operations, preserve its brand integrity, and explore new growth avenues, particularly leveraging AI and digital innovations.

Casper Overbeck [52:15]: "AI will actually sit on the core or the backend systems directly."

He anticipates significant developments in integrating AI with Marriott’s systems, enhancing both operational capabilities and guest experiences.

XII. Personal Insights: Lightning Round

The episode concludes with a light-hearted lightning round where Casper shares personal anecdotes and preferences, offering listeners a glimpse into his personality and values.

• Describe Your Job at a Dinner Party: Casper Overbeck [58:35]: "I work for a cool hotel brand and do all the digital stuff."

• Simplest Improvement for Hotels: Casper Overbeck [58:51]: "The real warm welcome just the moment you arrive."

• Small Touch of Luxury: Casper Overbeck [59:04]: "AM and PM shower gel in our bathrooms."

• Impressive Customer Experience: Casper Overbeck [61:05]: "Planting a tree as a memorial for a young hockey club member."

XIII. Conclusion

Casper Overbeck’s insights reveal a hotel brand deeply committed to exceptional customer experiences, innovative use of technology, and thoughtful integration of AI to enhance both operational efficiency and personalized guest interactions. The acquisition by Marriott opens new avenues for growth while ensuring CitizenM’s unique brand essence remains intact. As AI continues to evolve, CitizenM stands poised to leverage these advancements to further elevate the hospitality experience.

Notable Quotes:

• Casper Overbeck [01:01]: "We actually answer this question and the success rate is fantastic. It's 95% and we have like a 4.5 out of 5 customer appreciation score."

• Casper Overbeck [33:04]: "We have a lot of AI solutions, but it's about how they connect to create a consistent customer journey."

• Casper Overbeck [35:35]: "CitizenM is all about the guest journey and what we want."

Connect with Casper Overbeck: For more insights and updates from Casper Overbeck and CitizenM Hotels, follow him on LinkedIn or visit CitizenM’s website.