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CRM
Presented by
3
Why
CRM
It costs six times
more money to get a
  new client than
 retain an existing
        one.
This                This
presentation        presentation
  will not...          will...
• Give you every   • Educate you on
  answer             basics
• Sell you any     • Make you want
  software           to learn more
• Make you an      • Challenge your
  expert             thinking

                                      6
TARGET
MARKETS
DISTRIBUTION

           Retail
           Travel                   Inbound
Consumer   Agent    Wholesalers   Tour Operator   Product
www
               DISTRIBUTION                       www
                    www

           Retail
           Travel                         Inbound
Consumer   Agent          Wholesalers   Tour Operator         Product



           www
                                          www



  www                                                   www
DISTRIBUTION
  Retail
  Travel                   Inbound
  Agent                  Tour Operator



              Consumer



Wholesalers          Product




                                         10
ARE YOU IN SALES,
   MARKETING
    OR BOTH
       ?
CRM
CRM
Client/Contact/Consumer

Reach/Retention/
Relationship

Management/Motivation/
Marketing
What is CRM?

Recognizing the Long
Term Value (LTV) of
customer relationships
and extending
communication beyond
advertising and sales
promotional messages.

                         15
16
TARGET
MARKETS
DEFINE
   YOUR
AUDIENCE(S)
Targetography
Target Market


  Demographics
Target Market


 Demographics   Psychographics
Target Market


 Demographics         Psychographics




                Passions
Target Market


                      Demographics         Psychographics
     Targeted
Affinity Marketing




                                     Passions
Affinity Focus



PASSION
 COST   = TRAVEL
When is a Customer a
    Customer?
PROBLEM:
  Up to 40%
cancellation rate
   between
reservation and
   payment.


                    29
Online Travel Purchase
            Process
• The average consumer makes 22 visits
  to travel sites (not necessarily different
  sites) before buying travel online.
• 15% don’t know where they’re going
  when they start planning.
• 39% don’t know when they will be
  traveling.

                  Source: Meskauskas, Jim. ”6 Keys to Vertical Ad Network Success.”
                           December 17, 2008. Via I-media connection e-newsletter.    30
Reinforce Relationship




                         31
Anticipate Needs




                   32
Reinforce Relationship




                         33
The Oyster Box
  • Classic resort in
    South Africa.
  • Tell us a story
    about the old
    Oyster Box
  • What’s Old is
    New


                        34
                        48
WHEN ARE YOUR
 PROSPECTS
  POTENTIAL
     ?
To Create a Database...
 You have to ask the
      Questions
Case Study: Harrah’s Casino
• When guests check in at Harrah's Casinos,
  they are given a casino card that acts like a credit
  card that can be used for access to gaming rooms
  and machines, the resort spa, restaurants etc.
• The casino gets a real-time history of where the
  customer is spending his time.
• They can offer rewards or discounts and other
  promotions based on those patterns.
• Can offer the incentives during the current stay or
  as an inducement to gain repeat business.

                                                Source: CRM Buyer   37
Tracking Customer Behavior
          • Learn about customer
            behavior so as to design
            offers/product/marketing
          • Find the common and the
            different
          • Record everything




                             Source: CRM Buyer   38
WHAT / WHEN ARE YOU
 TALKING TO YOUR
       CLIENTS
        ?
WARNING
     Americans Bolder Overseas
• 59% are more adventurous than they
  would be at home
• 91% are experimental in their choices of
  local cuisine
• 76% make an effort to speak the local
  language
• 58% alter their dress... to appear less
  American
Source: TripAdvisor Survey, Hotel News Resource, May 2010   40
WHEN IS APPROPRIATE
  TO TALK TO YOUR
     PROSPECT
        ?
Itch Cycle

Reach your clients
as the “Itch Cycle”
begins.




                            42
Start planning your next trip
BEFORE current one is over!




                                43
HOW OFTEN WILL YOUR
 CLIENTS BUY YOUR
     PRODUCT
        ?
Providing a Reward
Coupons
• Grand Hyatt gives $150 Hotel Credits to
  retain existing customers.
• Expedia gives travel coupons of $50
  and $100 to retain existing customers.
• Ask what they want!




                                            46
“Book direct and get
a great offer”




                   47
OFFERS


  25%
   vs.
“4 for 3”
            48
WHAT DOES YOUR
  CUSTOMER
    VALUE
      ?
Loyalty Programs
Club Med
• With 80 resorts worldwide, Club Med
  rewards loyal guests with benefits:
   – complimentary upgrades
   – private resort transfers
   – late checkout
   – boutique and excursion discounts
• Free enrollment



                                        51
The Leading Hotels of the World




                                  52
Leaders Club
    The Leading Hotels of The World
• Free Nights at the World’s Finest Hotels
• Early Check-In / Late Check-Out
• Preferential Treatment on a One-Category Upgrade
• Special rate privileges
• Invitations to Leaders Club events
• Access to one-of-a-kind specially created
  experiences
• A unique welcome gift at each Leading Hotel

                                                 53
Star Alliance
The Star Alliance network provides a true end-
to-end service for frequent flyers to ensure a
convenient, smooth and efficient worldwide
travel experience.
         •   Faster and smoother transfers
         •   Frequent flyer programs
         •   Upgrades
         •   Awards
         •   Lounges
         •   Additional rewards of Gold and Silver status


                                                            54
Star Alliance




                55
Selling Loyalty
REI
• More than 3.8 million active members
• $20: Lifetime membership
• Receive special
  members-only offers
• New members receive
  $100 off an REI
  Adventure trip



                                         57
Costco
• Over 500 locations
• Extremely loyal
  members; renew their
  membership at an 86%
  renewal rate
• $50 - Business or Gold
  Star (individual)
  membership
• $100 - Executive
  membership (earn 2%
  annual reward)
                           58
CAN YOU CREATE A
    SYSTEM?
 ON YOUR OWN?
       ?
Are you sure you know
    your client (s)?
Not All Vacations Are Created Equal
                      Milestone birthday                           45%

     Ever took
    vacation to       Milestone anniversary                        37
    celebrate a
     life event.      Wedding                                      35



    !65
                      Family reunion                               28
           %
                      Graduation from high
                                                                   19
                      school, college, etc.

                      Retirement                                    5

                      Bonus or raise in
                                                                    5
                      compensation for my job

                      New job                                       3



                   Source: Portrait of American Travelers, Ypartnership, June 2010   61
Targeting Kids
   • Children play an active role in
     planning vacations in half of all
     family travel households
   • 9 out of 10 have a page
     posted on Facebook
   • 1 out of 4 has visited a blog to
     seek or preview information
     about a vacation destination or
     travel service supplier

      Source: Portrait of American Travelers, Ypartnership, July 2010   62
Targeting Kids
      • Over $15 billion a year is spent on
        advertising direct to children
      • 55% of kids are successful at getting their
        parents to buy what they want
      • Developing a
        separate website
        for the kids
      • They don’t travel alone


Source: National Survey, Center for a New American Dream, 2010   63
What’s the best way to
   Reach Clients
  (and prospective clients)
through Social Media
Through Social Media?
Monitoring Your Brand
• Monitoring your brand is the first step to knowing
  what your customer (or potential customer) thinks:
  – Facebook
  – Twitter
  – Youtube
  – FourSquare
  – TripAdvisor
  – News Feeds
  – The list goes on...
                                                       66
Nearly 1/3 of travelers are at least somewhat influenced by
comments from people in their online social network when
making travel purchase decisions



                                                              67
Effective Facebook Page
• Call To Action
• The purpose of your
  custom landing tab
  should always be
  conversion of
  visitors to your fans.
• Good practice to
  remind people about
  it the “Like” button.

                               68
Effective Facebook Pages


Giving
Incentive to
“Like” ... and
become a
“Fan” of yours
on Facebook.

                            69
70
WHAT IS THE BEST WAY
  TO REACH YOUR
      CLIENTS?
         ?
DOES YOUR TEAM KNOW
     YOUR PLAN
        ?
The
Complete Travel
  Experience
Anticipate & Echo
ANTICIPATION
TRAVEL
ECHO
Anticipate & Echo
•   Collect data
•   Develop tools
•   Think beyond - Think Viral
•   Create “inch cycle” plan
•   Monitor results
IS THERE A WAY TO
REALLY WIN AT CRM
       ?
Deliver

          80
UNDERSTAND
   YOUR
AUDIENCE(S)
OPALS
        82
TAKK
Al Merschen
al@myriadmarketing.com
     310 545 4200
www.myriadmarketing.com

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Innledning kunnskap og nettverkInnledning kunnskap og nettverk
Innledning kunnskap og nettverk
 

Al Merschen - CRM

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  • 5. It costs six times more money to get a new client than retain an existing one.
  • 6. This This presentation presentation will not... will... • Give you every • Educate you on answer basics • Sell you any • Make you want software to learn more • Make you an • Challenge your expert thinking 6
  • 8. DISTRIBUTION Retail Travel Inbound Consumer Agent Wholesalers Tour Operator Product
  • 9. www DISTRIBUTION www www Retail Travel Inbound Consumer Agent Wholesalers Tour Operator Product www www www www
  • 10. DISTRIBUTION Retail Travel Inbound Agent Tour Operator Consumer Wholesalers Product 10
  • 11. ARE YOU IN SALES, MARKETING OR BOTH ?
  • 12. CRM
  • 13. CRM
  • 15. What is CRM? Recognizing the Long Term Value (LTV) of customer relationships and extending communication beyond advertising and sales promotional messages. 15
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  • 18. DEFINE YOUR AUDIENCE(S)
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  • 23. Target Market Demographics
  • 24. Target Market Demographics Psychographics
  • 25. Target Market Demographics Psychographics Passions
  • 26. Target Market Demographics Psychographics Targeted Affinity Marketing Passions
  • 28. When is a Customer a Customer?
  • 29. PROBLEM: Up to 40% cancellation rate between reservation and payment. 29
  • 30. Online Travel Purchase Process • The average consumer makes 22 visits to travel sites (not necessarily different sites) before buying travel online. • 15% don’t know where they’re going when they start planning. • 39% don’t know when they will be traveling. Source: Meskauskas, Jim. ”6 Keys to Vertical Ad Network Success.” December 17, 2008. Via I-media connection e-newsletter. 30
  • 34. The Oyster Box • Classic resort in South Africa. • Tell us a story about the old Oyster Box • What’s Old is New 34 48
  • 35. WHEN ARE YOUR PROSPECTS POTENTIAL ?
  • 36. To Create a Database... You have to ask the Questions
  • 37. Case Study: Harrah’s Casino • When guests check in at Harrah's Casinos, they are given a casino card that acts like a credit card that can be used for access to gaming rooms and machines, the resort spa, restaurants etc. • The casino gets a real-time history of where the customer is spending his time. • They can offer rewards or discounts and other promotions based on those patterns. • Can offer the incentives during the current stay or as an inducement to gain repeat business. Source: CRM Buyer 37
  • 38. Tracking Customer Behavior • Learn about customer behavior so as to design offers/product/marketing • Find the common and the different • Record everything Source: CRM Buyer 38
  • 39. WHAT / WHEN ARE YOU TALKING TO YOUR CLIENTS ?
  • 40. WARNING Americans Bolder Overseas • 59% are more adventurous than they would be at home • 91% are experimental in their choices of local cuisine • 76% make an effort to speak the local language • 58% alter their dress... to appear less American Source: TripAdvisor Survey, Hotel News Resource, May 2010 40
  • 41. WHEN IS APPROPRIATE TO TALK TO YOUR PROSPECT ?
  • 42. Itch Cycle Reach your clients as the “Itch Cycle” begins. 42
  • 43. Start planning your next trip BEFORE current one is over! 43
  • 44. HOW OFTEN WILL YOUR CLIENTS BUY YOUR PRODUCT ?
  • 46. Coupons • Grand Hyatt gives $150 Hotel Credits to retain existing customers. • Expedia gives travel coupons of $50 and $100 to retain existing customers. • Ask what they want! 46
  • 47. “Book direct and get a great offer” 47
  • 48. OFFERS 25% vs. “4 for 3” 48
  • 49. WHAT DOES YOUR CUSTOMER VALUE ?
  • 51. Club Med • With 80 resorts worldwide, Club Med rewards loyal guests with benefits: – complimentary upgrades – private resort transfers – late checkout – boutique and excursion discounts • Free enrollment 51
  • 52. The Leading Hotels of the World 52
  • 53. Leaders Club The Leading Hotels of The World • Free Nights at the World’s Finest Hotels • Early Check-In / Late Check-Out • Preferential Treatment on a One-Category Upgrade • Special rate privileges • Invitations to Leaders Club events • Access to one-of-a-kind specially created experiences • A unique welcome gift at each Leading Hotel 53
  • 54. Star Alliance The Star Alliance network provides a true end- to-end service for frequent flyers to ensure a convenient, smooth and efficient worldwide travel experience. • Faster and smoother transfers • Frequent flyer programs • Upgrades • Awards • Lounges • Additional rewards of Gold and Silver status 54
  • 57. REI • More than 3.8 million active members • $20: Lifetime membership • Receive special members-only offers • New members receive $100 off an REI Adventure trip 57
  • 58. Costco • Over 500 locations • Extremely loyal members; renew their membership at an 86% renewal rate • $50 - Business or Gold Star (individual) membership • $100 - Executive membership (earn 2% annual reward) 58
  • 59. CAN YOU CREATE A SYSTEM? ON YOUR OWN? ?
  • 60. Are you sure you know your client (s)?
  • 61. Not All Vacations Are Created Equal Milestone birthday 45% Ever took vacation to Milestone anniversary 37 celebrate a life event. Wedding 35 !65 Family reunion 28 % Graduation from high 19 school, college, etc. Retirement 5 Bonus or raise in 5 compensation for my job New job 3 Source: Portrait of American Travelers, Ypartnership, June 2010 61
  • 62. Targeting Kids • Children play an active role in planning vacations in half of all family travel households • 9 out of 10 have a page posted on Facebook • 1 out of 4 has visited a blog to seek or preview information about a vacation destination or travel service supplier Source: Portrait of American Travelers, Ypartnership, July 2010 62
  • 63. Targeting Kids • Over $15 billion a year is spent on advertising direct to children • 55% of kids are successful at getting their parents to buy what they want • Developing a separate website for the kids • They don’t travel alone Source: National Survey, Center for a New American Dream, 2010 63
  • 64. What’s the best way to Reach Clients (and prospective clients) through Social Media
  • 66. Monitoring Your Brand • Monitoring your brand is the first step to knowing what your customer (or potential customer) thinks: – Facebook – Twitter – Youtube – FourSquare – TripAdvisor – News Feeds – The list goes on... 66
  • 67. Nearly 1/3 of travelers are at least somewhat influenced by comments from people in their online social network when making travel purchase decisions 67
  • 68. Effective Facebook Page • Call To Action • The purpose of your custom landing tab should always be conversion of visitors to your fans. • Good practice to remind people about it the “Like” button. 68
  • 69. Effective Facebook Pages Giving Incentive to “Like” ... and become a “Fan” of yours on Facebook. 69
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  • 71. WHAT IS THE BEST WAY TO REACH YOUR CLIENTS? ?
  • 72. DOES YOUR TEAM KNOW YOUR PLAN ?
  • 73. The Complete Travel Experience
  • 77. ECHO
  • 78. Anticipate & Echo • Collect data • Develop tools • Think beyond - Think Viral • Create “inch cycle” plan • Monitor results
  • 79. IS THERE A WAY TO REALLY WIN AT CRM ?
  • 80. Deliver 80
  • 81. UNDERSTAND YOUR AUDIENCE(S)
  • 82. OPALS 82
  • 83. TAKK
  • 84. Al Merschen al@myriadmarketing.com 310 545 4200 www.myriadmarketing.com