Success in Internet Marketing : Success in Internet Marketing “there is a better way” Rajpal Agenda : Agenda The importance of the Internet to the hotel industry
How to impact the bottom line
Taking a strategic approach to Internet marketing
Building an Internet marketing plan
The value of measurement and analysis TravelCLICK’s experience : TravelCLICK’s experience Developed and hosting almost 200 hotel web sites
Managing online marketing campaigns for over 300 hotels
Clients range from individual 2 star hotel to worldwide major luxury brands
Delivered approximately $12 million in incremental business to our customers over the past 12 months The importance of the web : The importance of the web Online is no longer a niche channel worthy of investment for the future.
It is a significant channel now and should be actively managed.
Worldwide online travel sales is valued at $147 billion in 2007*
Forecast to grow at 17% per year over the next 3 years* *source PhocusWright Inc 2006 The importance of the web : The importance of the web Online travel sales will represent 41% of total travel sales by 2008*
A further 38% of consumers make their decision online, but purchase offline**
This means that almost 80% of travel sales will either be made online, or strongly influenced by online *(Europe) source eMarketer** Forester Research 2006 The importance of the web : The importance of the web Supplier sites are fighting back against the OTAs and in 2005 57% of online hotel sales were made on the supplier site, up from 53% in 2003*
This is forecast to grow further as suppliers catch up with the OTAs in terms of technology, customer service and marketing * comScore Networks, April 2006 (US) Where are the opportunities? : Where are the opportunities? There are three main opportunities that online sales present:
Reduced cost of sale
Enhanced brand loyalty and client relationships Incremental revenues : Incremental revenues The internet is a level playing field in terms of sales and marketing
Everyone can attract new clients through very targeted and measurable marketing
Global distribution reach is available to all, not just the major brands that have global networks Reduced cost of sale : Reduced cost of sale A brand web site has the lowest cost of sale
Enables business to be “channel shifted” from more expensive channels, such as travel agency or call centres
A strong brand web site enables the reliance on OTAs to be reduced and relationships to be renegotiated in order to bring down the overall cost of sale Slide 10: Net Revenue* Consumer
Spend $90.00 $150.00 Opaque Brand / Rep Co. $235.50 $275.00 GDS Travel
Agent Pegasus Brand or Rep Co GDS Develop strategies and employ specific tactics to shift business mix to the most profitable channels *industry averages Enhanced loyalty and client relationships : Enhanced loyalty and client relationships A direct client should be retained for future marketing and relationship building
A customer booking through an OTA is likely to remain loyal to the booking channel
Actively seek to build relationships with clients delivered through OTAs for future, cheaper marketing How to drive incremental revenue : How to drive incremental revenue What are the various marketing opportunities?
What is each of them good for?
Where should the focus be? The marketing opportunities : The marketing opportunities Before looking at the opportunities, one should consider the four stages of customer interaction:
Focussing in each of these areaswill create a solid action plan The marketing opportunities : The marketing opportunities Equal focus and specific activities should be deployed to address each of these key areas:
Convert Acquire Retain Analyse
Web design SEO CRM Web analysis
Booking engine PPC Web design
Content Linking Customer service Site conversion is key to success : Site conversion is key to success Before investing in marketing efforts, a web site should be “fit for purpose” to convert at the highest rate
Increasing the conversion ratio of visitors to bookers is the single best investment
Once the site is optimised, then marketing activity to deliver incremental consumers should start What does an optimised site look like? : What does an optimised site look like? Does it represent the brand in a clear and compelling way?
Is the navigation easy and logical?
Are there overt booking arguments (best rate guarantee, online-only offers, exclusive promotions)
Is the content fresh, up to date and compelling?
Is the “book now” button clearly displayed on every page?
Is the booking process simple, quick and efficient?
Is there an easy process for capturing email addresses, with clear rationale for consumers to provide their details?
Is the most relevant information displayed “above the fold”?
Are online security fears addressed? Measuring site conversion is essential : Measuring site conversion is essential Site conversion should be measured every month to ensure optimum site performance
Measuring Visits, Persuasion and Conversion will give an accurate picture of site performance Total site visits Total number of availability enquiries Total number of completed reservations Driving incremental traffic to the site : Driving incremental traffic to the site Now the site is optimised and performance measurement is in place, it is time to deploy marketing efforts.
Two distinct plans should be put into place to target:
New and incremental customers
Search Engine Optimisation, Pay-Per-Click, Linking
Email Marketing, Offline Marketing, CustomerService Why are search engines important? : Why are search engines important? 89% of Internet users regularly use a search engine
In Europe, Google accounts for 76% of all searches
In Asia Pacific Google accounts for 67%
In the US Google accounts for 49%
It is important to know where users are searching to adjust the approach accordingly New and incremental customers : New and incremental customers Search Engine Optimisation:
Definition: the process of improving the volume and quality of traffic to a web site from search engines via "natural" ("organic“) search results
SEO is the single-most important online marketing activity
The benefits of a well “SEO’d” site will be dramatic
This is a strategic activity, that will deliver significant long-term benefit New and incremental customers : New and incremental customers Natural search results PPC Results New and incremental customers : New and incremental customers SEO does take up to 4 - 8 months to make a significant impact
The best results require an iterative process, not a one-time effort
Ensuring high-quality incremental traffic is delivered is vital
For short-term, tactical, traffic deploy Pay-per-click marketing as a complimentary activity New and incremental customers : New and incremental customers PPC is a fantastic medium for turning on traffic immediately
A well-researched PPC campaign will deliver significant returns and will quickly become an ongoing activity
PPC campaigns compliment SEO activities
Running SEO and PPC side-by-side, ensures that you own the page Top left is the most valuable area of the page : Top left is the most valuable area of the page TravelCLICK PPC Campaigns : TravelCLICK PPC Campaigns In 2007 we are running approximately 40 campaigns
Forecast to generate:
$8 million incremental revenue
13,000 incremental reservations
Year to date, we are delivering a 8:1 ROAS Existing customers : Existing customers Existing customers are often overlooked in the fervour to find new ones
If managed effectively they can:
Reduce the overall cost of sale through channel shifting
Increase their loyalty and value
Communication of the online proposition in an offline environment is vital
Regular, and relevant, email communication will build loyalty and reinforce the brand 3. Retain Existing customers : Existing customers Building the customer database is very important and can be achieved relatively easily:
Sign-up process on web site
Run online promotions / competitions
Sign-up at check-in / check-out
Ensure offline communication encourages email sign-up
A communication calendar should be developed to ensure regular emails are sent with compelling offers Measurement and analysis : Measurement and analysis Online offers unparalleled measurement and tracking opportunities
There are three key areas to measure:
Marketing return Measuring site conversion is essential : Measuring site conversion is essential Site conversion should be measured every month to ensure optimum site performance
Measuring Visits, Persuasion and Conversion will give an accurate picture of site performance Total site visits Total number of availability enquiries Total number of completed reservations Measurement and analysis : Measurement and analysis Site performance
Correct use of the web site analysis tool will show:
Where are customers visiting from
Where are they leaving the site
How long are they staying
Which search engines are delivering the traffic
This information will assist in changing the web site to meet the customers’ needs Measurement and analysis : Measurement and analysis Marketing return
Return on investment (ROI) or return on advertising spend (ROAS) are the most common metrics
Equally important is the contribution that marketing efforts make to the overall business
Other performance metrics to consider are:
Number of email sign-ups Measurement and analysis : Measurement and analysis A simple spreadsheet gives a dashboard view: Why TravelCLICK? : Why TravelCLICK? TravelCLICK is your ideal online marketing partner
21 years experience in hotel electronic distribution
Specialist Internet Marketing Services team working only within the hospitality sector
Offers a full service suite of Internet marketing solutions
Ongoing relationships with over 12,000 clients worldwide
Shared interest in your success Summary : Summary Today up to 80% of all bookings are influenced by the web
A strategic, planned, approach to online marketing will produce far better returns than tactical activity
Investing in existing customers, as well as prospecting for new ones, is crucial for overall success
Measuring performance and adjusting campaigns will produce stronger returns Success in Internet Marketing : Success in Internet Marketing TravelCLICK WebinarMay 2007 “there is a better way” Jerome WiseVP - eCommerce