New Brunswick Tourism and Parks Product Development Launch

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1 The Customer is Changing So Must We! [email protected] 29 April 2009 [email protected] 29 April 2009 www.royalroads.ca/tourism We are living in unprecedented times [email protected] 29 April 2009 The average Canadian Internet user has seven online accounts; 53% polled said it was timeconsuming to log in to all their accounts, manage message traffic and keep profiles up to date.

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The Customer is Changing - So Must We. A keynote address delivered 29 April 2009 for New Brunswick Tourism and Parks (Canada) to launch their new product strategy for the province.

Transcript of New Brunswick Tourism and Parks Product Development Launch

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The Customer is Changing So Must We!

[email protected] 29 April 2009

[email protected] April 2009

www.royalroads.ca/tourism

We are living in unprecedented times

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The average Canadian Internet user has seven online accounts; 53% polled said it was time‐consuming to log in to all their accounts, manage message traffic and keep profiles up to date.   

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We are Living in Unprecedented Times

Formidable challenges or undeniable opportunity?

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People respond differently; companies respond differently.

The sky is falling,the sky is falling!

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Don’t worry, it will all be fine soon!

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Balance

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The reality is though … adapt or perish

Our biggest limitation is what we have done before, our greatest opportunity is , g pp ywhat we don’t know.

J.C. Scott

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Some Car Dealers are Struggling, others not!

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The Book Publishing Industry is Adapting

Pack along a little reading material for your vacation

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Or, download them all into a portable electronic

book – light, portable, adjustable font!

Grocery Stores Are Adjusting!

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Telecommunications are in the fast lane

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1954

From: [email protected] [mailto:[email protected]]Sent: Tuesday, April 22, 2008 8:23 PMTo: Nancy ArsenaultSubject: WS FLT/VOL# 798 Toronto

DO NOT PRINT YOUR e-BP

Are you keeping up with the times?

Are you relevant? Is your business still relevant? All of it or only some?

How are you changing to meet tomorrow’s customer?

[email protected] 29 April 2009

2005DO NOT PRINT YOUR e BP.N'imprimez pas votre carte d'embarquement electronique.ARSENAULT/NANCY, PNR XHF1EB, FLT/VOL WS 798 SEQ#018, 23Apr, GATE/PORTE 40@ 4:30 PM, DEP Toronto @ 5:00 PM, ARV/ARR Halifax @ 8:03 PM, SEAT/SIEGE15A2008

Are you still asking visitors to ‘buy a paper ticket’ when they want to use their Blackberry, iPhone?

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Opportunity and Success is all around us!

Burgerville Winning OverYoung Customers

With healthy, higherpriced food

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Medical Tourism: Emerging Phenomenonin Health Care Industry

Many patients are traveling great distances to obtain quality care at lower costs

And Opportunity and Success is all around you!

AIR MILES ® REWARD PROGRAMINNOVATOR OF THE YEAR AWARD (2005)

Olivier Soapery, Ste-Anne-de-Kent, NB

Aquila ToursBUSINESS DEVELOPMENT BANK OF CANADA

PARKS CANADA SUSTAINABLE TOURISM AWARDThe Bay of Fundy Tourism Partnership (2006)

Formed by Tourism New Brunswick and NSDepartment of Tourism, Culture and Heritage

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10+Awards and Counting!

NEW BUSINESS OF THE YEAR AWARD (2006)London-Wul Fibre Arts, Lakeburn, NB

VIA RAIL CANADA VOLUNTEER OF THE YEAR AWARD (2008 Finalist)Margret & Axel Begner, Opera Bistro, Saint John, NB

The People’s Choice Charity Feast, Multiple Food Bank Events

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And there is more!

Shediac Lobster FestABA Top 100 Events

World Travel & Tourism CouncilTown of Bouctouche

Finalist in the Destination Category

2008 TIAC Awards for Tourism Excellence

2008 New Brunswick Tourism Excellence & Innovation Awards

Susan Butler, Miramichi Folksong Festival: Minister’s Award for Tourism ExcellenceClub Wind and Kite Inc.: Excellence & Innovation in Tourism Product Development

St. John River Valley Association: Excellence & Innovation in MarketingTown of Bouctouche: Excellence & Innovation in Tourism Partnerships

Town of Bouctouche: Sustainable Tourism

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Le Pays de la Sagouine: Best Cultural AttractionWest Jet 2008 up! Magazine Value Award

Town of Bouctouche: Excellence & Innovation in Tourism Partnerships

2008 TIAC Awards for Tourism ExcellenceAnn & Dennison Tate – Cape Enrage: Volunteer of the Year

How is your business changing?

Are you responding to the times?

[email protected] 29 April 2009How has your customer changed?

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If you want to be:• Ahead of the edge

• Leading the competition

• Recognized!

It’s about Shifting Paradigms!

You can’t be:• Complacent

• Doing exactly what others are doing

• Thinking like everyone else

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This winter ice scene was filmed outdoors in August 2005, Victoria BC.

Clasp your hands!

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The House of Change

Context“Passports required for the US/Canada; travel & gas prices”

Renewal“I will shift my market focus

and create new valuepropositions”

Denial Confusion

“Th USA k

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“They can’t be serious,this isn’t good.”

“The USA market will come back”

Adapted from the Capilano University tourism students in the 2009 Case Competition

“Society is changing in ways wehave never before experienced!”

Digital Age‘Third Wave’

Institutional Age“Second Wave”

Agrarian“First Wave”First Wave

Age of your Customer?

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19th Century 20th Century 21th Century

Source: NEO Power by Ross Honeywill and Verity Byth (Australia)

Age of Staff? Volunteers? Board?

g y

1900 1950 2000 2020

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Facebook Use

[email protected] 29 April 2009http://blog.nielsen.com/nielsenwire/nielsen-news/social-networking-new-global-footprint/

Wired in a shared social space; pursuing individual and collective interests

Hearing Aid(Aging population)

Family Time in the 21st Century! Recognize this?

How are you connecting with your visiting( g g p p )

New Social Reality:

3 computers,3 personal

activities, while planning a vacation,

• Is this your market?

• Are you connected to their realities or asking

How are you connecting with your visiting audience?

Do you have something inviting for these folks?

H f ll d ll i i

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watching TV and enjoying time together

them to adjust to yours?

Facebook, homework, TV, MSN, On-line game (Multi-task generation)

Have you fully assessed all your priority audiences?

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“ A tourism product is what you buy.

A tourism experience is what you remember.”(Canadian Tourism Commission Experience Toolkit (2008)

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• We are living in a commoditized economy

• Products, prices, people, and technology are so

“The customer experience will be the next business tsunami.”

W

Shaw & Ivens (2005)

, p , p p , gysimilar

• To differentiate, we must develop and sell ‘meaningful things’ that travelers will remember, along with the activities in special places

• Embracing ‘experiences’ requires a fundamentally different mindset It is a strategic

WHY?

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“The customer experience is the next competitive battleground.”

fundamentally different mindset. It is a strategic organizational shift

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Grab Some Ice, Close your Eyes and Set Sail

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The 2007 Royal BC MuseumTitanic Exhibit

• 451 120 visitors 1/3 said this was

A Resounding Success!

• 451,120 visitors, 1/3 said this was the reason to visit Victoria

• $30M economic impact

• Fabulous exhibit but the passenger manifest and the ‘ticket’ … were the ticket, to a terrific guest experience.

I received my boarding pass and

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• I received my boarding pass and entered …I saw, I sampled, I tried on, I touched, then … Discovered my fate on April 15th, 1912.

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The Power of Stories

Stories are very powerful and are very compelling instruments that enable people to get information across and provide a learning experienceprovide a learning experience.

Stories make a subject much more exciting and can be used to describe or create an experience. Our Experience Library is a story in itself and each of o r areas con e s its o n stor to

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Wayne Pearson, City Librarian, Cerritos Library, Californiahttp://www.ci.cerritos.ca.us/library/library.html

our areas conveys its own story to create a learning environment for our customer.

What is experiential travel?

Travel that engage travelers in a series of memorable events, revealed over time, that are inherently personal, engage the senses, and make a connection on an emotional, physical spiritual or intellectual level

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physical, spiritual or intellectual level.

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Know your customer!

[email protected] 29 April 2009What do they value?

The Multi Generational Challenge

• Matures (1928 – 1945)

• Front End Baby Boomers (1946 – 1954)

• Tail End Baby Boomers (1955 – 1964)y ( )

• Generation X (1965 – 1979)

• Generation Y (1980 – 1990)

• “Why” Generation (1991+)

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Customers, Employers, Employees

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You May Not be Your Customer!

The Staff The Customer

Generation Y (1980 ‐

1994

Generation X (1965 ‐

1979)

Late Baby Boomers

(1955 ‐ 1964)

Early  Baby  Boomers

(1946 ‐ 1954)

World War II Cohort

(1928 ‐ 1945)

Generation Y (1980 ‐

1994

Generation X (1965 ‐

1979)

Late Baby Boomers

(1955 ‐ 1964)

Early  Baby  Boomers

(1946 ‐ 1954)

World War II Cohort

(1928 ‐ 1945)

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0 5 10 15 20 25 30 35 40 45 50 0 20 40 60 80 100 120

Try this at work!!

An alternate look at the customer… beyond demographics, market segments … it’s about who is spending on what!

NEO’s – The New Economic Order• Read, earn, spend, travel and expect more

• Propensity and capacity to spend, dominate the top end of spending

• Pay a premium for peak experiences

• Social influencers (Word of mouth and mouse)

• Self-recognition, imaginative self-definition

• Reinventing the world as traditionalists know it

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• Reinventing the world as traditionalists know it

Source: NEO Power by Ross Honeywill and Verity Byth (Australia)

This is the high-yield traveler!

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Neo’s want experiences that align with their values;they are not age specific!

• Love experiences

• Authenticity

• IntelligentIntelligent

• The path less traveled

• Personal freedom is important

• Want to hear the stories

• Make informed choices

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• Love food with everything

• Individuality

• Wired, love the internet

www.neogroup.net

Traditionalists on the other hand

• Consumption triggered by a deal (need, transaction, deal)

• Lower spending, lower discretionary choice behavior

• Technologically and socially conservative

• Accept institutions, traditional rules of politics, religion and business

• Work hard to make a difference (as opposed to influence)

• Surrounded by traditional brands

• Defined by their job, enjoy being employed

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Results!

• Memorable experiences

S l tShare t iDi &

Beginning of the visitor experience

End of thevisitor experience

Stage in thevisitor experience

… from moments to memories …

• visit, stay longer, spend more, revisit

• word of mouth … and

d f

Want to travel

Search, Inquire,

Select Attraction

stories, photos

Discover & Enjoy

Memories

Market, t

Welcome Thank, celebrate, Relevant Get on the d

Influence

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• word of mouse!

promote, , ,

reconnectinteractionradar

Modified from Shaw & Iven’s (2005) Moment Mapping ©

Begin the customerinteraction

Stage theexperience

Complete theexperience

Marketing is No Longer Just a Function

4 P’s4 P s

3 C’s

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4 E’s

It’s a process of engaging with customers; conversations and community are essential.

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The New 3 P’s and 4 C’s

The New Twist on the Triple Bottom line: People, Planet and Profits

It’s about: Connections, Creative, Collaboration and Context

• From products to co-created solutions• From promotions to communications within communities

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p• From price to customized value• From place to choice and convenience

The Envelope Please

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Keys for Success!

• Educate

• Calculate

• Motivate

• Differentiate

• Vision, passion, belief

• Dare to be different

• Manage talent

• Trust

Metepenagiag Heritage Park

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• Celebrate

• Evaluate• Care

• ACT!C���� A�����

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Focus on what you do best, partner for the rest

The customer

has

Trends

Paradigms

Shorter booking times

Personalization

Niche markets

changed …

Have you?Tectonic

Shifts

The Experience Economy

Sustainability

Workplace Values

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Internet

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E-copies of the presentation:

[email protected]

Thank you!

[email protected]

[email protected] 29 April 2009Hatley Castle, Victoria BC, Canada, campus of Royal Roads University

www.royalroads.ca/tourism www.hatleypark.ca