Aligning Social Media Strategies with Revenue Management Goals

Part 1Kate Varini

EyeforTravel, Amsterdam, Nov. 2010

HOORAY!

• Emergence of the Long Tail– Underserved micromarkets now accessible!– Constraints of physical shelf space GONE– No more “one size fits all”– Strategic targeting of the vast numbers of underserved

audiences• The Web

– Has lower production & distribution costs– Allows firm to reach millions of micro-markets with precise

messages at point of consumption• Consumers

– I have a general idea then I search & browse independently over a period of time before I commit

• SOCIAL MEDIA: The media people use to communicate online in a social way

• SOCIAL NETWORKING: How people interact on sites like facebook, twitter etc.– Occurs when people create a personal profile and

become part of a community of friends or like-minded people to share information

How can you act as a cocktail party

simulator?

• DO• Provide valuable

information• Be helpful• Listen• Have no expection of

something in return

• DON’T• Ask for “business cards”

as a condition to “allow” interaction

• Treat everyone as it they are a sales lead

CONTENT IS KING!

• “Every business has information that can contribute to the education of the

marketplace” • Scott Meerman, D. (2010)

• Drives action: Buy, subcribe, donate, apply…• Brands an organisation as a trusted resource• Interested people return again and again• Adds revenue, traffic, sales leads• SELLS!

Ways to Leverage Social Media

USE INFLUENCERS

FACILITATE & REWARD ALL FEEDBACK

PROMOTE CREATIVITY

PAY ATTENTION TO CRITICAL ISSUES

Bloggers that are widely followed on twitter.com or on their own blogsAllowing users to interact with the firm and site visitorsAsk users to participate in focus groups to provide feedbackAsk users to provide advertising/product ideas (as part of a game)Develop a new role and have users compete for it (best job in the world)Let the consumers decide on price, product etc.Willingness to invest TIMEProvision of consumer review optionsListen to the voice of the market to assess changing consumer needs, competitor reaction

Think like a Publisher!

• Content strategy• Identify buyer persona and the problems they

may need solving• Clear goal & content generated specifically to

draw them into the sales consideration cycle• Show leadership in the marketplace of ideas

to promote your online reputation

Consumer Recommendations

• Most POWERFUL form of advertising• 98% of the 62% of US consumers that read online

reviews and find them RELIABLE enough. • 80% of these consumers say that reading peer reviews

affected their BUYING INTENTIONS• 97.7% of travelers who use the internet READ other

traveller reviews• TRUST - perception that are more reliable because

reflect the genuine feelings of the product user, who is perceived to be like themselves

Firms and consumers interact passive and/or actively

PASSIVE ACTIVE

FIRMSMust have put in place options to tap consumer voice/allow users to interact with the firm and other users

-Listen to proactively identify new needs/product issues -Then apply fast corrective action.

-Let consumers develop their own applications to personalize/improve experiences. -Use social media as a PR tool to generate viral marketing opportunities.

CONSUMERS

1:9:90 rule!

-Reading online blogs, reviews, directions, joining a social network, using a community website

-Posting information for other users….. travel reviews, how to access a good deal, recommendations about what to download, where to stay/eat etc.

What Problems to Help Solve?

• Environmentalist : How can I minimise my carbon footprint?– Give general guidance on impact of water

usage, electricity consumption, waste amount, linen/towels changes, meal choices (locally produced/seasonal ingredients), distance/Travel to destination

• What can I do help others?– This less fortunate– Future visitors to the destination– My family & friends

What Problems to Help Solve?

• How can I be sure to get the product I need? Lower the risk of having a bad or mediocre experience?– General guidance on how to find out about the

potential bad points of a tourism provider.– Indicate how “good behaviour” will contribute

gaining new rights to request particular product attributes

• How can I avoid paying for a taxi?• Where is the best place to shop (that is not the

most expensive)• How can I eat like a local?

What Problems to Help Solve?

• How can I avoid paying for a taxi?• Where is the best place to shop (that is not the most

expensive)• How can I eat like a local? • How can I minimise the cost of my trip?

– General guidance on ways to save and/or gain rewards for good behaviour

• How can I be sure I will get my room/flight/car booked?• How can I be sure I will be treated fairly?• How can I have a better time?

– On my birthday, honeymoon, anniversary, important business trip, when travelling with my dog

Rewards for “Good Behaviour”• No-show• Book direct• Rate higher than bid price• Agree to a potentail walk• Generate revenue on shoulder

nights• High spend on high margin extras• Arrive late, leave early• Does not consume complimentary

inclusions• Pay cash or direct debit• Low production cost

Inform About Good Behaviour

• Revenue Maximisation– Purchases from partners/clicks on offers– Competitor benchmarking executed by your customers– Agreeing to be walked if & when needed– Buy in advance – Daily contribution to fixed costs

• Cost Reduction– Channel – Cost of production (self service tech + other behaviour), – Size of carbon footprint

Inform About Good Behaviour

• Marketing– New product ideas (market research)– Provision of personal data -– Allowing firm to push customised offers

• Recovery– Inform us of service failure (however small)– Making useful suggestions for improvement

Rewards

• Eligibility for entry in a prize draw• Point value assigned based on level of “good

behaviour” achieved, the better, the more points earned….

• For competitor benchmarking• Look at other industries: Boots, Nectar,

Gaming, Stock exchange, Insurance, Easyjet, Banks.

LINK 2 RM

• Spontaneous purchases – high no-show• Overbooked? No problem• Need ideas for a new product – Let the crowd

help• Segmentation? Re-engineer• Competitors match your price moves? No

issue!

Videohttp://www.youtube.com/watch?v=_3o3KG5Z6GI