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The digital consumer
  and strategies for
travel 2010 & beyond
           Presented by
           David Atkins

              Principal
        Digital DNA Infusion

    David@digitaldnainfusion.com
        Twitter: @atkinsdavid
           305-458-2311
Does this apply to me?
   Branded Hotel
   Unbranded Hotel
   Brand owner
   Destination Service
   CVB/DMO
   Operator
   Sales, Marketing, Operations,
    Revenue Management, F&B etc
               Copyright 2010 Digital DNA Infusion
Change

   The only constant
imperative when it comes
  to Digital is CHANGE




       Copyright 2010 Digital DNA Infusion
What am I doing?




   Copyright 2010 Digital DNA Infusion
Flight Delayed




  Copyright 2010 Digital DNA Infusion
Moves Digital to Physical World
   No more platforms
   No more technical requirements
   Just be “human” & transparent




               Copyright 2010 Digital DNA Infusion
A cross-functional strategy?
     39% of consumers have no destination in
      mind when starting their travel research
      online
                         The Planning and
     OTA fee changes increased their share 6%
                      Review category (i.e.
                      TripAdvisor) grew its
      vs suppliers
     How do you capitalize on this and what is driving the changes?
                      share of all site visits
                        by over 50% since
     Consumers are searching less-
                               2008
          • Searches down to 6 (circa 12 in 2009)
        “Only” 50% of shoppers use search in the
         research process
        92% of online bookings are “latent”
Copyright 2010 Digital DNA Infusion
                                      Source: Compete & Google Dec 2009
Where to start?


             PPC           Video
                                                                              Ownership        Brand




   Site
                                   SEO/SEM
Conversion                                                           IT                                 Sales




    Display                    Social
      Ads                      Media                                 Revenue                       Marketing



                   OTA’s
                                                                                    Distribution




                                        Copyright 2010 Digital DNA Infusion
Follow the basics
   Your customer
   Your business                        Benchmark!
   What metric?
   What platform?




               Copyright 2010 Digital DNA Infusion
Curators
   Content, Experiences
   Not always of our own creation




               Copyright 2010 Digital DNA Infusion
Who should you market to?




        Copyright 2010 Digital DNA Infusion

                             Source: PhocusWright FYI May 2009
Digital consumer behavioral data

•   65 % of consumers have had a digital experience
    change their perception of the brand/product
•   97% of consumers report that their digital experiences influence whether
    or not to purchases goods, services or products from the brand/product

•   97% of consumers have searched out a brand online

•   69% have read a corporate blog

•   73% have posted a review of a product or service

•   44% of consumers who follow a brand on twitter do it for DEALS

                            Copyright 2010 Digital DNA Infusion

                                                                  Source: Razorfish Q4 2009
What works?
   OTAs- commerce & marketing?
   Social Media?
   Mobile Media?
   SEM/SEO?
   Display ads?
   Engagement?
   Behavioral?
   Retargeting?
   Video?
                Copyright 2010 Digital DNA Infusion
Online Display Ads
Does online display advertising really
work?

The question is what is your metric?
CTRs= poor results and disappointment
Brand Awareness= Better but varied
As part of a larger program with SEM=
Display works to increase lift of queries for
your term by more then 61%

              Copyright 2010 Digital DNA Infusion

                                    Source: Google and Comscore 2009
Social Media Data
   Avg SM User is spending 22 Hours
    per week (6.6 from work)
    • 2nd only to Email today
   38% say they have clicked on an Ad
   Like tapping into your customers
    telephone calls to discuss you
   Circa 23% say it has directly
    influenced a travel purchase decision
                   www.digitaldnainfusion.com          Beresford Research June 2009
                 Copyright 2010 Digital DNA Infusion   Knowledge Networks 2009
Beresford Data on Social Networks




                                 www.digitaldnainfusion.com
                               Copyright 2010 Digital DNA Infusion
Beresford Research June 2009
Superbowl this weekend
   Pepsi?- Anyone know how much $$?
   HomeAway?




See Forrester Take on Pepsi’s Social Media program:
  http://blogs.forrester.com/marketing/2010/01/social-media-is-
  the-new-super-bowl-pepsi-refresh-and-what-it-means-to-
  marketers.html
                       Copyright 2010 Digital DNA Infusion
Mobile Stats
   LBS- The                           Morgan Stanley-
    standard in 2010                    Smartphones
   Gartner- 2010                       outship PCs
    1.2B Phones                         2010
    with rich                          IDC- 500k+
    commerce                            Apps in 2010
   Gartner- 2013                      SM, Booking,
    Phone vs PC                         Research, CS,
                                        Dreaming
               Copyright 2010 Digital DNA Infusion
Consumers’ use of Mobile




       Copyright 2010 Digital DNA Infusion
Copyright 2010 Digital DNA Infusion
Build a framework
   The key: alignment and education
   Cross functional (team, metrics, strat)




                  Copyright 2010 Digital DNA Infusion
www.digitaldnainfusion.com
Copyright 2009 Digital DNA Infusion
Where to start?
Establish a strategy and a digital owner(ship)
  person or group within your organization
    • Make sure that all stakeholders are represented
Do you have buy in? Who owns it?
      How often to you revisit and update this strategy?
      How and where does it connect to your total strategy?
      How is it measured? By whom? Using what systems?
      Is primary target B2C or B2B?
      How does your data/CRM, mobile & email tie together?
      Have you established benchmarks?
      If you are a hotel are your brand, ownership,
       operations, franchisees and mgmt all aligned?



                      Copyright 2010 Digital DNA Infusion
Know your customer/guest

                 The more you know about your digital
                  customer, the easier they will be to
                  find
                    •   Use Google’s free toolsets
                    •   Use your site analytics packages
                    •   Look at your email and CRM programs
                    •   Ask your OTA partners
                    •   One person’s niche could be a
                        goldmine
                              Sojern, Flickr, Twitter, Priceline,
                               RSS/Feeds (iGoogle)
                    • Mobile is not a niche


       Copyright 2010 Digital DNA Infusion
All about data and action today




          Copyright 2010 Digital DNA Infusion
10 Key Takeaways
   Build a culture of analysis and measurement- have metrics
   Have a strategy and use it- base it on your customer/consumer
    •    Business, Digital, Social, Mobile
   Go beyond
    •    OTAs have more to offer than product distribution
    •    Digital is more than direct response ecommerce
    •    Social Media is more!
    •    Mobile matters
    •    More than sales, marketing and revenue management to digital
   Get cross functional buy in and participation from all stakeholders
   Leverage your relationships- Vendors, Partners, Customers
   Know and ask your customer what, where and when
   Listen and participate in Social Media
    •     Competitive Intelligence
    •     Customer Research
    Cultivate internal expertise and train and support them
    Lead don’t follow
    IF YOU CAN NOT YOUR COMPETTION WILL
                                                               Copyright 2010 Digital DNA Infusion
Questions?
Entire Presentation and more @



  www.digitaldnainfusion.com/nyfeb2010




              Copyright 2010 Digital DNA Infusion
How to reach me?
   David@digitaldnainfusion.com
   Twitter @atkinsdavid
   Old School:
     Digital DNA Infusion
     6619 South Dixie Hwy
     Ste 306
     Miami FL 33143
     305-458-2311

               Copyright 2010 Digital DNA Infusion

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Building a Digital Strategy Consumer Behavior Travel Social Media Mobile Media Sem Seo Ota

  • 1. The digital consumer and strategies for travel 2010 & beyond Presented by David Atkins Principal Digital DNA Infusion David@digitaldnainfusion.com Twitter: @atkinsdavid 305-458-2311
  • 2. Does this apply to me?  Branded Hotel  Unbranded Hotel  Brand owner  Destination Service  CVB/DMO  Operator  Sales, Marketing, Operations, Revenue Management, F&B etc Copyright 2010 Digital DNA Infusion
  • 3. Change The only constant imperative when it comes to Digital is CHANGE Copyright 2010 Digital DNA Infusion
  • 4. What am I doing? Copyright 2010 Digital DNA Infusion
  • 5. Flight Delayed Copyright 2010 Digital DNA Infusion
  • 6. Moves Digital to Physical World  No more platforms  No more technical requirements  Just be “human” & transparent Copyright 2010 Digital DNA Infusion
  • 7. A cross-functional strategy?  39% of consumers have no destination in mind when starting their travel research online The Planning and  OTA fee changes increased their share 6% Review category (i.e. TripAdvisor) grew its vs suppliers How do you capitalize on this and what is driving the changes? share of all site visits by over 50% since  Consumers are searching less- 2008 • Searches down to 6 (circa 12 in 2009)  “Only” 50% of shoppers use search in the research process  92% of online bookings are “latent” Copyright 2010 Digital DNA Infusion Source: Compete & Google Dec 2009
  • 8. Where to start? PPC Video Ownership Brand Site SEO/SEM Conversion IT Sales Display Social Ads Media Revenue Marketing OTA’s Distribution Copyright 2010 Digital DNA Infusion
  • 9. Follow the basics  Your customer  Your business Benchmark!  What metric?  What platform? Copyright 2010 Digital DNA Infusion
  • 10. Curators  Content, Experiences  Not always of our own creation Copyright 2010 Digital DNA Infusion
  • 11. Who should you market to? Copyright 2010 Digital DNA Infusion Source: PhocusWright FYI May 2009
  • 12. Digital consumer behavioral data • 65 % of consumers have had a digital experience change their perception of the brand/product • 97% of consumers report that their digital experiences influence whether or not to purchases goods, services or products from the brand/product • 97% of consumers have searched out a brand online • 69% have read a corporate blog • 73% have posted a review of a product or service • 44% of consumers who follow a brand on twitter do it for DEALS Copyright 2010 Digital DNA Infusion Source: Razorfish Q4 2009
  • 13. What works?  OTAs- commerce & marketing?  Social Media?  Mobile Media?  SEM/SEO?  Display ads?  Engagement?  Behavioral?  Retargeting?  Video? Copyright 2010 Digital DNA Infusion
  • 14. Online Display Ads Does online display advertising really work? The question is what is your metric? CTRs= poor results and disappointment Brand Awareness= Better but varied As part of a larger program with SEM= Display works to increase lift of queries for your term by more then 61% Copyright 2010 Digital DNA Infusion Source: Google and Comscore 2009
  • 15. Social Media Data  Avg SM User is spending 22 Hours per week (6.6 from work) • 2nd only to Email today  38% say they have clicked on an Ad  Like tapping into your customers telephone calls to discuss you  Circa 23% say it has directly influenced a travel purchase decision www.digitaldnainfusion.com Beresford Research June 2009 Copyright 2010 Digital DNA Infusion Knowledge Networks 2009
  • 16. Beresford Data on Social Networks www.digitaldnainfusion.com Copyright 2010 Digital DNA Infusion Beresford Research June 2009
  • 17. Superbowl this weekend  Pepsi?- Anyone know how much $$?  HomeAway? See Forrester Take on Pepsi’s Social Media program: http://blogs.forrester.com/marketing/2010/01/social-media-is- the-new-super-bowl-pepsi-refresh-and-what-it-means-to- marketers.html Copyright 2010 Digital DNA Infusion
  • 18. Mobile Stats  LBS- The  Morgan Stanley- standard in 2010 Smartphones  Gartner- 2010 outship PCs 1.2B Phones 2010 with rich  IDC- 500k+ commerce Apps in 2010  Gartner- 2013  SM, Booking, Phone vs PC Research, CS, Dreaming Copyright 2010 Digital DNA Infusion
  • 19. Consumers’ use of Mobile Copyright 2010 Digital DNA Infusion
  • 20. Copyright 2010 Digital DNA Infusion
  • 21. Build a framework  The key: alignment and education  Cross functional (team, metrics, strat) Copyright 2010 Digital DNA Infusion
  • 23. Where to start? Establish a strategy and a digital owner(ship) person or group within your organization • Make sure that all stakeholders are represented Do you have buy in? Who owns it?  How often to you revisit and update this strategy?  How and where does it connect to your total strategy?  How is it measured? By whom? Using what systems?  Is primary target B2C or B2B?  How does your data/CRM, mobile & email tie together?  Have you established benchmarks?  If you are a hotel are your brand, ownership, operations, franchisees and mgmt all aligned? Copyright 2010 Digital DNA Infusion
  • 24. Know your customer/guest  The more you know about your digital customer, the easier they will be to find • Use Google’s free toolsets • Use your site analytics packages • Look at your email and CRM programs • Ask your OTA partners • One person’s niche could be a goldmine  Sojern, Flickr, Twitter, Priceline, RSS/Feeds (iGoogle) • Mobile is not a niche Copyright 2010 Digital DNA Infusion
  • 25. All about data and action today Copyright 2010 Digital DNA Infusion
  • 26. 10 Key Takeaways  Build a culture of analysis and measurement- have metrics  Have a strategy and use it- base it on your customer/consumer • Business, Digital, Social, Mobile  Go beyond • OTAs have more to offer than product distribution • Digital is more than direct response ecommerce • Social Media is more! • Mobile matters • More than sales, marketing and revenue management to digital  Get cross functional buy in and participation from all stakeholders  Leverage your relationships- Vendors, Partners, Customers  Know and ask your customer what, where and when  Listen and participate in Social Media • Competitive Intelligence • Customer Research  Cultivate internal expertise and train and support them  Lead don’t follow  IF YOU CAN NOT YOUR COMPETTION WILL Copyright 2010 Digital DNA Infusion
  • 27. Questions? Entire Presentation and more @ www.digitaldnainfusion.com/nyfeb2010 Copyright 2010 Digital DNA Infusion
  • 28. How to reach me?  David@digitaldnainfusion.com  Twitter @atkinsdavid  Old School: Digital DNA Infusion 6619 South Dixie Hwy Ste 306 Miami FL 33143 305-458-2311 Copyright 2010 Digital DNA Infusion