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How to Turn Loyal Customers Into Salespeople
An HSMAI Partnership Presentation with ZuberanceMarch 10, 2011
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Overview of Format and TopicOverview of Format and Topic
Webinar ModeratorFran BrasseuxExecutive Vice President, HSMAI
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� Leading Brand Advocacy company
� Award-winning Zuberance Advocate Platform
� Mission: Drive advocacy, leads, sales; 10x ROA
About Zuberance
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TodayToday’’s Presenters: s Presenters:
Panel Moderator: Fran BrasseuxExecutive Vice President, HSMAI
Panelists:Rob Fuggetta
Founder/CEO, Zuberance
Robin Korman
Senior VP, Global Loyalty
And Strategic Partnerships
Wyndham Hotel Group
John Moser
Chief Marketing & Brand Officer
Denihan Hospitality Group
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Rob FuggettaFounder/CEO, Zuberance
Energizing Brand Advocates in the Hospitality Industry
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� Brand Advocates are different than loyal customers
� Brand Advocates are your most valuable customers; spend & recommend more
� Turn your Advocates into powerful social media marketing machines
Three Main Messages for Today
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Brand Advocate Solution
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Brand Advocates, Definition
Highly-satisfied customers
who pro-actively
recommend brands or
products without being paid to do so.
►►►►Beyond like, love, or loyalty: Advocacy
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Advocates are 9s & 10s
How likely are you to recommend our brand or products to your friends?
“Ultimate Question” for Customer Loyalty
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Advocates: Unique, Powerful Segment
� 50% guests are highly likely to recommend
� 94% prospects trust Advocates
� 90% say Advocates influence sales
� Social media amplifies Advocates
Busin
ess V
alu
e
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Loyal Customers Not Best Marketers
“Your loyal customers are probably not your best marketers.”
Harvard Business Review, “What’s the Value of Word of Mouth?”
12X ROI by turning enthusiastic customers into Advocates
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Advocates 5X More Valuable
Avg Customer Brand Advocates
Spend Value 2X
Spend Value
Sources: Deloitte; Owen, Brooks, Zuberance
$3,000Value of one Advocate
for hotel company
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Advocate Reviews Boost Hotel Sales
Sources: Chadwick, Martin, Bailey
26% 29%
92%
14%
44%
1%
60%
27%
6%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1 Star 3 Stars 5 Stars
Less Likely
No Impact
More Likely
Consumers 3X More Likely to Book Hotels with 5-Star Ratings than 3-Star Ratings
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Advocates vs. Loyal Customers
Identical Offer from Brand, Dramatically Different Results
Source: Zuberance
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The New Marketing Funnel
Awareness Consideration Conversion Loyalty Advocacy
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Identify Advocates…
Website banners
1. Engage customers 2. Identify Advocates
Facebook posts
Twitter monitoring
Emails
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…Mobilize Advocates…Advocate Ratings & Reviews Advocate Stories
Advocate Answers Advocate Offers
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…Track Results
� Track clicks, opens, leads, sales
� Track Advocate activities
� View and share results
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Real-World Advocacy Results
50% 30%Write reviews or testimonials
13%Answer prospects’ questions
30%Share or publish content and/or offers
“How likely are you to recommend our brand or product?”
Source: Zuberance-powered surveys
Within First 90 Days…
(Average across all Zuberance customers. Results vary.)
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Energizing Advocates Delivers 10X ROI
Return
Media & Sales Value
Investment
Zuberance “WOMonmics”
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Budget Motel Activates Advocates
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Summary: Energize Advocates Now
� Your competitors are energizing their Advocates� 72% marketers using or plan to use
advocacy in 2011 (source: Forrester)
� Missing major opportunity to cost-effectively generate qualified traffic, leads, sales
� 10X ROA
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Robin KormanSenior VP, Global Loyalty
And Strategic PartnershipsWyndham Hotel Group
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Loyalty Programs Are the Platform to Create Great Customers and Great Experiences
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Factors influencing hotel selection
1. Location
2. Price
3. Loyalty Program
60%92%
Source: Phoenix Marketing SCORES 2009 Frequent Guest Programs
0% 10% 20% 30% 40% 50%
17%
32%
6%
43%
Never
Rarely
Some of theTime
Most of theTime
All of theTime
1%
Loyalty Programs Influence Hotel Choice 92% of the Time
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� Spend More
� Stay More
� Stay Longer
� Less sensitive to price and competitive offers/rates
� Buy more ancillary products and services
� Upgrades, F&B, spa services, program credit card, time shares, etc.
� Generate word of mouth/become brand advocates
Hotel Loyalty Program Members More Valuable than Non-Members
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Loyalty Programs Should Create Engagement Along the Customer Lifecycle
Life Cycle
Acquire
Re-Activate
Win Back
Recognize
Grow Share/Retain
On-Board
Activate
Engage
Cust
om
er V
alu
e
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Need to Go Beyond Points to Create Emotional Engagement
� Engage between stays
• Lifecycle-based communications
– Recognize milestone; anniversary date, elite tier achievement
• Ancillary products to increase relevancy/keep top-of-mind between stays
– Credit cards, time shares, point-earning partner offers
� Create positive experiences
• Deliver promised hotel benefits consistently
• Personalized conversation at front desk
– “We haven’t seen you in a while”,
– “I see you are a Platinum member…”
• Surprise and Delight
• Aspirational redemption
• Insider Access
� Converse and spread the word in social and mobile channels
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30
AspirationalAspirationalRedemptionRedemption
Insider AccessInsider Access
Surprise and DelightSurprise and Delight
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Engage: “Talk” With Your Customer
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Share insider info
Engage with games
Solve customer
issues
Problem-solve real-time
Deliver marketing message
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• Earn points and perks from your favorite program for checking-in with Facebook Places, Foursquare or Gowalla.
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Loyalty Programs Are the Platform to Create Great Customers and Great Experiences
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John MoserChief Marketing & Brand Officer
Denihan Hospitality Group
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About Denihan Hospitality Group Captivating hotels in coveted urban locations.
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“Denihan is charting a fresh course to innovate and has a hotel concept to fit any market.”
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� Increase share during midweek by attracting road warriors who are accustomed to points
� Change their buying from OTA’s to lower cost booking channels
� Encourage more repeat stays
� Attract boutique hotel travelers from other key markets
Loyalty Program Needs
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Compete w/Big Brands, Great Experience
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� Need to generate revenue by driving increased occupancy and longer stays
Advocate Program Needs
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� Market Metrix reports that 75% of Denihan’s guests ar e defined as secure customers…� Both likely to return and willing to recommend
� Energize existing Affinia Advocates identified throu gh Market Metrix
Advocacy Opportunity
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� Create a Brand Advocacy program to mobilize Affinia ’sexisting Advocates
� Mobilize Advocates to Create Reviews and publish to key 3rd party sites (e.g., TripAdvisor)
� Mobilize Advocates to share unique offers with frie nds and colleagues
Advocacy Solution
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Invite Advocates to Write a Review
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Advocate Reviews
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Advocate Shared Offers with Friends
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� 652 reviews created so far� 70% took the action of clicking to publish to TripAdvisor� Very high 20% of those ended up completing the action
of publishing – 93 ended up publishing
� Advocate Influence Ratio for both reviews and offers performed very strong� Each share delivers an average of 3 inbound clicks
� Few days after 1 st Advocate outreach� Delivered 5 bookings converting at 7.5%
Advocacy Results
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� Identify more Advocates� Scale Advocate Mobilization
� Leverage multiple existing touch points
� brand website, email, newsletter� Mobilization includes use of Reviews and Offers
applications
What’s Next on Advocacy Front…
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Questions?Questions?Panel Moderator: Fran BrasseuxExecutive Vice President, HSMAI
Robin Korman
Senior VP, Global Loyalty
And Strategic Partnerships
Wyndham Hotel Group
John Moser
Chief Marketing & Brand Officer
Denihan Hospitality Group
Panelists:Rob Fuggetta
Founder/CEO, Zuberance
Upcoming Webinars:
March 15 – Ten Must Do’s for Online Reviews, With Holly Zoba, Signature Worldwide
Digital Marketing Series: Session 3: March 22 – How to Use Geolocation Sites to Build Your Presence - With Gordon Liametz, Revenue Performance, Inc.
The HSMAI University 10-part 2011 Revenue Management Series –Session 1 on March 29 – What is the Future of Business Intelligence? Special rates for registering for entire series
June 2 – Portrait of American Travelers, With Peter Yesawich, The Ypartnership
To register for these and more, please go to www.hsmaiuniversity.org.
HSMAI and RedGlobal announce new 4 week online course leading to Certified in Hospitality
Business Acumen (CHBA) Certification!� Relevant – Respected – Recognized – this eLearning, Simulation, and Web
Conferencing course is given nowhere else
� Begun in 2006, we are thrilled to announce the new online version of a course that over 4,400 participants in 40 countries have taken onsite and given a 9.5 (out of 10!) rating
� Increase your CONTRIBUTION – Stay COMPETITIVE – Demonstrate your EXPERIENCE – Advance your CAREER
� Registration available for Spring and Summer courses shortly – watch www.hsmaiuniversity.org or email [email protected] with questions
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TodayToday ’’s webinar is copyright 2011 by the Hospitality Sale s & Marketings webinar is copyright 2011 by the Hospitality Sale s & Marketing Association International Association International with All Rights Reserved.with All Rights Reserved.