DIGITAL TRANSFORMATION
(travel & hospitality industries)
Fernando Polo @abladias
A long, long time ago… I found myself cofounding a startup to build an online monitoring software. It was visionary but early… too early :-)
When we started discussing about “text mining” technologies with the academic world, they said: “listen, in 30 years progress has been small. A robot won’t read as a human being. If machines could read, they would write as well…”
“By 2018, 20% of business content will be authored by machines”,
Gartner Inc, Oct 2015
EXPONENTIAL GROWTH
MOORE’S LAWHow could professors be so shortsighted back in 2003. The answer is quite simple. Humans -as Brynjolfsson and
McAfee stated in their awesome “The 2nd Machine Age” book- are not prepared to understand exponential growth. Let’s put aside foreseeing the effects of a non ceteris paribus evolution.
technologypeople
organisations
Organisations are failing to keep up with the frantic pace of the technological revolution.
Digital Transformation is related to: TEXTO DEL SUBTÍTULO EN MAYÚSC.
20% 40% 60% 80% 100%
36%39%
51%65%68%
76%79%New Distribution &
Loyalty ChannelsClient Management and Knowledge technology
Customer Journey Digitisation
Big Data
Open Innovation Platforms
Social Corporate & Business Accounts
Creating an Innovation Area
Territorio creativo partnered with the LSE to carry on a research about digital transformation. Several hundreds of executives related “Digital Transformation to “consumer related” topics.
DIGITAL TRANSFORMATION FRAMEWORK
DIGITAL CUSTOMER
DIGITAL BUSINESS
DIGITAL ENTERPRISE
Brand / Sales / Loyalty
Channels / Product & Services / New Biz Models
Leadership / Processes / Organization / Culture
DIG
ITA
L SK
ILLS
But we wrote an exhaustive white paper back in 2014 to understand what digital transformation is all about. And we have now clear that it is not only related to the digital customer, but also to new ways of producing revenues, and a
whole new way of organising enterprises internally.
DIGITAL CUSTOMER
NEW CUSTOMER FUNNEL
Source: McKinsey June 2009
2/3 of the touch points that influence purchase decisions aren’t generated by companies. They are created by consumers.
Some time ago, McKinsey conducted a massive research to better understand the new customer journey. They discovered that most of the touchpoints critical to influence purchase decisions at the active evaluation stage weren’t
produced by the companies themselves, but by other consumers.
DIGITAL CUSTOMER JOURNEY
Car Parks.
AIRPORT
shopping center near the
car park
free places optimization
Who am I?
Social Media
channels
THIS Airport is different
Shopping Experience
Customers needs
€shopping areas
Public Toilets
Aged
Tierra Pasaporte
VIP Lounge
CRM
New spaces. Fitness /Wellness
We’ve been recently thinking about the social /digital traveler, the new digital consumer and how airports can rethink their customer journeys and improve their user experience, specially through digital touchpoints.
This is just a graphical simulation of an airport user experience, created by Iñaki Bagazgoitia @ibagaz
In 2013, we conducted an extensive research commissioned by NH Hotels.. Even if the physical experience of travelling, staying in a hotel, visiting tourist destination has the biggest impact, there are more and more digital
touchpoints being added every day to the traveler journey. It means that the traveler experience is becoming more digitized. Thus -as many digital companies know well- the mantra “user / people / customer first” becomes a survival imperative., which is still difficult to understand for the hospitality industry, still too focused on their physical assets.
DOWNLOAD (pdf )
dreaming
planning
Social Media
channels
Destinations
Sharing Experience
Sharing
€
trip reviews
When redefining the customer journey and understanding how the digitisation of physical spaces is taking place, we forget too often that our customers carry powerful digital weapons in their pockets. Digitisation is not about putting
bigger displays at the stores. It’s about improving the experience through digital tools. A simple example: I never buy anything above 10 eur, without previously asking my wife over whatsapp :-)
EXPERIENCE IS EVERYTHING
Changing the conversation
from advertising to experience
GoodRebels.com is our brand for non Spanish speaking countries. And this is our tagline: changing the conversation “from advertising to experience”.
DIGITAL CUSTOMER EXPERIENCE FRAMEWORK
CUSTOMER GRO
WTH
BRAN
DSALES
AwarenessEngagement
AdvocacyReputation
Customer satisfactionSocial CRM
LoyaltyLife Time Value
Lead GenerationShopper Engagement
ConversionsSales Networks
BRAND /// SALES /// LOYALTY
When creating digital experiences., is the brand left behind? How do we create awareness, engagement in the digital / social age?
FROM TARGET TO COMMUNITY
Traditional Communication
Network Communication
1) Proactive Listening
2) Fan Centric
3) Earn (don’t buy) attention
• Content and utility
• UGC and advocacy
The digital / social platforms have changed the rules about digital branding and digital identity.
KLM: FROM COMM 2.0 TO PRODUCT 2.0
From
KLM Surprise
to
KLM Meet & Seat
A well known example from the Travel Industry. KLM went from creating a witty campaign based on improving the flyer experience, to introducing digital / social functionality in the flyer journey. Though KLM meet & seat hasn’t proved
extremely succesful so far, it depicts a digital mindset.
NH HOTELES#WAKEUPPICS3
We started working with NH Hoteles in 2010. Little months afterwards, Instagram was born and 1 million users joined the social network in 2 months. Creating one of the first world campaigns on IG, positioned NH as an early adopter and
an innovative digital brand (read the story in BusinessInsider.com).
WATCH VIDEO
A B
The new challenge is all about creating experiences, in order to foster engagement between nodes inside a big network.
HOW TO CREATE ENGAGEMENT
CREATIVITY
DATA
TECHNOLOGY
A B
#peoplefirst SET OF PRINCIPLES
SKILLS & METHODOLOGIES
TECH ENABLERS
How to translate a TV spot into a Facebook campaign, putting the fan at the center of the stage and using personal data (with explicit permission), creativity and technology to convey emotions.
WATCH VIDEO
DATA IS EVERYTHING
BIG DATA APPLICATIONSTOURISM INDUSTRY
Demand & Business Forecast
Real Time Information
Industry Knowledge
Operations Management
Client Acquisition
n/a
Source: Invattur / Territorio creativo 2015
DATA SOURCES & OBJECTSBIG DATA TOURISM INDUSTRY
Online Reputation
Bookings & Services data
Declared Interests in SNs
Sociodemographic Information
Cultural Activities
Geolocalisation
Safety
Health
Mobility
Weather
More to less valued Source: Invattur / Territorio creativo 2015
AAKER APPLIED TO A CAR BRAND
We used “big data” (or not so big) to analyse the brand personality following Jennifer Aaker’s model, using hundreds of thousands of online conversations.
CUSTOMER JOURNEY CASE STUDY
An we’ve used “big data” (or not so big) to improve the customer journey of a retailer (brick & mortar), and many other companies.
CONSUMER EXPERIENCE
WHEN HOWWHYWHO WHAT
Motivations
Understanding the impulse and the person behind each moment.
★ Value proposition
★ Empathy Mapping
★ Buyer Persona
★ Casting: internal & external influence
Timeline
Determining the timing of each interaction.
★Moments map
★ Periodicity and seasonality timelines
Touchpoints
Identifying direct and indirect points of engagement.
★ Channels mapping
★ Service staging (recreating environments around each touchpoint)
★ Casting
Actions
Understanding the actions and needs met at each moment.
★ Pain/Wow moment measurement
★ Action plan
★ Transactional analysis
Buyers
Defining the main actors across the journey.
★ Buyer Persona
5 PILLARS OF GOOD REBELS / TC METHODOL.
CONSUMER EXPERIENCE
1 2 3 540
Segmentation
Role Plays Data
Actions
Measurement
OU
TPU
TPR
OCE
SS
Workshops
Interviews
Research (Data, Surveys)Interviews
CJ Canvas
Archetypes
Client Shadowing
Workshops (in store/ office)
Ideation
IdeationCustomer
Service
Digital Monitoring
CJ MetricsFramework
Profiles
Empathy Maps
PEO
PLE • Front End team
• Back End team• Clients • Front End team • Back End team
• Clients • Front End
team • Back End team
• CJ Team • Front End team • Back End team
• Clients • Specialists • Internal Teams • Partners
• CJ Team • Internal Teams
Segmen-tation
Buyer Persona
CJ Mapping Measure-ment
Improvement cycle
Business objectives
Lean Tactical Plan
5
• CJ Team • Front End team • Back End team
Action Plan
CJ Analysis
Ideation
METHODOLOGY: PROCESS
Disney MyMagic+
Another example of Big Data applied to the travel and leisure industry (read more)
DIGITAL CUSTOMER EXPERIENCE FRAMEWORK
CUSTOMER GRO
WTH
BRAN
DSALES
AwarenessEngagement
AdvocacyReputation
Customer satisfactionSocial CRM
LoyaltyLife Time Value
Lead GenerationShopper Engagement
ConversionsSales Networks
BRAND /// SALES /// LOYALTY
And what about digitising loyalty programs?
STARBUCKS LOYALTY PROGRAM
Source: Starbucks
STARBUCKSDIGITAL LOYALTY PROGRAM GROWTH
Source: Starbucks
anal
ytic
scrm
LOYALTY & CRM IN THE DIGITAL
oper
atio
nal s
crm
digi
tal/s
ocia
l lo
yalty
social business intelligence
LOYALTY & CRM IN THE DIGITAL AGEINFORMATION FLOW
web gp
s
mob
ile a
pp
gam
ifica
t.
face
book
tw, i
n, In
st.
open
dat
a
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erce
wea
rabl
es
int.
of th
ings
polls
tran
sact
ion
onlin
e co
nt.
mob
ile
soci
al
hard
war
e
Client ID
data arch.
analysis
soci
al B
I
promotion/gamification
promotion/gamification
DIGITAL BUSINESS
NUEVOS MODELOS DE INGRESOSTEXTO DEL SUBTÍTULO EN MAYÚSC.
New Distribution
channels
New products / services
New Models
NEW DIGITAL BUSINESS MODELS
eCommerce Digital Products / Services New Models
Organisations are finding ways to market new products and services improved or redefined by digital technologies.
STARBUCKS MOBILE PAYMENT
Source: Starbucks
But many tourism and hospitality companies are finding ways to take advantage from digital technologies to build completely new business models. Is not only about “product digitalization”. Is about “digital disruption”.
STARBUCKS & SQUARE
Source: Starbucks
Starbucks announced months ago, that they will develop and sell their own mobile payment technology (even competing with their former partners, Square).
Room Mate Hotels launched Be Mate, a platform to let private owners rent their appartments with Room Mate services, like cleaning or checkin services.
DIGITAL ENTERPRISE
TEXTO DEL SUBTÍTULO EN MAYÚSC.
Less investment:
21% invest 0€
PEOPLEPROCESSES AND ORGANISATION
18% invest 0€
As in many other industries, one of the major obstacles to overcome when transforming companies digitally, is that the investment in people and organisation is still very rare.
TC DIGITAL ENTERPRISEFRAMEWORK
LEADERSHIP
SKILLS
ORG
AN
IZAT
IONO
PERATION
S
VALUES
DIGITAL CULTURE
MOTIVATIONS
We at Good Rebels / Territorio creativo, have developed a framework to help companies put their house digitally in order.
20th c. efficiency
Because old hierarchical structures are focused on efficiency.
21st c. innovation
But to thrive in the XXIst century we will need corporate structures oriented towards innovation.
And we’ve written a whole book to explain how to migrate from old management principles to new ones. How to introduce digital values in our organisations. #Leadertarians was published by Planeta in Spain in January 2015. If you
want to read this book in English, just send me an email to [email protected] .
In our book there are more than 20 cases explaining how to work with less bosses, less bureaucracy, and less bureaucracy. Like Valve. (Read the Valve Employee Handbook, PDF)
But it is not only about digital cultures. One of the most fascinating example of self management can be found in Brazil. (Read about Semco Story))
INTRISIC MOTIVATIONS
VISION
DEVELOPMENT AUTONOMY
DIGITALVALUES
Based mostly on the framework explained in Daniel Pink’s book, Drive: the incredible truth about what really motivates us, we are building a company where people can look beyond their daily work and understand the impact of their
effort to create a better world, have enough freedom to take most of their decisiones and feel that they become better professionals each day. It’s all about creating “intrinsic” (not extrinsic) motivations.
OPEN LEADERSHIP
• connected leader
• the leader as a teacher
• communicator (read, write, speak)
• co-leadership
• “intrapreneurial”
• control vs. freedom + responsibility
• humble
• helpful (servant leadership)
DIGITAL TRANSFORMATION FRAMEWORK
DIGITAL CUSTOMER
DIGITAL BUSINESS
DIGITAL COMPANY
Brand / Sales / Loyalty
Channels / Product & Services / New Biz Models
Leadership / Processes / Organization / Culture
DIG
ITA
L SK
ILLS
HOW TO CREATE ENGAGEMENT
CREATIVITY
DATA
TECHNOLOGY
A B
#peoplefirst SET OF PRINCIPLES
SKILLS & METHODOLOGIES
TECH ENABLERS
a human-centered world
#peoplefirst
CREATIVE AGENCY AND CONSULTANCY DIGITAL TRANSFORMATION & CONSUMER EXPERIENCE
#TcBlog
BRIGHTON - MADRID - BARCELONA - BOGOTÁ - CD MÉXICO - LIMA
+200.000 FANS
COUNTRIES5 & GROWING
130PROJECTS
120WORKERS
+40ACTIVE CLIENTS
MM €8TURNOVER
COMMUNITYFIRST MKT BLOG IN SPANISH
Thanks for reading this far. I am Fernando Polo, partner and CEO of Territorio creativo group (GoodRebels.com) creative agency and consultancy of Digital Transformation and Consumer Experience. You can follow me on Twitter (@abladias) or on my blog FernandoPolo.com. Or read our vision about the future of marketing in #Socialholic, or the new digital management in #Leadertarians.
goodrebels.com • territoriocreativo.es/en
Brighton • Madrid • Barcelona • Bogotá • México • Lima
From advertising to experience