Vacation Rentals<br />in 2011: <br />Ready or not!<br />
Who are we?<br />
We’rethe newest <br />channel partner.<br />
Our first year<br /><ul><li>Over 100 countries
“Social reach” greater than 30 million</li></ul>“Second Porch is tackling the vacation rental trust issue head on…”<br />
The ‘it list for 2010 travel<br />NEW TO TRY: The Portland-based service helps you track down rentals through your Faceboo...
The structure of the Web has changed…<br />and your business is about to change.<br />
“Nine out of ten (90%) have a page posted on Facebook…”“One out of four (24%)has stayed in a vacation home or condo rental...
"I get informationfrom my peers”<br />SorayaDarabi,<br />    Former NYT social media marketing<br />
The vacation rental industry<br />is experiencing growing pains.<br />
Word-of-mouth inherently solves most of these issues<br />
“Word-of-mouth endorsements have been and remain the most believable endorsements…“The most credible are personal testimon...
We loved the beach house we rented!<br />Why “word of mouth”<br />is perfect for vacation rentals:<br />Creates interest: ...
The RBO secret to success…word-of-mouth!<br />“73% of inquiries come from friends, family, past guests & referrals”<br />
Word-of-mouth is the key to your success starting now…<br />
Recommendations from known people are by far #1<br />Make sure your company really internalizes this and agrees to focus o...
You need to plan and budget for programs.  This needs to be intentional now.<br />
 Word-of-mouth on steroids<br />Time duration<br />Reach greatly increases since  everyone with a social profile can parti...
Given two equally suitable homes, people will choose the safe bet…<br />or<br />“Looks nice online but how do I know it wi...
Each home’s<br />“word of mouth”<br />social circleis enormous<br />1,690,000 <br />Friends of friends<br />13,000 <br />F...
Word of mouth<br />Social reach:<br />507,000<br />
Word-of-mouth drives your marketing costs down.  Way down.<br />
Typical marketing channels<br />Rental Portals<br />Paid Ads<br />Half the renters might become repeat customers<br />The ...
Opportunity for smarter marketing<br />+  Word of mouth<br />Rental Portals<br />Paid Ads<br />Social network adds 130 dir...
Your bookings funnel determines your profitability<br />New customer acquisition spending<br />Repeat customer<br />Lower ...
Changing the shape strengthens your business<br />New customer acquisition<br />Repeat customer<br />Word-of-mouth referra...
Smarter marketing<br />Booking sources today<br />
Smarter marketing<br />Future booking sources:<br />
Word-of-mouth impact long term:<br />Your business will be more profitable<br />Less resistance to competitors<br />New VR...
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Second porch, the NEW word of mouth

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Second Porch has built the first referral and repeat customer marketing engine for the vacation renta

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Second porch, the NEW word of mouth

  1. 1. Vacation Rentals<br />in 2011: <br />Ready or not!<br />
  2. 2. Who are we?<br />
  3. 3. We’rethe newest <br />channel partner.<br />
  4. 4.
  5. 5. Our first year<br /><ul><li>Over 100 countries
  6. 6. “Social reach” greater than 30 million</li></ul>“Second Porch is tackling the vacation rental trust issue head on…”<br />
  7. 7.
  8. 8. The ‘it list for 2010 travel<br />NEW TO TRY: The Portland-based service helps you track down rentals through your Facebook connections<br />
  9. 9. The structure of the Web has changed…<br />and your business is about to change.<br />
  10. 10.
  11. 11.
  12. 12.
  13. 13.
  14. 14.
  15. 15. “Nine out of ten (90%) have a page posted on Facebook…”“One out of four (24%)has stayed in a vacation home or condo rental…”<br />
  16. 16. "I get informationfrom my peers”<br />SorayaDarabi,<br /> Former NYT social media marketing<br />
  17. 17. The vacation rental industry<br />is experiencing growing pains.<br />
  18. 18.
  19. 19.
  20. 20.
  21. 21.
  22. 22.
  23. 23.
  24. 24. Word-of-mouth inherently solves most of these issues<br />
  25. 25. “Word-of-mouth endorsements have been and remain the most believable endorsements…“The most credible are personal testimonials from friends and family members”“Marketing programs that leverage this credibility typically enjoy a much higher probability of success.”<br />http://blog.ypartnership.com/?p=306<br />
  26. 26.
  27. 27.
  28. 28. We loved the beach house we rented!<br />Why “word of mouth”<br />is perfect for vacation rentals:<br />Creates interest: “I wonder what the home that Beth just rented was like?”<br />Makes search easy: “If that home satisfied Beth, it will satisfy me too!”<br />Removes the risk: “I know exactly what to expect in our vacation rental”<br />And it solves two of the industry’s biggest hurdles: building awareness<br />and overcoming trust issues.<br />
  29. 29. The RBO secret to success…word-of-mouth!<br />“73% of inquiries come from friends, family, past guests & referrals”<br />
  30. 30. Word-of-mouth is the key to your success starting now…<br />
  31. 31. Recommendations from known people are by far #1<br />Make sure your company really internalizes this and agrees to focus on this opportunity<br />1<br />http://blog.nielsen.com/nielsenwire/consumer/global-advertising-consumers-trust-real-friends-and-virtual-strangers-the-most/<br />
  32. 32. You need to plan and budget for programs. This needs to be intentional now.<br />
  33. 33. Word-of-mouth on steroids<br />Time duration<br />Reach greatly increases since everyone with a social profile can participate with a single click.<br />Influence increaseswhen socially relevant information is highlighted<br />Review sites<br />Guest referral network:friends and friends of friends<br />Ad hoc<br />Reach and influence on audience<br />
  34. 34. Given two equally suitable homes, people will choose the safe bet…<br />or<br />“Looks nice online but how do I know it will really be nice?”<br />“I know someone who knows this place is great”<br />
  35. 35. Each home’s<br />“word of mouth”<br />social circleis enormous<br />1,690,000 <br />Friends of friends<br />13,000 <br />Friends<br />Assuming 100 guests<br />
  36. 36. Word of mouth<br />Social reach:<br />507,000<br />
  37. 37. Word-of-mouth drives your marketing costs down. Way down.<br />
  38. 38. Typical marketing channels<br />Rental Portals<br />Paid Ads<br />Half the renters might become repeat customers<br />The other half fade away with little value<br />
  39. 39. Opportunity for smarter marketing<br />+ Word of mouth<br />Rental Portals<br />Paid Ads<br />Social network adds 130 direct connections + 17,000 friends of friends!<br />Non-repeaters have the same valuable “word of mouth” social reach<br />
  40. 40.
  41. 41. Your bookings funnel determines your profitability<br />New customer acquisition spending<br />Repeat customer<br />Lower budget spending, higher staff training cost<br />High budget items focused on Google SEO, SEM, and VR portals<br />No competitive advantage, vulnerable to others spending more, better message<br />$$$$$$<br />
  42. 42. Changing the shape strengthens your business<br />New customer acquisition<br />Repeat customer<br />Word-of-mouth referrals<br />Social word of mouth becomes a self-growing and self-sustaining strategy.<br />Competitive advantage: Your Guest Referral Network cannot be duplicated<br />Spend less on Google, increasing profitability.<br />$$$$$$<br />
  43. 43. Smarter marketing<br />Booking sources today<br />
  44. 44. Smarter marketing<br />Future booking sources:<br />
  45. 45. Word-of-mouth impact long term:<br />Your business will be more profitable<br />Less resistance to competitors<br />New VR customers will have better experiences<br /> (and tell more friends about it)<br />Our industry starts a flywheel effect<br />We will double the industry in the next 5 years.<br />
  46. 46. Thanks for<br />your time.<br />Brent Hieggelke<br />brent@secondporch.com<br />503-702-3547<br />

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