Presentation delivered on 25th September 2013 via webinar, highlighing the results of SDL's consumer survey of 4,000+ travelers in the US, UK and Australia.

1. The Modern Traveler
A Look at Customer Engagement
in the Travel Industry
Rusty Warner, SVP Marketing
September 25, 2013

2. • About SDL & Customer Experience Management
• Survey Background and Methodology
• The Modern Traveler – Pre, During and Post Holiday
• Key Findings & Recommendations
Agenda

3. Optimizing CXM for the World’s Top Brands

4. Optimizing CXM for the World’s Top Brands

5. Defining Global Customer Experience Management
CXM is a strategy and practice for managing customer experiences
online and offline to acquire, retain, and turn customers into
satisfied, loyal brand advocates and ambassadors.

6. Three Business Requirements for Global CXM
Align your
organization across
channels, markets,
languages and teams
Understand your
audiences’
interests and
motivations
Create relevant
experiences for
your customers,
regardless of
channel

7. SDL Global CXM capabilities

8. Your Partner in Global CXM
 Publicly traded company, long-term
stability and $430M annual revenues
 2,700+ employees, 70 offices, 38 countries
 1,500+ enterprise customers and partners
 Innovative technology and services for
enriching global customer experiences
 Award-winning technology and services
 Serving 76 of the top 100 global brands
(Source: Interbrand 2012)

9. • Priority: 50% of CEOs now rate Customer Expereince Management as their
number one strategic investment. (Gartner)
• Profitability: 76% of consumers would pay 5% more for a better experience,
53% would pay 10% more and 10% would pay 25% more. (Accenture)
• Loyalty: Customer experience (CX) is a more powerful customer loyalty driver
than price-value perception. (Forrester)
• Equity: Over a 6 year period, CX leaders outperformed the S&P 500 index by
28%. Those who had poor CX performance lagged behind the index by almost
20%. (Watermark Investment Consulting)
• Consistency: In the UK, a £100 investment in the National Consumer
Satisfaction Index fund in 2007 would have by June 2011 returned £159 while
the same investment in the FTSE 100 would have returned just £94. (SynGro)
• Efficiency: A one point increase in customer satisfaction (CSAT) has been
proven to improve cash flow by 4% in major organizations. (Journal of
Marketing)
Why Focus on CXM?

10. The Modern Traveler:
About the Survey

11. • Survey
– Focused on the experiences of the modern traveler
– Deployed in the US, UK and Australia
– Conducted by third parties on behalf of SDL
– Respondents not aware the survey was conducted for SDL
• Key Themes
– Vacation is truly the last vestige of relaxation
– Online reigns supreme…when it comes to booking
– But, online experiences are not matching up with people’s real-world experiences
– Vacationers aren’t as active on mobile as they are during their non-vacation lives
– Friends and family recommendations win out over social media for travelers
– When sharing experiences, feedback surveys say it all
– Price and experience beat loyalty for many consumers
Methodology

12. Survey Respondents – Geographies
Number of Respondents by Geography
AUS
UK
US
1,137 1,100
2,000

13. Survey Respondents – Demographics
AUS
US
UK

14. The Modern Traveler:
Behaviors and Experiences – Pre-Holiday

15. Good Holidays Start with Trusted Recommendations
Family and Friends are Most Trusted Sources
51% 36% 39% 41%

16. Online Travel Reviews are Important
Always or Sometimes Read Online
Reviews before Travel

17. Online Reigns Supreme…
Book Travel Online

18. …and Online Experiences are Critical
A Positive Online Experience is Important
or Very Important
“Travel is the largest e-commerce
category, led by airline ticket
sales, with an estimated $85.7
billion spent online for airline
tickets sales in 2012 in the US by
business and leisure travellers.”
IATA
“The typical travel shopper visits
22 websites in „multiple shopping
sessions‟ before booking a trip.”
Atmosphere Research

19. Yet many experiences online aren’t cutting it
Only 20% said their online experience
always matches their real-world experience
“Consumers are increasingly fed
up with irrelevant content. So
when it comes to improving the
customer experience online,
travel firms still have a long way
to go and would do well to look to
other industries for insights.”
EyeforTravel
68% said their online experience sometimes
matches their real-world experience

20. A Grim Reality for Loyalty Programs
Always consider loyalty programs
when traveling

21. Loyalty Programs: A Missed Opportunity?
Travelers who are NOT Members
Of Loyalty Programs
“In the competitive travel industry,
customer satisfaction no longer
guarantees customer loyalty.
Ongoing relationships with loyal
customers are the key to success
You must engage your customers
regularly, collect and interpret
information, and consistently refine
your pitch and the customer
experience to drive more bookings
and positive recommendations.”
Sage CRM

22. The Modern Traveler:
Behaviors and Experiences – During Holiday

23. Travelers Prefer to Step Away from Technology
Travelers Who Always Unplug or
Unplug as Much as Possible

24. Travelers Share on Social Media after the Trip
Social Media Sharing after the Holiday
Only 16% of Americans and
18% of Australians share
updates on social media during
their holidays. In the UK only
8% of holiday-makers share
immediately on social media.

25. Travel Reminders: Helpful or Annoying?
Reminder Preferences for EMAIL
“What a surprise, the clever,
creative and informative things
people like in real life they also
like online.”
The Independent
September 24, 2013

26. Unhappy Travelers – Are You Equipped to Help Them?
Resources to Fix Travel-Related Issues
Results of global respondents
who say that they prefer to use a
website to resolve travel issues
over email, phone and travel
agency

27. Using Apps on Vacation
Travelers who use Apps on Vacation
But not necessarily travel apps….

28. The Modern Traveler:
Behaviors and Experiences – Post-Holiday

29. Looking for feedback? Send a Survey!
Travelers who complete surveys
Writing on-line reviews is a close
second in the US and Australia,
and more people in the UK (36%)
will write online reviews than
complete surveys.

30. Social Media Feedback
Travelers who praise good service
However, 53% of Americans,
54% of Australians and 63% of
British travelers do not post
comments to brands on social
media.

31. Social Media Sharing
Social Media Sharing after the Holiday
13% to 17% do not share
travel experiences on social
media and 13% to 22% do not
use social media at all. Brits
are the most unlikely to share
or use social media.

32. The Modern Traveler:
Key Findings & Recommendations

33. • Most holiday-makers want to relax, unwind and unplug
–Steer clear of interacting with customers while they are on holiday
–Leverage mobile in the planning and post-vacation phases
–Ensure reminders are timely and relevant – and use email
Key Findings & Recommendations

34. • Invest in a sound online strategy
–Think critically about how to match online experiences with real-world
experiences
–Make sure your website provides help and advice for travelers –
especially for problem situations
–Personalize the online experience and ensure it’s consistent with other
communication channels
Key Findings & Recommendations

35. • Travel is definitely a multi-channel industry
–Address digital channels consistently – and don’t forget about email
–Prepare to evolve mobile and social strategies rapidly as channels and
consumers mature
–Respect how your customers want to interact with your brand
Key Findings & Recommendations

36. • Mobile apps are still an opportunity
–Even travelers who use apps are not using apps from travel brands
–UK travelers are not using apps as much as other nationalities
–Ensure mobile apps are consistent with other channels and target
customers who are ready to embrace them
Key Findings & Recommendations

37. • Loyalty is not the same as it used to be
–Focus on customer experiences for maximum impact
–Take a closer look at loyalty program metrics
–Experiment with different tactics
Key Findings & Recommendations

38. • Vacation is truly the last vestige of relaxation
• Online reigns supreme…when it comes to booking
• But, online experiences are not matching up with people’s
real-world experiences
• Vacationers aren’t as active on mobile as they are during
their non-vacation lives
• Friends and family recommendations win out over social
media for travelers
• When sharing experiences, feedback surveys say it all
• Price and experience beat loyalty for many consumers
Summary

39. And just for fun…What are your top 3 travel items?
1 32
1 32
1 32

40. Thank You!
40
@RustyWarner
@SDL_CMA