Travel Industry Community & Content Loyalty

Agenda Loyalty Programs Today The future of loyalty The Community and Content Loyalty Community Content Solution Benefits Routes Forward

Loyalty Programs Today

The future of loyalty

The Community and Content Loyalty

Community

Content

Solution

Benefits

Routes Forward

Loyalty Today – Points Mean Prizes Financial Services AMEX – Membership Rewards Barclaycard – Nectar MBNA – Worldpoints Goldfish Hotel Industry Intercontinental - Priority Pass Marriott – Rewards Starwood – Preferred Guest Airlines Virgin- Flying Club BA – Executive Club Cathay Pacific – Marco Polo Retail Industry Tesco – Clubcard Sainsbury's - Nectar

Financial Services

AMEX – Membership Rewards

Barclaycard – Nectar

MBNA – Worldpoints

Goldfish

Hotel Industry

Intercontinental - Priority Pass

Marriott – Rewards

Starwood – Preferred Guest

Airlines

Virgin- Flying Club

BA – Executive Club

Cathay Pacific – Marco Polo

Retail Industry

Tesco – Clubcard

Sainsbury's - Nectar

Loyalty program objectives: Enrol Customers into their program Activate customers to purchase a product/ service Retain the customers and create and affinity to the brand Maximise the share of the customers wallet Reactivate the customer on a regular basis

Enrol Customers into their program

Activate customers to purchase a product/ service

Retain the customers and create and affinity to the brand

Maximise the share of the customers wallet

Reactivate the customer on a regular basis

Loyalty Today – Affinity Programs Airmiles Asiamiles Nectar Upromise Baby Mint Branded Credit Cards Manchester United PADI Divers National Trust PGA

Airmiles

Asiamiles

Nectar

Upromise

Baby Mint

Branded Credit Cards

Manchester United

PADI Divers

National Trust

PGA

Loyalty Today - Communities Customer Review Communities EBay Amazon Customer Service Communities Dell Logitech Linksys Product Communities Littlest Pet Shop Sony Play station Nintendo Online Games World Of Warcraft RuneScape Information Communities Ivillage Lonely Planet Virtual Tourist Dating Sites Dating Direct Match Social Networks - Facebook - Bebo - Myspace Youtube Twitter

Customer Review Communities

EBay

Amazon

Customer Service Communities

Dell

Logitech

Linksys

Product Communities

Littlest Pet Shop

Sony Play station

Nintendo

Online Games

World Of Warcraft

RuneScape

Information Communities

Ivillage

Lonely Planet

Virtual Tourist

Dating Sites

Dating Direct

Match

Social Networks

- Facebook

- Bebo

- Myspace

Youtube

Twitter

Issues with current loyalty programs… Commodity Products Little or no value to the individual consumer Financial “me too” programs Create Long Term debit on balance sheet No “personal” service

Commodity Products

Little or no value to the individual consumer

Financial “me too” programs

Create Long Term debit on balance sheet

No “personal” service

Tools/Services Available….(1) Advertising and Interactive /agencies Customer Relationship Management Solutions Customer Analytics Engines One to One Personalisation/Email Engines Content/Knowledge Management

Advertising and Interactive /agencies

Customer Relationship Management Solutions

Customer Analytics Engines

One to One Personalisation/Email Engines

Content/Knowledge Management

Tools available …..(2) Brand Programs Tesco Hotels Airlines Manchester United Affiliation Programs Nectar Airmiles Upromise Loyalty Solution Providers ICLP Loyalty Logic Alliance Data Systems Teamcard Maximiles Online Community Providers Socialgo/Ning Lithium Boonex

Brand Programs

Tesco

Hotels

Airlines

Manchester United

Affiliation Programs

Nectar

Airmiles

Upromise

Loyalty Solution Providers

ICLP

Loyalty Logic

Alliance Data Systems

Teamcard

Maximiles

Online Community Providers

Socialgo/Ning

Lithium

Boonex

Next Generation Loyalty needs… Compelling Events to engage the members Customer segmentation The ability to identify and satisfy soft needs The ability to deliver on the brand promise To create emotional loyalty

Compelling Events to engage the members

Customer segmentation

The ability to identify and satisfy soft needs

The ability to deliver on the brand promise

To create emotional loyalty

Travel Loyalty … Identify buying groups with critical mass Leisure Traveller Solo Traveller Business Traveller Build a lifestyle themed service Global Travel Adventure Travel Experience Travel Identify a need not currently met Isolation on business trips Community for fellow travellers to exchange info and keep in touch Communication channel with friends at home/around the world Lifestyle and cultural information easily available Searching Booking reviewing Propose a service which addresses those needs Online travel community Travel Tips and activity options to participate in when travelling

Identify buying groups with critical mass

Leisure Traveller

Solo Traveller

Business Traveller

Build a lifestyle themed service

Global Travel

Adventure Travel

Experience Travel

Identify a need not currently met

Isolation on business trips

Community for fellow travellers to exchange info and keep in touch

Communication channel with friends at home/around the world

Lifestyle and cultural information easily available

Searching

Booking

reviewing

Propose a service which addresses those needs

Online travel community

Travel Tips and activity options to participate in when travelling

The Travel Industry Highly competitive market Like for like services Barriers to entry are lower than in previous years Still relevant: “ The future leaders of the travel industry will ultimately be those who can strengthen customer loyalty to grow revenues.” Julian Sparks, Partner Accenture, Sept 2002

Highly competitive market

Like for like services

Barriers to entry are lower than in previous years

Still relevant:

“ The future leaders of the travel industry will ultimately be those who can strengthen customer loyalty to grow revenues.”

Julian Sparks, Partner Accenture, Sept 2002

Community and Content Loyalty

Components of a travel loyalty solution Itinerary Database Travel Tip Database Activity Database Activity Booking Engine Internal Messaging People Matching Engine Round The World Trips, Sabbaticals and Adventure Travel Member Forum Points Bank Integration Content Providers Points based loyalty programs Booking engines External push of data Mobile Devices Wireless SMS Implementation Workshops Feasibility study Application Dev Plan Project Management

Itinerary Database

Travel Tip Database

Activity Database

Activity Booking Engine

Internal Messaging

People Matching Engine

Round The World Trips, Sabbaticals and Adventure Travel

Member Forum

Points Bank

Integration

Content Providers

Points based loyalty programs

Booking engines

External push of data

Mobile Devices

Wireless

SMS

Implementation

Workshops

Feasibility study

Application Dev Plan

Project Management

Why will travellers use it? Build a personal global network Enhance travel lifestyle Take advantage of the locations visited in the time available Participate in “your” sport, activity when travelling Exchange travel tips with peer group

Build a personal global network

Enhance travel lifestyle

Take advantage of the locations visited in the time available

Participate in “your” sport, activity when travelling

Exchange travel tips with peer group

Identify Target Market Sections and Acquire new customers Activate Customers through a compelling event Raise the Stakes and Revolutionise Lifestyle Brands and Customer Loyalty Move customer loyalty away from financial programs to lifestyle and individual benefits Community based Customer Loyalty Programme Emotional Loyalty prohibits promiscuous customers Retain and recapture customers Cross-sell and Up-sell products Customers have a reason to provide more detailed information about themselves Improved segmentation and targeting of future marketing campaigns Increased opportunity for affinity marketing campaigns with complimentary vendors Advocacy Brand Differentiation Brand and Lifestyle association Address the work and lifestyle balance issue of the business traveller Marketing Information Customers have a reason to provide more detailed information about themselves Improved segmentation and targeting of future marketing campaigns Increased opportunity for affinity marketing campaigns with complimentary vendors New Revenue Stream that increases with the success of the service Subscription based service - $ or Preferred guest points Drive customers to web Total travel and lifestyle service will drive customers to use this as core to their travel plans Community and Content

Identify Target Market Sections and Acquire new customers

Activate Customers through a compelling event

Raise the Stakes and Revolutionise Lifestyle Brands and Customer Loyalty

Move customer loyalty away from financial programs to lifestyle and individual benefits

Community based Customer Loyalty Programme

Emotional Loyalty prohibits promiscuous customers

Retain and recapture customers

Cross-sell and Up-sell products

Customers have a reason to provide more detailed information about themselves

Improved segmentation and targeting of future marketing campaigns

Increased opportunity for affinity marketing campaigns with complimentary vendors

Advocacy

Brand Differentiation

Brand and Lifestyle association

Address the work and lifestyle balance issue of the business traveller

Marketing Information

Customers have a reason to provide more detailed information about themselves

Improved segmentation and targeting of future marketing campaigns

Increased opportunity for affinity marketing campaigns with complimentary vendors

New Revenue Stream that increases with the success of the service

Subscription based service - $ or Preferred guest points

Drive customers to web

Total travel and lifestyle service will drive customers to use this as core to their travel plans

Benefits Raise the Stakes and Revolutionise Customer Loyalty Programmes Move customer loyalty away from financial programs to lifestyle and individual benefits Community based Customer Loyalty Programme Emotional Loyalty prohibits promiscuous customers Brand Differentiation Brand and Lifestyle association Address the work and lifestyle balance issue Marketing Information Customers have a reason to provide more detailed information about themselves Improved segmentation and targeting of future marketing campaigns Increased opportunity for affinity marketing campaigns with complimentary vendors New Revenue Stream that increases with the success of the service Add on services for customers Drive customers to brand and service sites Total travel and lifestyle service will drive customers to use this as core to their travel plans

Raise the Stakes and Revolutionise Customer Loyalty Programmes

Move customer loyalty away from financial programs to lifestyle and individual benefits

Community based Customer Loyalty Programme

Emotional Loyalty prohibits promiscuous customers

Brand Differentiation

Brand and Lifestyle association

Address the work and lifestyle balance issue

Marketing Information

Customers have a reason to provide more detailed information about themselves

Improved segmentation and targeting of future marketing campaigns

Increased opportunity for affinity marketing campaigns with complimentary vendors

New Revenue Stream that increases with the success of the service

Add on services for customers

Drive customers to brand and service sites

Total travel and lifestyle service will drive customers to use this as core to their travel plans

Julie Walker Purple Spinnaker Contact: [email_address] Tel: +44 (0) 7887 644 799 Travel Industry Community & Content Loyalty