The Modern Traveler - 25 Sep 2013

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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.

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The Modern Traveler - 25 Sep 2013

  1. 1. The Modern Traveler A Look at Customer Engagement in the Travel Industry Rusty Warner, SVP Marketing September 25, 2013
  2. 2. • About SDL & Customer Experience Management • Survey Background and Methodology • The Modern Traveler – Pre, During and Post Holiday • Key Findings & Recommendations Agenda
  3. 3. Optimizing CXM for the World’s Top Brands
  4. 4. Optimizing CXM for the World’s Top Brands
  5. 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. 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. 7. SDL Global CXM capabilities
  8. 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. 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. 10. The Modern Traveler: About the Survey
  11. 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. 12. Survey Respondents – Geographies Number of Respondents by Geography AUS UK US 1,137 1,100 2,000
  13. 13. Survey Respondents – Demographics AUS US UK
  14. 14. The Modern Traveler: Behaviors and Experiences – Pre-Holiday
  15. 15. Good Holidays Start with Trusted Recommendations Family and Friends are Most Trusted Sources 51% 36% 39% 41%
  16. 16. Online Travel Reviews are Important Always or Sometimes Read Online Reviews before Travel
  17. 17. Online Reigns Supreme… Book Travel Online
  18. 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. 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. 20. A Grim Reality for Loyalty Programs Always consider loyalty programs when traveling
  21. 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. 22. The Modern Traveler: Behaviors and Experiences – During Holiday
  23. 23. Travelers Prefer to Step Away from Technology Travelers Who Always Unplug or Unplug as Much as Possible
  24. 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. 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. 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. 27. Using Apps on Vacation Travelers who use Apps on Vacation But not necessarily travel apps….
  28. 28. The Modern Traveler: Behaviors and Experiences – Post-Holiday
  29. 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. 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. 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. 32. The Modern Traveler: Key Findings & Recommendations
  33. 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. 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. 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. 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. 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. 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. 39. And just for fun…What are your top 3 travel items? 1 32 1 32 1 32
  40. 40. Thank You! 40 @RustyWarner @SDL_CMA

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