Aligning Social Media Strategies with Revenue Management Tactics - Part 2

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Aligning Social Media Strategies with Revenue Management Tactics - Part 2

  1. 1. Aligning Social Media Strategies with Revenue Management Goals Part 2 Kate Varini EyeforTravel, Amsterdam, Nov. 2010
  2. 2. MARKETING In with the new, out with the old! OLD  NEW  Interruption & Coercion: Getting prospects to STOP and pay attention Thinking like a journalist and thought leader, making buyers want to consume Advertising to me. Expensive 1 way messages: Ink & Air. Media chosen to target segment Developing a relationship with me Wide & broad, ineffective unless product has wide appeal/mass distribution options Provide the means for customers to solve their problems
  3. 3. MARKETING In with the new, out with the old! OLD  NEW  Advertising & Branding Trust in advertising – low Exclusively about selling Centered on interaction. Combination of marketing & P.R. Great creative work, winning awards Information, Education, Choice! Rules that cannot be transferred to the Web. Separate from P.R. Delivers useful content at the precise moment that a buyer needs it
  4. 4. PR: In with the new, out with the old! OLD  NEW  Exclusively about media & non- targeted emails to reporters containing unsolicited press releases. Mostly ignored today. Reporters research online & writes a story which PR people should be proactive in finding. Mysterious, lots of training needed. Time spent writing press releases (jargon) & schmoozing with the press. OK for very large companies, famous and governments. CONTENT makes firm visible online so can communicate directly with buyer. Tells compelling stories, educates, engages, entertains. Valuable, authentic CONTENT. Separate from Marketing. Clip books as a measure of success. Fact not fluff. Pro-amateurs Promotes site traffic, lowers SEO costs
  5. 5. A recent survey of 2100 companies – 75 percent of companies surveyed did not know where their most valuable customers were talking about them. – 31 percent do not measure effectiveness of social media. – Only 23 percent use social media analytic tools. – A mere seven percent are integrating social media into marketing activities – http://www.eyefortravel.com/news/marketing/how-many-travel-companies-are-integrating-social-media-marketing-activities
  6. 6. Another Study – 36 Respondents • How often do you interact with social media? – Regular User 38.9% – Occasional user 41.7% • Time spent online per day – Less than 1 hour 16.7% – 1-5 hours 61.% – More than 5 hours 22.2%
  7. 7. 0 5 10 15 20 25 30 Zero % Less than 10% 10-20% 21-40% 41-60% More than 60% According to your best estimate, approximately what percentage of the time spent online is spent engaging in social media activities? Level 1- Blogs/Wiki’s Level 2 - Facebook, Youtube, twitter Level 3- Secondlife, virtual game world
  8. 8. 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% Personal use For networking Work related I don’t use social media Why do you use of social media?
  9. 9. How often do you purchase products online? Never A few times a year Approximately once a month More than once a month
  10. 10. How often do you give feedback on the products you purchase online? Always Usually Often Sometimes Seldom Never
  11. 11. Do social websites help you make travel decisions? Yes No
  12. 12. Do you discuss travel options within social network sites? Yes No
  13. 13. 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 Who the reviewer is Has the information been updated recently Is the content of the review relevant How many reviews are there? Does it match with what I thought? Does it include positive and negatives? Are there a good recommendations, high ratings? Are the comments interesting/entertaining to read? When reviewing travel information posted by other consumers, how much would the following influence you ?
  14. 14. How does your firm use social media Listens to the customer (passive) 71.4% Uses customer feedback to identify new needs/product (active) 62.9% To apply fast corrective action to issues arising e.g complaints (active) 42.9% Taps consumer voice/allows users to interact with the firm 45.7% Allows users to interact with each other 34.3% Provide consumers with the means to create their own stuff to personalize/improve experiences (personalised map, page/preferences etc.) 20.0% As a PR tool to generate viral marketing opportunities. 51.4%
  15. 15. 0 10 20 30 40 50 60 70 80 90 100 Facebook Twitter Linkedin Foursquare Official website What is the main purpose behind the use of different social media? Promotions Build awareness Public relations Get customer input on new products Use customers to promote the firm
  16. 16. Which ways does your firm aim to leverage social media? Uses well known bloggers that are widely followed on twitter.com or on their own blogs 25.8% Allowing users to interact with the firm and site visitors 77.4% Asks users to participate in focus groups to provide feedback 41.9% Asks users to provide advertising/product ideas (as part of a game) 22.6% Develops new roles and have users compete for them (best job in the world) 16.1% Lets the consumers decide on price, product etc. 12.9%
  17. 17. My firm has NOT yet devised a way to measure the financial impact of good/bad reviews 77.1% My firm does NOT evaluate the value of customer co-production 82.9%
  18. 18. 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% Generate ancillary revenues Uses consumer creativity to create new products Uses social media to assess willingness to pay To stimulate demand with diluting revenue To assess consumer perception of price- value How do any of the firms social media actions contribution to its revenue optimization strategies
  19. 19. Does your firm assess return of investment in social media? Yes No • Build brand awareness – time-limited campaigns – free services • Tracking of average total spend per guest that comes from/through a social media sight. • Track how that spend impacts profitability. Some guests are may spend less, but are more profitable to the property. • Amount of ancillary revenues generated. • Number of fans, and usage of site using click-through and resulting bookings/revenue • 3rd party tool
  20. 20. Is there a plan to foray further into social media in the near future? Yes No
  21. 21. Does your firm have people assigned with managing social media? Yes No
  22. 22. Who is in charge of Social media management? • Marketing (6) • e-commerce manager and customer service staff • sales manager • We have created the position to specifically look after social media • VP of Pursue The Passion Marketing • Executive Head of Digital PR • Manager Distribution and PR • PR / Marketing • PR specialist • PR Marketing Brand management (online) • Marketing PR Direct • Creative Services Team Communication Manager
  23. 23. On a scale of 1 to 10 (1 being least and 10 being most), rate how knowledgeable the staff assigned to managing social media are about it. • Average 6.7 • Most common answer: 8
  24. 24. Who should be in charge to ensure alignment of social media strategies with marketing, revenue management and pricing strategies? • Marketing sales manager and general manager • A dedicated, serious, clever and hardworking professional that comprehends the company's goals very well. • Marketing manager • Director of Revenue - It is all about identifying what is being measures and how it is being used. • The marketing team are usually the ones with the creative ideas and Social media is a great way to try the more unusual marketing ideas. • CEO Head of Digital and Social Media • Director of Sales & Marketing Business development executive • The (Assistant) Hotel Manager Commercial Director Commercial Team • The Director of Revenue Management • Marketing Distribution Marketing & RM Head of Commercial Department • Marketing Head of Social Media (within Marketing) DOSM/Revenue Mgr/GM/ • Marketing Communication Input needed from several departments • Marketing Manager + GM
  25. 25. 0.00 0.20 0.40 0.60 0.80 1.00 1.20 1.40 1.60 1.80 2.00 No established KPIs to measure ROI Organisational Resistance Lack of funding Lack of knowledge/skills Please rank the challenges your firm is facing with foray into social media
  26. 26. Does your firm have a single repository for all consumer data Yes No
  27. 27. How easy is it to manipulate the data for alignment of social media strategies (with marketing, revenue management and pricing strategies) purposes? Very easy Time consuming Impossible
  28. 28. • Average age : 36 • 0.7 children • Ages of children: 1-30 • Male 58% • Female 42% • Respondent information How would you best describe your firms business? Air Car Train Hotel Tour Operator
  29. 29. References • Constantinides, E., Romero, C. & Boria, M. (2009), Social Media: A New Frontier for Retailers? in European Retail Research, Gabler, pp. 1-28. • Drury, G., (2008), Opinion piece: Social media: Should marketers engage and how can it be done effectively? Journal of Direct, Data and Digital Marketing Practice, 9(3), pp. 274-7. • FreshMinds Research (2010) Turning conversations into insights: A comparison of Social Media Monitoring Tools. www.freshminds.co.uk accessed August 10th, 2010. • Kaplan, A.M. & Haenlein, M., (2010), Users of the world, unite! The challenges and opportunities of Social Media, Business Horizons, 53(1), pp. 59-68. • Mendes-Filho, L., Tan, F. & Milne, S. (2010), Backpacker Use of User-Generated Content: A Consumer Empowerment Study, in Gretzel, U., Law, R., (ed), Information and Communication Technologies in Tourism 2010, Springer, pp. 455- 66. • Scott Meerman, D. (2010) The New Rules of Marketing & PR. John Wiley, New Jersey • Thackery, R. Neiger, B.L., Hanson, C.L. & McKenzie, J.F., (2008), Enhancing promotional strategies within social marketing programs: use of Web 2.0 social media, Health Promotion Practice, 9(4), pp. 338-43. • Xiang, Z. & Gretzel, U., 2010, Role of social media in online travel information search, Tourism Management, 31(2), pp. 179 - 188.

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