My keynote address delivered at the Nova Scotia Innovation Days, 29 April 2014. The experience. It’s all a rage in marketing, product development, organizational change, but what does it really mean? For over a decade now we have heard that managing the experience is the next competitive battlefield and a choice for businesses to differentiate and add value. To succeed in the new Visitor Economy truly requires understanding your customers and potentially having the courage to change how you do business. Its an opportunity, a choice, and it applies to any type of business or organization.

1. TheVisitor Economy!
TheNext
Frontier
Image (c):Planet for Kids
Nova Scotia Innovation Days
29 April 2014
with Dr. Nancy Arsenault, Tourism Cafe Canada
(c) Dr. Nancy Arsenault (2014).
Thank-you
Nova Scotia
(ERDT & NSTA)
for having me back!
Louisbourg &
Cape Breton
Up With
People
GMIST
Edgies!

2. (c) Dr. Nancy Arsenault (2014).
Text
Image: www.idtec.com
We work in the best
industry in the world!
(c) Dr. Nancy Arsenault (2014).
Full of Passionate People!

3. (c) Dr. Nancy Arsenault (2014).
And it doesn’t hurt that ...
16 million visitors 1.8 million visitors
614,000 jobs 24,000 jobs
157,000 businesses $800M income to NS families
Enhances our reputation when visitors have an amazing experience!Enhances our reputation when visitors have an amazing experience!
(c) Dr. Nancy Arsenault (2014).
We are Revenue Positive to
Government!
An investment in tourism
is an investment in a healthy economy.
$84 Billion
economic activity
21.3 B Tax
benefits
$2 Billion
industry!
$173M tax
revenue

4. (c) Dr. Nancy Arsenault (2014).
Not to mention the Community Pride
Text
Tourism Business of the Year 2013
Widden Park Campground, Antigonish
Community Service Award 2013
Delta Barrington & Halifax Hotel
Staff
Ambassador Award 2013
Fortress of Louisbourg Association
(c) Dr. Nancy Arsenault (2014).
But We Have Some Challenges
... but perhaps
influence
Those we can’t
control

5. (c) Dr. Nancy Arsenault (2014).
But there’s a lot we can do!
If we choose
change!
Many Canadian companies choose to do business in the same markets they’ve operated
in for years … Working with familiar clients and markets is a comfortable option, and in the
short-term, it may reduce risk … but over the long term, playing it safe can cause
companies to loose their edge.
Deloitte’s Passport To Growth (2013)
(c) Dr. Nancy Arsenault (2014).
Are We Our Biggest Enemy?
Image: success.com

6. (c) Dr. Nancy Arsenault (2014).
Your Neighbor isn’tYour Competitor
3 to 5 words are!
Boutique, pet-friendly, accommodations, Halifax
18 Properties on Trip Advisor
18 on Pet Friendly Digs
34 on Expedia
...

7. (c) Dr. Nancy Arsenault (2014).
TwoVisitor Centres in One Small Town
• I don’t understand why?
• Do I have to visit both?
• Will they be different? Tell
me something new?
Image: ishopeco.com
(c) Dr. Nancy Arsenault (2014).
Sorry I can’t help you right now
I’m filling out another
grant application for
funding.
Image: cdn.youthnet.org

8. (c) Dr. Nancy Arsenault (2014).
The Race to the Bottom
Think discount rather
than adding value
The Time is Now
The economic and population challenges we
now face in Nova Scotia, and dramatically so
in our rural regions, demand new vision,
innovative approaches, greater collaboration
and a greater willingness to take on the risks
associated with economic change and progress.
Ray Ivany (2014). Now or Never

9. (c) Dr. Nancy Arsenault (2014).
Minister, Michael Samson
Tourism is:
• About people, the customer, their experience
• A major economic driver - $2 billion!
• Being recognized across all sectors of government as
important
• Government and industry making the right
investments needed to grow.
“Marketing will get them here, our hospitality and
experience will bring them back.”
In his address to the provincial Visitor Servicing team 25 Apr 2014
(c) Dr. Nancy Arsenault (2014).
Yet the convincing others about
the value of tourism is tough
Everyones a traveller but
few understand how our
industry works ... even
some in our industry!
Image: latinbusiness.com

10. (c) Dr. Nancy Arsenault (2014).
Your CEO, Patrick Sullivan
• We can’t keep doing the same as we have for the
last 10 years
• No silver bullet
• Inspirational marketing
• “Discover, Freedom, Engagement”
• Increase the value, the revenue generated, the
length of stay
In his address to the provincial Visitor Servicing team 25 Apr 2014
(c) Dr. Nancy Arsenault (2014).
Have we put ourselves in too many boxes?
Marketing
Visitor Services
Product Development
Training
Research
Stuff!
Federal
Regional
Municipal
Associations
Provincial
Business
Tourism
Hotels
Restaurants
Attractions
Transportation
DMOs

11. (c) Dr. Nancy Arsenault (2014).
And lost sight of the customer?
Marketing
Visitor Services
Product Development
Training
Research
Stuff!
Federal
Regional
Municipal
Provincial
Business
Tourism
Hotels
Restaurants
Attractions
Transportation
DMOs
(c) Dr. Nancy Arsenault (2014).
Maybe it’s time to take a step back
Look at the bigger picture ... and dream

12. (c) Dr. Nancy Arsenault (2014).
(c) Dr. Nancy Arsenault (2014).

13. (c) Dr. Nancy Arsenault (2014).
Walk boldly
but carefully
(c) Dr. Nancy Arsenault (2014).
The E-Factor!
• Visitor Excitement
• Visitor Experience
• Visitor Engagement
• Visitor Economy
The Visitor is in the
Drivers Seat!

14. (c) Dr. Nancy Arsenault (2014).
An Opportunity to Truly Focus On
Customer
Experience
Competing on
Value
Visitor
Economy
The
next
competitive
battleground.
1.The Customer Experience

15. (c) Dr. Nancy Arsenault (2014).
A Great Customer Experience
The visitor’s experience is the cumulative impact of all
physical, emotional and practical encounters guests &
prospects have with companies and the destination.

16. It’s travel that’s
• authentic,
• memorable
• engages the senses,
• is inherently personal and
• connects on physical,
emotional, spiritual,
intellectual, or social level.
Source: Nancy Arsenault (2004)
Experiential Travel
Free Wheeling Adventures
“Seeing the sights is no
longer enough.
More than ever people
are travelling their
passions.”
Joe Diaz, Afar Magazine
Investing in stories over infrastructure is:
Everyone has a story to tell
... more engaging
... more personal
... authentically yours
... make connections
... flexible/dynamic
AND
... quicker to market
... attracts media
... can charge more
... builds HR capacity
... less expensive

17. (c) Dr. Nancy Arsenault (2014).
But it begins with really knowing theVISITOR
Then focusing your thinking, investment approach
and product development and promotional
activities through the eyes of the traveller.
2. Compete onValue
Engage
the Senses
Local Flavor
Authentic
Connect with
Chefs,
Farmers
Vintners

18. (c) Dr. Nancy Arsenault (2014).
Canada MUST Compete onValue
“Value is the
immunization factor.
When there is no
difference in value people
buy on price alone. ”
Competing on value allows you to create a
‘be different’ strategy that your competitors will have difficulty
copying.”
Roy Osing (2009). Be Different or Be Dead.
(c) Dr. Nancy Arsenault (2014).
We’ve known this for a long time ...
Beggars Banquet, Louisbourg
Canada must develop niche products and services tailor-made to
match the unique characteristics of its diverse regions.
Deloitte’s Destination Canada: Are We Doing Enough (2007)
Solider for a Day, Halifax Citadel

19. www.ediblecanada.com
Edible Canada
Connecting with what people really want
... the chef & conversation!
Edible Canada,Vancouver, BC
www.ediblecanada.com
Food ingredients
(Commodities)
Culinary Artisan Store
(Goods)
Restaurant Dining
(Service)
Market Price Premium Price
$40, $80,
$120 & $750
Competitive
Positioning
Pricing &
Profits
LowVolume
HighYield
HighVolume
LowYield
Greater
Differentiation,
Emotion, &
Engagement
No to Low
Differentiation,
Emotion, &
Engagement
Experiences!
Mains $24 - $33
Most $3 - $50

20. Group Size
2 to 8
People
Cost $40 pp
Cultural
Explorers
Foodies !
Group Size
8 to 12
People
Cost $750 pp
Targeting Niche
market foodies
who want to
experience the
west coast by
kayak

21. 3. TheVisitor Economy
Broader
than the
Tourism
Economy
Tourism(Economy
What’s(the(Difference?
Value
Creation
Visitor(Economy
Tourism(as(one(element(of(
sustainable(communi:es
For businesses
For Visitors
For communities
Sustainable(Tourism
For businesses
For Visitors
For destinations

22. What’s(the(Difference?
Value
Creation
Visitor(Economy Tourism(as(one(element(of(
sustainable(communi:es
For businesses
For Visitors
For communities/
government
For destinations
WOW guests, earn a living,
successful business
Memorable Experiences
Healthy Economy
Deliver on the brand promise
Encompasses everything that attracts visitors to a
destination and
makes a place special, distinctive
and is capable of
engendering pride and interest
in a place worth experiencing.
The(Visitor(Economy

23. Partner(Differently!
Visitor(Economy
Stimulus
Investment
Pot
Tourism(as(one(element(of(
sustainable(communi:es
Municipal Affairs
Tourism
Environment
Fisheries and
Oceans
Product / Experience/
Industry/Community
Development
Marketing
Research
Managing&the&Visitor&Ecomony
It&is&a&con3nuous&process&of&researching,&inves3ng&in&product&&&
people&development,&and&marke3ng&the&tourism&poten3al&of&an&area&
in&ways&that&provides&value&to&visitors,&businesses&and&communi2es.
Value
Creation
For businesses
For Visitors
For communities
For destinations

24. Truly Customer
Centric
(c) Nancy Arsenault (2011).
Inspired by ChrisVoss (2003)
Continual
Innovation &
Investment
TheVisitor Investment Cycle
Lead with the Visitor not the Function
Change
Management
Manage the
Visitor Lifecycle
Generate a
desire to return or
recommend
Design
memorable, engaging
visitor experiences
Value
Creation
Research
Increased visitation,
spend, length of stay,
profit, brand strength
Establish
relationships
Know your
customer &
markets
Product & People
Development
Deliver on
the product and
destination
experience
Invest in
the destination
experience
Promote,
advertise,
drive sales
Is Tourism at Risk?
Yes
If we
don’t
embrace
the
opportunity
to invest
differently.

25. A Tale of Change
Driven by Reality
Synergy
Louisbourg
CHOOSING to
Raise the Bar on Value
and
Collaborating to Compete

26. 1. Know their Visitor
1. Research
• Knowing Louisbourg’s visitor
AND Cape Breton’s
• CanadianTourism Commission
Authentic
Experiencer
Cultural
Explorer
Cultural
History Buff
Engaging
Learning
Connecting
Unique
Differentiator
2. Invest Strategically
1.Collaboration: Synergy Louisbourg, DCBA, ECBC
2.People: GMIST Experiential Travel Training (Multi Partners)
3.Community: STEP Program (ACOA)
4.Product Development by Businesses:
• Layering engagement
• Personalizing the offers
• Collaborating to compete as a community

27. 3. Marketing - broader than
just promotions
• Place - Louisbourg, not just the Fortress
• Product - Layer the Community Experiences
• Price - Differentiated options
• People - Build community capacity
• Promotions - Individual, partnered, destination marketing
Growing Steadily
Cannonier for a Day
Playing Hookey
Louisbourg Rocks
etc.

28. “It’s kind of exciting . We didn’t realize that
people would respond to this so positively
and like these intimate ways of
experiencing the Fortress rather than just
walking around and bumping into costumed
stuff and watching a demonstration.”
•Provided focus for reorganizing the time without increasing
human resources
•Improved shoulder season experience for guests
•New model for revenue generating programs.
•More choice and opportunities for visitors to experience the site.
Lester Marchand
Visitor Experience Manager
Fortress of LouisbourgKey Benefits of Making the Shift
FOCUS ON:
$39.95/pp
1/2 hour dressing
2 hours dining

29. (c)Tourism Cafe Canada & Earth Rhythms (2014).
Market Price Premium Price
Greater
Differentiation,
Emotion, &
Engagement
No to Low
Differentiation,
Emotion, &
Engagement
Land, Building, Tent
(Commodities)
Restaurant Dining
(Service)
Rooms, RV site
(Goods)
LowVolume
HighYield
HighVolume
LowYield
Competitive
Position
Pricing &
Profits
Point ofView Suites, NS
http://www.louisbourgpointofview.com/ &
Beggars Banquet
(Experience)
Aligning with the Primary Demand Generator
... Becoming a Primary Demand Generator
www.thisfish.info

31. (c) Dr. Nancy Arsenault (2014).
Your Nova Scotia Tourism Strategy
“The creative challenge is to connect emotionally
with potential first-time visitors.”
“With government and the tourism industry working
together to focus on the visitor, and Nova Scotians as our
ambassadors, we have the elements of tourism

32. It Takes Courage
Cuz’
same ol
just
isn’t
cutting it
(c) Dr. Nancy Arsenault (2014).
What if to get more visitors and $$

33. (c) Dr. Nancy Arsenault (2014).
All of us!
Government + Private Sector + Not-for Profits
(c) Dr. Nancy Arsenault (2014).
RevisitYour Business Model
Business Model
Generation
by
Osterwalder &
Pigneur
2009

34. (c) Dr. Nancy Arsenault (2014).
What if we challenged how we currently do business
Supply
Approach
8 Provincial VICs
Call Centres
57 Regional VICs
Provide Info
Only 20 - 43% stop at a VIC
Still A lot of people! 360,000 to 774,000 people!
(c) Dr. Nancy Arsenault (2014).
What if we put the Customer First
How would it change the conversation aboutVisitor Servicing?
A Customer Centric Approach
Who is the
customer
What type of
SERVICES do
they need?
Where could they get
it?
Enhanced
research
needed
General
Information
Locals Know Insights
Make a Reservation
Website, Print, Facebook,
TripAdvisor, YouTube,
Travel Agent ...
VIC, Tourism Business,
Gas Station, Kiosk,
Travelling Van,
Community
Ambassadors ...
How can we
add to the visitor
experience?
Physical &
Emotional?
Direct, Booking Engine,
Bookmark a URL
Washroom,
Charging Station,
Print Info ...
What do we
stop doing so
we can do new
things =
Conversation
Spaces!
How will we
measure the
ROI & ROE?

35. (c) Dr. Nancy Arsenault (2014).
Invest in Desired Outcomes Not Just Project
Goal:
New
Revenue
Generating
Visitor
Experiences Operator A = $10K
+ Operator B = $10K
+ Operator C = $10K
(c) Dr. Nancy Arsenault (2014).
Shift from Funding to Investing
ROI & ROE
Set NEW metrics of Success
Amend Program Criteria
Eliminate March Madness

36. (c) Dr. Nancy Arsenault (2014).
Prioritize Infrastructure $
Truly Unique Infrastructure
Or Prioritize funding for
those those that have:
Infrastructure + Activity +
People/Programs
with multiple revenue streams
Direct or Partnered
Newark Ohio
(c) Dr. Nancy Arsenault (2014).
Visitor Services toVisitor Concierges
... trained and hired to be an active,
sales force
... create info feedback loops WITH
industry
... plan itineraries AND direct book with
operators
Woodlands Texas
Boise Idaho
Tofino, BC

37. (c) Dr. Nancy Arsenault (2014).
Let Go of Control: Collaboration to Compete
Co-Innovate
Co-Create
Co-Author
Co-Design
Revenue Share
Staff Share
Shared Risk
(c) Dr. Nancy Arsenault (2014).
Helping Businesses Use Research
KNOW YOUR
VISITORS!
Graphic: tourismcafe.org

38. (c) Dr. Nancy Arsenault (2014).
And Understand ALL Sales Channels
#1: Direct to Consumer (No commissions)
#2: Indirect to Consumer (Commissions or net rates)
Tour Operator
(Travel Trade)
Intermediary
(Expedia,
booking.com ...)
Customer
Bookings
Packaged
Independent
Travel Bookings
Group Tour
Bookings
Packaging
Partner
Travel Agent
Invest in the 7 Ps! They are all Important!
Image: 2.bp.blogspot.com
You can’t
drive new
business
with old
products
and
services!

39. $2 billion
$$ 3 billion
2 million
happy visitors
3 million
happy visitors
Nancy Arsenault
Managing Partner &
“Experience Gal”
nancy@tourismcafe.org
T: 250.589.2087
Thank-you!
tourismcafe.ca linkedin.com/in/nancyarsenault
twitter.com/NancyArsenault
facebook.com/tourismcafe
slideshare.net/nancyarsenault scribed.com/TourismCafe