Travel Industry Community And Content Loyalty

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An overview of the loyalty industry and the potential benefits for adopting social strategies and content in developing loyalty solutions.

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Travel Industry Community And Content Loyalty

  1. 1. Travel Industry Community & Content Loyalty
  2. 2. Agenda <ul><li>Loyalty Programs Today </li></ul><ul><li>The future of loyalty </li></ul><ul><li>The Community and Content Loyalty </li></ul><ul><ul><li>Community </li></ul></ul><ul><ul><li>Content </li></ul></ul><ul><ul><li>Solution </li></ul></ul><ul><ul><li>Benefits </li></ul></ul><ul><li>Routes Forward </li></ul>
  3. 3. Loyalty Today – Points Mean Prizes <ul><ul><li>Financial Services </li></ul></ul><ul><ul><ul><li>AMEX – Membership Rewards </li></ul></ul></ul><ul><ul><ul><li>Barclaycard – Nectar </li></ul></ul></ul><ul><ul><ul><li>MBNA – Worldpoints </li></ul></ul></ul><ul><ul><ul><li>Goldfish </li></ul></ul></ul><ul><ul><li>Hotel Industry </li></ul></ul><ul><ul><ul><li>Intercontinental - Priority Pass </li></ul></ul></ul><ul><ul><ul><li>Marriott – Rewards </li></ul></ul></ul><ul><ul><ul><li>Starwood – Preferred Guest </li></ul></ul></ul><ul><ul><li>Airlines </li></ul></ul><ul><ul><ul><li>Virgin- Flying Club </li></ul></ul></ul><ul><ul><ul><li>BA – Executive Club </li></ul></ul></ul><ul><ul><ul><li>Cathay Pacific – Marco Polo </li></ul></ul></ul><ul><ul><li>Retail Industry </li></ul></ul><ul><ul><ul><li>Tesco – Clubcard </li></ul></ul></ul><ul><ul><ul><li>Sainsbury's - Nectar </li></ul></ul></ul>
  4. 4. Loyalty program objectives: <ul><li>Enrol Customers into their program </li></ul><ul><li>Activate customers to purchase a product/ service </li></ul><ul><li>Retain the customers and create and affinity to the brand </li></ul><ul><li>Maximise the share of the customers wallet </li></ul><ul><li>Reactivate the customer on a regular basis </li></ul>
  5. 5. Loyalty Today – Affinity Programs <ul><li>Airmiles </li></ul><ul><li>Asiamiles </li></ul><ul><li>Nectar </li></ul><ul><li>Upromise </li></ul><ul><li>Baby Mint </li></ul><ul><li>Branded Credit Cards </li></ul><ul><ul><li>Manchester United </li></ul></ul><ul><ul><li>PADI Divers </li></ul></ul><ul><ul><li>National Trust </li></ul></ul><ul><ul><li>PGA </li></ul></ul>
  6. 6. Loyalty Today - Communities <ul><li>Customer Review Communities </li></ul><ul><ul><li>EBay </li></ul></ul><ul><ul><li>Amazon </li></ul></ul><ul><li>Customer Service Communities </li></ul><ul><ul><li>Dell </li></ul></ul><ul><ul><li>Logitech </li></ul></ul><ul><ul><li>Linksys </li></ul></ul><ul><li>Product Communities </li></ul><ul><ul><li>Littlest Pet Shop </li></ul></ul><ul><ul><li>Sony Play station </li></ul></ul><ul><ul><li>Nintendo </li></ul></ul><ul><li>Online Games </li></ul><ul><ul><li>World Of Warcraft </li></ul></ul><ul><ul><li>RuneScape </li></ul></ul><ul><li>Information Communities </li></ul><ul><ul><li>Ivillage </li></ul></ul><ul><ul><li>Lonely Planet </li></ul></ul><ul><ul><li>Virtual Tourist </li></ul></ul><ul><li>Dating Sites </li></ul><ul><ul><li>Dating Direct </li></ul></ul><ul><ul><li>Match </li></ul></ul><ul><li>Social Networks </li></ul><ul><ul><li>- Facebook </li></ul></ul><ul><ul><li>- Bebo </li></ul></ul><ul><ul><li>- Myspace </li></ul></ul><ul><ul><li>Youtube </li></ul></ul><ul><ul><li>Twitter </li></ul></ul>
  7. 7. Issues with current loyalty programs… <ul><li>Commodity Products </li></ul><ul><li>Little or no value to the individual consumer </li></ul><ul><li>Financial “me too” programs </li></ul><ul><li>Create Long Term debit on balance sheet </li></ul><ul><li>No “personal” service </li></ul>
  8. 8. Tools/Services Available….(1) <ul><li>Advertising and Interactive /agencies </li></ul><ul><li>Customer Relationship Management Solutions </li></ul><ul><li>Customer Analytics Engines </li></ul><ul><li>One to One Personalisation/Email Engines </li></ul><ul><li>Content/Knowledge Management </li></ul>
  9. 9. Tools available …..(2) <ul><li>Brand Programs </li></ul><ul><ul><li>Tesco </li></ul></ul><ul><ul><li>Hotels </li></ul></ul><ul><ul><li>Airlines </li></ul></ul><ul><ul><li>Manchester United </li></ul></ul><ul><li>Affiliation Programs </li></ul><ul><ul><li>Nectar </li></ul></ul><ul><ul><li>Airmiles </li></ul></ul><ul><ul><li>Upromise </li></ul></ul><ul><li>Loyalty Solution Providers </li></ul><ul><ul><li>ICLP </li></ul></ul><ul><ul><li>Loyalty Logic </li></ul></ul><ul><ul><li>Alliance Data Systems </li></ul></ul><ul><ul><li>Teamcard </li></ul></ul><ul><ul><li>Maximiles </li></ul></ul><ul><li>Online Community Providers </li></ul><ul><ul><li>Socialgo/Ning </li></ul></ul><ul><ul><li>Lithium </li></ul></ul><ul><ul><li>Boonex </li></ul></ul>
  10. 10. Next Generation Loyalty needs… <ul><li>Compelling Events to engage the members </li></ul><ul><li>Customer segmentation </li></ul><ul><li>The ability to identify and satisfy soft needs </li></ul><ul><li>The ability to deliver on the brand promise </li></ul><ul><li>To create emotional loyalty </li></ul>
  11. 11. Travel Loyalty … <ul><li>Identify buying groups with critical mass </li></ul><ul><ul><li>Leisure Traveller </li></ul></ul><ul><ul><li>Solo Traveller </li></ul></ul><ul><ul><li>Business Traveller </li></ul></ul><ul><li>Build a lifestyle themed service </li></ul><ul><ul><li>Global Travel </li></ul></ul><ul><ul><li>Adventure Travel </li></ul></ul><ul><ul><li>Experience Travel </li></ul></ul><ul><li>Identify a need not currently met </li></ul><ul><ul><li>Isolation on business trips </li></ul></ul><ul><ul><li>Community for fellow travellers to exchange info and keep in touch </li></ul></ul><ul><ul><li>Communication channel with friends at home/around the world </li></ul></ul><ul><ul><li>Lifestyle and cultural information easily available </li></ul></ul><ul><ul><ul><li>Searching </li></ul></ul></ul><ul><ul><ul><li>Booking </li></ul></ul></ul><ul><ul><ul><li>reviewing </li></ul></ul></ul><ul><li>Propose a service which addresses those needs </li></ul><ul><ul><li>Online travel community </li></ul></ul><ul><ul><li>Travel Tips and activity options to participate in when travelling </li></ul></ul>
  12. 12. The Travel Industry <ul><li>Highly competitive market </li></ul><ul><li>Like for like services </li></ul><ul><li>Barriers to entry are lower than in previous years </li></ul><ul><li>Still relevant: </li></ul><ul><ul><li>“ The future leaders of the travel industry will ultimately be those who can strengthen customer loyalty to grow revenues.” </li></ul></ul><ul><li>Julian Sparks, Partner Accenture, Sept 2002 </li></ul>
  13. 13. Community and Content Loyalty
  14. 14. Components of a travel loyalty solution <ul><li>Itinerary Database </li></ul><ul><li>Travel Tip Database </li></ul><ul><li>Activity Database </li></ul><ul><li>Activity Booking Engine </li></ul><ul><li>Internal Messaging </li></ul><ul><li>People Matching Engine </li></ul><ul><li>Round The World Trips, Sabbaticals and Adventure Travel </li></ul><ul><li>Member Forum </li></ul><ul><li>Points Bank </li></ul><ul><li>Integration </li></ul><ul><ul><li>Content Providers </li></ul></ul><ul><ul><li>Points based loyalty programs </li></ul></ul><ul><ul><li>Booking engines </li></ul></ul><ul><ul><li>External push of data </li></ul></ul><ul><ul><ul><li>Mobile Devices </li></ul></ul></ul><ul><ul><ul><li>Wireless </li></ul></ul></ul><ul><ul><ul><li>SMS </li></ul></ul></ul><ul><li>Implementation </li></ul><ul><ul><li>Workshops </li></ul></ul><ul><ul><li>Feasibility study </li></ul></ul><ul><ul><li>Application Dev Plan </li></ul></ul><ul><ul><li>Project Management </li></ul></ul>
  15. 15. Why will travellers use it? <ul><li>Build a personal global network </li></ul><ul><li>Enhance travel lifestyle </li></ul><ul><li>Take advantage of the locations visited in the time available </li></ul><ul><li>Participate in “your” sport, activity when travelling </li></ul><ul><li>Exchange travel tips with peer group </li></ul>
  16. 16. <ul><li>Identify Target Market Sections and Acquire new customers </li></ul><ul><li>Activate Customers through a compelling event </li></ul><ul><ul><li>Raise the Stakes and Revolutionise Lifestyle Brands and Customer Loyalty </li></ul></ul><ul><ul><li>Move customer loyalty away from financial programs to lifestyle and individual benefits </li></ul></ul><ul><ul><li>Community based Customer Loyalty Programme </li></ul></ul><ul><ul><li>Emotional Loyalty prohibits promiscuous customers </li></ul></ul><ul><li>Retain and recapture customers </li></ul><ul><li>Cross-sell and Up-sell products </li></ul><ul><ul><li>Customers have a reason to provide more detailed information about themselves </li></ul></ul><ul><ul><li>Improved segmentation and targeting of future marketing campaigns </li></ul></ul><ul><ul><li>Increased opportunity for affinity marketing campaigns with complimentary vendors </li></ul></ul><ul><li>Advocacy </li></ul><ul><li>Brand Differentiation </li></ul><ul><ul><li>Brand and Lifestyle association </li></ul></ul><ul><ul><li>Address the work and lifestyle balance issue of the business traveller </li></ul></ul><ul><li>Marketing Information </li></ul><ul><ul><li>Customers have a reason to provide more detailed information about themselves </li></ul></ul><ul><ul><li>Improved segmentation and targeting of future marketing campaigns </li></ul></ul><ul><ul><li>Increased opportunity for affinity marketing campaigns with complimentary vendors </li></ul></ul><ul><li>New Revenue Stream that increases with the success of the service </li></ul><ul><ul><li>Subscription based service - $ or Preferred guest points </li></ul></ul><ul><li>Drive customers to web </li></ul><ul><ul><li>Total travel and lifestyle service will drive customers to use this as core to their travel plans </li></ul></ul>Community and Content
  17. 17. Benefits <ul><li>Raise the Stakes and Revolutionise Customer Loyalty Programmes </li></ul><ul><ul><li>Move customer loyalty away from financial programs to lifestyle and individual benefits </li></ul></ul><ul><ul><li>Community based Customer Loyalty Programme </li></ul></ul><ul><ul><li>Emotional Loyalty prohibits promiscuous customers </li></ul></ul><ul><li>Brand Differentiation </li></ul><ul><ul><li>Brand and Lifestyle association </li></ul></ul><ul><ul><li>Address the work and lifestyle balance issue </li></ul></ul><ul><li>Marketing Information </li></ul><ul><ul><li>Customers have a reason to provide more detailed information about themselves </li></ul></ul><ul><ul><li>Improved segmentation and targeting of future marketing campaigns </li></ul></ul><ul><ul><li>Increased opportunity for affinity marketing campaigns with complimentary vendors </li></ul></ul><ul><li>New Revenue Stream that increases with the success of the service </li></ul><ul><ul><li>Add on services for customers </li></ul></ul><ul><li>Drive customers to brand and service sites </li></ul><ul><ul><li>Total travel and lifestyle service will drive customers to use this as core to their travel plans </li></ul></ul>
  18. 18. Julie Walker Purple Spinnaker Contact: [email_address] Tel: +44 (0) 7887 644 799 Travel Industry Community & Content Loyalty

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