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Al Merschen - CRM
The document discusses the importance of Customer Relationship Management (CRM) in retaining clients, highlighting that it costs six times more to acquire new clients than to keep existing ones. It emphasizes understanding customer behavior, effective targeting, and the use of loyalty programs as strategies to enhance client retention. Various case studies and examples illustrate how companies like Harrah's Casino, Club Med, and Costco successfully implement CRM practices to reinforce customer relationships.
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Al Merschen - CRM
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- 5. It costs sixtimes more money to get a new client than retain an existing one.
- 6. This This presentation presentation will not... will... • Give you every • Educate you on answer basics • Sell you any • Make you want software to learn more • Make you an • Challenge your expert thinking 6
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- 8. DISTRIBUTION Retail Travel Inbound Consumer Agent Wholesalers Tour Operator Product
- 9. www DISTRIBUTION www www Retail Travel Inbound Consumer Agent Wholesalers Tour Operator Product www www www www
- 10. DISTRIBUTION Retail Travel Inbound Agent Tour Operator Consumer Wholesalers Product 10
- 11. ARE YOU INSALES, MARKETING OR BOTH ?
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- 15. What is CRM? Recognizingthe Long Term Value (LTV) of customer relationships and extending communication beyond advertising and sales promotional messages. 15
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- 18. DEFINE YOUR AUDIENCE(S)
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- 23. Target Market Demographics
- 24. Target Market Demographics Psychographics
- 25. Target Market Demographics Psychographics Passions
- 26. Target Market Demographics Psychographics Targeted Affinity Marketing Passions
- 27. Affinity Focus PASSION COST = TRAVEL
- 28. When is aCustomer a Customer?
- 29. PROBLEM: Upto 40% cancellation rate between reservation and payment. 29
- 30. Online Travel Purchase Process • The average consumer makes 22 visits to travel sites (not necessarily different sites) before buying travel online. • 15% don’t know where they’re going when they start planning. • 39% don’t know when they will be traveling. Source: Meskauskas, Jim. ”6 Keys to Vertical Ad Network Success.” December 17, 2008. Via I-media connection e-newsletter. 30
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- 34. The Oyster Box • Classic resort in South Africa. • Tell us a story about the old Oyster Box • What’s Old is New 34 48
- 35. WHEN ARE YOUR PROSPECTS POTENTIAL ?
- 36. To Create aDatabase... You have to ask the Questions
- 37. Case Study: Harrah’sCasino • When guests check in at Harrah's Casinos, they are given a casino card that acts like a credit card that can be used for access to gaming rooms and machines, the resort spa, restaurants etc. • The casino gets a real-time history of where the customer is spending his time. • They can offer rewards or discounts and other promotions based on those patterns. • Can offer the incentives during the current stay or as an inducement to gain repeat business. Source: CRM Buyer 37
- 38. Tracking Customer Behavior • Learn about customer behavior so as to design offers/product/marketing • Find the common and the different • Record everything Source: CRM Buyer 38
- 39. WHAT / WHENARE YOU TALKING TO YOUR CLIENTS ?
- 40. WARNING Americans Bolder Overseas • 59% are more adventurous than they would be at home • 91% are experimental in their choices of local cuisine • 76% make an effort to speak the local language • 58% alter their dress... to appear less American Source: TripAdvisor Survey, Hotel News Resource, May 2010 40
- 41. WHEN IS APPROPRIATE TO TALK TO YOUR PROSPECT ?
- 42. Itch Cycle Reach yourclients as the “Itch Cycle” begins. 42
- 43. Start planning yournext trip BEFORE current one is over! 43
- 44. HOW OFTEN WILLYOUR CLIENTS BUY YOUR PRODUCT ?
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- 46. Coupons • Grand Hyattgives $150 Hotel Credits to retain existing customers. • Expedia gives travel coupons of $50 and $100 to retain existing customers. • Ask what they want! 46
- 47. “Book direct andget a great offer” 47
- 48. OFFERS 25% vs. “4 for 3” 48
- 49. WHAT DOES YOUR CUSTOMER VALUE ?
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- 51. Club Med • With80 resorts worldwide, Club Med rewards loyal guests with benefits: – complimentary upgrades – private resort transfers – late checkout – boutique and excursion discounts • Free enrollment 51
- 52. The Leading Hotelsof the World 52
- 53. Leaders Club The Leading Hotels of The World • Free Nights at the World’s Finest Hotels • Early Check-In / Late Check-Out • Preferential Treatment on a One-Category Upgrade • Special rate privileges • Invitations to Leaders Club events • Access to one-of-a-kind specially created experiences • A unique welcome gift at each Leading Hotel 53
- 54. Star Alliance The StarAlliance network provides a true end- to-end service for frequent flyers to ensure a convenient, smooth and efficient worldwide travel experience. • Faster and smoother transfers • Frequent flyer programs • Upgrades • Awards • Lounges • Additional rewards of Gold and Silver status 54
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- 57. REI • More than3.8 million active members • $20: Lifetime membership • Receive special members-only offers • New members receive $100 off an REI Adventure trip 57
- 58. Costco • Over 500locations • Extremely loyal members; renew their membership at an 86% renewal rate • $50 - Business or Gold Star (individual) membership • $100 - Executive membership (earn 2% annual reward) 58
- 59. CAN YOU CREATEA SYSTEM? ON YOUR OWN? ?
- 60. Are you sureyou know your client (s)?
- 61. Not All VacationsAre Created Equal Milestone birthday 45% Ever took vacation to Milestone anniversary 37 celebrate a life event. Wedding 35 !65 Family reunion 28 % Graduation from high 19 school, college, etc. Retirement 5 Bonus or raise in 5 compensation for my job New job 3 Source: Portrait of American Travelers, Ypartnership, June 2010 61
- 62. Targeting Kids • Children play an active role in planning vacations in half of all family travel households • 9 out of 10 have a page posted on Facebook • 1 out of 4 has visited a blog to seek or preview information about a vacation destination or travel service supplier Source: Portrait of American Travelers, Ypartnership, July 2010 62
- 63. Targeting Kids • Over $15 billion a year is spent on advertising direct to children • 55% of kids are successful at getting their parents to buy what they want • Developing a separate website for the kids • They don’t travel alone Source: National Survey, Center for a New American Dream, 2010 63
- 64. What’s the bestway to Reach Clients (and prospective clients) through Social Media
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- 66. Monitoring Your Brand •Monitoring your brand is the first step to knowing what your customer (or potential customer) thinks: – Facebook – Twitter – Youtube – FourSquare – TripAdvisor – News Feeds – The list goes on... 66
- 67. Nearly 1/3 oftravelers are at least somewhat influenced by comments from people in their online social network when making travel purchase decisions 67
- 68. Effective Facebook Page •Call To Action • The purpose of your custom landing tab should always be conversion of visitors to your fans. • Good practice to remind people about it the “Like” button. 68
- 69. Effective Facebook Pages Giving Incentiveto “Like” ... and become a “Fan” of yours on Facebook. 69
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- 71. WHAT IS THEBEST WAY TO REACH YOUR CLIENTS? ?
- 72. DOES YOUR TEAMKNOW YOUR PLAN ?
- 73. The Complete Travel Experience
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- 78. Anticipate & Echo • Collect data • Develop tools • Think beyond - Think Viral • Create “inch cycle” plan • Monitor results
- 79. IS THERE AWAY TO REALLY WIN AT CRM ?
- 80. Deliver 80
- 81. UNDERSTAND YOUR AUDIENCE(S)
- 82. OPALS 82
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- 84. Al Merschen al@myriadmarketing.com 310 545 4200 www.myriadmarketing.com