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EQ - Lessons from the Field TVI conference Sep 2013
1. EQ® - Lessons from the Field
Tourism Vancouver Island Industry Conference – Sep. 25, 2013
Lesley Anderson – Manager, Brand Experiences CTC
2. At the end of today’s session…
You will have:
• A basic understanding of the EQ & how it can be
used
• How EQ can help inform your marketing
decisions
• Know where to find free resources to learn more
3. Today’s agenda
• Who is the CTC & why do we use EQ?
• Quick refresher on values
• How EQ can impact your business
• What others are doing with EQ
• Where to find more information
7. Tourism is growing….but we’re not getting our
share
50
100
150
200
250
300
350
1990 1995 2000 2005 2010 2015 2020
IndexYear1990=100
International Tourist Arrivals Received
Index Year 1990 = 100
Source: UNWTO, 2011; Statistics Canada, 2012
World
Canada
8. We work to attract high
yield travellers seeking
unique experiences
We are not an
inexpensive, mass-market
destination
9.
10. Seeing the sights is no longer enough.
Experiential travellers want to venture beyond the beaten tourist
paths and dive deeper into authentic local culture, connecting
with people from other cultures in deep and meaningful
ways, the arts, architecture and music, cooking and food, …”
More than ever before, people are travelling their passions.
Joe Diaz
Co-founder, Afar Magazine
20. MARKET SEGMENTATION – A QUICK
OVERVIEW
Market segmentation
breaks down the
market into groups of
your best (and worst)
customers.
• Demographics
• Geography
• Behaviour
• Usage
28. Travel Values – HEDONISTIC REJUVENATION
I am much more indulgent and carefree on vacation than I am at home.
I want to come back from vacation feeling relaxed and refreshed.
I want everything to be taken care of for me so I can relax and be free to
enjoy myself.
I want a vacation where I can have all the
food, drink, massage, romance, shopping that I want.
29. Example Travel Value
Check List
Feeling a strong need to
ensure that they see all of
the well-known sites in their
destination, following
detailed itineraries.
Believing that they are
missing something
important if their plans are
changed unexpectedly.
31. Free Spirits
Travel is a time to be pampered & indulge
Want to travel with friends – and like travelling
in groups
Indulge in high end food and wine
Seek to hit all the hot spots
Enjoy the vibe of crowds in cities & at events
& festivals
32. Cultural Explorers & Authentic
Experiencers
Travel to learn & experience other cultures
Understated travellers – don’t need a lot of
ostentatiousness & like to blend in
Independent travellers who like to control
their own schedule
Indulge in local food and wine
Love parks & natural settings
34. What’s the benefit to your business?
Using EQ allows you to:
Leverage
CTC’s &
Tourism
Vancouver
Island’s
marketing
power
Tap into a
rich bank of
market
research
1 2
35. • Easier to collaborate with
your DMO
• Common language based
on common insights
about the customer
• Drives improvements in
imagery & copy
• Informs product
development decisions
36. EQ Profiles help you understand
the key characteristics of the
various target segments
The EQ Toolkit walks you through
applying the profile information to
marketing, product, packaging and
promotion.
49. Heritage Park
Know your customer types
Find out who’s coming
Analyse your imagery
Stage changes to your marketing materials
One step at a time
50. Bringing It Home -
Tourism Vancouver Island’s Marketing Materials
55. Stimulating Product Development, Partnering
and Packaging
• EQ informs product developers about important
nuances, for each traveller type, that are useful
for reviewing existing products
• EQ fosters creative thinking about new
partnerships and packages.
57. Walk into the Ace Hotel
New York...
...and you’ll find guests
mingling with the locals
in the lobby – more of a
living room than a
reception area thanks to
a discreet check in
desk.
58. 1. Art: the murals and
canvases in the guest
rooms are done by local
artists... I like the
community aspect of
collaborating with them –
they’re people on the
ground with an emotional
investment
61. Earth Rhythms
Look at what you offer, match to an EQ type
Tweak your experience to tap into their values
Make the experience about more than the activity
Bring the guest into the experience
Talk to your guests’ values in your copy
62. “The EQ research is helping to shape the future. It informs
product development, promotions and advertising. Partnerships
and can be strategically aligned to create a strong, unified brand
presented based on what travellers are seeking.”
Thompson-Okanagan Tourism Association & Tourism Vancouver Island Joint
Perspective
63. What 1thing
can you do to
get started?
Download the
toolkit…
TAKING IT BACK TO YOUR BUSINESS
www.canada.travel/eqtoolkit
[Notes to Presenters: see next page]Speaking Notes:SPEAKING NOTES: Lecture:(2 minutes) welcome participants, introduce self. For example, “My name is [your name]and I’m a [your explorer type]. At the end of today you will have a much better understanding of how to market your experience using EQ. Specifically you will understandhow to use EQ toaddress the following in marketing your tourism experiences:promotional and pricing messages media channels and assessing unpaid media opportunitiesWriting copy and selecting imagesAnd a quick review of things you can do to measure what is working and what is notLecture: “You can develop the most awe-inspiring, exciting, inspirational experiences, with excellent people on the ground to deliver them, but if you can’t motivate your ideal guests to buy, the experience can’t be enjoyed. Creating interest and excitement in prospective and returning customers is paramount to your success which is why we developed the ‘Marketing Experiences with EQ’ workshop which is the next component in the workshop series. Your knowledge of EQ will help you position your EQ-based experience by creating messaging and imagery that is aligned to values.
Hi everyone. I’m delighted to be here with you today.For the benefit of those who are not familiar with the Canadian Tourism Commission, we have the great mandate and responsibility of being Canada’s international tourism marketer.Our job is to invest in programs, trade shows, campaigns, public relations and social media strategies to drive demand for Canada as a Destination - to increase awareness of Canada - and ultimately increase tourism revenue for the economy Our public sector role means we also support the tourism industry with information such as market research, marketing tools, and business intelligence – our market research, Explorer Quotient, is what I will talk about specifically today & the tools that can help you leverage the powerful insights in this research The CTC works together with its regional & provincial tourism marketing partners to leverage our collective efforts for the benefit of the tourism industry overall.
Tourism is a tough business – whether you’re the CTC selling Canada to the world, Tourism Vancouver Island selling this beautiful destination to Vancouverites & residents of Seattle, or whether you’re a small tourism business trying to capture the attention of local and regional visitors. The competition is tough & getting tougher. There are more more & more destinations promoting themselves all the time. In order to spend our limited marketing dollars wisely, we all have to make smart, informed decisions about who to target, what to promote in order to appeal to our desired customers & how we deliver our experiences for the best impact.
Canada has been losing market share worldwide. Arrivals to worldwide destinations are expected to triple from 1990 levels by 2020, while those to Canada declined over the past decade and are now growing slowly.
We are not – and never will be – an inexpensive mass tourism destination that can compete on price like many of the new & emerging destinations that are so popular now. The CTC works to attract high yield travellers to Canada – travellers who are interested in having unique experiences that they can’t have elsewhere in the world.
In 2005 as the CTC was developing its brand and shifting away from marketing Canada as a destination of beautiful landscapes, moose, mountains & mounties, we set out to develop a brand that was led with the customer in mind. We developed Canada’s tourism brand around experiences and we used EQ to help identify the target the customers who would have the highest potential to visit us to have these experiences. But when you lead with the customer you have to understand who that customer is…
SPEAKING NOTES: Lecture (1 minute): [Pause to let them read the quote] “Today we are going to focus on how tourism businesses are profiting from a customer-centric experiential approach to product development & marketing that has a foundation in EQ. EQ helps us to know our customer intimately so we can target the right consumers, with the right message & the right product to make our marketing more relevant, effective & impactful. We’ll start with some words of wisdom from Joe Diaz, Co-founder of Afar Magazine. As Joe says, Global travel motivations have gone through a fundamental change in recent years. People see travel as much more than simply lying on a beach or seeing interesting sights. People want their travel to mean something, to be life changing. This has led to the rise of the popularity of experiential travel. Canada, as a relatively expensive, but high quality, high value destination, can’t compete on price, nor can we just compete on our geography. We have to compete by positioning our unique, Canadian experiences to the travellers who desire those types of experiences in order to drive visitation.
EQ starts with the customer – it’s provides businesses with an opportunity to take a customer-centric approach to all of their marketing activities. It’s about having solid research to help you identify your ideal customer and gain deep insights into why & how they like to travel. This information gives you the ability to design the travel experiences they want to have on their vacations and to leave fulfilled customers who advocate your business & the destination to their friends. And this benefits everyone!
Staff, agency & industry alignmentAgency briefingStrategic planningCampaign planningMarketing copyImagery selectionChannel selection & media buyingMedia influencersTravel trade key account selectionSignature Experiences Collection
If you’re going to spend your hard-earned marketing dollars, you want to make sure that the people you’re trying to attract with your advertising are the most likely to pay attention to what you have to say. The CTC discovered through its EQ research that these 3 types of people – free spirits, authentic experiencers & cultural explorers – are the most likely to travel, are always thinking about travel, spend the most and stay the longest when they travel. Even when the economy turns downward, these are the travellers who will scrimp in other parts of their lives in order to ensure they have the money to keep travelling. Does that sound like anyone in the audience?So EQ tells us who we should target with our marketing.
Experiences – the types of unique, different, engaging, immersive experiences that our target travellers are seeking
We use EQ to help us select appropriate imagery for the types of experiences we are promoting. Ask audience: How many of you find the top picture appealing? Would this entice you to do the experience? How many of you wouldn’t do it at all?How many of you find horseback riding in the wilderness an appealing holiday activity?And how many of you would like to go aurora viewing on a cruise?EQ helps us to understand the types of activities that appeal to our target travellers & how they like to experience them. For example, some travellers enjoy cruising…others want to be more independent on their holiday, exploring without the structure of a set itinerary. Some people are risk takers who enjoy proving to themselves that they can take on the challenge…others wouldn’t think of doing something like Toronto’s Edgewalk. The insights gained from EQ can help us to decide which types of images will have the most appeal to our target travellers.
EQ helps us to understand
By understanding your customer better you can make better decisions about what products to develop & deliver, how to market & sell your products so that the customer experience matches what’s promised and appeals to them.
With the right experiences, targeted to the right customers, promoted in the right way & through the right channels, the CTC, and you as users of EQ research, have the best chance of moving travellers down the path to purchase towards choosing your destination & business.
Before we get into the application of EQ we’ll run through a quick reminder of what EQ is all about. EQ is a tool to help segment the potential tourist markets that exist. Market segmentation allows you to group customers & potential customers into groups that have like characteristics. This helps businesses to more effectively reach and talk to their customers in a way that is relevant to the customers. It allows the CTC, and you, to take a customer-focused approach to your market efforts and avoid wasting money talking to the people who won’t purchase your products, no matter what messages you give to them. EQ is a psychographic market segmentation tool. It uses values to segment customers. There are lots of ways that you can do market segmetnations – many of the popular methods are by demographics: age, income, education, geography: where are people located. EQ taps into the motivations & attitudes that people have towards travel and is a great way to look at customers in the tourism industry. There are many different forms of segmentation. Consumer segmentation commonly uses demographics, geography and behaviour to group consumers by. More recently, researchers and marketers alike have seen the advantage of grouping consumers using psychographics.ASK – who segmenting?
While the demographics, geographic & behaviour characteristics of potential and past travellers help us understand who’s considering a destination and who’s travelled…Values allows us to better understand the deeper motivations behind human behaviour, tendencies of thought and feelings. It assesses expectations, perceptions, and habits of thought; attitudes, judgments, and opinions, intentions, tendencies and actions – very effective in brand / product positioning and improving marketing effectiveness.
EQ is based on the concept that not everyone who falls into a similar demographic, geographic orbehavioural category thinks, acts & buys the same way.
So let’s give this a quick test…At your tables
The power in EQ comes from its root in social values. Social values help us to understand the inherent values that drive decision behaviour. They shape a person’s outlook, they evolve slowly and they give us great insight into how to talk to people using language that will resonate with these deeply ingrained values. Why people seek out a certain travel experience, and what that experience means to them, is directly related to their fundamental outlook on life and the world—their “social values.” For example, people who view the world as a dangerous, chaotic place might be looking for security, reassurance, and familiarity when they travel. On the other hand, people who view the world as an intriguing and exciting place might be looking to explore other cultures and ways of life when on vacation.Formed early in life, usually fixed by one’s mid-teens●Shaped by one’s upbringing, family life, schooling, community and cultural influences●Evolve slowly over time through education and life experiences●They are NOT fads●A person’s mental posture or fundamental world view that sets the context in which they react to situations, events, opportunities and challenges
So if we go back to our CN Tower image, do you think that someone who has strong social values for personal challenge & risk taking might want to try this?Whereas someone who doesn’t have those social values might be completely turned off by it.
SPEAKING NOTES: Lecture: (3 minutes) Now let’s discuss Travel Values': EQ was created due to primary research by Environics into what people’s travel values are. The research was conducted Travel values are the second building block to understanding EQ.”If social values provide an understanding of the consumers general values, travel values are those that focus on what they value and look for in a travel/vacation experience. That's why they are really valuable in product positioning for targeted travel types.Check-list (3) travel value is defined as having a strong need to see all of the well known sites in a destination. These folks might follow detailed itineraries – they don’t want to miss anything important! Which of the EQ types do you think have this travel value? FSCultural immersion (4) is the belief that the best way to experience a culture is to interact with it as deeply as possible. CE, CHBHistorical travel (7) is seeking to visit the sites where important historical events took place – imagining what it would be like if they could go back in time. CHB, AE, CE, (-ve RE)Shared experience is viewing travel as a social activity and an opportunity to share one’s experiences with others. These are the memory collectors – it’s likely that they will create ways to share their memories with others.” FS, NHT, RE (-ve AE)Unstructured – AE, CE (-ve NHT) – map story
Travellers who value check-listing have to ensure that they see and do all the highlights on a trip. They create a detailed itinerary to make sure that they don’t miss anything. Again, from a product development and marketing communications perspective, you’re not going to want to have lengthy activities that deep-dive into culture, for example, for travellers who want to see a lot of things on their trip. You want to make sure in your marketing communications that you talk about all the highlights that they will see while with you & that you keep the itinerary moving.
SPEAKING NOTES: Lecture (5 minutes): Before we go any further let’s first to a refresh from yesterdayTake a piece of paper and write down the EQ type that typifies the following characteristics and travel values
SPEAKING NOTES: Lecture (5 minutes): Before we go any further let’s first to a refresh from yesterdayTake a piece of paper and write down the EQ type that typifies the following characteristics and travel values
SPEAKING NOTES:Lecture (2 minutes): “So why do you think Tourism Vancouver Island has invited you to take an hour out of your busy lives to learn about EQ? In and of itself EQ is a powerful tool for your business. Effective tourism marketing is expensive. Using EQ will help you economize on marketing dollars by allowing you to more directly leverage your destination marketing organization’s marketing power. TVI targets FS, CE & AE –if your marketing is in alignment with theirs you’re able to maximize the impact of your marketing dollars.CTC has invested millions of dollars to provide the tourism industry with top quality, up-to-date, customer research information that you could never access on your own. Smart businesses make decisions based on research & fact. Our research & industry tools can help you make good business decisions.
Tapping into our market research information is easy. I’ll provide more information at the end of the presentation about how you can access all of our tools. Our EQ profiles are summaries of the characteristics of the best target customers in Canada, the US and core European markets.
So let’s take a look at how you can easily use EQ for imagery selection:Visual assets are meant to complement and reinforce the editorial message.The end product, when effectively combining copy and visual assets, goes a long way to creating an enticing movie in travellers’ heads that can attract them to your destination & business
We know that cultural explorers & authentic experiencers like to meet local people & immerse in cultureThey are independent travellers who like to take the time to explore a place on their own timeThis image portrays just that type of experienceThis image showcases authentic connection to peopleUnstructuredCultural interactionIt’s a safe activity
If we look at this experience what hot buttons does it tap into? And who is it suited to? Free SpiritsShared experience with othersExhibitionismBragging rightsCheck listingPenchant for riskDesire for uniquenessUrban setting (crowds)
SPEAKING NOTES:Lecture:How do these pictures reflect the values of a Free Spirit?Free spirits are engaged, social people who love to share experiences, be in the crowd & part of the action. In addition to the text, photos, videos & other imagery should be tailored to reflect their interests showing vibrant city scenes, large social gatherings &/or events, and have stylish people having fun & being pampered in the experience.”
SPEAKING NOTES:Lecture:How do these pictures reflect the values of a Free Spirit?Free spirits are engaged, social people who love to share experiences, be in the crowd & part of the action. In addition to the text, photos, videos & other imagery should be tailored to reflect their interests showing vibrant city scenes, large social gatherings &/or events, and have stylish people having fun & being pampered in the experience.”
SPEAKING NOTES:Lecture: How do these pictures reflect the values of a Cultural ExplorerFor cultural explorers visual messaging should emphasize opportunities to try new things & learn, specially hands on learning, connecting & get to know locals, beautiful scenery & active adventure, travel as a time for escape.
SPEAKING NOTES:Lecture: How do these pictures reflect the values of a Cultural ExplorerFor cultural explorers visual messaging should emphasize opportunities to try new things & learn, specially hands on learning, connecting & get to know locals, beautiful scenery & active adventure, travel as a time for escape.
SPEAKING NOTES:Lecture:How do these pictures reflect the values of an Authentic Experiencer?For authentic experiencers messages should accentuate authentic, local experiences rather than the “must sees”. Avoid too much imagery with crowds or any activity that could be considered overly touristy. Avoid too much emphasis on overly adventurous or active experiences. And avoid heavy emphasis on style or status. Landscape pictures will appeal to this group, and they need not see many people – in contrast to cultural explorers and free who want to see the people, and in the case of free spirits want to see themselves in the center of it.
SPEAKING NOTES:Lecture:How do these pictures reflect the values of an Authentic Experiencer?For authentic experiencers messages should accentuate authentic, local experiences rather than the “must sees”. Avoid too much imagery with crowds or any activity that could be considered overly touristy. Avoid too much emphasis on overly adventurous or active experiences. And avoid heavy emphasis on style or status. Landscape pictures will appeal to this group, and they need not see many people – in contrast to cultural explorers and free who want to see the people, and in the case of free spirits want to see themselves in the center of it.
Tourism Vancouver Island has been leveraging the insights of EQ to better orient its marketing materials towards its targets of the Free Spirit, Cultural Explorer & Authentic Experiencer. Previously the creative showcased a variety of activities, and written copy honed in on the beauty of the scenery.
Taking an EQ approach to creative & copy, the visitor guide now hones in the types of experiences that appeal to its target customers. The showcase experience, viewing marine wildlife, ranks at the top of appealing activities for these potential visitors. Wound into the creative, we can also get a glimpse of the cultural learning available at the destination, pampering and local activities like skiing & fishing, that are available to travellers. The copy addresses local food & fashion, as well as the availability of world-class restaurants, all together representing a much more targetted approach to appealing to the target customer.
Free Spirits have the highest propensity of the target customers to travel as a family with children. Here, we can see that the creative taps into that travel value by showcasing the opportunity for creating lasting family members at the destination. The “must-see” destination of Long Beach in Pacific Rim National Park is also highlighted. Creative that formerly focused on scenery & activities, has been transformed into a piece that taps into the emotions & travel behaviours of the target customer.
So let’s take a look at how you can easily use EQ for imagery selection:Visual assets are meant to complement and reinforce the editorial message.The end product, when effectively combining copy and visual assets, goes a long way to creating an enticing movie in travellers’ heads that can attract them to your destination & business
Fairmont knows clearly who its best customer is – there are a number of clues on this page that align really well to a free spiritLuxurious accommodationEveryone is an original – taps into the desire to be unique and stand outShare your memories – FS’s are highly social & love to share storiesIt’s a brand name hotel that is internationally recognized – free spirits love brands & big business – you would be much less likely to find an auAuthentic experiencer staying here on a leisure holidayOnce you get to know the EQ types fairly well, you see that your marketing communications can say 1000 words. Your photos, video, and written content, when aligned to tap into the values of your target traveller, express a powerful message about your business, your brand and what you can offer to your best customers. Going back to think about the development of experiences, you wouldn’t want to put an authentic experiencer or cultural explorer itinerary or package together with a Fairmont hotel – these traveller types seek much less ostentatious experiences where they can connect to local people & culture. Large, brand named hotels work to provide a consistent experience worldwide. This would directly conflict what your AE’s & CE’s want to experience on vacation.
SPEAKING NOTES: Lecture: allow 5 minutes to go through this series of slides So, let’s look at this another way – rather than looking at how a destination is appealing to values through promotions, let’s look an article written about the ACE Hotel, which has operations in the US, including New York and Seattle. This provides us with an example of how a tourism business has positioned its product offer to appeal to certain values. The article describes how the owner has created a accommodation experience that is quite unique. Read the description in the call-out. What EQ types is this hotel positioning itself to attract? What key words and phrases lead you to your conclusions?”[Go through the series of slides and ask “What EQ types is this hotel positioning itself to attract? What key words and phrases lead you to your conclusions?”]
SPEAKING NOTES: “Here is the next page of the article, where the author begins to describe some of its unique features.” At this point the owner begins to speak, as he is being interviewed” Key words and phrases are “art...done by local artists”, “community aspect”, “collaborating”, “people on the ground”, “emotional investment”
CE & AE’s like to delve into the people & history of a place, learning while they are at a destination. Duncan used social & travel values from EQ to enhance the experience & enrich the learning experience for the travellersA small change in how the experience was delivered brought the richness of the area’s history to the forefront of the experienceIt also stimulated connection to the community & partnership with the town’s people
SPEAKING NOTES:Lecture:Now that you have armed yourself with a deeper knowledge of EQ’s applications in marketing and understanding of the CTC resources available to you, think about the next steps you can take to apply this knowledge when you get back to the office to keep the momentum going.Specifically, on a piece of paper – or the inside cover of your workbook, list 3 things you could do when you get back to your business to keep the momentum going? Think of the different areas we have discussed …Positioning your experience – have you addressed the core attributes of your experience and aligned them to the values of your best customers – Free Spirits, Cultural Explorers or Authentic Experiencers? (exercise 6 at the back of the book) Are there some new ways you can address pricing, in terms of promotions or how you communicate it that would provide better alignment to the values of the target customer? How do your customers talk about the value they have received – could you interview them? Are there some refinements you might make to your media strategy? Different media? Assessing unpaid media? Making it easier for your best customers to talk about, or recommend, your experience? Note to Presenters: Gauge time, if there is time and the group is one that seems to be willing to share after they have spent some time listing what they plan to do ask if anyone would like to share one of the things they intend to do.