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IACVB 87 th Annual Convention Las Croabas, Puerto Rico July 15-18, 2001 Establishing an Electronic Relationship with th

IACVB 87 th Annual Convention Las Croabas, Puerto Rico July 15-18, 2001 Establishing an Electronic Relationship with the e-Traveler - Featuring a DMO Case Study - Presented By. David Serino e-Strategist Gammet Interactive e -solutions & strategies. © Gammet Interactive, 2001.

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IACVB 87 th Annual Convention Las Croabas, Puerto Rico July 15-18, 2001 Establishing an Electronic Relationship with th

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  1. IACVB 87th Annual Convention Las Croabas, Puerto Rico July 15-18, 2001 Establishing an Electronic Relationship with the e-Traveler -Featuring a DMO Case Study - Presented By David Serino e-Strategist Gammet Interactive e-solutions & strategies © Gammet Interactive, 2001

  2. Our Goals • Demonstrate how the internet and e-mail marketing are driving the future of travel • Become better acquainted with the e-Traveler’s wants and needs • Provide tangible tips to enhance your current or future e-mail marketing programs

  3. Our Agenda • The Internet and Travel • Breakdown 1-to-1 Approach to E-mail Marketing • Examine A DMO Case Study • Discussion

  4. The Internet and E-mail • 168 million people in the US are online – 60% of the population* • Sending and receiving e-mail is the most popular internet feature – used by 93%** • Response rates range from 2.5% on the average broker-list campaign, to as much as 33% on highly personalized in-house list promotions*** *February 2001 - “Nielsen/NetRatings” ** February 2001 – The Pew Internet and American Life Project *** January 2000 - DMA

  5. The Internet and Travel

  6. The Internet and Travel • $13 Billion was spent online in the year 2000 for airline tickets, hotel reservations and accommodations* • The average online travel booker spent $1,400 in 2000 while the frequent online booker spent $3,200* • More than half (54%) of e-travelers go online to plan less than one month in advance. 33% make “last minute” trip plans by going online within two weeks of the trip* *2001 TIA E-Travel Consumers Report

  7. The Internet and Travel • Company web sites (airlines, hotels, resorts), destination web sites (states, cities), and online agencies (Expedia, Travelocity, etc.) are used most often by online planners* • A majority of online planners (68%) report they call or visit tourism offices less often* • Half (51%) of trips planned online include a reservation online or purchase – 55% include overnight lodging reservations* *2001 TIA E-Travel Consumers Report

  8. The Internet and Travel Week ending May 20th • Hotwire.com's traffic jumped more than 78% to 501,000 visitors, taking the top spot for the week's fastest growing domain* • CheapTickets.com’s traffic increased 40%, drawing 379,000 unique visitors* • American Airlines’ visits rose 35% to 559,000 surfers* • Orbitz met its one-month target in the first two days online, selling $4.3 million worth of tickets* *ICONOCAST.com, June 14, 2001

  9. Words of Wisdom “Give your customer the chance to teach you what he wants. Remember it, give it back to him and keep his business forever.” Don Peppers Founder Peppers and Rogers Group 1to1 Marketing – www.1to1.com

  10. Words of Wisdom “E-mail marketing targeted to prospects and/or customers who have consented to receive such information is among the most cost-effective tools for marketers ever.” IMT Strategies Permission E-mail: The Future of Direct Marketing

  11. The Objectives • Increase brand/destination awareness • Promotion of leisure niche markets – golf, cultural/heritage tourism, outdoor adventure, gaming etc. • Promotion of shoulder or off-season periods • Drive cost effective and timely distribution of events and festivals calendars

  12. Getting at It 1) Identify 2) Differentiate 3) Interact 4) Customize Peppers & Rogers Steps to 1to1 Implementation

  13. 1)Identify- Database Development • Collect relevant and consistent information through multiple channels • Include “opti-in” opportunities throughout your web site • Mine current database(s) and invite past prospects to join lists • Be creative when utilizing collection methods

  14. 2)Differentiate – Consumer Profiles • Define your destination “drivers” and market “differentials” • Determine what information is important to leverage future partnerships and promotions

  15. 3) Interact – Building the Relationship • Identify the consumer by name • Messages must be targeted based on profiles • Keep content current, concise and compelling • Personalize the destination • Include information on upcoming events

  16. 4)Customize – Creating Conversions • Deliver targeted consumable travel product based on profiles • Provide the consumer with an opportunity to book online • Facilitate third party promotions with affiliates, partners, and stakeholders through discounts, coupons and special offers

  17. Words of Wisdom “E-mail marketing, when done right, may well be the “killer app” of direct marketing. Done wrong it can be ruinous.” IMT Strategies Permission E-mail: The Future of Direct Marketing

  18. The Case Study • Ann Arbor, Michigan Convention and Visitors Bureau

  19. The Facts • A mid-sized DMO with an operating budget of $1.2 Million • In search of an effective, low cost solution to optimize promotional campaigns • Interested in increasing ROI and improving accountability • Attempting to increase exposure and drive consumer traffic to core travel products – Dining, Golf, Cultural Activities and Shopping

  20. The Software • nTarget - a robust browser-based ASP • Delivers personalized messages with options to add printable coupons or certificates • Allows complete control of customer lists • Includes profile and data collection tools that can easily be customized • Features flexible targeting tools and real time reporting

  21. The Database • Determined the consumer attributes: • Name, Address, City, State, Zip, and E-mail • E-Mail Format – Text, HTML, AOL • Determined the product offerings: • Dining, Golf, Cultural Activities, and Shopping • On-line Tourism Research Panel Option

  22. The Database • A cooperative effort with Travel Michigan • 8,355 consumers from the Travel Michigan list agreed to receive travel information from other Michigan Travel Organizations: A 3rd Party Opti-in Prospect List • Data included First Name, Last Name, Zip Code and E-mail

  23. The Message • A personalized HTML welcome message included the following: • Recognition of the Travel Michigan Newsletter along with an explanation of why they were receiving the message • A double opti-in option • Links to a detailed profile form and the web site • One click “unsubscribe” option

  24. The Message Hello James, On behalf of one of the Most Vibrant Travel Destinations in Michigan, let us be the first to welcome you to the possibilities of Ann Arbor. As a subscriber to the Travel Michigan On-line Newsletter, you have indicated an interest in receiving additional travel related messages from partner organizations within our state. The Ann Arbor Area Convention & Visitors Bureau would like to utilize this opportunity to tell you about the great things that the Ann Arbor area has to offer. In the upcoming months, we will be delivering you personalized informational messages on area attractions and activities, upcoming events, and cost saving travel opportunities. To accept our invitation, please click hereor on the guest book link listed below, and complete your personalized travel profile. You will then only be sent information that is relevant to your selected areas of interest. As you will soon learn, the Ann Arborarea has something for everyone. If you are not interested in hearing from us in the future, there is no need act all. You will be automatically be deleted from our list and we do apologize for the intrusion. In either case, we would like to thank you for your time, and we sincerely hope that you make the Ann Arbor area a preferred destination of choice. Sincerely, Mary Kerr, President and CEO, Ann Arbor Area Convention and Visitors Bureau

  25. The Profile Form • Customized with database attributes • Integrates in to the look and feel of the web site • Information is stored in a click of the mouse • The relationship begins!

  26. The Results • Delivery and Response • 8355 Messages Sent – 625 were undeliverable • 7730 Consumers Received the Message • 322 Consumers Clicked Through and Completed the Profile Form – a 4.2% response • Cost • 2,000 messages @ .02 = $ 40.00 • 5,730 messages @ .018 = $103.14 • Total Cost = $143.14 • Cost per prospect acquired/profiled = .45

  27. The Results Apples to Apples ¼ Page Ad in Travel Magazine = $5,500 Cost per prospect acquired/profiled = .45 Responses needed to make the same Impact = 12,222 ¼ Page Ad In Traveler Magazine

  28. The Results Web Site Traffic

  29. The Results • Web Site Visitor Sessions • 365 % increase – Day 1 • 266 % increase – Day 2 • 166 % increase – Day 3

  30. The Results • Customized Messages • Total Messages Sent as of 6/1/01 = 4 • Total Recipients = 1,080 • Total Removal Requests = 4 • Removal Percentage = .004%

  31. Gammet Interactive, LLC 9195 S. Kestrel Ridge Road Brighton, MI 48116 Voice: 810-231-2894 Fax: 810-222-0358 www.gammet.com David Serino e-Strategist dserino@gammet.com © Gammet Interactive, 2001

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