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Digital Travel Marketing. How the Internet Is Revolutionizing the Travel Industry. Rick Bruner IMT Strategies Vice President, Senior Analyst Author, “Net Results: Web Marketing That Works”. Do the Right Thing Then... Do Things Right. Interactive Marketing. Customer Data Warehouse.
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Digital Travel Marketing How the Internet Is Revolutionizing the Travel Industry Rick Bruner IMT Strategies Vice President, Senior Analyst Author, “Net Results: Web Marketing That Works”
Do the Right Thing Then... Do Things Right
Interactive Marketing Customer Data Warehouse Front-Office Automation E- Business Customer Interaction Center Sales & Marketing Technology Revolution
S/M Shift New Age Direct Marketing New Tools • Interactive Media • Personalization • Portals/ Communities • Trading Networks • CRM Marketing Tools Existing Tools • Media Advertising • Direct Mail • Promotion • Tele-marketing • Sales Incentives • Pricing Customer Behavior Existing Channels New Channels • Direct Sales • Retail • Partners • E-Commerce • Tele-sales • Automated Repurchase
Evolution in Sales & Marketing Budgets • Traditional Sales & Marketing Investments: • Direct Sales • Advertising • Promotion • Technology-Enabled Marketing Programs: • Internet Marketing • E-Commerce • CRM • Cust. Interaction Centers • Cust. Data Warehouses • Sales Automation • Marketing Automation 1996 * 2002 * * Estimates
Online Travel Statistics • In 1997, online travel spending reached $827 million, triple the previous year. * • 6.7 million travelers booked trips online in 1998. * • 4% of all US adults made travel reservations online in 1998. * • Of people who have made online purchases, 40% have bought airline tickets, the third biggest e-commerce category after computer hardware/software and books ** * Travel Industry Association of America. ** PhoCus Wright
Get The Site Right Set Clear Objectives: • Customer Retention • Lead Generation • Online Sales • Customer Service and Support • Market Research • Brand Building
Demand Generation • Banner Ads • Email Marketing • Search Engines • Affinity Sites • Affiliate Programs • Special Promotions • URLbiquity
The Truth of “1 to 1” Marketing: 1% Click-Throughs X 1% Customer Acquisition ______________________________ 10,000 Ad Banners = 1 Purchase
Calculate Return on Investment You Can’t Improve What You Don’t Measure!
Customer Acquisition @ $30 CPM = $300 Ads 10,000 Click-through rate x 0.01 Acquisition rate x 0.01 Customers Acquired 1 Ads 10,000 x 0.001 (10,000 / 1,000) 30 Cost per Thousand (CPM) x $ 30.00 Cost to Acquire 1 customer $ 300
Life-Time Value Equation Average annual customer revenue $ 900.00 Average numbers of loyal years x 3.00 Profit x 0.10 Customer Life-time Value $ 270
User Perception is Marketing Reality • 76% of users are uncomfortable with sites monitoring their Net browsing. • 70% are concerned with using their credit cards online. • 59% of respondents who go online said they never registered at companies’ Web sites that request personal information. • 40% of users have provided false information at least once while registering at a Web site. • 63% of those reluctant to give personal information say they would do so if Web sites disclose clearly how the information will be used. TRUSTe/BCG Consumer Survey Business Week/Harris Black Georgia Tech Survey Harris/Westin Survey
Online Travel Resources • PhoCus Wrightwww.phocuswright.com • Travel Industry Association of Americawww.tia.org • TravelWebwww.travelweb.com • Traveler.Netwww.traveler.net • Infotec Travelwww.infotec-travel.com • Travel Weeklywww.twcrossroads.com • Travel Hubwww.travelhub.com
An advisory firm helping business leaders understand, anticipate and leverage sales and marketing technologies, changing customer buying behavior and new technology-enabled business models. • Focused on the business applications of technology trends such as interactive marketing, e-business, call centers, customer relationship management, marketing and sales process automation and database marketing. • Offering custom and syndicated advisory services, research, training and publications. • An affiliate and close strategic partner of META Group, a leading IT research firm. • (877) 566-7744 (toll free) • www.imtstrategies.com
Rick E. Bruner rick@imtstrategies.com (415) 351-2489 VP, Senior Analyst IMT Strategies Author Net Results: Marketing That Works