BEST MARKETING STRATEGY

Transcription

1 BEST MARKETING STRATEGY

2 CONCEPTION BEST MARKETING STRATEGY: CLUB CARLSON 01 CLUB CARLSON Carlson, a leading global hospitality and travel company, launched its new hotel loyalty program, Club Carlson SM, on March 31, Formerly known as goldpoints plus SM, the new program offers members access to a collection of superior benefits, services and privileges at any of our more than 1,000 hotels in 77 countries. Carlson s marketing strategy for launching one of the industry s most rewarding loyalty programs was robust, including use of a broad array of media channels and an aggressive, multi-layered advertising campaign. Key launch objectives were to establish awareness for Club Carlson and drive enrollments in the new program. Creative and messaging included the new Club Carlson branding, the unique program customer value proposition of A Faster Way to a Free Night Stay, prominent display of the hotel brand logos, and creative that showcases premier Carlson hotel properties.

3 CONCEPTION BEST MARKETING STRATEGY: CLUB CARLSON 02 Carlson is one of the classic success stories in the American free-enterprise system. Starting in 1938 with an idea and a USD 55 loan, entrepreneur Curtis L. Carlson ( ) founded the Gold Bond Stamp Company in his home town of Minneapolis, Minnesota. His company allowed grocery stores, drug stores, gas stations and other independent merchants to use his collectible Gold Bond Stamps to drive customer loyalty and to distinguish themselves from their competitors. Continuing that legacy of rewarding customer loyalty is at the heart of Club Carlson. Gold Bond trading stamps, founded by Curtis S. Carlson, was one of the first loyalty rewards program in America Gold Bond trading stamps, founded by Curtis L. Carlson, was one of the first loyalty rewards program in America Launch of Gold Points Reward Network (GPRN) All hotel brands in the Americas join the GPRN Hotel brands combine within GPRN, relaunching as one hotel loyalty program goldpoints plus goldpoints plus program combines with Rezidor s program to launch one global hotel loyalty program goldpoints plus becomes Club Carlson

4 CONCEPTION BEST MARKETING STRATEGY: CLUB CARLSON 03 The Club Carlson loyalty program spans the globe, with target audiences that include business travelers, leisure travelers and small business owners. The program has its highest penetration in the United States, where more than half of its membership base resides. Europe, the Middle East and Africa membership continues to quickly expand, and Asia has a small, but fast growing membership base. To maximize return on investment for advertising, Carlson focused on target countries and cities with high concentration of loyalty program members and hotels. An additional target focus area was emerging markets, such as India and China, where Carlson Hotels is gaining strong market presence.

5 CONCEPTION BEST MARKETING STRATEGY: CLUB CARLSON 04 SETTLING THE OPERATION In third quarter 2010, Carlson created and approved a five-year loyalty strategic plan and, just a few months later, introduced one of the industry s most rewarding loyalty programs. Club Carlson was launched on March 31, 2011, with a collection of superior benefits: Faster free award nights starting at only 9,000 points No blackout dates for award nights on standard rooms Enriched first-class redemption options Club Carlson Concierge Elite - our new highest elite tier, featuring exclusive benefits including complimentary room upgrades, complimentary continental breakfast and more

6 CONCEPTION BEST MARKETING STRATEGY: CLUB CARLSON 05 SETTLING THE OPERATION (CONT.) A global marketing and media blitz introduced the new Club Carlson program. Beginning April 15, 2011, online advertising set the stage for the formal program launch period which ran from April 25 th to May 31 st. Print and airport advertising commenced on April 25 th. Concurrently, inhotel marketing displayed a wide range of materials such as large penguin stands, brochures, front desk signage and in-room pieces. A global training program was rolled out to all front-line employees including those at reservation centers, customer service centers, and hotels. Hotel employees took advantage of webinars and advanced avatar-led training software on the company s internal education application, Carlson Learning Network, to learn about the new program. Post-launch, marketing tactics continued with Club Carlson messaging onboard brand advertisements and an online fall promotion. STRATEGY TEAM: Club Carlson was designed and implemented by an internal team from various departments within Carlson, with design, online and graphics support from outside agencies, including Teviot Creative, Epsilon, VML and Riley Hayes Advertising.

7 BEST MARKETING STRATEGY: CLUB CARLSON 06 VISIBILITY AND COMMUNICATION Online communication was a crucial element in delivering the Club Carlson program launch objectives, with online ads comprising a material portion of the marketing program spend. Dynamic flash messaging was used in the top Club Carlson program member resident countries (US, UK, Germany, Canada, China, India, Norway and Sweden), and translated as appropriate. Twelve different online publishers provided services, with Trip Advisor and Ad Networks as the key global publishers. Post audit results were favorable, with online revenue results exceeding pre-launch expectations by 35%. An integrated Club Carlson communications campaign was launched via the program website, , and social media (Facebook and Twitter) with coordinated messaging of key program features. The positive impact of the new program has been observed at the clubcarlson.com website, with Club Carlson revenue up almost 50% year-over-year since launch.

8 BEST MARKETING STRATEGY: CLUB CARLSON 07 VISIBILITY AND COMMUNICATION Carlson leveraged two websites to educate members regarding the changes to the program: DoTheMathSite.com allows customers to easily compare how quickly they can earn free nights in the Club Carlson program. The interactive updated site allows members to input their stay patterns and then compare how many free nights they can earn across many of the industry s major hotel programs. Launched initially for use by U.S. customers, a site upgrade will soon be introduced that will expand use to 14 additional countries. WelcometoClubCarlson.com introduced the changes to the program, including the new earning and redemption structure, elite benefits and more.

9 BEST MARKETING STRATEGY: CLUB CARLSON 08 VISIBILITY AND COMMUNICATION To effectively reach target customers, Carlson also utilized an airport domination strategy, selecting London Heathrow, Minneapolis/St. Paul, Chicago O Hare and Chicago Midway airports based on high traveler traffic, high concentration of Club Carlson members and strong presence of Carlson hotels. London Heathrow is number two in the world for passenger traffic. Airports in the Midwest section of the US service a heavy concentration of Midwest travelers that are originating, terminating or connecting to flights. All four airport programs were dominating but cost-efficient campaigns, giving Club Carlson an impossible-to-miss exposure in front of this vital business audience.

10 BEST MARKETING STRATEGY: CLUB CARLSON 09 VISIBILITY AND COMMUNICATION The London campaign immersed business people in Club Carlson SM while travelling, a critical and relevant touchpoint moment for a hotel brand. Carlson s unique presence on Heathrow Express HEX Motion+ screens enabled the brand to tell its story through stunning aspirational creative developed by Teviot Creative. As a media first, these screens ensured that Club Carlson s use of Heathrow Express was exceptionally memorable. The four-week London campaign was seen by almost 400,000 people. During the campaign period, clubcarlson.com visits from the UK increased significantly, up more than 85% year-over-year. And enrollments in Europe, the Middle East and Africa increased by more than 40% year-over-year. The campaign also achieved exceptionally positive press coverage in Brand Republic, MediaWeek Online and various digital signage online publications.

11 BEST MARKETING STRATEGY: CLUB CARLSON 10 VISIBILITY AND COMMUNICATION In the US, a similar strategy was launched for Chicago and Minneapolis/St. Paul airports, supported by a print advertising campaign in USA TODAY, the newspaper of choice for business travelers. Internally, intranet stories were complemented by a major feature in Hotline The Americas, Carlson Hotels quarterly magazine for employees, investors, hotel owners and franchisees.

12 DESCRIPTION BEST MARKETING STRATEGY: CLUB CARLSON 11 CHARACTERISTICS The core value proposition inherent in a service matters most to the customer, therefore it is critical in attracting and retaining business. To create one of the most rewarding loyalty programs in the hotel industry, material changes were made when establishing Club Carlson s core earning and redeeming structure: 1. Points required for free award nights were lowered for all hotel award categories 2. Point earning was made more generous by aligning at 20 points per USD at all brands worldwide greatly benefiting select service and international customers 3. Point earning was expanded to include earning points for food and beverage purchases worldwide By lowering the points required for an award night and improving the point earning structure, Carlson has one of the best customer value propositions in the industry and offers customers A Faster Way to a Free Night Stay. In addition, the elimination of blackout dates, with last-room availability for standard award nights, allows members to more easily redeem the free nights earned. Stay Nights Required for a Free Night Stay * Hilton Marriott 5 nights for a free night stay Hyatt IHG Accor Starwood *Based on USD 90 ADR for redemption at a category one hotel

13 DESCRIPTION BEST MARKETING STRATEGY: CLUB CARLSON 12 CHARACTERISTICS A new Elite tier, Concierge, was launched for our best customers along with the new program. Benefits include complimentary room upgrades and continental breakfast, and a 75% point bonus on stays. Also, a complimentary 24 x 7 concierge phone line started mid-year that provides our guests access to entertainment options including tickets to theater and sporting venues, dining advice and reservations at top-rated restaurants around the globe.

14 DESCRIPTION BEST MARKETING STRATEGY: CLUB CARLSON 13 PARTNERSHIP INVOLVEMENT A secondary value proposition improvement was made to program rewards. A young but growing program, Club Carlson has many new members with subsequently low point balances. To engage members faster and improve hotel brand loyalty, partnerships were developed with 20 first-class retailers and restaurants. Club Carlson members may now redeem their points for gift cards at low-value point denominations from itunes, Best Buy, Target, T.G.I. Friday s restaurants and more. With retail gift cards starting at 6,500 points, customers can reach an award level after a Radisson hotel stay of only a few nights.

15 DESCRIPTION BEST MARKETING STRATEGY: CLUB CARLSON 14 PARTNERSHIP INVOLVEMENT Although Club Carlson members may redeem their points at any Carlson hotel, including 42 stunning resort destinations worldwide, there are some key global destinations without Carlson properties. Partnerships were developed to augment the portfolio and increase hotel redemption options for program members. A partnership with CWT Vacations provides a choice of hundreds of independent hotels in top vacation destinations, including Hawaii, Las Vegas and ski resort areas. And a new partnership with Club Med offers members in the US and Canada access to 80 upscale, all-inclusive resorts worldwide.

16 DESCRIPTION BEST MARKETING STRATEGY: CLUB CARLSON 15 GLOBAL BENEFITS The relaunch of the program also provided an opportunity to improve and globally align member benefits. The alignment facilitates a consistent offering and delivery of benefits wherever a member may be around the globe.

17 DESCRIPTION BEST MARKETING STRATEGY: CLUB CARLSON 16 INNOVATIONS An innovative extension of the loyalty program was designed and implemented with small business owners in mind. Club Carlson for Business is a small/medium size business loyalty program designed to grow the business traveler market by providing incentives for smaller companies to stay at Carlson hotels. This is a strong revenue opportunity as small businesses represent a sizeable portion of travel spend. This new program leverages the Club Carlson consumer program since BOTH the individual traveler and the business earn points for stays. In addition, the program gives small businesses a five percent discount at Carlson hotels worldwide. Businesses earn up to 10 points per USD when employees stay at Carlson hotels. Those points -- redeemable for free hotel nights, airline miles or prepaid retail cards such as Target, Best Buy, Amazon.com and more can help reduce travel expenses or be used as employee rewards. This unique loyalty program provides a great sales tool for hotels to target key travel decision makers in their local markets. The program was originally launched in the US and Canada and has recently been expanded into 14 additional countries.

18 DESCRIPTION BEST MARKETING STRATEGY: CLUB CARLSON 17 INNOVATIONS Another innovation was the launch of the Club Carlson mobile applications for iphone and Android smartphones. The development of this leading-edge, dynamic tool was a priority, given the expanding reach of the mobile audience. The new Club Carlson mobile application launched on March 31, 2011, in conjunction with the Club Carlson consumer launch, and quickly grew with more than 15,000 downloads. It has become a strong e-commerce tool for the company. The mobile app features express booking, personalization options, GPS mapping and the ability to redeem points. The app also links to Explore Destinations, a best-in-class feature, which stores more than 4.4 million points of interest from local restaurants to tourist attractions. Customers can book all Carlson hotels worldwide, view and change their reservations, redeem points, and use GPS mapping from their smartphone. The innovative application includes exclusive express booking, a feature that saves the member s information and allows them book a room more efficiently. Customer reviews have been favorable, with particular praise for the ease of use.

19 BEST INITIATIVE IN SUSTAINABLE BEST MARKETING STRATEGY: CLUB CARLSON DEVELOPMENT 18 PERFORMANCE Driving revenue at our hotels is the primary purpose of Club Carlson,and room revenue from loyalty members is up 33% year-over-year. The success of the Club Carlson launch also is evident in increased program enrollments and member redemptions. The program has also received very positive customer feedback. Club Carlson s appeal to customers is demonstrated by a recent sizable increase in hotel enrollments. Enrollments are up 25% in the five-month period post launch vs. the five months prior to launch. One of the goals with the launch of Club Carlson was to greatly improve the customer value proposition. The program s attractive point redemption levels have driven a dramatic increase in free room night redemptions (up 40% over the previous year). Also, expanding customer redemption options through introducing lower point cost gift cards has helped customers easily redeem their points. As a result, about 40% more customers have redeemed points as compared to the same period last year. Also, food and beverage revenue at our hotels has recently jumped materially. Awarding members for food and beverage spend worldwide through the Club Carlson program has helped elevate revenue from this source by 40% since launch.

20 BEST INITIATIVE IN SUSTAINABLE BEST MARKETING STRATEGY: CLUB CARLSON DEVELOPMENT 19 PERFORMANCE Feedback from industry experts and customers alike has been very positive. Unreal in a good way. It goes against the industry standard in favor of the consumer. Other programs top out at 50% bonus for their top levels. I think 25% for Silver Elite is still a great deal. What is typical first tier bonus, 10%? And with Country Inn & Suites giving out 20 points per dollar I think a whole lot of folks will be trying Carlson out. customer on InsideFlyer February 2011 In these days where hotel chains are raising redemption values, it s good to see one lowering theirs. I look forward to seeing the full details when they become available. I am pleased with the Country Inn & Suites giving 20 points per dollar spent. And if you reach "Concierge" level you get a 75% point bonus? Unreal! This forum (Radisson goldpoints plus) is the least commented forum of the ones I regularly peruse. I expect that will change once the new program kicks in. Way to go Carlson! customer on InsideFlyer February 2011

21 BEST INITIATIVE IN SUSTAINABLE BEST MARKETING STRATEGY: CLUB CARLSON DEVELOPMENT 20 PERFORMANCE Club Carlson elite bonuses match or exceed other programs at the Gold (50% bonus) and Concierge (75% bonus) levels making the Club Carlson claim as the program for earning fastest free nights a legitimate consideration for the frequent guest wanting free nights with points. Ric Garrido Loyalty Traveler Blog "Bottom Line: We're happy to see that Carlson Hotels is finally acknowledging Carlson in the name of the loyalty program and instead of just changing the name, have put some thought into improving the program for their members. Rollover elite nights are a good way to help keep members loyal to their program and adding a top tier will go a long way in keeping their best customers happy -InsideFlyer April 6, 2011