Information and Communication Technologies in. Tourism

Transcription

1 Information and Communication Technologies in Tourism

2 ICT supported CRM in the Tourism Industry Customer Relationship Management (CRM) Case study XQueue 2 ICT in Tourism

3 CRM - Customer Relationship Management CRM objective Maximise customer lifetime value Increase customer loyalty Increase profitability CRM definition Integrated approach to identify, develop, nurture, and if necessary also terminate mutually beneficial relationships in a network with customers Interactive, individualised, and value generating contacts and information processes in mutual trustfulness over a long period of time Personalised services and integration of customer in service process (prosuming) Requires a customer-centric business philosophy and culture to support effective marketing, sales, and service processes 3 ICT in Tourism

4 CRM - Customer Relationship Management Economics of customer retention Winning back a lost customer can cost up to times as much as keeping a current one satisfied. Rob Yanker, Partner, McKinsey & Company 4 ICT in Tourism

5 CRM - Customer Relationship Management Product management vs. CRM Product Management Relationship Management One time interaction Focus Constant interaction Short term Mass Market survey Market share Process Communication Feedback Success criteria Long term Personal Constant dialog Wallet share 5 ICT in Tourism

6 CRM and ICT ecrm Customer profile management Customer preferences and interests Customer history (web usage mining) Integration of CRM systems and CRSs Individualisation of tourism services Dynamic packaging Increased customer reachability New communication channels ( , SMS, online surveys & feedback) Mobile devices and services Reduction of communication barriers 6 ICT in Tourism

7 Stages of ecrm 7 ICT in Tourism

8 ecrm in Tourism Industry ecrm application in tourism sub-sectors 8 ICT in Tourism

9 ecrm in Tourism Industry Data collected by ecrm in tourism 9 ICT in Tourism

10 Implementation of ecrm CRM implementations have a high failure rate 55% to 75% of CRM programs fail to produce significant results Gartner Research Group, Meta Group, and Conning & Co Key reasons for failure Excessive technology in CRM implementation Lack of customer oriented culture Organisational culture that hinders knowledge sharing Lack of cross-functional integration (especially marketing and IT) Lack of data mining ability / capability Lack of front office & back office integration 10 ICT in Tourism

11 ICT supported CRM in the Tourism Industry Customer Relationship Management (CRM) Case study XQueue 11 ICT in Tourism

12 Marketing in Tourism XQueue Founded customers in 50 countries 15 million s per month marketing services Development of an Internet platform (ASP), that supports all forms of marketing Broad range of functions High performance Flexibility In-depth knowledge to optimally use marketing Strategy & conceptual design law Analysis and optimisation 12 ICT in Tourism

13 Advantages of Marketing Lower costs Faster More than 90% lower costs than print media Higher response rates High user attention, since 90% of online sessions start with reading s Increased options for personalisation (one-to-one marketing) Additional functions Advantages of marketing for the direct marketer Short lead times for both, concept and production 80% of responses within first 36h Dialog Detailed reporting Detailed reporting in real-time enables thorough analysis and optimisation Support of audio and video content ecoupons esurveys Direct customer interaction possible, e.g. feedback, inquiry, order, forward 13 ICT in Tourism

14 Marketing Models Newsletter Campaign Reminder Information is sent on a regular basis User subscribes to services Useful for periodic and timely information about company and/or products Ideal as a customer relationship management tool Information is sent based on user interest and availability of matching offers Electronic version of traditional direct mail User gives permission and outlines interests Optimised target group selection and timing can yield high response rates Information is sent at a predefined point in time User explicitly states content and date/time of reminder, e.g. birthday Message is sent to the user only at the predefined date/time Opportunity to match corresponding product offers, e.g. flowers, gifts Alert Survey Information is sent only if certain criteria are met User explicitly states set of criteria for message, e.g. price falls by 10% Message is sent only if criteria are met Opportunity to match corresponding product offers Question and answer options are sent Cost efficient market research tool Sharpens and expands customer profiles Possible to embed in other types of s 14 ICT in Tourism

15 Technical platform Broad scope of functions State-of-the-art technology Comprehensive service & support Multi function: campaign, survey, e-card, fax, contact mgmt Multi template: support of different templates Multi language: full support of international character sets Multi format: supports text, HTML, multi-part, AOL Multi report: extensive and detailed reports in real time Multi entity: ideal for various business units High usability: easy to learn, easy to use High performance: fully clustered solution System uptime: 99.9% Minimal system requirements: Internet, IE 5.5 or higher Leading technologies: Java, XML, XSL Software upgrades: provided automatically without additional costs Setup times: standard setup, customising and tests within 3 days Training: through telephone or Internet (Web conference) Training/support in English/German System monitoring: permanent 15 ICT in Tourism

16 Technical platform - reporting Overview Standard campaign data Who opened and when? Who clicked which link and when? click ranking statistics Detail reporting Sent list Complete list of receivers and exact delivery time Bounces List of bounced s with reasons Openings Who opened when? Clicks Who clicked? Unsubscribes Who unsubscribed when and why? Manual replies Who replied to what and when? Tell-a-friend (optional) Who forwarded the and when? 16 ICT in Tourism

17 Technical platform survey module Integration with functionality Personalisability Management of questions and surveys Special Reporting Editing of question sequence and texts Survey preview 17 ICT in Tourism

18 Technical platform survey module Question text Total number of answers List of answer options Frequency distribution of each answer option Graphical reporting 18 ICT in Tourism

19 marketing design Strategy & concepts Identification and quantification of revenue potential Segmentation and characterization of relevant target groups Development of marketing approach Implementation Detailed conceptual design for marketing activities Supplier screening (e.g. address broker, content provider) System rollout (testing, training, going-live) Campaign management Analysis and optimisation Legal Advice Analysis of base reporting (e.g. subject lines, design and length, contact frequency, sender id, personalization levels, opening and click times, offer positioning) Development and test of optimisation ideas (e.g. subject lines, send date/time, number of offers, format, design, incentives) Verifying relevant processes (e.g. permission generation) and documents (e.g. privacy satements) concerning completeness and legal compliance Development of changes and extensions Special requests (e.g. activation of old adresses, legal responses) 19 ICT in Tourism

20 marketing response model Revenue address stock x contact frequency x address generation Unsubscribe avoidance Number of s per time interval Min. interval between two s Appropriateness of send time Day of week and day time Preliminary and follow-up time ROI Conversion rate per contact Target group accuracy Design Address selection Relevance of content Usability Preview optimisation Costs Incentives Confidence Permission & privacy Sender Costs per Avoidance of additional costs Avoidance of spreading losses 20 ICT in Tourism

21 Analysis Question: How quickly are s opened after being sent? Openings (%) hours after send out More than 50% of all openings occured within the first 2 hours, 80% within one day and 90% within 3 days. 21 ICT in Tourism

22 Analysis Question: Which weekdays generate the highest response? Monday Tuesday Wednesday Thursday Friday 0,00 2,00 4,00 6,00 8,00 10,00 12,00 14,00 Click rate (%) In contrast to popular belief, Monday and Wednesday yielded significantly higher response rates than the other weekdays. 22 ICT in Tourism

23 Analysis Question: How are unsubscribe reasons distributed? Uses homepage if needed Generally no interest in topics offered Area of interest has changed Topics offered so far not interesting s come too often Technical problems Prefers postal mail 0% 5% 10% 15% 20% 25% 30% 35% 40% Frequency of mentioning (%) Two key reasons for unsubscribing are no specific advantages of the newsletter compared to the website and lack of targeted content. 23 ICT in Tourism

24 Analysis Question: Which influence does the weekly marketing intensity has on the unsubscribe rate? Amount of unsubscribers Deviation of average weekly marketing intensity in the last week Nearly 80% of all unsubscribers received an amount of s above average in the week before. 24 ICT in Tourism

25 Analysis Question: Correlation between time since subscription and unsubscribe probability? 12,0% Percentage of unsubscriptions 10,0% 8,0% 6,0% 4,0% 2,0% 0,0% Amount of received newsletters before unsubscription Nearly one third of all unsubscriptions take place before having received the first four s. 25 ICT in Tourism

26 Reachability management Challenge Actions Short Description How can a sender ensure increased reachability by preventing s from being blocked by spam filters? Decreased reachability by loss of legal permission s due to spam filter blocking problems: over 10% Whitelist agreements Blacklistmonitoring Regular tests Special reporting Silent domain management Agreements with numerous webmail platforms (e.g. 37 in Germany) Whitelist initiatives (e.g. Certified Sender Alliance) Automated monitoring of public blacklists (e.g. rbls.org meta blacklist of 58 other blacklists, or spamcop.net) Reachability tests with all major (German) webmail platforms Tests with major programs (Outlook, Lotus Notes etc.) Domain reporting to identify problematic domains (complete bounces, domains without any response silent domains) Proactively contacting domain owners with domain problems (bounces domains, silent domains) 26 ICT in Tourism

27 Example Ireland Information Ireland information sends on a regular basis to different target groups: B2C, press, travel agencies, tour operator Opening rates: >35% Click rates: >5% Use of different forms and channels: - Newsletter, campaign, survey, fax, ecards 27 ICT in Tourism

28 Example Lufthansa Lufthansa offices in more than 50 countries Other Lufthansa companies (LH Cargo, LH Systems) Different target groups (customers, travel agencies) Multi-language Specialised templates (but common core design with country specific details) User access from numerous locations Specialised accounts (e.g. Star Alliance, LH Agents) 28 ICT in Tourism

29 Example British Tourist Authority British Tourist Authority (Germany, Poland, Austria and Switzerland) Different target groups (customers, travel agencies, press) Specialised templates Increasing substitution of print media Support of different locations (Frankfurt, Berlin, Warsaw) Opening rates > 50% 29 ICT in Tourism

30 Mammoth Mountain Subscription Snow report Ski resort Mammoth Mountain Customers can receive a snow report on a daily, weekly or eventdriven (more than 12 inches of fresh snow) basis Promotions with special offers Click rate: 20% 25% Conversion rate up to 25% One compaign brought $ revenue within 24 hours Special s 30 ICT in Tourism

31 marketing permissions Double Opt-In 1. Login on website 2. Confirmation with link 3. Subscription by click 31 ICT in Tourism

32 marketing permissions Confirmed Opt-In 1. Login on website 2. Confirmation (no click on link necessary) 32 ICT in Tourism

33 marketing permissions Single Opt-In 1. Login on website 2. Confirmation on website 33 ICT in Tourism

34 marketing permissions Opt Out Prerequisites: - Generation of address as part of purchasing process - Marketing of own, similar products - No rejection of customer - Information about possible rejection already when generating address 34 ICT in Tourism

35 marketing permissions Spam No (explicit) confirmation No supposed confirmation No previous contact 50-80% of world wide traffic Nigeria connection German spam SPAM newsletter 35 ICT in Tourism