Category Archives: Mobile Marketing

Travelers Use Mobile for Inspiration and Booking

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Mobile technology will not experience a decrease in relevance any time in the near future according to recent studies conducted by PhoCusWright.  The travel market research later forecasts that by 2015, $39.5 billion bookings will be made on mobile devices, as compared to just $6.15 billion in 2012.

However, bookings are not the only area where mobile devices are experiencing growth.  Now, mobile is also soaring in the planning portion of your trip, used as inspiration to help you plan the ideal getaway.

Instead of using them to buy while on the go, travelers use mobile devices to dream up destinations and hammer out logistics while commuting, or in the middle of office meetings.  According to a Q3 2013 report by PhoCusWright, more than a quarter of U.S. travelers said they turned to their phones for destination selection and shopping, compared with less than 20% on tablets.  This gives some indication of major smartphone travel opportunities in 2014.

What is Holding Travelers Back?

Although these numbers are staggering, there is still some hesitation among consumers to use mobile technology in the booking and trip planning process.  Airlines, hotel chains and OTAs have been slow to beef up their mobile offerings, and U.S. travelers studied by PhoCusWright were often too frustrated by a variety of issues including:

-Limited offerings by these major travel industry players

-Limited capabilities of the mobile devices themselves

These two issues, specifically, are preventing mobile from fully taking hold as an indispensable instrument for purchase.  Frustration was most often caused by small screen sizes (51% of those surveyed) and poor user configurations for websites and mobile apps compared with those on their computers (36%).

What Changes Must the Travel Industry Make?

In order to stay on top of the mobile and multi-device boom, travel companies need to be ready to do the following:

1) Make sure your mobile site is responsive, and will fit to any screen.  Make sure your website looks good and is usable across a variety of devices to ensure guest satisfaction throughout the planning and shopping process.

2) Do not release a mobile application until it is bug-free.  This may seem like a simple concept, but many companies are so eager to release an additional source for travelers, and are willing to troubleshoot on the fly.  This is leading to applications that are not effective for consumers, and could turn them off to your brand all together.

3) Tracking across multiple channels will consistently be a challenge going forward.  People using multiple devices (desktop, laptop, mobile, etc.) may not have a cohesive shopping experience because of inconsistent tracking information from device-to-device.  Because cookies are not useful for tracking on mobile platforms, it will be imperative that companies have a strong customer relationship management (CRM) system in place to provide a seamless travel planning experience.

Guest Acquisition: E-mail vs. Social Media

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I cannot go a day without seeing a social media-driven article on many of the top hospitality and travel marketing websites.  Social media is everywhere and plays an important role in your marketing campaign, helping you connect with potential travelers.

With that being said, is social media the most effective marketing tool available, or should you stick with more traditional options like e-mail?

A recent study by predictive analytics firm Custora discovered that customer acquisition via e-mail has quadrupled in the last four years and now accounts for almost seven percent of customer acquisitions.  The study also found that organic search is the most powerful acquisition channel, accounting for 16 percent of customers acquired.  Despite substantial recent growth in social media channels, Facebook and Twitter lag far behind in customer acquisition.

Custora’s data also gave some insight into Customer Lifetime Value (CLV), which refers to the future profit a company expects to earn from a customer throughout his or her relationship with the business.  Similar to the customer acquisition model, organic search lead the way with a CLV of 54% higher than average.  Twitter ranked dead last in this category with the lowest-value customers (23% less than average).

E-mail may not have some of the flash and pizzazz of social media, but it’s a medium that generates revenue.  Whereas Facebook, the highest-ranking social media platform in CLV, ranks at 1% above average, e-mail has a level of 11%.  Simply put, customers who come to businesses through e-mail tend to shop more and spend more.

Social media is at its most effective when it is used as a customer engagement tool.  It can be a two-way communication line between a company and potential customers.  Twitter is typically used to relate breaking news and deals, while Facebook users usually want to increase their contact with a brand.

Mobile Plays a Role

One reason why e-mail is so effective is the fact that it is permission-based.  Customers typically have to opt-in to start receiving e-mails.  Moreover, with the prevalence of smartphones and tablets, they are always listening.  In fact, e-mail is the top activity for most people on their phones.

People check e-mail constantly, wherever they are, and that enables you to stay connected with them.  However, people who read their e-mail on a mobile device do so quickly, meaning your messages must be powerful enough to grab their attention.

For all of its positive aspects, mobile also offers some drawbacks for marketers.  Forty percent of all e-mails are now viewed on smartphones, which means they must be coded to be attractive on a phone screen.  If your message looks bad on a mobile device, 70% of customers will unsubscribe from your e-mails.

The Rise of Mainstream Mobile Analytics

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Google Analytics are a great resource for finding out how consumers are using your website.  The next step in the analytics field is attempting to unearth some valuable information regarding a user’s mobile interaction with an application or a mobile website.

EyeForTravel’s Ritesh Gupta conducted an interview with Seshadri Krishnan, co-found of Trip38, a location aware mobile app, about the role mobile analytics plays in an emerging, yet critical, business area.

Krishnan explains that 2014 is the right time for mobile analytics to take off because of major technology players starting to offer this as part of their overall analytics value proposition.  Because of all the recent front-end growth of the mobile platform, it makes sense that it would take time for backend aspects to gain traction and scale.

Areas that continue to gain traction or tools that are not quite on par with traditional web analytics tools include:

1. Conversion – mobile conversion is still lower than the web conversion models.

2. Tracking Mechanisms – these are still rudimentary given the limitations on the app footprint and limited fallback options unlike on the web where cookies and other behavior targeting aspects have been perfected over the years.

3. Brand Names – bigger players focused on mobile analytics are set to emerge as leaders in this space.

Google Analytics in the Mobile Channel

The same Google Analytics that are used in the traditional web model are still valid in the mobile platform including statistics such as app usage time, time spent per session, time spent on various paces and user activity.  Trip38 is able to track these analytics because they have built a tracking code into their app that allows greater insight into user behavior.

Despite how far the market has come in the past few years, there are still strides to be made in this arena.  Aspects like a single dashboard across all devices, enterprise-wide access for analytics in the corporate setting and lightweight built-in mobile analytics are a few of the innovations Krishnan expects to see going forward.

Key Criteria for User Engagement

Trip38 currently measures user engagement in terms of time spent on the mobile app, features they use such as reviews, ratings, or social likes that they do using the platform.  Krishnan emphasizes the importance of the social and search aspects of the app in creating a network effect to get more users.

The read the complete EyeForTravel interview, and to learn more about mobile analytics, click here.

Getting the Most Out of Multi-Channel Marketing

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A problem for hoteliers in today’s multi-channel world is having a database full of guests with which you cannot effectively communicate.  Whether this includes linking data from your mobile platform to your customer relationship management system, effectively using social data or combining online and offline information, a clear marketing plan starts with having all this vital information centralized.

No hotel company wants to base their marketing strategies on unsound data, but to overcome these challenges, hotel companies need a way to pull all of the data related to their guests into one system.

Why is integrating data from online and offline channels a challenge?

1) Understanding the emerging channels that comprise online data, bringing together that data and making sense of it all is no small feat.

2) Even traditional channels, such as guest profiles and loyalty program data, can produce problems because of missing or duplicate data.  Consider every time a brand new profile is created for an existing guest who makes a reservation through a new channel.

In a recent SASBlog post, Natalie Osborn, examines how using data integration and data quality capabilities can help pull your data into one system.  Osborn explains that data integration helps you consume the online data you have coming in, while data quality helps you match the online data with your offline customer profiles.

What are the benefits of a solid data management system?

Once you have your system in place, you can add to it with new sources of data and analytics.  Combining offline profile information with social media data may give you a clearer understanding of your guests’ needs.  The key is to have the data quality and data matching in place to maintain an accurate profile of your guests.

From here, you have the opportunity to take this data a step further with a preference center.  This allows you to manage interactions with your guests across a variety of platforms.  Preference centers can help you understand important information about your guests, such as email addresses and social media profiles.  You can learn ways in which communicating with customers is appealing to both sides.

To learn more about integration of data from online and offline sources, click here.

Just How Big a Deal are Same-Day Hotel Bookings?

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Mobile devices have taken the travel and hospitality industries by storm in recent years with companies focusing their efforts on creating mobile websites, applications and more to help attract a new generation of travelers:  millennials.

Mobile and same-day booking trends are transforming the user experience in hotel bookings, but the travel research and booking experience is still very much a multi-device phenomenon.  Desktops, phones, tablets and even walk-ins all still play an important role in the booking process.

A recent Skift travel article looked at the user behavior from partners of Sojern, including major brands like Starwood, Hyatt and Hilton.  Sojern’s data showed that in Q4 of 2013, 29% of U.S. hotel bookings were done on the same day – defined as within 24 hours – of their stay.

These numbers clearly demonstrate a shift in the timing of hotel bookings, as well as the way rooms are booked.  Brad King, Sojern’s vice president of sales and marketing, says his company’s numbers do not necessarily portray the U.S. hotel-booking sector as a whole.  They are, however, worth considering for the directional trends they depict.

Why is this Important?

Although same-day and last-minute bookings, especially on mobile devices, area a resounding trend, it is still a multi-device environment.  Consumer behavior varies widely with some individuals and groups preferring to book much further out.  The accommodation type also typically has an effect on consumer behavior with travelers looking to book at luxury and all-inclusive resorts typically planning their getaways over a longer period.

Hotel marketing that focuses overwhelmingly on last minute and mobile would likely bypass a majority of bookers.  This is why travel marketers and revenue managers need to craft their campaigns to take this diversity of booking patterns into account.

To read the full Skift article and to learn more about what major players in the OTA industry had to say about the Sojern report, click here.

The State of the Online Travel Industry in 2014

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State of Digital recently released a Travel 360 report after collating the viewpoints and analysis of experts, thought leaders and key commercial players of both the hospitality and travel industries.  The report aims to act as a marker of the level of integration between travel brands and the various online channels within digital marketing.

The key trend throughout this report is the idea that companies must be able to adapt their business and marketing models in an attempt to future-proof their businesses.  Facilitating ongoing relationships and interactions with travel consumers has now become critical to survival.

The following are seven key points highlighted in this report that you should keep in mind going forward.  They address challenges facing businesses today, and the holistic approaches and angles that will provide real value, strategy and insight to your brand.

1) Communicating a holistic brand message, consistently across all channels, is now very important to a brand’s long-term prospects.  Consistency is crucial when planning your marketing strategy.  It is important that your message is the same whether consumers see it on your website, in e-mail blasts, on a mobile site or from a third party site (OTAs, vertical marketing sites, metasearch engines, etc.)

2) Brands need to install a startup culture and nurture a digital experience that runs through the business.  Word of mouth is a great way of advertising to dozens of people, but those numbers will not sustain your business over the long haul.  “Rewriting the rule book” should not be seen as a negative experience, but rather as growing with the always-changing digital landscape.

3) Storytelling helps the digital travel industry to get the right customers in the right way.  Honest, authoritative and local content, infused with quality storytelling is the future of travel content.  The millennial generation is looking for a unique experience when planning a getaway.  Capturing that audience by telling your own unique story will be an important marketing tool going forward.

4) Storytelling, marketing, PR and outstanding content will inspire loyalty and provide long-term success to a brand.    Brand loyalty has recently taken a step back to deals when consumers are planning to travel.  Re-establishing brand loyalty with quality content and marketing is a key to survival in the future.

5) There is going to be an increasing trend towards personalization and the creation of more unique experiences.  As noted earlier, this is precisely what a new generation of traveler is looking for.  Millennials are willing to spend the money if they believe their experience will be unique

6) Mobile is the biggest growth area in terms of sales.   Recent projections by PhoCusWright predict that U.S. mobile bookings will almost double in 2014 to $24.3 billion, up from $12.3 billion in 2013.

7) Mobile has led to the rise of the ‘always connected traveler’ and the possibility of in-experience interactions with brands.  Social media allows guests to provide feedback and interact with a company in a way that has nearly usurped the role of the on-site concierge.  Travelers use their mobile devices for everything from getting directions to their accommodations, to finding a restaurant or tourist attraction during their stay.

To download and read the full State of Digital Travel 360 report, click here.

Why Mobile Marketing Will Continue to Grow

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There was a time, although it seems inconceivable, when online video and mobile executions were dismissed as pipe dreams.  The principles were appealing, but the idea that technology would develop into such an integral part of everyday life still seemed futuristic.

Today, innovation across channels has saturated the mainstream, and mobile devices are now ubiquitous.  It is hard to imagine a time when Nokia and Blackberry owned the market.  This was a time when touch screen was not yet part of our daily vocabulary.

We are now living in an era of the mobile makeover, a time where mobile technology has changed how consumers shop, engage and absorb information forever, and there is an expectation of continued rapid growth in the future.

A recent Gartner report indicated that worldwide ad spend in mobile will increase to $18 billion in 2014, up from $13.1 billion in 2013.  It is expected to reach $41.9 billion in 2017, accounting for 56.69% of total digital ad spend.  Eventually, mobile will dictate how marketers leverage more traditional advertising strategies like desktop display and search, and these are four reasons why:

Mobile Devices are Mobile

The days of marketers depending on users being in a stationary location with time to peruse content with a discerning eye is a thing of the past thanks to a multitude of desktop distractions and multiple platforms from which information can be accessed.

These days desktop computers and even laptops do not offer the same direct exposure as mobile.  Marketers now must concern themselves with reaching a consumers with greater frequency and, most importantly, while they are on the go.  People are looking to search, shop, buy and connect with a few clicks and swipes of the hand 24/7.

The King of Local

Mobile creates a variety of intricate, real-time marketing opportunities for small, medium and large-scale advertisers because more often than not, search on mobile indicates immediate intent.

Due to the rise of hyper-local technologies (Wi-Fi hotspots, tracking services, etc.) some reports indicate that local will overtake national mobile ad spending by 2017.  These technologies allow advertisers to target the “always on” mentality with advertising approaches like geo-aware, geo-fencing and geo-location.  These strategies position mobile as the optimal channel for ad relevancy incorporating the right ad, at the right time, in the right place.

Mobile Creativity

Mobile rich media is not just grabbing users’ attention at first glance.  It is proving tremendously effective at holding attention and prompting them to engage at much higher rates than desktop display or rich media have ever seen.

Innovative mobile formats are dominating the mobile web and taking consumers for the ride, and this has spread to in-app, in-game, Facebook Newsfeed ads and other larger formats.  Often times in mobile, size does matter.

Steadfast Adoption

At the end of 2013, it was reported that there were more mobile devices in the world than people.  Other stats claim that 80% of smartphone users want more mobilized products and that mobile coupon users in the U.S. will reach 53.2 million by 2014. 

With this rise in consumer mobile usage, it is important for marketers to dedicate more time towards increasing their mobile strategy.  The must find creative ways to integrate their brand within today’s most accessible consumer channel.

Push Mobile Marketing – What You Need to Know

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Are you getting the most out of your marketing campaign?  Do you have a portion of your marketing budget dedicated to mobile marketing?  Is it making a difference or are there improvements you could make to increase your ROI?

A recent Marketing Land column takes a closer look at the difference between push and pull mobile techniques, and how push mobile marketing may be the answer in connecting with guests both on- and off-site.

Defining Pull Mobile Techniques

When customers or consumers are proactively trying to attain the goods or information they need, this refers to a pull mobile technique.  Accessing a responsive mobile website or mobile application allows a traveler to compare availability and rates, but this is not the only way they can acquire this information.

Effective Push Mobile Marketing Techniques

If pull mobile techniques involve a user-driven model, than it makes sense that push mobile techniques originate on the business side of things.  It is important for companies to develop a conversation with consumers, hopefully allowing this to blossom into full-blown brand loyalty.

Mobile applications are a great way to send push notifications to travelers who have already downloaded your app, and getting users to download your app successfully is the first step.   App alerts are a great way for brands to inform consumers of any new app updates or features, as well as notifying users of promotions or other activities.

One thing to keep in mind with app alerts is that all push notifications can be turned off.  Consumers with dozens of apps on their smartphones tend to avoid being inundated with annoying alerts by disabling one or two push notifications.  Depending on the smartphone, push notifications could be disabled as a default setting.  Unless consumers are enabling this feature on their own, your message may not reach them.

Another way to reach consumers is the use of mobile messaging.  Here are three keys to building the right mobile message for your brand:

-Decide whether your message requires a short message service (SMS) involving just text or a rich message service (RMS), which also includes some type of media (photo, videos, etc.) as well.

-Make sure your message is timely (90% of text messages are read within three minutes of delivery)

-Include a strong call to action.  If you are offering a deal or promotion, include a deadline to increase the urgency of the consumer.

Regardless of what type of push mobile marketing your business is using, the key to its effectiveness will be a continued development of a more personal relationship with potential buyers.  This will help to increase brand loyalty, and should result in future business down the road.