A Hotel's Guide to Facebook

A Hotelʼs Guide to Facebook, March 2011

A Hotelʼs Guide to Facebook

March 2011


Just a few years ago, Facebook used to be a closed network for college kids. Its value for business was unclear. But a lot has changed since then, as the network opened up to become what is now arguably the most important social networking service on the planet for audiences of all ages, and a good communications opportunity for brands. In this guide, we will look at how your hotel can benefit from Facebook as a way to create community, cultivate loyalty, and ultimately, increase revenue.

1

A Hotel’s Guide to Facebook


Facebook today

What does (and doesn't) work on Facebook

Five different approaches to Facebook

New developments

Designing an engaging brand page

Moving beyond setup: integrating Facebook with your website

Promotions on Facebook

Case studies outside the hotel industry

Action steps: Planning your Facebook strategy

Bonus: Reputation and Facebook

What's next?

2

3

5

6

11

14

17

18

19

24

25

26

Table of contents


As I write this, in March 2011, Facebook has exploded in popularity past 600 million active users, and shows no signs of slowing down. Every 20 minutes: •  More than 1 million links are shared •  More than 1.8 million status updates are made •  More than 2.7 million photos are uploaded •  More than 10 million comments are posted The Facebook press page shares more statistics as of March 2011: •  50% of active users log on to Facebook •  in any given day •  The Average user has 130 friends •  Average user is connected to 80 community pages, groups and events •  Average user creates 90 pieces of content each month

• More than 30 billion pieces of content (web links, news stories, blog posts, notes, photo albums, etc.) are shared each month • More than 70 translations are available

on the site • About 70% of Facebook users are

outside the United States • There are more than 200 million active

users currently accessing Facebook through their mobile devices • People that use Facebook on their

mobile devices are twice as active on Facebook than non-mobile users

But perhaps more important than these impressive numbers is the fact that Facebook is becoming more than just a social network: it is becoming a platform for social communication (something we will discuss in more detail later). From a marketing standpoint, the fact that people share more personal details about their identity on Facebook than anywhere

else offers unique advantages. As brands, we have access to a depth of demographic information, providing opportunities such as ad campaigns targeted to employees at selected companies, or specific university graduating classes. When it comes to return on investment, we have evidence - both anecdotally and through research - that Facebook can be more powerful than Twitter and other social networks for generating sales.

3

Facebook today


Dan Sherman of Ski.com attributes a $70,000 sale to Facebook – but it was not from a special offer. It was simply a photo of a beautiful fresh snowfall. “In my opinion, Facebook is all about engagement - allowing you have more of a dialog with more people in one place. If I post a sales message, I donʼt get a lot of action. But if itʼs just relevant information for our business, like a photo of a fresh snowfall, people like to engage with that.” “The great thing is that when people comment on anything on Facebook, all their friends see it. Because of this, we received a $70,000 booking from someone who had never heard of us before.”

A number of studies have been done to quantify the value of Facebook activity. Recently, ChompOn tried to determine the value of a tweet compared to a piece of content shared on Facebook. According to them, a tweet was worth $5 in sales, while Facebook shared content was worth $14. Clearly, the value of a referral will depend on what you are selling, but research like this suggests Facebook drives more transactions. The caveat? Selling directly to your Facebook fans rarely works. Facebook is all about reaching people through people. Reaching your fansʼ friends. This concept is called “Transitive Trust.” Your job is to create material fans will pass along, introducing that brand to their network.

4

Facebook today (continued)

Facebook is all about reaching people through people. Reaching your fansʼ friends.

“


"I think people are just on Facebook to relax, have fun, and chat with their friends.” Some variation of that sentiment has been shared with me over and over again from hotel executives. As someone who uses Facebook extensively for both business and personal reasons, it seems to be a fair assessment. Successful businesses on Facebook understand and respect this reality, creating communication that fits the mindset of people using it. Why do people become a fan of companies on Facebook? A recent report released by ExactTarget and CoTweet found the two primary reasons why consumers ʻlikeʼ brands on Facebook: for discounts and as a ʻsocial badge.ʼ Nearly 40% of Facebook users become fans to receive special discounts and promotions. 39% do so to show their friends they support a brand - it is an identity statement for them.

Seventh Art Media conducted some more interesting research into what works best on Facebook. They found that it is content which conveys a unique sense of brand and place and makes a personal connection with followers. Photos are the clear winner. Facebook users like the quick-hit satisfaction of a witty post or a beautiful or clever picture. Some of the highest performing photo content was not necessarily professional level quality but connected on a personal level. A quick snapshot of the first snow of the season and a giant pumpkin are examples of connective content that required little effort. All of this comes back to adding value. How can you use Facebook to make your fans happier, better informed, and rewarded financially?

5

What does (and doesn't) work on Facebook

How can you use Facebook to make your fans happier, better informed, and rewarded financially?

“


Hotel Seven in Paris uses Facebook as the exclusive source of both hotel news and the lowest available room rate. By focusing attention here, they have attracted an audience of over 12,000 fans: significant for a single property of their size. This is undoubtedly an extreme approach, but the results are hard to argue with. If you want to make building your follower numbers on Facebook a priority, think about what exclusive content you can deliver through this site.

6

Five different approaches to Facebook

!

Approach 1: Facebook as an exclusive source


Poetʼs Cove Resort & Spa uses Facebook not only to connect with guests, but also to engage with the local residents of Pender Island, British Columbia.While local residents may not be interested in staying at your hotel, they could be a valuable source of revenue for your restaurant or spa. Positioning your property as a local hotspot can be an effective strategy for your Facebook page.

7

Five different approaches to Facebook (continued)

!

Approach 2: Facebook as a local community hub


Distrikt Hotel in New York City uses Facebook to update their community on what is happening in the city. This is helpful because by becoming a resource for visitors to the city, Distrikt Hotel increases the likelihood of people passing the page along to others.

8


!

Approach 3: Facebook as a local guide


The Beacon in South Beach focuses on making sales by creating and promoting a special offer on their welcome tab: 2 free mojitos and a 15% off discount. As you saw from Hotel Seven, delivering an exclusive offer is a powerful way to focus attention. This does not have to be just discounts or coupons. Put together a value-added Facebook package that is compelling and only available through Facebook. Not only does this draw traffic to the page, but it gives you another way to measure results. Ecommerce is likely to become an increasingly important part of Facebook activity, with powerful integrated booking engines now available. We will look at this topic in more detail later in the guide.

9


!

Approach 4: Facebook as a sales tool


One & Only Palmilla uses advanced design to create an experience like browsing their website. (This will become easier in the future because of some new changes to the page structure, which we will discuss later.) Experiment with some of the new Facebook functionality to show beautiful photography and video to your visitors that attracts them emotionally.

10


!

Approach 5: Facebook as a website


Facebook has quickly evolved, rendering many prior marketing tactics obsolete or ineffective. Here are three of the most important updates I see for businesses.

#1 - New Page Layout On February 20th, 2011, Facebook released a complete overhaul of the pages system. There were many updates – you can read the official announcement here – but the basic concept was to make business pages look more like personal profiles. Among other things, you now have the ability to receive more advanced reporting on your communityʼs activity, and can easily embed pages from your website into your Facebook page: Read more: http://sixrevisions.com/web-applications/new-facebook-page/

#2 - Separate Business Profiles This was included in the February 2011 update, but it is so significant that we need to consider it separately. Previously, personal accounts and business profiles were linked, which made engaging in conversation an awkward mess. With the new format, you can switch between personal and business profiles as you surf Facebook and interact with communities. This gives you the option to post in your own voice or that of your brand.

11

New developments


#3 - Sponsored Stories Sponsored stories is a new ad format that takes your friendsʼ actions - like checking in to a place - and turns them into an advertisement. The story first posted to Mashable provides a good example:

12

New developments (continued)

!Read more: http://mashable.com/2011/01/25/facebook-sponsored-stories/


#4 – Booking Engine Integration Recent changes to the Facebook page structure are likely to make ecommerce integration with embedded booking engines increasingly common. From the time they began working on Facebook, Starwood Hotels and Resorts has provided booking functionality for all of its brands. In a recent article article published by Hotel News Now, David Godsman, VP of global Web for Starwood, said, “Conversion on Facebook is smaller but close to conversion on our brand websites. (Starwoodʼs Facebook fans) start to see other peopleʼs experiences at the properties....What we are seeing now is an emergence of technology that that we didnʼt see six months ago. There is an opportunity for ourselves and other hotel brands to enable these type of transactions within Facebook.”

Starwood sees opportunity to drive revenue through the site, and has introduced a “Shop” tab on the pages for all properties of their Westin brand. On this tab, visitors can book a room directly without leaving to the Westin website. You can expect to see Facebook play an increasingly important role in how hotels generate room revenue as this trend continues.

13

New developments (continued)


Setting up a page is fairly straightforward. You start here and just follow the directions. Since most of you already have pages set up, rather than repeating the entire process here, I recommend the following tutorials if you are still in the process of setting things up: • Wildfire • AllFacebook • SixRevisions What are the elements of an engaging Facebook brand page? Whether you are setting up a page for the first time, or looking to optimize an existing page, there are a few items of special importance to consider.

An inviting welcome tab A custom welcome tab can serve several purposes: •  Welcome people to the page •  Explain your purpose for the page •  Describe the benefits of your hotel •  Invite visitors to Like the page Your welcome tab is basically a landing page. Use the same best practices you would use for a landing page on your website: images that draw people into benefits-oriented copy, with a strong call to action. Example: The Westin The Westin Dragonara Resort in Malta uses an attractive welcome tab that engages their community through feedback and competitions.

14

Designing an engaging brand page

!


Exclusive content Why should someone join your page? Smart marketers know the best way to drive action is to make perceived value exceed perceived risk. That is why email subscription rates increase when an incentive like a free guide is given away in exchange for a personʼs email address – and permission to send the content they requested. The same principle works on Facebook. Facebook allows you to create hidden content that is only visible when someone becomes a fan of your page. What incentives could you offer to encourage people to become a fan of your hotelʼs Facebook fan page?

• City guides? •  Insider access? • A discount coupon? • A value-added incentive that does not

cut profit margins? A focus on photos and video Referring back to the Seventh Art research study mentioned earlier, photos and video generate the most engagement from Facebook fans. Facebook is a platform that favors rich media, so make posting this type of content a priority. The feeling of being an insider If someone is engaged with your hotel or brand enough to become a fan on Facebook, then provide them with a little more insider access. Share upcoming news and announcements with your Facebook community first. Share the process you go through to create your

experience. Share video interviews with key personnel at your property. For marketing research and developing new ideas, Facebook can be used to source new concepts and refine existing ones. This form of crowdsourcing also gives your fans the feeling of being an insider.

15

Designing an engaging brand page (continued)

A Hotelʼs Guide to Facebook, March 2011 16

Designing an engaging brand page (continued)

!

Example: Marriott Napa Valley Hotel & Spa is a good example of an engaging brand page.


What should you do once you have your Facebook page set up? Integrate it with your website. This is where we see some of the most creative innovation and remarkable results from companies using Facebook. Like Buttons Perhaps one of the simplest integrations, placing a Facebook Like Button on your website allows people to share that with their friends. It is recommended you add this to your homepage and select pages on your website that contain the best content. (But check privacy laws to make sure the button is in compliance in your country.) Details: http://developers.facebook.com/docs/reference/plugins/like/

Like Box The Facebook Like Box can be placed on any webpage, allowing your visitors to become fans of your Facebook page without leaving the website. This approach has worked very well for some hotels, like Mosaic House in Prague. Details: http://developers.facebook.com/docs/reference/plugins/like-box

Social Plugins It is powerful because you can take advantage of the huge social network that exists on Facebook, and use it to enhance the web experience you provide. Sites such as TripAdvisor are using this to personalize the website with tailor made content. Details: http://developers.facebook.com/docs/plugins/

17

Integrating Facebook with your website

!

!

!


There are three primary categories of promotions that can be conducted on Facebook: contests, advertisements, and deals. Contests Contests can be run through your page with no charge from Facebook. Tools like the ones from Involver and Wildfire make the process easy, and help you navigate Facebookʼs tight policy on contests. When planning a contest, configure it in a way that attracts the right type of fan for your page – people who will stay engaged long after the contest is over. If the wrong incentives are used, you will end up with people who enter just for the chance to win, and then leave the page after the contest is done.

Advertisements The power of Facebook advertising is the ability to reach highly targeted segments of people based on demographic criteria. You can filter the distribution by age, location, gender, hobbies and interests, employer, and many other criteria. If pay-per-click advertising in search engines is for “what,” on Facebook you are advertising for “who.” The downside is that many people on Facebook ignore advertisements, so the clickthrough rate can be low. Additionally, it is debated whether people are looking to make hotel reservations while browsing Facebook. This is something you need to test and see if it works for you. It could be that the call to action on the advertisement should be simply to attract people to Like your page.

Deals Facebook is creating pages for each business address in order to give the business an opportunity to offer deals. When a customer checks into a place on Facebook Places via their mobile phone, businesses will have the opportunity to offer coupons or discounts to them. While it is unclear how Facebook Places will fare among their geolocation competitors, this remains an area to watch and experiment with.

18

Promotions on Facebook


We have looked at a number of case studies of hotels using Facebook creatively. To broaden your perspective, I wanted to share a few examples of companies outside the hospitality industry that are doing interesting things on Facebook. Volkswagen Volkswagen created individual pages for each of their vehicles, and then wrapped these up into one corporate page. One particularly innovative feature they offered was an application that analyzed your profile, taking all the demographic information you posted, and then used that to recommend a vehicle it believed was best suited to you. What if you created a similar “Hotel Selector” tool?

19

Case studies: Outside the hotel industry

!


The Travel Channel A while back The Travel Channel did something that could work well for hotels: they encouraged fans to share stories of the role Facebook plays in their travel experiences. Inviting discussion around topics like this is a good way to engage people with similar interests.

20

Case studies: Outside the hotel industry (continued)

!


Coca-Cola Coca-Cola has developed a reputation for running creative photo contests. This works well, since photos are viewed more often than anything else on Facebook. By encouraging fans to upload photos of themselves with Coca-Cola cans, hundreds of thousands of potential new fans will be exposed to the brand as the uploads appear in the news feeds. What photo contests could you run? Running a contest like this for your hotel can be a powerful way to make the campaign viral.

21


!


Red Bull Red Bull has a solid understanding of their audience, and does a great job of delivering rich media content that attracts new fans. Look at their creative use of design on the welcome page. As a hotel, make sure you understand what your audience expects (and wants) you to provide. Use videos to share interesting content that people will pass along and introduce your brand to others.

22


!


Harley-Davidson Harley-Davidson uses an interactive welcome page that provides a rich, immersive experience for their fans. Make use of the new changes to Facebook pages described earlier in the guide to deliver more information to your visitors in a compelling way. Your Facebook page does not have to become a duplicate of your main website, but can be a good opportunity to share stories and other engaging content.

23


!


As we close this guide, what are the action steps to take? 1. Decide on your purpose for Facebook:

•  Is it website traffic, community

engagement, brand building, or something else?

•  What will success look like for you? Will you know once you have reached it? To recognize success, you must have metrics established from the beginning.

•  What key performance indicators (KPIs) will you be tracking? Number of fans is a starting point, but also monitor how many people engage with the content you post – clicking the Like button or leaving a comment. Additionally, some measure that leads back to sales, such as Facebook website referrals, is helpful.

2. Setup your page •  Register an account, then fill out

your business profile. •  Customize your welcome tab with a

graphic that encourages people to interact with the rest of your page.

•  Decide on some exclusive content such as news, inside information, and special offers that will drive attention to the page.

3. Establish a community management system •  Who will be involved in managing

the page? Make sure this person is someone who understands the brand you are trying to build, and can be trusted with posting content and interacting with your fans and customers.

•  What will be posted? Put together an editorial calendar for the types of content you want to share through

Facebook: news, videos, photos, offers, and contests.

•  How often will you post? How often will you check for comments? It is important to publish consistently, but not too frequently. Once or twice a week is often a good starting point.

•  What alerts system will you have in place? Be sure to have a listening tool setup to be aware of what people are saying about your hotels on Facebook.

4. Integrate with your web presence elsewhere •  Use some form of Facebook website

integration as described earlier to expand the awareness and helpfulness of your Facebook community.

24

Action steps: Planning your Facebook strategy


Since we spend the majority of our time at ReviewPro helping hotels establish powerful online reputations, it would be a mistake to underestimate the importance of reputation management on Facebook. This primarily affects two areas:

At the beginning:Duplicate (or unauthorized) content Too many hotels and brands I see have three, five, or more different pages for the same property. This often happens when different interns, seasonal workers, or agencies are tasked with “doing Facebook.” It can also happen when fans create new pages for your brand. Make sure to monitor official and unofficial pages that have been created. As your presence matures:Page moderationStart by deciding on your Facebook policy and management routine. How often will you be engaging with the page? What types of content would you like fans to be sharing with you and others in the community? Set your page permissions at a level that reflects how actively you will manage it.

Unless you will be continually managing the page, you may want to prevent fans from posting content. Several brands have set up insufficient page permissions, and their “set it and forget it” approach resulted in the page being hijacked by spammers and their brand damaged with inappropriate content. Make sure this does not happen to you. Community management is an ongoing process. To encourage maximum engagement, make sure to frequently post interesting content. Ask questions to your audience. Encourage them to submit photos and videos of their travels. Just be sure to check in often to ensure no damaging material is posted.

25

Bonus: Reputation and Facebook


Keep learning! ReviewPro monitors what is changing in the world of online reputation management and passes along practical ways to use that in hospitality. Read the blog for more articles and reports like this: http://reviewpro.com/blog Follow us on Twitter for daily ideas and tips: http://twitter.com/ReviewPro

About ReviewPro ReviewPro enables hoteliers to efficiently aggregate, organize and manage their online reputation and presence in leading social media sites. ReviewPro provides the analysis, customer intelligence, competitive benchmarking and reporting needed to help hotel professionals more effectively manage their organization. About The Author Josiah Mackenzie is the publisher of HotelMarketingStrategies.com – a resource of guides and stories showing how to use technology to serve your guests and make more sales. Email Josiah: [email protected]

Would you do us a favor? We're committed to making these guides available to you at no cost. We only ask that if you've found it helpful, would you share it with your friends?

26

What's next?

Get a demo of ReviewPro today

A Hotel's Guide to Facebook

Business

Transcript of A Hotel's Guide to Facebook