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How to Turn Loyal Customers Into Salespeople

An HSMAI Partnership Presentation with ZuberanceMarch 10, 2011

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Overview of Format and TopicOverview of Format and Topic

Webinar ModeratorFran BrasseuxExecutive Vice President, HSMAI

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� Leading Brand Advocacy company

� Award-winning Zuberance Advocate Platform

� Mission: Drive advocacy, leads, sales; 10x ROA

About Zuberance

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TodayToday’’s Presenters: s Presenters:

Panel Moderator: Fran BrasseuxExecutive Vice President, HSMAI

Panelists:Rob Fuggetta

Founder/CEO, Zuberance

Robin Korman

Senior VP, Global Loyalty

And Strategic Partnerships

Wyndham Hotel Group

John Moser

Chief Marketing & Brand Officer

Denihan Hospitality Group

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Rob FuggettaFounder/CEO, Zuberance

Energizing Brand Advocates in the Hospitality Industry

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� Brand Advocates are different than loyal customers

� Brand Advocates are your most valuable customers; spend & recommend more

� Turn your Advocates into powerful social media marketing machines

Three Main Messages for Today

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Brand Advocate Solution

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Brand Advocates, Definition

Highly-satisfied customers

who pro-actively

recommend brands or

products without being paid to do so.

►►►►Beyond like, love, or loyalty: Advocacy

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Advocates are 9s & 10s

How likely are you to recommend our brand or products to your friends?

“Ultimate Question” for Customer Loyalty

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Advocates: Unique, Powerful Segment

� 50% guests are highly likely to recommend

� 94% prospects trust Advocates

� 90% say Advocates influence sales

� Social media amplifies Advocates

Busin

ess V

alu

e

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Loyal Customers Not Best Marketers

“Your loyal customers are probably not your best marketers.”

Harvard Business Review, “What’s the Value of Word of Mouth?”

12X ROI by turning enthusiastic customers into Advocates

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Advocates 5X More Valuable

Avg Customer Brand Advocates

Spend Value 2X

Spend Value

Sources: Deloitte; Owen, Brooks, Zuberance

$3,000Value of one Advocate

for hotel company

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Advocate Reviews Boost Hotel Sales

Sources: Chadwick, Martin, Bailey

26% 29%

92%

14%

44%

1%

60%

27%

6%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1 Star 3 Stars 5 Stars

Less Likely

No Impact

More Likely

Consumers 3X More Likely to Book Hotels with 5-Star Ratings than 3-Star Ratings

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Advocates vs. Loyal Customers

Identical Offer from Brand, Dramatically Different Results

Source: Zuberance

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The New Marketing Funnel

Awareness Consideration Conversion Loyalty Advocacy

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Identify Advocates…

Website banners

1. Engage customers 2. Identify Advocates

Facebook posts

Twitter monitoring

Emails

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…Mobilize Advocates…Advocate Ratings & Reviews Advocate Stories

Advocate Answers Advocate Offers

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…Track Results

� Track clicks, opens, leads, sales

� Track Advocate activities

� View and share results

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Real-World Advocacy Results

50% 30%Write reviews or testimonials

13%Answer prospects’ questions

30%Share or publish content and/or offers

“How likely are you to recommend our brand or product?”

Source: Zuberance-powered surveys

Within First 90 Days…

(Average across all Zuberance customers. Results vary.)

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Energizing Advocates Delivers 10X ROI

Return

Media & Sales Value

Investment

Zuberance “WOMonmics”

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Budget Motel Activates Advocates

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Summary: Energize Advocates Now

� Your competitors are energizing their Advocates� 72% marketers using or plan to use

advocacy in 2011 (source: Forrester)

� Missing major opportunity to cost-effectively generate qualified traffic, leads, sales

� 10X ROA

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Robin KormanSenior VP, Global Loyalty

And Strategic PartnershipsWyndham Hotel Group

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Loyalty Programs Are the Platform to Create Great Customers and Great Experiences

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Factors influencing hotel selection

1. Location

2. Price

3. Loyalty Program

60%92%

Source: Phoenix Marketing SCORES 2009 Frequent Guest Programs

0% 10% 20% 30% 40% 50%

17%

32%

6%

43%

Never

Rarely

Some of theTime

Most of theTime

All of theTime

1%

Loyalty Programs Influence Hotel Choice 92% of the Time

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� Spend More

� Stay More

� Stay Longer

� Less sensitive to price and competitive offers/rates

� Buy more ancillary products and services

� Upgrades, F&B, spa services, program credit card, time shares, etc.

� Generate word of mouth/become brand advocates

Hotel Loyalty Program Members More Valuable than Non-Members

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Loyalty Programs Should Create Engagement Along the Customer Lifecycle

Life Cycle

Acquire

Re-Activate

Win Back

Recognize

Grow Share/Retain

On-Board

Activate

Engage

Cust

om

er V

alu

e

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Need to Go Beyond Points to Create Emotional Engagement

� Engage between stays

• Lifecycle-based communications

– Recognize milestone; anniversary date, elite tier achievement

• Ancillary products to increase relevancy/keep top-of-mind between stays

– Credit cards, time shares, point-earning partner offers

� Create positive experiences

• Deliver promised hotel benefits consistently

• Personalized conversation at front desk

– “We haven’t seen you in a while”,

– “I see you are a Platinum member…”

• Surprise and Delight

• Aspirational redemption

• Insider Access

� Converse and spread the word in social and mobile channels

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AspirationalAspirationalRedemptionRedemption

Insider AccessInsider Access

Surprise and DelightSurprise and Delight

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Engage: “Talk” With Your Customer

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Share insider info

Engage with games

Solve customer

issues

Problem-solve real-time

Deliver marketing message

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• Earn points and perks from your favorite program for checking-in with Facebook Places, Foursquare or Gowalla.

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Loyalty Programs Are the Platform to Create Great Customers and Great Experiences

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John MoserChief Marketing & Brand Officer

Denihan Hospitality Group

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About Denihan Hospitality Group Captivating hotels in coveted urban locations.

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“Denihan is charting a fresh course to innovate and has a hotel concept to fit any market.”

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� Increase share during midweek by attracting road warriors who are accustomed to points

� Change their buying from OTA’s to lower cost booking channels

� Encourage more repeat stays

� Attract boutique hotel travelers from other key markets

Loyalty Program Needs

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Compete w/Big Brands, Great Experience

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� Need to generate revenue by driving increased occupancy and longer stays

Advocate Program Needs

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� Market Metrix reports that 75% of Denihan’s guests ar e defined as secure customers…� Both likely to return and willing to recommend

� Energize existing Affinia Advocates identified throu gh Market Metrix

Advocacy Opportunity

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� Create a Brand Advocacy program to mobilize Affinia ’sexisting Advocates

� Mobilize Advocates to Create Reviews and publish to key 3rd party sites (e.g., TripAdvisor)

� Mobilize Advocates to share unique offers with frie nds and colleagues

Advocacy Solution

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Invite Advocates to Write a Review

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Advocate Reviews

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Advocate Shared Offers with Friends

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� 652 reviews created so far� 70% took the action of clicking to publish to TripAdvisor� Very high 20% of those ended up completing the action

of publishing – 93 ended up publishing

� Advocate Influence Ratio for both reviews and offers performed very strong� Each share delivers an average of 3 inbound clicks

� Few days after 1 st Advocate outreach� Delivered 5 bookings converting at 7.5%

Advocacy Results

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� Identify more Advocates� Scale Advocate Mobilization

� Leverage multiple existing touch points

� brand website, email, newsletter� Mobilization includes use of Reviews and Offers

applications

What’s Next on Advocacy Front…

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Questions?Questions?Panel Moderator: Fran BrasseuxExecutive Vice President, HSMAI

Robin Korman

Senior VP, Global Loyalty

And Strategic Partnerships

Wyndham Hotel Group

John Moser

Chief Marketing & Brand Officer

Denihan Hospitality Group

Panelists:Rob Fuggetta

Founder/CEO, Zuberance

Upcoming Webinars:

March 15 – Ten Must Do’s for Online Reviews, With Holly Zoba, Signature Worldwide

Digital Marketing Series: Session 3: March 22 – How to Use Geolocation Sites to Build Your Presence - With Gordon Liametz, Revenue Performance, Inc.

The HSMAI University 10-part 2011 Revenue Management Series –Session 1 on March 29 – What is the Future of Business Intelligence? Special rates for registering for entire series

June 2 – Portrait of American Travelers, With Peter Yesawich, The Ypartnership

To register for these and more, please go to www.hsmaiuniversity.org.

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TodayToday ’’s webinar is copyright 2011 by the Hospitality Sale s & Marketings webinar is copyright 2011 by the Hospitality Sale s & Marketing Association International Association International with All Rights Reserved.with All Rights Reserved.