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How to Turn Loyal Customers Into Salespeople
An HSMAI Partnership Presentation
with Zuberance
March 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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POLL QUESTION #1POLL QUESTION #1How many people are participating in
this webinar at your location today?
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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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Today’s Today’s Presenters: Presenters:
Panel Moderator: Fran BrasseuxExecutive Vice President, HSMAI
Panelists:Rob FuggettaFounder/CEO, Zuberance
Robin KormanSenior VP, Global LoyaltyAnd Strategic PartnershipsWyndham Hotel Group
John MoserChief Marketing & Brand OfficerDenihan Hospitality Group
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Rob Fuggetta
Founder/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
Bu
sin
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
2XSpend 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
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
AwarenessConsideration
Conversion
Loyalty Advocacy
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Identify Advocates…
Website banners
1. Engage customers2. 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 Korman
Senior VP, Global Loyalty
And Strategic Partnerships
Wyndham 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. Location2. Price 3. Loyalty Program
60% 92%
Source: Phoenix Marketing SCORES 2009 Frequent Guest Programs
0% 10% 20% 30% 40% 50%
Never
Rarely
Some of theTime
Most of theTime
All of theTime
17%
0% 10% 20% 30% 40% 50%
Never
Rarely
Some of theTime
Most of theTime
All of theTime
32%
0% 10% 20% 30% 40% 50%
Never
Rarely
Some of theTime
Most of theTime
All of theTime
6%
0% 10% 20% 30% 40% 50%
Never
Rarely
Some of theTime
Most of theTime
All of theTime
43%
0% 10% 20% 30% 40% 50%
Never
Rarely
Some of theTime
Most of theTime
All of theTime
0% 10% 20% 30% 40% 50%
Never
Rarely
Some of theTime
Most of theTime
All of theTime
1%
0% 10% 20% 30% 40% 50%
Never
Rarely
Some of theTime
Most of theTime
All of theTime
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
Cu
sto
mer
Valu
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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AspirationAspirational al
RedemptioRedemptionn
Insider Insider AccessAccess
Surprise and Surprise and DelightDelight
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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 Moser
Chief 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 are defined as secure customers… Both likely to return and willing to recommend
Energize existing Affinia Advocates identified through Market Metrix
Advocacy Opportunity
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Create a Brand Advocacy program to mobilize Affinia’s existing Advocates
Mobilize Advocates to Create Reviews and publish to key 3rd party sites (e.g., TripAdvisor)
Mobilize Advocates to share unique offers with friends 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 1st 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 KormanSenior VP, Global LoyaltyAnd Strategic PartnershipsWyndham Hotel Group
John MoserChief Marketing & Brand OfficerDenihan Hospitality Group
Panelists:Rob FuggettaFounder/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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