Rethinking Travel Touchpoints in a Digital Age Dylan Bolden Partner and Managing Director The Boston Consulting Group
Google Confidential
In the past 50 years, the fundamental reasons for travel have not changed ...
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And in this new digital age, brands are still the primary drivers of choice Choice drivers (%) 40
30
+72%
20
+96%
10
0 Operated by a well known brand
Source: BCG Travel & Tourism Digital Marketing Survey 2012
Personal recommendation
Sells branded products
Has third-party endorsements
Contains usergenerated content
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What has changed – with the advent of "Digital" – is the way brands interact with their customers Digital "Voice of the brand" (%) 100
80
60
40
20
0 1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
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Let's put this into more practical terms ... meet Sandy, a typical Leisure traveler SURELEI SANDY
JUN 21 1971
• • • • • • • •
Age: 41 years old Marital status: married Children: 2 HHI: $65,000 Social networks: Facebook Hotels last year: 6 nights ($700 total) Flights last year: 3 roundtrips (1 business, 2 leisure, total $1200) Attitude toward travel: enjoys traveling and wants to make sure she makes the best choices for her family
Note: All data presented is "average" customer data for "Sandy". Significant variance a segment level. Source: BCG Travel & Tourism Digital Marketing Survey 2012
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For Sandy, the drivers and influencers of choice have changed dramatically ... and lines have blurred Dream
Plan
Book
Experience
Share
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And while Sandy has to use many fewer devices (and documents) in the digital age ...
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... it still takes a lot of time to get the job done "Sandy"; Leisure) only; last trip
Hours spent per activity (number per person) 50
9.8
42.3
Share
Total
40
13.3
0.6
Plan
Book
30
20
18.6
10
0
Dream
Just think, 42 hours for a trip that is only four days long 8 Source: BCG Travel & Tourism Digital Marketing Survey 2012
... and the time she spends is fragmented among many "Sandy"; Hotel (leisure) only; last trip types of travel websites Dream
Plan
6 websites
7 websites
Book 1 website
Share 3 websites
Visits 17 of the major websites on average
OTAs
Aggregators
Provider websites
Online travel guides
Social media
Search
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Google Confidential
With all the noise, who does Sandy trust? She is likely to trust user generated content and select branded content
Personal recommendations
90
Consumer opinions online
70
Brand websites
70
54
Brand sponsorships
94
64
Newspaper
61
Billboards & radio
55
Radio
55
Online video ads
37
Online banner ads
x
User generated content Branded content Least trusted brand
x
Most trusted brand
33
Textads on mobile phones
24 0
20
40
60
80
100
Consumers who trust the channel (%)
1. Indexed to provider website set average Source: National Association of Broadcasters, Nielsen, April 2009: "Global advertising: Consumers Trust Real Friends and Virtual Strangers the Most.", Driving word of mouth advocacy among business executives", Keller Fay Group, BCG Travel & Tourism Digital Marketing Survey 2012.
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Building trust with Sandy on your site dramatically increases the chance of meeting her emotional needs "Sandy"; Leisure) only; last trip Customers whose needs were satisfied (%) 100
80
60
40
20
0 I am unsure about this website
I trust this website somewhat
I trust this website fully and completely
Note: Respondent was asked, "Overall, how satisfied were you with your online booking agent?" and "To what extent do you trust your online booking agent?" Source: BCG Travel & Tourism Digital Marketing Survey 2012
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...and, not surprisingly, the more satisfied Sandy is, the more likely she is to rebook
"Sandy"; Leisure) only; last trip
Rebooking rate (%)
+36% 57
60 42 40
20
0 Dissatisfied
Satisfied
The question is, how do we satisfy our customers? 12 Source: BCG Travel & Tourism Digital Marketing Survey 2012
Google Confidential
Customer satisfaction ultimately comes down to meeting our customers needs by delivering a suite of benefits Emotional benefits: way the brand makes customers feel Functional benefits: purpose the brand serves
Technical benefits: touchpoints of the brand (product or service characteristics) 13 Google Confidential
And technical benefits – the base of the ladder – present a difficult set of tradeoffs Business
Leisure
Business
Leisure
Cruise Leisure
1
Information on local attractions
Quick, easy booking
Video content
Quick, easy booking
Ability to compare across brands
2
Pictures of Description of hotel destination/property by brand
Quick, easy booking
Number of schedules/routes
Ability to post questions/reviews
Pictures of aircraft
"One stop shop" for research & booking
Ability to book a specific cabin
Air
Technicals: drivers of choice
Hotel
3
Ability to compare within a brand
Suggested itineraries
4
Flexibility to change Transparent pricing plans at low/no cost
5
Additional products available for purchase on site
Customer reviews
Sandy's preferred attributes Note: customers who book through brand websites Source: BCG Travel & Tourism Digital Marketing Survey 2012
Ability to compare Content from trusted across carriers third-party Information on local attractions
Content
Ability to book a specific seat
Quick, easy booking Suggested itineraries
Speed and ease of booking 14 Google Confidential
Those touch point tradeoffs must be made in a way that ties in with the overarching emotional benefits Emotional benefit
Functional benefit
Technical benefit
Technical benefit
Functional benefit
Technical benefit
Technical benefit
Functional benefit
Technical benefit
Technical benefit
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However, the essence of the brand is ultimately defined at a level above Digital Marketing CEO
CMO
"Digital"
Traditional Marketing
COO
IT
Operations
CFO/CAO
Finance
Investor Relations
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And the overarching organization serves as the delivery mechanism of that brand Brand CEO
Brand CMO voice
"Digital"
Traditional Marketing
Brand COO delivery
IT
Operations
Resource CFO/CAO allocation
Finance
Investor Relations
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In summary, Digital is becoming the voice of the brand (and needs the commensurate resources) Digital Marketing is becoming more than just an ecommerce channel – It must: • Have goals that extend beyond purely driving transactions • Link to rest of org given the whole brand is at stake • Begin to consider brand-driving Digital Advertising (a la television advertising) • Improve attribution modeling Digital Marketing will require more resources from Traditional Marketing to get the job done (beg, borrow, and steal from traditional mktg) • Will need more dollars to accomplish goals • And more people to optimally spend those dollars 18 Google Confidential
Ultimately, need to align the entire company around holistic roadmap
1
Digital / brand consumer needs • Target need states • Touch-points, functionality
Digital roadmap Operating model • Decision rights, budget, execution
2
3
Organization • Structure, capabilities, ftes • In-house vs. outsource? 19 Google Confidential
Getting started: 10 questions for your organization address to better capture the upside
We have brought some handouts today to help you think about how to get started We would also enjoy the chance to hear your thoughts and feedback – feel free to come find someone from our team
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What are you going to do with your Sandy's 42 hours? The opportunity is ENORMOUS!
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