Welcome to the Future

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Welcome to the Future
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Todays Customer

• Todays customers are nothing like those of years
  ago
• They have far more access and an amazing amount
  of options available to them.
• From double clicks to instant messaging to
  podcasts, consumers are the ones writing
  tomorrows headlines and rewriting your business
  processes.
• This reality makes for very interesting times as
  companies battle to keep pace with the changing
  needs of their consumers in an effort to remain
  competitive.

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The question is are we really going after
customer loyalty or are we still occupied with
creatingcustomer satisfaction?
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Welcome to our Vision
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About Ethnic Vision

• Started in 2001
• Our Philosophy
• Products offer variety. Culture creates
  influence.
• Its GREAT IDEAS that win minds and not just good
  ads.
• Our Goal
• To focus on developing great ideas best suited
  for the Caribbean and its culturally diverse
  markets.

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Our Services

• Some of our services
• - Marketing campaign Brand development
• - Market analysis
• - Strategic Communications
• - Developing communications architectures
• - Plan integration and execution
• - Advertising promotion and campaign development

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Customer Relationships

• Todays customer relationships are becoming
  virtual
• Savvy technology is often the first line of
  contact for first time customers
• Customers are able to be profiled through their
  activities online
• The outcome The next time that customer
  interacts with the company A feeling of They
  understand my needs is able to be created in
  their mind helping to build loyalty.
• A business can effectively create an ambassador
  out of a prospect in a much shorter period than
  the traditional engagement cycle.

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Satisfaction vs Loyalty

• Lets ask these questions
• What really is customer satisfaction?
• Who is a satisfied customer?
• Satisfaction is the point at which the basic
  needs or expectations of a customer are
  fulfilled.
• Do satisfied customers demonstrate the desired
  behaviour?
• Do they recommend your product or service?
• Will they resist competing offers?
• Are they increasing usage of the product or
  service?

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Results of Satisfaction

• Satisfaction Research
• A leading communications company found via
  satisfaction research that those customers
  proclaiming to be "extremely or very satisfied"
  were their least profitable customers in terms of
  revenue and product usage indicators.
• The difference
• As organizations we have learnt how to deliver
  satisfaction but still continue to grapple with
  the issue of loyaltyThat point at which we are
  able to get into the hearts and minds of our
  customers and establish lasting and profitable
  relationships.

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Moving beyond Satisfaction

• Building the customer experience through feedback
  and measuring customer opinions is essential and
  will not only lead to satisfied customers but
  move the company towards developing a better
  understanding of their customers needs and
  desires.

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Why Loyalty

• A Study conducted in March of 2005 by Accenture
  (A loyalty specialist) reveals a dramatic
  difference in the performance of companies who
  have been able to master the enhancement of
  customer loyalty when compared to their lower
  performing counterparts.
• The study showed
• 38 difference in profit margins
• 40 difference in revenue growth
• and 38 difference in shareholder value between
  high and low-performing companies.
• All directly linked to the ability to
  successfully cultivate customer loyalty.

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The numbers on Loyalty

• It cost far less to retain existing customers
  than to go after new prospects.
• Well designed loyalty programmes help businesses
  to identify the more profitable customers and the
  profit drainers.
• Research has clearly shown that the top 20 of a
  business customers accounts for 80 of the
  profits while the bottom 30 eats up 50 of the
  profits that others produce.
• It is important to identify who is which so you
  can concentrate your marketing spend
  appropriately.

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Understanding Loyalty

• Factors towards loyalty cultivation varies from
  person to person. And it is for that reason
  that
• INFORMATION IS KING!
• Information then leads to personalization
• Which then leads to recognition
• Recognize a customer and he or she will feel
  valued
• The result is an enhancement of the customer
  experience

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Factors contributing to Loyalty

• Main factors to consider
• The Customer interaction
• Develop your brand experience and deliver it
  every time
• The Promise
• A clear definition of the brands promise
• Segment! segment! segment! For real value.
• Demand
• Create and shape the demand for your brand
• Constantly innovate and develop offerings which
  are relevant to more customers
• HARNESS THE ABILITY OF YOUR TALENT AND THE POWER
  OF TECHNOLOGY

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The Role of Advertising and Loyalty

• Traditional advertising approaches simply arent
  working!
• Broad-based propositions that try to appeal to
  all customer segments fall way short of achieving
  its objective.
• Companies still continue to use the linear
  approach to marketing and advertising.
• We continue to develop messages and send them out
  to customers and prospects and they are suppose
  to consume it!
• The messages are controlled by us. It is all
  managed by us. We are in control.
• So marketers talk and customers are suppose to
  listen

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The Evolution of the Digital Experience

• Loyalty cultivation has always been about
  communicating with audiences of one.
• The digital evolution is providing businesses
  with facilities to again reach consumers on an
  individual level and provide offers that are far
  more personalized and relevant.
• This reality has created far more demanding
  customers. Much more aware customers.

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The Ability to Connect

• The ease at which customers can connect now means
  that a bad experience is no longer an individual
  experience but potentially an experience shared
  by thousands.

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The Effects of New Technologies and their impact
on Consumers

• The advancements in technology have created
  customers who are demanding a greater degree of
  personalized service than ever before.
• They are actively using the web to seek out those
  opportunities for improved service.
• And one format, which has given rise to their
  desires is
• The Blog (Weblog)

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The persuasivenessof the Blog

• Many hospitality marketers differ on the subject
  of blogs and their effectiveness as a marketing
  tool for direct tourism providers.
• Blogs though provide one of the most authentic
  source of customer feedback for future customers
  to base their purchase decisions on.
• It is consumer generated and not business created

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The facts on Blogs

• According to industry monitors, there are a total
  of 35 million blogs
• with the rate of 70,000 newcomers every hour.
• Blog postings exceed 695,000 every 24 hours.
• The Japanese government estimates 3.35 million
  blogs in Japan.
• Nearly 7,000 blogs originate from New York City
  alone.
• Blogs cover practically every topic including
  travel.
• TripAdvisor.com alone has more than 4 million
  unbiased reviews and opinions covering over
  200,000 hotels and attractions with nearly 20
  million unique visitors a month.

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The change Blogs are creating

• Todays blogging culture has given rise to many
  trends and the travel and tourism industry has
  not been left out
• C2C
• (Customer-to-Customer holiday planning)

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C2C The New trend

• Driven by blogs and creeping up in popular
  holiday booking forums
• It's the newest slant in personalized,
  tailor-made, holiday planning
• Consumers using the web as a medium post their
  weird or wonderful dream vacations on a blog and
  if a fellow blogger comes up with a solution or
  itinerary to satisfy their wish list then a
  'fixing' fee changes hands.

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The trend towards customization

• Caribbean Tourism providers must consider
• For instance
• Are you able to offer dynamic packaging?
• Can an online shopper to your hotels website buy
  room nights, book a tour, make a reservation at a
  restaurant and rent a car on your website?
• It is estimated by Euromoniter International that
  dynamic packaging will be worth globally US19
  billion by year-end.

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Embracing customization

• Businesses are already making adjustments to meet
  the changing on-line purchasing scene.
• Offering dynamic pricing and packaging
• Harnessing the power of social networks online
• Starwood Hotels Resorts Worldwide, Inc. and its
  Starwood Preferred Guest program introduced an
  online blog-- TheLobby.com
• Robin Korman, Vice President of loyalty marketing
  for Starwood says, By creating an experience
  outside of the corporate box, we believe
  TheLobby.com will establish more personal
  relationships with members in a new and
  non-traditional way."

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Technology Trends Cont.

• RSS (Really Simple Syndication)
• Businesses are using RSS technology to build a
  following of clientele and stay connected with
  existing customers.
• As a consumer, an RSS feed delivers right to your
  desktop exactly the information that you have
  anonymously "subscribed" to
• Preserving your privacy (no need for email
  addresses)
• Eliminating the need to go out and check multiple
  websites for new information
• RSS has been adopted by online travel agencies,
  airlines, even hotels, have launched RSS feeds
  in the past year, primarily focused on travel
  deals and advertised specials.

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Podcasting

• What is it anyway?
• When Apple launched the video iPod in November,
  2005, one million video clips were downloaded in
  the first twenty days. This medium would be a
  natural for the travel industry.
• The podcast audience is expected to reach
  critical mass in 2010 with 62.8 million users and
  could be as many as 75 million.

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The Mobile Craze

• The mobile phone is the most personal piece of
  technology a consumer owns
• It provides businesses with amazing capabilities
  for fostering loyalty through personalization
• In its first 90 days on the market, Apple sold
  1.4 million iPhones, or about 15,000 per day.

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Choosing the right tools

• Today Improved technologies enable businesses to
  equip front line employees with real-time,
  actionable information that is
• Empowering frontline staff and
• Creating wow customer experiences.

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Case StudyContinental Airlines

• By consolidating all its online and offline
  customer databases the airline is able to provide
  nearly every employee with access to particular
  customer information which would most help a
  specific front line staffer achieve the "you know
  me" outcome for a customer.
• The Continental President's Club manager can now
  be notified when a high value customer who has
  experienced a lapse in Continental service (major
  flight delay, etc.) in the last 30 days has
  swiped into his Club.
• This allows the club manager to personally
  approach the customer and offer a face-to-face
  apology.? 

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Incentive MarketingThe Loyalty Programme

• More than a freebie
• A well designed Loyalty programme focuses on the
  collection of information to do two things
• Create more RELEVANT rewards for customers
• Build interactive relationships with consumers.
• Relationships that demonstrate an understanding
  and care for the person visiting and doing
  business with your company

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The power of the Incentive

• Recent research has shown that supplier direct
  sites out perform Online travel agencies and
  intermediaries through the offer of one major
  element
• Incentivesthe ability to earn rewards
• Sites who offered rewards and had as part of
  their operation a loyalty programme out performed
  OTAs by 55-22
• Source (E-VOC Insights Relevant View)

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The Pricing Game

• Focusing on price along has its drawbacks
• A 2005 report from Research and Marketers
  indicate, If driven by price alone, customer
  loyalty programmes often attract customers who
  are loyal as long as the price is the lowest.
• You have got to be able to offer benefits which
  embrace the emotional connection between your
  customer and your company
• Make it relevant! NOT SATISFACTORY!

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Remember

• Successful loyalty cultivation is about
  communicating with
• Audiences of ONE not 100!
• Presented by Selwyn Cambridge
• Managing Director Ethnic Vision
• Email scambridge_at_ethnicvision.com
• Tel [phone] Mobile [phone]