In the press - Opinions and press coverage
Is eCRM the shape of things to come for travel marketers?
11th October, 2007
I decided to escape family politics last Christmas, and take a holiday. Via the internet, I booked four days in Rome and four days in Florence, and it struck me how confident I was relying on the Web.
In a matter of hours I'd got the best deal on flights, found two friendly four-star hotels, knew the best Chianti chateau to visit on the road from Rome to Florence, what restaurants were open for Christmas dinner, the best time of day to photograph the Colosseum, and the timetable for Christmas Church services at the Duomo. Google Maps let me double-check the walk from the hotel to the main sightseeing spots.
It also surprised me how content I was with very little official documentation for the #1,000 I'd just blown. All I had to show were a few print outs of credit card receipts, booking reference numbers and an email confirmation.
Today, consumers have an idea, investigate it, make a selection, get a good price and make a commitment in no more than an hour or two. So, for travel providers, being front of mind at all times is absolutely essential.
The most successful, and cost-efficient way of achieving this necessary continuity of relationships is online. But in my opinion, eCRM has not yet reached its peak potential for any travel provider. Most companies have the data to support a complex programme and the technology is a given. But eCRM must be a key strategic objective; else your valuable prospect or customer will quite happily abandon you. With some travel providers reaching an ROI of 26:1 through their eCRM programmes, it's worth at least building a test to prove your case.
Of course I'm not saying that all communications should now be online. There's still something very authoritative about receiving a letter in certain circumstances - having something tangible to prove your transaction, to make an offer feel official, or to send a gift. And, as proven by many successful campaigns, DM and email are harmonising tools that together can have a much greater effect than if used independently.
The second most noteworthy change is the rise in popularity of independent sites like Trip Advisor and Holidays Watchdog, as well as general social networks and blogs. Thomson.co.uk attempted to capitalise on user generated reviews. However, their moderation process means consumers don't hear the full story and so credibility was diminished. Travel providers are probably better off leaving this side of internet communication to independent sites that consumers can trust as genuine.
So it would seem that the responsibility to provide the research information no longer lies with travel providers, but this doesn't mean we should just sit back and wait for customers to make their decision. There's an opportunity for travel providers to get involved too. For example, sponsoring a few lucky customers to review your destinations and providing accommodation at your expense would authenticate reviews and be a statement of confidence. And if you've secured the relationships with your customers then they'll likely come to you when they're ready to book.
But this securing of relationships takes experience, skill, creativity and patience. Companies really can come unstuck if they get it wrong, and it's taken several years of slow and careful trial and testing for us to really get it consistently right. It's not enough simply to send a monthly newsletter - careful segmentation, analysis of resulting behaviour, and tracking all the way through the communication chain to sale, post-sale and re-purchase is essential to be able to plan effectively.
Many of our clients are ready for it, but have not started. The travel industry has a few shining examples which should highlight the way for others. Important trends are continually emerging in the digital space that are significantly affecting the way consumers approach travel, and the way we sell it. And with up to 40% of searches on the internet being travel related, it's worth having a think about how to capitalise on this opportunity.
Ellie Beasley, What's New in Marketing, 11.10.07