Monday, September 22, 2008

Airline & Hotel Loyalty Programs testing Social Networking Waters

By Ron Callari

Stanley Milgram originally coined the term ‘six degrees of separation’ in 1967 to underscore the fact that everyone in the modern world was capable of connecting to another like soul based on common interests. But in today’s world of social networking, links between strangers are much closer than in Milgram’s day, and Kevin Bacon’s circle of influence may have shrunk dramatically.

A new study from the European Mobile carrier O2 asserts that the old ‘six degrees of separation’ may have been reduced as much as fifty percent. By his calculations, due to the new world of Web 2.0 and the social networking capabilities of the internet, today we may be talking about only three degrees!

According to this study, the average person is now connected by just three degrees within a shared “interest” or social group. In fact, it determined that people are usually part of three basic sociological networks: family, friendship, and work.

It should be noted that this research is not the final word on this topic, since O2 did pay for the analysis. And anyone who has a LinkedIn account knows that their sought-after contacts could be more than three degrees away, and they may need several levels of introduction to ultimately reach their designated target. But the study does underscore something we all are coming to understand: Everyone is connected in some way (even if only tangentially).

On the other hand, another study dated September 1, 2008 from Synovate claims that only 42% of consumers know what social networking truly entails.

Global head of media research for Synovate, Steve Garton said the survey was conducted to explore some of the myths and facts that have built up around the online social networking phenomena.

Synovate's Senior Vice President of the US-based Consumer Insights group, Bob Michaels, says, "While a majority of Americans have access to computers there are still others, particularly seniors and immigrants, who do not. Online social networking just is not part of their world."

Garton explained: "When you're in the world of marketing — reading about it, planning campaigns, researching people — it's sometimes easy to overlook the basics. So we started our study by simply asking 'do you know what online social networking is?”

"And that's where our first myth was debunked. It turns out social networking is not taking over the world. Well, not yet anyway," stated Garton.

In 2002, Ben McConnell and Jackie Huba published "Creating Customer Evangelists". As a marketing consulting firm they focused on training business leaders how to create global communities of customers. Their treatise shows how to convert already loyal customers into influential and enthusiastic evangelists, with the premise being: What better sales force for a company than its own customers?

The authors document inspirational stories behind large and small companies that have been successful in producing unofficial salespeople. Companies noted include Southwest Airlines, Krispy Kreme, Dallas Mavericks and IBM. If “pull” marketing is today’s norm, where customers are more in control of the products and services they purchase, then a Social Network is an ideal forum for a company to receive ongoing feedback about their buying habits.

In the airline and hotel industries, this concept is beginning to gain traction. While Hyatt was rolling out Yatt’it for its Gold Passport Members, Starwood had already debuted with theLobby.com, designed to update and involve Starwood Preferred Guests.

It's their "foray in the 'social networking' world," stated a Starwood spokeswoman. "The most important thing for travelers is word of mouth ... other people's experiences," not just the accumulation of frequent guest stay points.

According to a recent report from comScore Media Metrix saying that while the growth rate of many top Internet sites is cooling, it's soaring for sites focused on social networking, blogging and forums pertaining to hotel visits, destination experiences and personal accounts.

Hyatt’s Yatt'it, in an attempt to distinguish themselves has introduced several unique services for the frequent traveler. One actually benefits the entire travel experience. Since a hotel stay for a business man or a vacationer is often inextricably tied to air travel, Yatt’it offers a FlightStats tool that shows arrival/departure times for all airlines, and listings for the most reliable flights for a specific route based on historical data.

Marriott’s entrĂ©e into the social networking world is still in ‘beta’ testing. Marriott’s Rewards Insiders is a lightly moderated online community, and is built specifically for members to share their travel stories, ask questions from other members and give advice and recommendations. Powered by leading social media marketing agency LiveWorld, the site is open to the program's 3.5 million Elite members and will open to all members later in the year.


"Our members told us they wanted a place where they could talk to each other without interference from sponsors trying to sell them something," said Ed French, senior vice president, Marriott Rewards. "We designed an innovative digital lobby to give them a place to share their stories and get authentic, honest information from other frequent travelers just like them."


How does it work? Members can either use the site to just read information or set up their profile and post questions, comments or responses. They can also sign-up for alerts, which are sent when a post is created in a forum the member wants to follow. They can be emailed or posted in the member's profile. Marriott Rewards Insiders offers "expressive profiles" that allow members to personalize their online identification by uploading pictures or avatars, providing travel preferences and personal interests and identifying their home town.

Up till now, there have been unfortunately only negative situations when traveling by air that warranted travelers banding together in a community. Regrettably, it occurs when they are distressed by flight delays, lost luggage and/or airline personnel indifference. Apart from the "community" of frequent flyers, the airline industry has typically not risen to the occasion of de-commoditizing their service nor fostering social interaction between passengers.

In turn, aggregators have spawned to fill this void. One such community is FlyerTalk. This and other sites like it are dedicated to travelers sharing tips with one another on how to manipulate the system, travel smarter for cheaper, achieve preferred status in frequent flyer programs faster, or simply talk about the airline industry from a traveler's point of view. So it attracts a broad audience from vacation travelers to mileage junkies!

American Airlines, the world’s largest airline, recently launched AAdvantage Milestones™, one of the industry’s first rich-media, Web-based e-magazines combining broadcast and social media. The new video e-magazine gives the world’s largest frequent-flyer program an online community for its members.


AAdvantage Milestones will connect and engage the more than 56 million AAdvantage® members through a new community forum and a series of video features that offer viewers quick tours of American Airlines and oneworld® destinations. In addition, AAdvantage Milestones uses a combination of static and rich-media content to deliver interesting and user-friendly information related to travel and the AAdvantage program.


“Finding innovative and creative ways to increase consumer participation in the AAdvantage program is one of the company’s top priorities,” said Kurt Stache, President of AAdvantage Marketing Programs. “Our customers tell us they want more information on vacation destinations. We think our new e-magazine will break through the clutter and deliver that content in a contemporary, engaging and entertaining way.”


The e-magazine’s community forum encourages members to share personal photos of the featured destinations. Additional aspects of the community forum will be introduced with the release of subsequent editions of the new e-magazine. Over time, American hopes the vault of valuable information gathered, along with the entertainment features, will become a guide to future travelers and AAdvantage members.

KLM has taken a different approached, launched through several social networks - including ones targeted at entrepreneurs and business travelers in China and Africa, as well as a robust social network all about golfing where travelers can enter their destinations and scores, use miles to purchase golf related merchandise, and even book golf get-togethers with other travelers that happen to be in the same location.

The way that KLM has done these (and presumably will do others as well) offers some interesting lessons to other struggling airlines on how to better connect with customers by using social networks:

  1. Offer what business customers are interested in. If you are going to see mom and dad for a week, you probably won't be interested in social networking with other golfers or business folks. The beauty of focusing on business interests here is that it is not only more useful, but obviously more profitable for KLM as business travel is where the higher margin tickets are sold. For that reason, every airline is trying to stand out for business travelers. But when everyone offers 180 degree flat beds and the same video capabilities - you need to go further. You need to offer something that no one else has, but that business travelers would be interested in.
  2. Capitalize on existing trends (and the underlying meaning). The "trend" of social networks points to the underlying need for people to connect with other like minded individuals. Every successful social network has some element that allows it's users to do that. Being part of the club is a part of your identity - and the incentive is not a reward (as with frequent flyer points). The incentive is building your own personal network, finding a new golf buddy and perhaps even doing a new deal or two.
  3. Understand what brings travelers together. Passion for a subject, whether it's work or golf is the primary reason, but there is another interesting insight KLM is using to its advantage here. For many business travelers (particularly those traveling internationally), there is a familiar moment of recognition and bonding when you find someone else in a strange place who is from where you are from. It explains the rise of strong expat communities in cities around the world, and the immediate bond with a "seatmate" who comes from the same city, and leaves on the same flight as you to the same destination. Focusing a social network on helping people to forge that bond is what distinguishes social networking from other personalized offerings.


The traditional way to interact is face-to-face public forums. Social Networking is the next best thing to being there. Interactive technology makes it possible for people to network with their peers from anywhere on the planet 24/7, in an online environment. And now that everyone’s sphere of influence has been reduced to only three degrees of separation, all the more reason to bond with your fellow man!

♦♦♦

iOptimize Marketing is an Internet marketing firm that specializes in search engine optimization, search engine marketing and social networking. Because of the heightened interest in social networks, the firm has focused on a multitude of vertical markets that can benefit from the development of customized communities. A hotel brand of boutique hotels, a major domestic or international airline, an insurance firm, a university or a trade association are all viable candidates. Whether a membership body entails frequent flyers, brokers, agents, alumni or organizational members, a Social Network is the type of platform that can bring these firms affinity audiences together.

Ron Callari is the Chief Marketing Officer for iOptimize Marketing, Inc. and a veteran of the hotel industry for the last 25 years. As is a freelance journalist and editorial cartoonist his published work has appeared in Alternet, Counterpunch, Sacramento News & Review, Albion Monitor and the World and I. He is author of “Uncle Dubya’s Jihad Jamboree”, published in 2005, and the creator of kidd millennium’s editorial cartoons, www.kiddmillennium.com.

Thursday, August 21, 2008

World Airlines Face "The Perfect Storm" SEO to the rescue

Mr. Giovanni Bisignani of IATA announced "We are in a perfect storm" of falling revenue and rising fuel costs. However, he also says the crisis may spur a much-needed industry overhaul.

My message to the airlines: Please embrace Search Engine Optimization for your airline. Airline SEO matters.

Take a keyword analysis we just completed for a large Asian airline. If I was not looking for them, but merely shopping online for flights to Asia, finding them would be nearly impossible. Who do we find? In nearly every case, we find third party integrators like Expedia, Travelocity and Orbitz? Why? Those companies place a high priority on Airline SEO while the airlines do not.

When will these airlines get religion? When will they finally embrace the Internet? When will they grasp pull marketing?

Thursday, August 14, 2008

Why SEO of a critical importance for hotels

The world was once much simpler. Your hotel competed with hotels in the area who made up your "comp set." Expedia and Hotels.com kept your occupancy rate up. Salespeople were pushed to close group business. Occupancy rates were high and RevPAR looked good. Then suddenly, the world changed. The worldwide web made all the previous ideas obsolete.

Today, hotels need SEO. Hotels must do SEO. Hotels can hardly survive without SEO. That is why hotel SEO is job one.

Today the customer is in control. The internet has empowered them like never before. Suddenly, your "comp set" becomes every hotel that could be booked online. The TPI's are bleeding off precious revenue. What is a hotelier to do?

Invest in SEO for your hotel, Mr. Hotelier. Dominate the online world so when people shop online, they find your hotel and you get the booking.

For Hotel SEO, please visit iOptimize Marketing or one of the other fine search marketing firms who specialize in hotels.

Thursday, July 31, 2008

New social network for hotels

Breaking News: A Social Network created just for you…

It's a first in the industry! A free social network for hoteliers to interact with SEO Executives.

You’re invited to join: Hotel SEO Executive Invitation.

A forum for you to collaborate, exchange ideas and best practices in search engine optimization for the hotel industry.

In addition, please forward this email to others who you think might be qualified to join, and please have them contact Ron Callari directly, as this group is by invitation only.

Jeff Ogden for Ron Callari, Group Administrator

Website
Email: roncallari@ioptimizemarketing.com
Phone: 201.984.2588
Mobile: 201.681.3728
FAX: 201.221.8312

Friday, June 6, 2008

Keeping Market Share in a Down Economy: 10 Strategies for Hotels

Hotel Online
News for the Hospitality Executive


By David Ralls, Vice President, AIR Marketing - May 30, 2008

The top strategy: don't cut marketing budgets now.

As soon as the word recession spreads, hotels begin to look at advertising, marketing and public relations campaigns and budgets as the first areas to trim. This is the best time to gain market share as your competition cuts away.

The hospitality industry is being hit this summer due to higher gas prices, higher airfares and higher room rates. Most surprisingly, luxury hotels seem to be recession-proof even though most have boosted rates by 6%, according to Smith Travel Research, and maintained occupancy levels at 71%. Upper scale hotels also boosted rates by 4%, but guests seem more resistant to more rate hikes.

Brand equity may tolerate rate hikes, but add-ons are what attract customers during difficult times. Pundits suggest that hotels are more likely to increase direct marketing efforts during a recession while abandoning the brand, or image advertising, others suggest combining both.

In the “what do we do now? Case-scenario, hotels with courage will win market share by focusing on the customer and keeping advertising budgets strong, in fact they may spend more. Eliminate marketing that is not working and be aggressive with value added offers that differentiate your offering from the competition. These efforts will capture the customers that are traveling who have a strong chance of staying with you again in the future when the market improves.

Keep track of what consumers do while staying at your hotel. Send offers to those who have frequented amenities such as the spa, golf course, or wine bar. Most hotels don't do enough to capture data on their customers. Utilizing technology to capture more data on customers informs data analysis that can guide hotel managers on who their guests are which allows for one to one communications that increase loyalty and return on marketing investment.

At its best, all advertising should be direct advertising. Every ad placement should have a compelling offer and a strong call to action, and every ad vehicle should be trackable all the way through to converted business.

According to the recent MarketingSherpa Special Report, only 4% of hotels surveyed are increasing budgets for print advertising as more companies are shifting money to direct mail, email, Web 2.0 and other direct response mediums. An interesting trend is that spending for on-line display ads is shrinking by 26% as business realize that many click throughs aren’t translating into as many conversions as compared with Pay Per Click campaigns.

Shifting, combining or increasing direct marketing spending makes the most sense during a recession because offer based direct marketing with a strong call to action will increase brand awareness while getting the phone to ring. Communicate offers via direct mail and e-mail to hotel guests 30 days before their stay and then reengage them with a thank you offer 30 days after their stay. Let them know you appreciate them and make it easy for them to return to experience the amenity or activity they enjoyed most during their last stay including golf, spa, or dining.

It's no surprise that during a recession, attracting consumers is harder than attracting meeting planners who are still looking for good deals on conferences, meetings and exhibits with resort amenities. Reevaluate your feeder markets and industries. Companies that meet nationally or internationally during boom times may shift their focus to regional or local hotels during a recession. This localized focus proved successful during the 9-11 and post-dot-com downturns for both business and consumer strategies.

What's next?

How to build market share – Top 10 Strategies:

  1. Reallocate marketing budgets from branding into direct, target marketing for a higher return on investment.
  2. Know your customer. Build a marketing database designed to gain insights into customer value, vulnerability and potential.
  3. Get smart about your customer data. Hotels should profile their best customers on highest value and target customers that “look like” those best customers. Hotels attracting conventions or meetings need to prioritize prospects into A-B-C lists and provide value-added incentives for “A” list prospects, focusing the majority of the budget on those individuals.
  4. Leverage new customer insights on customer value, vulnerability and potential into campaigns that maximize ROI.
  5. Test creative and offers to measure and redeploy what works best.
  6. Track and report on campaign response and conversion effectiveness.
  7. Grow relationships with current customers. Use social media and electronic communications to increase loyalty and reasons to communicate with them.
  8. Update Web site analytics – Focus on “visitor engagement:” Examples include signing up for e-newsletter, view value added content and videos from your golf pro, spa director, or chef, that require sign up to view. Data capture should occur on the site as much as possible and should include: name, address, e-mail and phone number – be visible to where and when customers want you. Analytics can track Web site traffic and site utilization which can assist in website improvements that drive customers to sections of most interest to them. Communicating incentives to book a stay once they arrive in their area of interest will drive business when you need it most. In addition, get great data can be gleaned on where customers are coming from and who is ultimately converting. This intelligence can drive future partnerships and online linking strategies that increase site traffic and conversion.
  9. Launch programs that allow existing customers to consolidate doing business with you that give existing and new customers the chance and benefit for one-stop shopping.
  10. Focus on market trends such as marketing to Baby Boomers. Make Websites attractive to Baby Boomers without being condescending. This is one of the most influential groups today as they have the most buying power. The day of ignoring the 40+ market is gone. In fact, women over 40 spend more than one trillion dollars a year.

David Ralls, vice president of AIR Marketing, holds an executive MBA from the WP Carey School of Business at Arizona State University. He manages a team of hospitality industry experts to provide and assure client support. He is also a Fiesta Bowl Committee Member. AIR Marketing, which stands for Analytics, Imagination and Results, is an integrated marketing agency that achieves clients' goals with a unique data-driven approach and decades of collective hospitality industry insight, knowledge and experience.


Tuesday, June 3, 2008

The website launches and marketing's ready to rock

I'm pleased to report that iOptimize Marketing's new website launched yesterday and it exceeds our expectations. We're focusing on hotels with a white paper entitled "The Hospitality Marketing Convergence." We could not be more excited.

Tuesday, May 27, 2008

Search Marketing -- Advantages of a Professional

A major point of contention in many firms is the decision to use internal staff for search marketing and others who argue it should be left to the professionals. So if I may borrow some thoughts from Rand Fishkin's excellent write-up, here I summarize and restate what he says:

Advantages of Working with a Professional SEO
  • Diverse Experience -- Professionals with years of SEO experience can help you learn what to expect from the search engines as you conduct the optimization process. They can also interpret and understand rankings data and "hiccups" in results that may indicate trends or strategies that should be implemented or avoided -- preventing expensive mistakes.

  • Pre-Existing Relationships -- SEOs have many contacts inside the SEO industry with folks who have important skills (e.g. press releases, article distribution, directories, etc.) that can have a great impact on the success of your efforts.

  • Link Building Knowledge -- The fastest and most reliable way to get results is though high quality links. Professionals have the ability to quickly identify the most important topical communities -- saving considerable time. SEO's will also have extensive experience with link acquisition -- so they know how to meet requirements and avoid problems.

  • Identifying Linkable Content -- SEO's are often masters of crafting and launching content. Not only can they identify the content most likely to get links from a specific web community, they're also experienced in packaging and promoting it.

  • Fixing Possible Problems -- Professionals deep experience makes them expert at identifying and managing issues that cause a lack of indexing, low rankings or penalties from search engines. This is a skill that can be very hard to develop without years of practice and experience. If you have a ranking issue, an SEO can be of great value.

  • Time Savings -- SEO can be a very time-consuming endeavor. An experienced and talented SEO has the processes and systems of optimization down to a science and can use those to provide better results in less time.

Saturday, May 24, 2008

A new website coming soon

Dear Readers,
We're building a superb new website for iOptimize Marketing. I can't wait. This will be awesome.

Stay tuned.

Monday, May 19, 2008

A new type of company

iOptimize Marketing is a very different kind of company. What do I mean? Please let me explain.

Our tagline is "Because Results Matter." The bottom line is simple. We are measured by business outcomes. For instance, should a hotel chain improve their occupancy rates and revPAR, we win. The customer got the outcome they needed.

Why did we start iOptimize Marketing, Inc.? Our deep research across the industry found a bunch of small companies run by technology folks. They talk in tech terms. One can envision propellers spinning over their heads.

I also got an earful from customers. One said they picked the top-rated firm as ranked by a well-known consulting firm -- and they turned out to be a disaster. One final reason is the lack of credibility. I worked for a firm that said they had an office in South Africa. Another said a New York City office. Both were untrue.

iOptimize will follow certain principles:
  1. We'll focus on thought leadership and education -- not technology.
  2. We'll ask questions and more questions -- we really listen.
  3. We'll show no boring Powerpoint presentations - we promise.
  4. In the rare instance when we speak, you will hear pure unadulterated truth -- in its purest and simplest form.
From a business point of view, we're going to use the best ideas from the best -- like Jill Konrath of SellingtoBigCompanies and Brian Carroll, author of Lead Generation for the Complex Sale. We also hire from the customer industry -- not just the search industry.

I also wish to point out that iOptimize is going to be a fun and exciting place to work and to be a customer of. Ron, my Chief Marketing Officer, is a cartoonist and professional writer. We're going to post Ron's cartoons to our website. We are going to work day and night to make it fun and rewarding.

To learn about iOptimize Marketing, Inc. I invite you to visit iOptimize Marketing.

All the best,
Jeff Ogden, President and CEO

Wednesday, May 14, 2008

Getting started...

Things are moving quickly at iOptimize Marketing. Ron Callari is my new Chief Marketing Officer. We are compiling a target account list. We have developed an outstanding video marketing piece -- with great graphics (thanks to Ron). We have a decent but weak website.

The first marketing piece launches on Monday. I can't wait.

Saturday, May 10, 2008

iOptimize's first post

Welcome to iOptimize.  We intend to fill this with great ideas and best practices in marketing. But hey, everyone needs to start somewhere.  Please stay tuned.