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My keynote address delivered at the Nova Scotia Innovation Days, 29 April 2014. The experience. It’s all a rage in marketing, product development, organizational change, but what does it really mean? For over a decade now we have heard that managing the experience is the next competitive battlefield and a choice for businesses to differentiate and add value. To succeed in the new Visitor Economy truly requires understanding your customers and potentially having the courage to change how you do business. Its an opportunity, a choice, and it applies to any type of business or organization.
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The Visitor Economy!
The
Nex
t Fr
ontie
r
Image (c):Planet for Kids
Nova Scotia Innovation Days29 April 2014
with Dr. Nancy Arsenault, Tourism Cafe Canada
(c) Dr. Nancy Arsenault (2014).
Thank-you
Nova Scotia(ERDT & NSTA)
for having me back!
Louisbourg & Cape Breton
Up With People
GMISTEdgies!
(c) Dr. Nancy Arsenault (2014).
Text
Image: www.idtec.com
We work in the best industry in the world!
(c) Dr. Nancy Arsenault (2014).
Full of Passionate People!
(c) Dr. Nancy Arsenault (2014).
And it doesn’t hurt that ...
16 million visitors 1.8 million visitors
614,000 jobs 24,000 jobs
157,000 businesses $800M income to NS families
Enhances our reputation when visitors have an amazing experience!Enhances our reputation when visitors have an amazing experience!
(c) Dr. Nancy Arsenault (2014).
We are Revenue Positive to Government!
An investment in tourismis an investment in a healthy economy.
$84 Billion economic activity
21.3 B Tax benefits
$2 Billion industry!
$173M tax revenue
(c) Dr. Nancy Arsenault (2014).
Not to mention the Community Pride
Text
Tourism Business of the Year 2013Widden Park Campground, Antigonish
Community Service Award 2013Delta Barrington & Halifax Hotel
Staff
Ambassador Award 2013Fortress of Louisbourg Association
(c) Dr. Nancy Arsenault (2014).
But We Have Some Challenges
... but perhaps influence
Those we can’t control
(c) Dr. Nancy Arsenault (2014).
But there’s a lot we can do!
If we choose change!
Many Canadian companies choose to do business in the same markets they’ve operated in for years … Working with familiar clients and markets is a comfortable option, and in the short-term, it may reduce risk … but over the long term, playing it safe can cause companies to loose their edge.
Deloitte’s Passport To Growth (2013)
(c) Dr. Nancy Arsenault (2014).
Are We Our Biggest Enemy?
Image: success.com
(c) Dr. Nancy Arsenault (2014).
Your Neighbor isn’t Your Competitor
3 to 5 words are!
Boutique, pet-friendly, accommodations, Halifax
18 Properties on Trip Advisor18 on Pet Friendly Digs
34 on Expedia...
(c) Dr. Nancy Arsenault (2014).
Two Visitor Centres in One Small Town
• I don’t understand why?
• Do I have to visit both?
• Will they be different? Tell me something new?
Image: ishopeco.com
(c) Dr. Nancy Arsenault (2014).
Sorry I can’t help you right now
I’m filling out another grant application for funding.
Image: cdn.youthnet.org
(c) Dr. Nancy Arsenault (2014).
The Race to the Bottom
Think discount rather than adding value
The Time is Now
The economic and population challenges we now face in Nova Scotia, and dramatically so
in our rural regions, demand new vision, innovative approaches, greater collaboration and a greater willingness to take on the risks associated with economic change and progress.
Ray Ivany (2014). Now or Never
(c) Dr. Nancy Arsenault (2014).
Minister, Michael Samson
Tourism is:
• About people, the customer, their experience
• A major economic driver - $2 billion!
• Being recognized across all sectors of government as important
• Government and industry making the right investments needed to grow.
“Marketing will get them here, our hospitality and experience will bring them back.”
In his address to the provincial Visitor Servicing team 25 Apr 2014
(c) Dr. Nancy Arsenault (2014).
Yet the convincing others about the value of tourism is tough
Everyones a traveller but few understand how our industry works ... even some in our industry!
Image: latinbusiness.com
(c) Dr. Nancy Arsenault (2014).
Your CEO, Patrick Sullivan
• We can’t keep doing the same as we have for the last 10 years
• No silver bullet
• Inspirational marketing
• “Discover, Freedom, Engagement”
• Increase the value, the revenue generated, the length of stay
In his address to the provincial Visitor Servicing team 25 Apr 2014
(c) Dr. Nancy Arsenault (2014).
Have we put ourselves in too many boxes?
Marketing
Visitor Services
Product Development
Training
Research
Stuff!
Federal
RegionalMunicipal
Associations
Provincial
Business
Tourism
HotelsRestaurantsAttractions
Transportation
DMOs
(c) Dr. Nancy Arsenault (2014).
And lost sight of the customer?
Marketing
Visitor Services
Product Development
Training
Research
Stuff!
Federal
RegionalMunicipal
Provincial
Business
Tourism
HotelsRestaurants
Attractions
Transportation
DMOs
(c) Dr. Nancy Arsenault (2014).
Maybe it’s time to take a step back
Look at the bigger picture ... and dream
(c) Dr. Nancy Arsenault (2014).
(c) Dr. Nancy Arsenault (2014).
(c) Dr. Nancy Arsenault (2014).
Walk boldly
but carefully
(c) Dr. Nancy Arsenault (2014).
The E-Factor!
• Visitor Excitement
• Visitor Experience
• Visitor Engagement
• Visitor EconomyThe Visitor is in the
Drivers Seat!
(c) Dr. Nancy Arsenault (2014).
An Opportunity to Truly Focus On
Customer
Experience
Competing on
ValueVisitor
Economy
Thenext
competitivebattleground.
1. The Customer Experience
(c) Dr. Nancy Arsenault (2014).
A Great Customer Experience
The visitor’s experience is the cumulative impact of all physical, emotional and practical encounters guests & prospects have with companies and the destination.
It’s travel that’s
• authentic, • memorable • engages the senses, • is inherently personal and• connects on physical,
emotional, spiritual, intellectual, or social level.
Source: Nancy Arsenault (2004)
Experiential Travel
Free Wheeling Adventures
“Seeing the sights is no longer enough.
More than ever people are travelling their
passions.”
Joe Diaz, Afar Magazine
Investing in stories over infrastructure is:
Everyone has a story to tell
... more engaging
... more personal
... authentically yours
... make connections
... flexible/dynamic
AND
... quicker to market
... attracts media
... can charge more
... builds HR capacity
... less expensive
(c) Dr. Nancy Arsenault (2014).
But it begins with really knowing the VISITOR
Then focusing your thinking, investment approach and product development and promotional activities through the eyes of the traveller.
2. Compete on Value
Engagethe Senses
Local Flavor
Authentic
Connect with Chefs,
FarmersVintners
(c) Dr. Nancy Arsenault (2014).
Canada MUST Compete on Value
“Value is the immunization factor. When there is no
difference in value people buy on price alone. ”
Competing on value allows you to create a ‘be different’ strategy that your competitors will have difficulty
copying.”Roy Osing (2009). Be Different or Be Dead.
(c) Dr. Nancy Arsenault (2014).
We’ve known this for a long time ...
Beggars Banquet, Louisbourg
Canada must develop niche products and services tailor-made to match the unique characteristics of its diverse regions.
Deloitte’s Destination Canada: Are We Doing Enough (2007)
Solider for a Day, Halifax Citadel
www.ediblecanada.com
Edible Canada
Connecting with what people really want ... the chef & conversation!
Edible Canada, Vancouver, BCwww.ediblecanada.com
Food ingredients (Commodities)
Culinary Artisan Store(Goods)
Restaurant Dining (Service)
Market Price Premium Price
$40, $80, $120 & $750
Competitive Positioning
Pricing & Profits
Low VolumeHigh Yield
High VolumeLow Yield
Greater Differentiation,
Emotion, & Engagement
No to Low Differentiation,
Emotion, & Engagement
Experiences!
Mains $24 - $33
Most $3 - $50
Group Size 2 to 8People
Cost $40 pp
Cultural Explorers
Foodies !
Group Size 8 to 12People
Cost $750 pp
Targeting Niche market foodies who want to
experience the west coast by
kayak
3. The Visitor Economy
Broader than the Tourism
Economy
Tourism(Economy
What’s(the(Difference?
Value Creation
Visitor(Economy
Tourism(as(one(element(of(sustainable(communi:es
For businesses
For Visitors
For communities
Sustainable(Tourism
For businesses
For Visitors
For destinations
What’s(the(Difference?
Value Creation
Visitor(Economy Tourism(as(one(element(of(sustainable(communi:es
For businesses
For Visitors
For communities/government
For destinations
WOW guests, earn a living, successful business
Memorable Experiences
Healthy Economy
Deliver on the brand promise
Encompasses everything that attracts visitors to a destination and
makes a place special, distinctive and is capable of
engendering pride and interest in a place worth experiencing.
The(Visitor(Economy
Partner(Differently!
Visitor(Economy
Stimulus Investment
Pot
Tourism(as(one(element(of(sustainable(communi:es
Municipal Affairs
Tourism
Environment
Fisheries and Oceans
Product / Experience/ Industry/Community
Development
Marketing
Research
Managing&the&Visitor&Ecomony
It&is&a&con3nuous&process&of&researching,&inves3ng&in&product&&&people&development,&and&marke3ng&the&tourism&poten3al&of&an&area&in&ways&that&provides&value&to&visitors,&businesses&and&communi2es.
Value Creation
For businesses
For Visitors
For communities
For destinations
Truly Customer Centric
(c) Nancy Arsenault (2011). Inspired by Chris Voss (2003)
Continual Innovation & Investment
The Visitor Investment CycleLead with the Visitor not the Function
Change Management
Manage the Visitor Lifecycle
Generate a desire to return or
recommend
Design memorable, engaging
visitor experiences
Value Creation
Research
Increased visitation, spend, length of stay, profit, brand strength
Establish relationships
Know your customer &
markets
Product & People Development
Deliver on the product and
destination experience
Invest in the destination
experience
Promote, advertise, drive sales
Is Tourism at Risk?
Yes
If we don’t
embracethe
opportunityto invest
differently.
A Tale of Change
Driven by Reality
SynergyLouisbourg
CHOOSING to
Raise the Bar on Valueand
Collaborating to Compete
1. Know their Visitor
1. Research
• Knowing Louisbourg’s visitor AND Cape Breton’s
• Canadian Tourism Commission
Authentic Experiencer
Cultural Explorer
Cultural History Buff
EngagingLearning
Connecting
Unique Differentiator
2. Invest Strategically
1.Collaboration: Synergy Louisbourg, DCBA, ECBC
2.People: GMIST Experiential Travel Training (Multi Partners)
3.Community: STEP Program (ACOA)
4.Product Development by Businesses:
• Layering engagement• Personalizing the offers• Collaborating to compete as a community
3. Marketing - broader than just promotions
• Place - Louisbourg, not just the Fortress
• Product - Layer the Community Experiences
• Price - Differentiated options
• People - Build community capacity
• Promotions - Individual, partnered, destination marketing
Growing Steadily
Cannonier for a Day
Playing Hookey
Louisbourg Rocks
etc.
“It’s kind of exciting . We didn’t realize that people would respond to this so positively and like these intimate ways of experiencing the Fortress rather than just walking around and bumping into costumed stuff and watching a demonstration.”
• Provided focus for reorganizing the time without increasing human resources
• Improved shoulder season experience for guests
•New model for revenue generating programs.
•More choice and opportunities for visitors to experience the site.
Lester MarchandVisitor Experience Manager
Fortress of LouisbourgKey Benefits of Making the Shift
FOCUS ON:
$39.95/pp1/2 hour dressing
2 hours dining
(c) Tourism Cafe Canada & Earth Rhythms (2014).
Market Price Premium Price
Greater Differentiation,
Emotion, & Engagement
No to Low Differentiation,
Emotion, & Engagement
Land, Building, Tent(Commodities)
Restaurant Dining (Service)
Rooms, RV site(Goods)
Low VolumeHigh Yield
High VolumeLow Yield
Competitive Position
Pricing & ProfitsPoint of View Suites, NS
http://www.louisbourgpointofview.com/ &
Beggars Banquet(Experience)
Aligning with the Primary Demand Generator ... Becoming a Primary Demand Generator
www.thisfish.info
(c) Dr. Nancy Arsenault (2014).
Your Nova Scotia Tourism Strategy
“The creative challenge is to connect emotionally with potential first-time visitors.”
“With government and the tourism industry working together to focus on the visitor, and Nova Scotians as our
ambassadors, we have the elements of tourism
It Takes Courage
Cuz’ same ol
justisn’t
cutting it
(c) Dr. Nancy Arsenault (2014).
What if to get more visitors and $$
(c) Dr. Nancy Arsenault (2014).
All of us!
Government + Private Sector + Not-for Profits
(c) Dr. Nancy Arsenault (2014).
Revisit Your Business Model
Business Model Generation
by
Osterwalder & Pigneur
2009
(c) Dr. Nancy Arsenault (2014).
What if we challenged how we currently do business
Supply Approach
8 Provincial VICs
Call Centres
57 Regional VICs
Provide Info
Only 20 - 43% stop at a VICStill A lot of people! 360,000 to 774,000 people!
(c) Dr. Nancy Arsenault (2014).
What if we put the Customer First How would it change the conversation about Visitor Servicing?
A Customer Centric Approach
Who is the customer
What type of SERVICES do they need?
Where could they get it?
Enhanced research needed
General Information
Locals Know Insights
Make a Reservation
Website, Print, Facebook, TripAdvisor, YouTube,
Travel Agent ...
VIC, Tourism Business, Gas Station, Kiosk,
Travelling Van, Community
Ambassadors ...
How can we add to the visitor
experience? Physical & Emotional?
Direct, Booking Engine, Bookmark a URL
Washroom, Charging Station,
Print Info ...
What do we stop doing so
we can do new things =
Conversation Spaces!
How will we measure theROI & ROE?
(c) Dr. Nancy Arsenault (2014).
Invest in Desired Outcomes Not Just Project
Goal:
New Revenue
Generating Visitor
Experiences Operator A = $10K+ Operator B = $10K+ Operator C = $10K
(c) Dr. Nancy Arsenault (2014).
Shift from Funding to Investing
ROI & ROE
Set NEW metrics of SuccessAmend Program Criteria
Eliminate March Madness
(c) Dr. Nancy Arsenault (2014).
Prioritize Infrastructure $
Truly Unique InfrastructureOr Prioritize funding for those those that have:
Infrastructure + Activity + People/Programs
with multiple revenue streams
Direct or PartneredNewark Ohio
(c) Dr. Nancy Arsenault (2014).
Visitor Services to Visitor Concierges
... trained and hired to be an active, sales force
... create info feedback loops WITH industry
... plan itineraries AND direct book with operators
Woodlands Texas
Boise Idaho
Tofino, BC
(c) Dr. Nancy Arsenault (2014).
Let Go of Control: Collaboration to Compete
Co-InnovateCo-CreateCo-AuthorCo-Design
Revenue ShareStaff ShareShared Risk
(c) Dr. Nancy Arsenault (2014).
Helping Businesses Use Research
KNOW YOUR VISITORS!
Graphic: tourismcafe.org
(c) Dr. Nancy Arsenault (2014).
And Understand ALL Sales Channels
#1: Direct to Consumer (No commissions)
#2: Indirect to Consumer (Commissions or net rates)
Tour Operator (Travel Trade)
Intermediary(Expedia,
booking.com ...)
Customer Bookings
Packaged Independent
Travel Bookings
Group Tour Bookings
Packaging PartnerTravel Agent
Invest in the 7 Ps! They are all Important!
Image: 2.bp.blogspot.com
You can’t drive new business with old products
and services!
$2 billion
$$ 3 billion
2 million happy visitors
3 million happy visitors
Nancy ArsenaultManaging Partner & “Experience Gal”
nancy@tourismcafe.orgT: 250.589.2087
Thank-you!
tourismcafe.ca linkedin.com/in/nancyarsenault
twitter.com/NancyArsenault
facebook.com/tourismcafe
slideshare.net/nancyarsenault scribed.com/TourismCafe
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