e - Commerce

Session - 3

Success in Internet Marketing

“there is a better way”

What is in the Store Today?

• The importance of the Internet to industry• How to impact the bottom line• Taking a strategic approach to Internet

marketing• Building an Internet marketing plan• The value of measurement and analysis

The importance of the web

• Online is no longer a niche channel worthy of investment for the future.

• It is a significant channel now and should be actively managed.

• Worldwide online travel sales is valued at $147 billion in 2008*

• Forecast to grow at 17% per year over the next 3 years*

The importance of the web

• Online travel sales will represent 41% of total travel sales by 2008*

• A further 38% of consumers make their decision online, but purchase offline**

• This means that almost 80% of travel sales will either be made online, or strongly influenced by online

*(Europe) source eMarketer** Forester Research 2006

Where are the opportunities?

There are three main opportunities that online sales present:

1. Incremental revenues2. Reduced cost of sale3. Enhanced brand loyalty and client

relationships

Incremental revenues

• The internet is a level playing field in terms of sales and marketing

• Everyone can attract new clients through very targeted and measurable marketing

• Global distribution reach is available to all, not just the major brands that have global networks

Reduced cost of sale

• A brand web site has the lowest cost of sale• Enables business to be “channel shifted” from

more expensive channels, such as travel agency or call centres

• A strong brand web site enables the relationships to be renegotiated in order to bring down the overall cost of sale

Net Revenue*

Consumer Spend

$90.00

$150.00

OpaqueBrand / Rep Co.

$235.50

$275.00

GDS

TravelAgent

Pegasus

Brand or Rep Co

GDS

$250.00

$275.00

Property

WebsiteBooking Engine Provider

$206.25

$275.00

Merchant

Brand / Rep Co. *

Develop strategies and employ specific tactics to shift business mix to the most profitable channels*industry averages

Enhanced loyalty and client relationships

• A direct client should be retained for future marketing and relationship building

• A customer booking through an web is likely to remain loyal to the booking channel

• Actively seek to build relationships with clients delivered through web for future, cheaper marketing

How to drive incremental revenue

• What are the various marketing opportunities?

• What is each of them good for?• Where should the focus be?

The marketing opportunities

• Before looking at the opportunities, one should consider the four stages of customer interaction:– Conversion – Acquisition– Retention– Analysis

• Focussing in each of these areaswill create a solid action plan

2. Acquire

1. Convert

3. Retain4. Analyse

The marketing opportunities

• Equal focus and specific activities should be deployed to address each of these key areas:

Convert Acquire Retain AnalyseWeb design SEO CRM Web analysisBooking engine PPC Web designContent Linking Customer service

2. Acquire

1. Convert

3. Retain4. Analyse

Site conversion is key to success

• Before investing in marketing efforts, a web site should be “fit for purpose” to convert at the highest rate

• Increasing the conversion ratio of visitors to bookers is the single best investment

• Once the site is optimised, then marketing activity to deliver incremental consumers should start

1. Convert

What does an optimised site look like?• Does it represent the brand in a clear and compelling way?• Is the navigation easy and logical?• Are there overt booking arguments (best rate guarantee, online-only

offers, exclusive promotions)• Is the content fresh, up to date and compelling?• Is the “book now” button clearly displayed on every page?• Is the booking process simple, quick and efficient? • Is there an easy process for capturing email addresses, with clear

rationale for consumers to provide their details? • Is the most relevant information displayed “above the fold”?• Are online security fears addressed?

1. Convert

Measuring site conversion is essential

• Site conversion should be measured every month to ensure optimum site performance

• Measuring Visits, Persuasion and Conversion will give an accurate picture of site performance

1. Convert

Total site visits

Total number of availability enquiries

Total number of completed reservations

Driving incremental traffic to the site

• Now the site is optimised and performance measurement is in place, it is time to deploy marketing efforts.

• Two distinct plans should be put into place to target:– New and incremental customers

• Search Engine Optimisation, Pay-Per-Click, Linking

– Existing customers• Email Marketing, Offline Marketing, Customer

Service 2. Acquire

Why are search engines important?

• 89% of Internet users regularly use a search engine

• In Europe, Google accounts for 76% of all searches

• In Asia Pacific Google accounts for 67%• In the US Google accounts for 49%• It is important to know where users are

searching to adjust the approach accordingly

New and incremental customers

Search Engine Optimisation:• Definition: the process of improving the

volume and quality of traffic to a web site from search engines via "natural" ("organic“) search results

• SEO is the single-most important online marketing activity

• The benefits of a well “SEO’d” site will be dramatic

• This is a strategic activity, that will deliver significant long-term benefit

2. Acquire

New and incremental customers

Natural search results

PPC Results

New and incremental customers

• SEO does take up to 4 - 8 months to make a significant impact

• The best results require an iterative process, not a one-time effort

• Ensuring high-quality incremental traffic is delivered is vital

• For short-term, tactical, traffic deploy Pay-per-click marketing as a complimentary activity

2. Acquire

New and incremental customers

• PPC is a fantastic medium for turning on traffic immediately

• A well-researched PPC campaign will deliver significant returns and will quickly become an ongoing activity

• PPC campaigns compliment SEO activities • Running SEO and PPC side-by-side, ensures

that you own the page 2. Acquire

Top left is the most valuable area of the page million dollar home page

Existing customers

• Existing customers are often overlooked in the fervour to find new ones

• If managed effectively they can:– Reduce the overall cost of sale through channel

shifting– Increase their loyalty and value

• Communication of the online proposition in an offline environment is vital

• Regular, and relevant, email communication will build loyalty and reinforce the brand

3. Retain

Existing customers

• Building the customer database is very important and can be achieved relatively easily:– Sign-up process on web site– Run online promotions / competitions – Sign-up at check-in / check-out– Ensure offline communication encourages email

sign-up• A communication calendar should be

developed to ensure regular emails are sent with compelling offers

3. Retain

Measurement and analysis

• Online offers unparalleled measurement and tracking opportunities

• There are three key areas to measure:– Site conversion– Site performance– Marketing return

4. Analyse

Measuring site conversion is essential

• Site conversion should be measured every month to ensure optimum site performance

• Measuring Visits, Persuasion and Conversion will give an accurate picture of site performance

Total site visits

Total number of availability enquiries

Total number of completed reservations

4. Analyse

Measurement and analysis

Site performance• Correct use of the web site analysis tool will

show:– Where are customers visiting from– Where are they leaving the site– How long are they staying– Which search engines are delivering the traffic

• This information will assist in changing the web site to meet the customers’ needs 4. Analyse

Measurement and analysis

Marketing return• Return on investment (ROI) or return on

advertising spend (ROAS) are the most common metrics

• Equally important is the contribution that marketing efforts make to the overall business

• Other performance metrics to consider are:– Cost-per-acquisition– Number of email sign-ups

4. Analyse

Measurement and analysis

A simple spreadsheet gives a dashboard view:

4. Analyse

Summary

• Today up to 80% of all bookings are influenced by the web

• A strategic, planned, approach to online marketing will produce far better returns than tactical activity

• Investing in existing customers, as well as prospecting for new ones, is crucial for overall success

• Measuring performance and adjusting campaigns will produce stronger returns