big data marketing - hftp · company profile: ts&c •founded in 2005 in munich •partner of...
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Big Data Marketinglike the OTA’s
Dr. Michael ToedtCEO, TS&C GmbH
dailypoint.com
#dailypoint
1© Michael Toedt, TS&C - 2015
Company Profile: TS&C
• Founded in 2005 in Munich• Partner of leading hotel
societies• 30 employees• 800 hotel clients• dailypoint Big Data Marketing
and CRM Software• Consulting • Lecturer• Researcher• Author
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PIONEERs IN BIG DATA© Michael Toedt, TS&C - 2015
Why we are here?
2015: Only 24%of all bookings are
direct bookings
Huge negative effects on profitability!!!
3© Michael Toedt, TS&C - 2015
WHY ARE OTA‘S SO SUCCESSFUL?
The question to answer:
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Why are OTA‘S so successful?
Amazon started 1995
John Bezos vision:
Talking to the right people, at the
right time and offering the rightproducts.
Today: 53% of all online shopping starts at Amazon
Google 36%, eBay 7%
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Why are OTA‘S so successful?
• Amazon was never a book store – it was a Big Data company from the beginning on!
• OTA’s are no Hotel booking platforms, they are data driven companies!
• Hotel companies regard themselves as hoteliers. The hotel is just the product!
Hotels must be guest centric,data centric to become successful again!
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The success formula
Big Data companies do not ask, they listen.
They listen to the data!
• What does a customer buy?buying patterns, interests, booking frequencies, purchasing power…
• What does a customer say?Social web: Facebook, evaluation platforms…
• What is a customer doing?open emails, click on links, visit website, which pages…
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Cleaning
The concept of Big Data
Collecting Analyzing Acting
In a living & learning environment
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Big Data
• OTA’s know exactly who their customers are!
• OTA’s do not explicitly ask
• OTA’s implicit what the customer wants
Hotel companies who ask their guests what they want showing their
data impotence!9© Michael Toedt, TS&C - 2015
Big Data marketing – simplified
COMPLAINT-M.
RE-TARGETING
MARKETING AUTOM.
ANALYTICSWEB
Res.System
QM$ VALUE €INTERESTS
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The Hotel Business
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SALES
Loyalty
Lettershop
Concierge
ComplaintQM
Up-selling
Html Conf.
E-directory
CRS
App
facebooktwitter post mail
emailsms
CHANNELStripadvisor
Google+
CO
RE
PR
OC
ESS-
M.
OTH
ERS
Wifi
Smart TV
Hotels run about 15 different Systems with relevant guest data!
POSPMSFOSCIS
CMS
IBE
Table Res.
Shop
Log Files
Vouchers
Forms
Extra-net
Loyalty ENL
WEBSITE
© Michael Toedt, TS&C - 2015
Hotel status quo
COMPLAINT-M.
RE-TARGETING
MARKETING AUTOM.
ANALYTICSWEB
PMS,POS …
QM
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NO CONNECTIONS
© Michael Toedt, TS&C - 2015
Powerfull data locked in different systems
but not usable at all
THE RESULT
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BIG DATA IT
A new IT environment is needed!
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Why a new IT-structure?
The 5 characteristics of Big Data:
• a huge amount of data Volume
• handle many different sources Variety• processing much data in real-time
Velocity
• cleaning data Veracity• linking and tagging data throughout the
universe Value15© Michael Toedt, TS&C - 2015
Big Data IT-structure
THE HEART
MIDDLEWARE
BIG DATA MODULES
Master Data Management (DQM)
Big Data Warehouse
Business Intelligence
CampaignManagement
Quality Management
OPERATIONAL LEVEL(EXISTING)
PMS WEBPOS EMS … …
BIG
DA
TA IT STR
UC
TUR
ECOMMUNICATION CHANNELSEmail – Website – Social Media – App – Offline …
16© Michael Toedt, TS&C - 2015
Big Data examples
Smart Couponing:
Turn lookers into bookersNewsletter subscribers who haven‘t booked within 4 weeks receive a 5 % voucher, valid 4 weeks on the hotel website
Result (within 14 months):
358 direct bookings; 990 nights
Distribution costs: 3.07%
17© Michael Toedt, TS&C - 2015
Big Data examples
Smart Couponing:
Booking ReminderPeople who haven’t booked a stay within the last 12 months receive a $ 40 voucher, valid 4 weeks on the hotel website
Result (within 14 months):
47,210 direct bookings; 139,079 nights
Distribution costs: 5.31%
18© Michael Toedt, TS&C - 2015
Retargeting
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Pre-Stay: Revenue driver
The more a customer knows about a
hotel, the more he spends!
Results for a resort hotel (avg. Length of stay: 3,8 days)
+ 21 % F&B Revenue
+ 28 % Other Revenue
+ 17 % Total Revenue
20© Michael Toedt, TS&C - 2015
WHY IS COMMUNICATION FOR HOTELS SO IMPORTANT?
Big Data: Evolution of Marketing
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Loyalty
Hotel loyalty model
Satis-faction
Time
Frequency
Media Channel
The influence of communication
on loyalty: 11 %© Michael Toedt, TS&C - 2015 22
Why is communication so important?
• Location based product: guests
have to pass by to remember your hotel!
• Small marketing budgets – no
brand campaigns reminds the guest about his experiences
• Communication-Overload – If you
don‘t communicate, the customer forgets you!
23© Michael Toedt, TS&C - 2015
Remember!
• If a guest stays 3 nights at your
property, he is 362 days on his own.
• Without communication, no
remembering effects are generated
• No remembering effects mean less bookings!
24© Michael Toedt, TS&C - 2015
Communication frequency
OTA‘s have learned their lessons!
They send 2 to 5 newsletters per week, some even daily!
Be cautious: Quality Matters
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Content marketing
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We are all different!
No target groups any more.
Each guest is its own target!
Micro-Segmentation
© Michael Toedt, TS&C - 2015
The world of OTA communication
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Communication overload
Need to create
remembering effects
Raise
communication frequency
Deliver
relevant information
Requires a
big data guest profile
Content marketing
capabilities
Marketing automation
Loyaltyincrease booking
frequency
© Michael Toedt, TS&C - 2015
SUMMARY28© Michael Toedt, TS&C - 2015
BIG DATA FIRST OF ALL:
CONCENTRATE ON STRUCTURED DATA
29© Michael Toedt, TS&C - 2015
Big Data marketing – simplified
COMPLAINT-M.
RE-TARGETING
MARKETING AUTOM.
ANALYTICSWEB
PMS,POS …
QM$ VALUE €INTERESTS
30© Michael Toedt, TS&C - 2015
Don‘t become the next Kodak!
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It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change! Charles Darwin
© Michael Toedt, TS&C - 2015
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„Knowing is not enough; we must apply. Willing is not enough; we must do.“Johann Wolfgang von Goethe
© Michael Toedt, TS&C - 2015
Now is the time!
QUESTIONS33© Michael Toedt, TS&C - 2015
TS&C GmbH
[email protected]@MT_TSC #dailypoint
LinkedIn, Xing, Facebook, Twitter
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© Michael Toedt, TS&C - 2015