Topic 3

Web 2.0 Strategy Development

Strategy Development

A three staged approach:

• Enhanced knowledge and understanding – get involved and learn more

• Strategic Audit - Ten Key Questions

• Strategy Development and Implementation - using a Balanced Scorecard approach

Get Involved, Learn More

• Set up a Google Alert

• Participate in relevant forums/blogs

• Youtube

• Join a social/professional networking site

• Set up your own....

• etc

Strategic Audit

The Ten Key Questions

Ten Key Questions

1. What impact is Web 2.0 having on my industry?

2. What are the opportunities and threats for my organisation? How well are we currently positioned to capitalise on these opportunities, minimise the threats? What progress have we made? What is the ‘strategic gap’ between where we are and where we should be? What internal organisational barriers and obstacles need to be overcome for us to make progress in this area?

3. What impact is Web 2.0 having on consumer behaviour and decision-making in our industry?

Ten Key Questions

4. Do we need a new business ‘mindset’ and organisational structure to succeed in a Web 2.0 environment?

5. How can we best utilise Web 2.0 for effective reputation management?

6. How can we best use Web 2.0 for market/customer research; for building deep customer insight, knowledge and understanding?

7. How can we best use Web 2.0 applications for building on-going customer dialogue and interaction; for enhancing the online customer experience; for engaging with and energising our network?

Ten Key Questions

8. What are the key Web 2.0 actions and initiatives we need to introduce?

9. What new business performance metrics do we need to use in a Web 2.0 era?

10. How can we best use Web 2.0 for improving internal operational efficiency and business processes?

Web 2.0 Strategy Development

The Balanced Scorecard

Balanced Scorecard

• Recommend the use of a simplified Balanced Scorecard approach to Web 2.0 strategy development and implementation

• Will ensure that future 2.0 actions and initiatives are fully aligned with and supportive of agreed organisational goals and objectives

• Business/customer/network led rather than technology driven

The Balanced Scorecard - Benefits

• A robust Web 2.0 planning tool• A Performance Measurement System • Internal/External Communications• A Translator of Strategy Into Action• Alignment• A ‘Balancer’• A ‘Supporter’• A ‘Journey’

The Balanced Scorecard - Benefits Will help to answer the following questions:

• Should we invest (time and effort) in Web 2.0? Why should we invest? How much time and effort should we invest?

• What will be the business benefits and ROI?

• Which projects/initiatives should we invest in?

• How should we allocate our time and resources between different 2.0 initiatives?

• How will 2.0 help us to achieve our core business goals and objectives? What is the strategic fit? How ‘mission critical’ is it?

How It Works

1. Agree Overall Vision, Mission, Strategy

2. Decompose into Linked Perspectives (Financial, Customer, Internal Management, Organisational)

3. Establish Clear Performance Measures and Targets for each Perspective

4. Key Initiatives and Actions

5. Performance Evaluation and Feedback

A Simplified Balanced Scorecard

Vision, Mission and Strategy

Decompose Into Perspectives

Performance Measures / Targets

Key Initiatives

Balanced Scorecard 2.0

The five key questions:

• What is our overall vision/mission for Web 2.0?

• What are the key financial/strategic objectives we wish to achieve?

• Who are we targeting, with what value proposition?

• What are the key Web 2.0 initiatives and actions we need to introduce to achieve our objectives?

• People, organisation and IT aspects

Balanced Scorecard 2.0 Strategy Map

www.tourism2-0.co.uk

Strategic Theme/ Mission:Brief Statement of Overall 2.0 Mission/Vision

Financial Perspective

Customer Perspective: Customer Segments

Internal Management

Perspective:

Organisation

Perspective:

Financial Goals and Objectives

Marketing Effectiveness Marketing Efficiency

Customer Group 1 Customer Group 2 Customer Group 3 etc

Customer Value Proposition

Initiative 2

ObjectivesKPI

TargetsActions

People IS and ITManagementOrganisation

Culture

Initiative 3

ObjectivesKPI

TargetsActions

Initiative etc

ObjectivesKPI

TargetsActions

2.0 Initiative 1

ObjectivesKPI

TargetsActions

Templates to assist in the process

An example.........

The Cairngorms Mountain Biking 2.0 Programme

Vision/Mission To develop and implement a successful Web 2.0 strategy, ensuring that

the CNP MTB sector leverages the full potential of the Internet for building and supporting a quality customer base i.e. a strong base of loyal, high value, high growth potential customers providing the MTB sector with a strong foundation for achieving sustained growth and competitiveness

The Programme will deliver real business benefits to the group, to individual participants and to the wider CNP tourism industry

The overall aim is to maximise the full potential of Web 2.0 for Identifying, Acquiring, Retaining and Growing Quality Customers; for building a vibrant and sustainable MTB tourism sector

Strategic Objectives Provide coordinated, accurate and up-to-date information about MTB in

the Cairngorms National Park, making it easy for potential MTB visitors to find what they are looking for - information that is customised to the specific needs of different types of customer

Raise awareness and recognition of the MTB offering within the Park

Promote the strengths and ‘special qualities’ of MTB in the area; to inspire and motivate potential visitors to engage with CNP MTB, to encourage a ‘call to action’ by potential visitors

Market the Park as a ‘must visit’ destination for mountain bikers and a ‘must visit again’ destination for existing customers

Deliver a quality online customer experience, making it easy for potential MTB visitors to find what they are looking for, to plan and book their visits

Strategic Objectives Add value and encourage a ‘call to action’ at each stage of the ‘Customer

Journey’ with CNP MTB i.e. raise awareness, convert awareness into action, visit planning, booking, pre-visit, visit and post visit stages

Increase the number of MTB visitors to the Park, the number of repeat visits and average spend per visit (exploit ‘up’ and ‘cross’ selling opportunities)

Use of Web 2.0 for building insight, knowledge and understanding about our customers (actual and potential)

Use of Web 2.0 for building customer dialogue and interaction (‘marketing as a conversation’); for encouraging customer feedback and comment

Exploit CRM opportunities and online word of mouth effects; energise the ‘groundswell’ (i.e. the global MTB community)

Strategic Objectives Achieve improvements in ‘Marketing Effectiveness’ and ‘Marketing

Efficiency’ i.e. ROI

Build and support a quality customer base; Identify, Acquire, Retain and Grow Quality Customers

Foster and provide a platform for MTB Group collaboration covering Programme and non-Programme activities e.g. product development, signage, pressure group activities, engagement with other stakeholders (landowners, public sector, other tourism businesses (e.g. accommodation providers) and sectors (e.g. adventure tourism etc)

Support other marketing initiatives

Learn from ‘best practice’; to educate and mentor the MTB community in ‘best practice’ use of Web 2.0

Financial Objectives Maximise both the ‘Effectiveness’ and ‘Efficiency’ of our sales and

marketing efforts

‘Marketing Effectiveness’ - Key Performance Indicators (KPIs) covering the following:– Increase in visitor numbers– Increase repeat visits– Increase in visitor spend– Quality of our customer base– Strength of the relationship we have with ‘quality customers’

Under ‘Marketing Efficiency’, KPIs will be agreed covering marketing/sales cost savings from the better utilisation of Web 2.0.

MTB 2.0

The programme uses a simplified Balanced Scorecard approach to ensure that Web 2.0 actions and initiatives are fully aligned behind and supportive of agreed strategic/financial goals and objectives

Eight key priorities……..

Programme progress will be reported on a regular basis on www.tourism2-0.co.uk

Eight Priorities Wiki presence

Image library/ flickr community

Develop a YouTube channel

Cairngorms MTB web site

Leverage other web sites/ communities

Customer information system

Organisational issues