Agenda. Part I - Introduction. Part II - Profiling Existing Customers. Part III - Prospecting for New Customers

Transcription

1 GIS in the Tourism Industry: Increasing Visitation Through Customer Prospecting Presented at the 2004 ESRI Business GeoInfo Summit June 29, 2004 Chicago, IL Matt Kures GIS State Specialist University of Wisconsin - Extension Center for Community Economic Development 1

2 Agenda Part I - Introduction! GIS as an Economic Development Tool! Tourism Customer Profiling and Prospecting Part II - Profiling Existing Customers! Analyzing Geographic Origins! Analyzing Neighborhood Demographics! Analyzing Customer Lifestyles Part III - Prospecting for New Customers! Identifying Prospecting Criteria! Putting the Data to Work 2

3 GIS and UW-Extension s Center for Community Economic Development (CCED) Educational Mission - We are not consultants Some examples of how we are using GIS in community and regional economic development! Industrial Cluster Analysis/Industrial Targeting! Business District Market Analysis! Policy Issues (demographic mapping and analysis)! Labor Market Analysis! Custom Application Development! Tourism Market Analysis 3

4 Tourism Customer Profiling and Prospecting Program at UW-Extension! Typically work with organizations rather than a single business or entity (Chambers of Commerce, CVBs, etc.)! These organizations often lack GIS technical expertise and have limited budgets Want to know: 1. Who are customers in terms of their demographics? 2. Where do they live 3. When do they come? 4. What are their preferences? 5. How can we find more of them? Can all be answered using GIS 4

5 Range of Projects and Customer Data Sources 1. We want addresses 2. Ideally, we want seasonal data Some Examples:! Convention and Visitor Bureau Inquiries La Crosse, WI! Registrations at a Tourist Attraction - State Historical Society of Wisconsin! Player s Club/Member Cards Casinos! Hotel Registrations Door County Chamber of Commerce 5

6 Case Study - Door County Chamber of Commerce! Door County, WI More coastline than any other county in the U.S.! Regional destination with high occupancy rates in summer. Goal was to increase the visitation rate in shoulder seasons and offseasons! Sample of 26 properties in the County (over 42,000 reservation records)! Database included information on lead time, number of nights, dollars spent, etc. 6

7 Profiling Existing Customers 7

8 Where do Customers Originate? - Developing a Geographic Profile Analyzing Geographic Origin - by Travel Time, by Season Drive Time All Seasons Spring Summer Fall Winter 0-22 hours 16.6% 22.8% 12.2% 13.2% 28.8% 2-44 hours 56.6% 59.1% 54.3% 56.9% 59.9% 4-66 hours 15.8% 11.0% 18.4% 19.2% 7.7% 6-88 hours 4.5% 3.6% 5.6% 5.0% 1.3% >8 hours 6.6% 3.5% 9.4% 5.8% 2.3% 8

9 Developing a Geographic Profile Analyzing Geographic Origin by MSA, by Season MSA (drive time) All Seasons Spring Summer Fall Winter Chicago, IL (4.2 hours) 28.7% 23.9% 31.1% 31.4% 21.2% Milwaukee, WI (2.5 hours) 19.1% 23.5% 16.1% 16.8% 26.8% Madison, WI (3.2 hours) 5.9% 6.2% 5.8% 5.7% 6.1% Appleton, WI (1.5 hours) 5.6% 8.3% 4.3% 4.3% 9.2% Green Bay, WI (0.8 hours) 5.3% 7.8% 3.8% 3.5% 10.0% Minneapolis, MN (5.5 hours) 4.3% 3.3% 5.2% 5.2% 1.3% 9

10 Who are our Customers? Developing a Demographic Profile " Typically examine demographic variables (age distribution, income, educational attainment, race, occupation, etc.) " Examine consumer segmentation data (ACORN data in the past) Two Important Notes: " Profiling not the specific customer, but rather the neighborhoods where they live (Census Block Groups) " Want to know what makes these customers different from the typical household in a given study area 10

11 Who are our Customers? Developing a Demographic Profile Analyzing Neighborhood Demographics Demographic Category Spring Summer Fall Winter Total 6-State Area Average Household Size Median Age Average Family Income ($) $64,171 $72,018 $66,845 $65,149 $68,630 $47,351 Bachelor/Grad Degree 18.5% 21.0% 18.9% 18.8% 19.8% 12.0% Exec or Prof Occupation 31.3% 34.2% 31.9% 31.7% 32.8% 25.4% Home owners 72.1% 75.5% 73.9% 72.3% 74.2% 68.1% 11

12 Who are our Customers? - Developing a Demographic Profile Analyzing Consumer Segments, by Season Lifestyle Category All Seasons Winter Spring Summer Fall ACORN 1F 12.2% 12.8% 12.5% 12.1% 12.0% ACORN 1C 8.7% 8.3% 8.7% 9.0% 8.5% ACORN 7A 7.6% 9.3% 8.4% 6.6% 7.9% ACORN 2E 6.7% 7.2% 7.4% 6.0% 7.2% ACORN 1D 6.1% 4.7% 5.1% 7.1% 5.6% ACORN 2A 5.5% 6.0% 5.3% 5.5% 5.2% 12

13 What are our Customers Preferences? Using Lifestyle Segmentation Data Ideal for identifying consumer preferences and spending propensity " Matching community events to consumer types " Identifying media preferences " Cross-promotional activities (i.e. hotel and restaurant joint marketing activities) " What types of items should we have in our gift shop (or other retail establishments)? 13

14 Prospecting for Potential Visitors 14

15 Basic Steps in Customer Prospecting 1. Identify Target Group (Geographic Region and Demographics) 2. Perform Queries (Spatial and Non-Spatial) 3. Report Target Geographies 4. Perform Conversion Studies Need a tracking mechanism (GIS is an option) 15

16 Customer Prospecting What specific demographic criteria make a customer different from the general population? 1. Logistical Regression Customer (yes/no) = β0 + β1 median age + β3 median hhld income + β4 educational attainment + βn Median Household Income - Percent of Census Block Groups (Comparison of Door County Customers to Study Area Households) 16.0% 14.0% Percent of Customers 12.0% 10.0% 8.0% 6.0% 4.0% Percent of Block Groups 2. Conditional Means or Distributions of Demographic Variables Percent of All Households 2.0% 0.0% 0 - $4,999 $10,000 - $14,999 $20,000 - $24,999 $30,000 - $34,999 $40,000 - $44,999 $50,000 - $54,999 $60,000 - $64,999 $70,000 - $74,999 $80,000 - $84,999 $90,000 - $94,999 $100,000 - $104,999 $110,000 - $114,999 $120,000 - $124,999 $130,000 - $134,999 $140,000 - $144,999 $150,000 - $154,999 $160,000 - $164,999 $170,000 - $174,999 $180,000 - $184,999 $190,000 - $194,999 $200,000 or More Median Household Income 16

17 Ways to Implement Profiling/Prospecting Information! Benchmarking Is our market changing?! Direct mail and other targeted advertising campaigns! Comprehensive/Individual reports! Educational programs for regional business owners 17

18 For More Information University of Wisconsin - Extension Center for Community Economic Development (CCED) 610 Langdon St. Madison, WI matthew.kures@uwex.edu (608)