To Affinity & Beyond, Attracting First-Time Buyers

Transcription

1 To Affinity & Beyond, Attracting First-Time Buyers Traditional marketing methods are effective but expensive. Affinity-based strategies offer affordable solutions. Find out how strategic partnerships and loyalty programs create new market channels. Wednesday, May 9th 3:00 4:15 pm Neopolitan 1

2 ROUNDTABLES Loyalty Programs Clayton Gring Jr., COO, True Incentive Strategic Partnerships Hosted by Jim White, SVP, Welk Resorts Digital Strategies Jason Tremblay, CEO, Syechelle Media

3 OPENING STATEMENT In today s business affinity marketing turns out to be an effective path in acquiring new customers and capturing a larger audience, particularly for businesses which still need to grow. Partnering with an organization which already has a big influence over a specific segment is a shorter way to take which implies both benefits but also obligations.

4 AFFINITY MARKETING 101 #ARDAWorld (1) A natural liking for or attraction to a person, thing, idea, (2) inherent likeness or agreement, close resemblance or connection. A method of selling goods and services by creating partnerships with similar or compatible companies and brands. This increases brand loyalty for both companies and products and heightens market awareness of both. When we say affinity marketing we mean strategic partnerships between complementary brands which sell similar or compatible products, with the scope to increase awareness. The collaborative effort brings success and mutual benefits to both partners by targeting a larger audience.

5 AFFINITY MARKETING 101 #ARDAWorld A specific user may not have searched for your product/service but they may have a natural liking or attraction to an Affinity category as exhibited by their online patterns, or they may have a close resemblance or connection to someone who would be interested in a product. Think about your browsing behavior. What do you often read? What are your most common queries? Can you see themes and patterns in your behavior. Determining Affinities key is to look not only at an individual user s behavior, but also to normalize the behavior relative to other users. Categories, price, brands, authors.

6 BENEFITS Decrease in marketing research expenses therefore you can undercut the competition less overhead, lower cost to consumer Customer lifetime value also gets higher spend less on retention rates Enhancement of business image* (perception of timeshare concerns) Operational efficiencies already knowledgeable customer means you get a faster and deeper understanding with this audience

7 Loyalty Programs, Clayton Gring Jr. #ARDAWorld What are we discussing here related to Timeshare Marketing? Delivery of potential first time buyers into a sales environment Show of hands Those in lead / tour generation marketing activity Campaign development, placement, execution, evaluation Tour response and booking center activity Tour vendor selection and vendor management Incentive options and vendor selection, vetting and review Marketing compliance Those in owner / member marketing The Vacation Product itself, product, pricing, reservation rules and regulations Owner / member upgrades Communications Owner / membership levels, benefits and loyalty programs On-site marketing

8 Loyalty Programs, Clayton Gring Jr. Attracting first-time buyers currently requires a two step marketing process; First Step Aggressive direct marketing customer acquisition campaign, one that makes a powerful offer and attempts to persuade prospects to respond and act, in exchange to attend a sales presentation Second Step Sales presentation, transition the focus and present the Product initially intended to sold Travel precedes purchase

9 Loyalty Programs, Clayton Gring Jr. A New Paradigm Utilizing Loyalty Marketing Consider the challenge and reward of moving brand, product and product benefits up in the first-time buyer acquisition strategy, highlighting the benefits of the product of the associated loyalty program: Transition of the car industry to a more transparent price offering Large financial groups like Capital One where most advertising related to credit card subscriber acquisition and credit cardholder awareness highlights the rewards associated to loyalty, use of the card Festive TV, Print, Mail and Electronic advertising Use of big name celebrities

10 Loyalty Programs, Clayton Gring Jr. The Loyalty Program Key to a successful acquisition strategy using a loyalty program as the attraction to engage, is the ability to market today s consumers and their demand on loyalty programs. Today s consumers: Want to be courted and rewarded by every significant brand experience they choose Want more meaningful and immediate rewards Social media is driving loyal consumers to expect brands to give insider information, special privileges and offer the opportunity to engage in a brand community.

11 Loyalty Programs, Clayton Gring Jr. Development of a Unique Loyalty Program One that takes into consideration the limited frequency associated with the product and costs associated to rewards Rewarding key activities Traveling, Payment of fees, Survey Responses Expanding loyalty programs to include Referrals and Bring a Friend activities Open Discussion

12 Loyalty Programs, Clayton Gring Jr. Development of a Unique Loyalty Program What if you could create a loyalty program that even prospects could appreciate? What if your loyalty program was so appealing that a chance to sign up for it was enough to motivate prospects to make their first purchase? Open Discussion

13 Loyalty Programs, Clayton Gring Jr. The following action items might be considered to define First Time Buyer Prospects for the product being offered and the loyalty offer presentation to be used; 1. Establish the prospect pool based on ease of access 2. Develop and validate a propensity to respond model 3. Develop and validate a propensity to purchase model 4. Determine the credit worthiness of each potential prospect 5. Determine the size of the prospect pool and cost to access 6. Select and manage relevant offers and premiums based on value

14 Loyalty Programs, Clayton Gring Jr. The goal of timeshare marketers is to; Maximize response, action, and cross-selling opportunities with the highest return on investment To determine the likelihood of an individual responding to an offer and ultimately making a purchase To work within the defined laws, rules and regulations, to do no harm to the business and the stakeholders of the business

15 STRATEGIC PARTNERSHIPS: JIM WHITE Strategy Align with Key Strategic Partners Worldwide Strategic Partners should hold similar core beliefs and values Strategic Partners hold strong demographics that fit the Welk Owner Profiles Welk approach is built around a 50%+ First Generation Model

16 STRATEGIC PARTNERSHIPS Key Elite Partners #ARDAWorld

17 STRATEGIC PARTNERSHIPS #ARDAWorld Tactics Face to Face: OPC Operations within Strategic Venues/Partners Lead Generation: throughout Strategic Partners Individualized Journeys for all tours, owners, and prospects PCI Compliant digital booking/lead generation systems Built-in digital profiling systems to seek out best possible tour flow opportunities Telemarketing Call Centers: Mega Center/One Stop Shop approach for front-end and back-end communication

18 Digital Strategies Customer Journey Utilized Buyer Personas to Focus on Lead Gen Reduced cost per lead by 48% Doubled booking conversion(lead to tour) First Generation $2,000+ VPG Tour Development of Customer Journeys Multi-channels digital campaigns that increase customer engagement Channels: Facebook Ads, Google Ads, SMS, s Increase pipeline show %

19 Digital Strategies Buyer Persona Insights

20 Digital Strategies Buyer Persona Insights

21 Digital Strategies Buyer Persona Insights

22 Digital Strategies Buyer Persona Insights

23 STRATEGIC PARTNERSHIPS Results Statistics Welk First Generation Results: Five Year Snapshot Combined: 600,000+ Bookings Qualified Tours: 300,000+ Sales: 50,000+ Volume: $800,000,000 First Generation Results (Strategic Partnerships) 56% - Tour Flow 168,000 42% - Sales 45% - Volume - $360,000,000 $2,142 Average VPG #ARDAWorld

24 STRATEGIC PARTNERSHIPS/DIGITAL Let s Go! Top 3 Must Do s 1. Set 5-Year Strategic Plan in Motion Determine what type of company you are 2. Gauge tolerance level as an organization for the cost associated with First generation tour flow creation 3. Stick with the plan, monitor results, make adjustments as needed

25 Leveraging Facebook & Big Data to Acquire Your Next Customer Presented By Jason Tremblay

26 Sample Facebook Targeting Options #ARDAWorld Your Relationship Status Where You re From Where You Went to School How Old Your Children Are Where You Work Where You Check-in Your Birthday What Posts & Pages You Like Your Anniversary Destination Affinities Where You Live Brand Affinities Where You are Located Your Political Views The Holidays You Celebrate Your Device Behavior

27 Let Facebook do the Timeshare Owner Data Modeling for You

28 Enter Big Data... #ARDAWorld

29 Oracle Data Cloud The world s largest data marketplace 200+ branded data providers 50,000+ audience categories.

30 A Few Targeting Sources... #ARDAWorld Browser History Visa/Mastercard Proximity Keywords (Las Vegas resort deals, etc) Interest Audience Insights In-market (browsing travel sites looking for Orlando vacation deal) Conquesting In-market Frequency spend Specific timeframe Customer radius from a location or resort traveling in Geo-fence the strip

31 Travel Audience Targeting #ARDAWorld

32 Examples of Detailed Targeting #ARDAWorld FICO Score Your Income Your Net Worth Your Liquid Assets Recent Search Engine Queries Recent Travel Searches Propensity to buy a Timeshare Home Ownership Timeshare Ownership

33 A Holistic View of Your Next Owner #ARDAWorld

34 Day Drive Example: #ARDAWorld Targeting: Married Las Vegas Residents + 25 mi. Ages Gold AMEX Cardholders HH Income = $50k-$125k Propensity to travel within 90 days TransUnion 3rd Quartile FICO

35 Mini-vac Example #ARDAWorld Targeting: Married New Jersey Hispanic affinity Ages Personicx Mommy & Toddler Home Value $200-$350k Oracle Disney Parks Affinity Economic Stability Score 6-10

36 Virtual OPC Example #ARDAWorld Targeting: Oracle Airline Itinerary inbound Las Vegas travelers Traveling with Spouse Tourists Traveling in zip code Geo-fence Las Vegas Strip Datalogix Budget & Coupon-User Cirque du Soleil Affinity Traveling with Children Ages 5-10 Residents of Northeast States Experian FICO

37 Custom Audience Example #ARDAWorld Targeting: Owner Data Segmented by Resort and Owner Type Great For: Owner communications Owner upgrades Automation of owner referral programs

38 Why You Should be Doing This #ARDAWorld Higher VPG s Lower Cost Tour Privacy Compliant Leads Fully Opted-In with Consent to Contact