Mr. King

Mobile Technology

Mobile Marketing: A Help or Hype?

By Robert King, General Manager, Travel & Hospitality, ClickSquared

Mobile Marketing is “top-of-mind” among travel & hospitality industry marketers, and for many, it’s a bit overwhelming. It goes into that same black hole as social media – too ubiquitous to ignore, potentially promising, but somehow too challenging to map a clear course of action. And even for those who recognize the importance of including mobile within an integrated cross-channel marketing strategy, where do you begin; how do you do it; and how do you know if you are successful? Regardless of which camp you fall into, what follows are some thoughts that should help you move forward confidently.

What’s Going on in the Mobile Marketing Space?

So what is mobile marketing? The Mobile Marketing Association defines it as, “…a set of practices that enables organizations to communicate and engage with their audience in an interactive and relevant manner through any mobile device or network.” That means mobile marketing encompasses all communications via a mobile device, whether they are standard email messages, digital content viewed on a mobile device, or SMS (text) messages.

According to MarketingProfs, more than 61% of people rely on their cell phone for up-to-the-minute information. Their research found that 33% of people regularly check their email on their cell phones while 59% do so occasionally. The same study also found that almost half of individuals cite text messages as their preferred way to receive information.

If there is any industry that is well suited to mobile marketing, it would have to be travel and hospitality. After all, customers are often en route to, on site, or returning from, their destinations. In a Forrester Research report focused on European travel practices (Forrester Research, December 2009, Travel Firms’ Initial European Mobile Strategies Should Focus on Convenient Services), analysts found that consumers are routinely using mobile devices to consume travel information.

While only a small minority are utilizing mobile to book travel, it is clear that interest in innovative mobile travel services is growing rapidly. Beyond checking flight status on mobile devices, consumers are beginning to look to airports, hotel chains, car rental agencies, train systems, tourist destinations and even travel insurers to provide mobile offerings, and in particular, text-based communications.

Think about it – you’re traveling to Paris with your family. You can check flight status, upgrade your flight, locate services at JFK airport, determine baggage arrival time and location upon landing at De Gaulle airport, locate the nearest money exchange, check into your hotel while clearing customs, book dinner reservations and scan the virtual Louvre tour to identify what exhibits your children will want to see tomorrow -- all with your mobile device.

The demand for mobile services will only grow as fully interactive devices further proliferate. As such, a forward-looking travel and hospitality organization must incorporate mobile into its overall marketing communications strategy in a way that makes sense for its customers.

So How Do I Get Started?

As with any component of your cross-channel marketing program, think first and foremost about your mobile marketing goals. Is it to create brand awareness for your organization? Probably not. Is it to offer real-time updates, offers and services to customers? This is more realistic. If so, what would they be? Special offers? Booking changes? Upgrades? Welcome messages?

Start with the basics…Take a hard look at your current email communications and web pages. Are they designed for optimal rendering on mobile devices? If not, focus here initially. Simply making your existing communication channels more readable and useable for up to half of your customer base can greatly improve your marketing effectiveness. Your email service provider should be able to advise you on who reads your emails on which mobile devices to help you prioritize your optimization efforts. Your ESP can also provide the testing and preview tools to assure that your emails render effectively across the most common devices.

Lay the foundation for SMS messaging…Does your preference center ask for mobile phone numbers and, just as importantly, allow a customer to “opt in” to receive text messages? A standard email opt-in does not suffice for SMS opt-in because of the carrier fees that may be borne by a text message recipient. But this shouldn’t intimidate you; once you clearly articulate the benefits of text alerts, guests and travelers will likely embrace the channel (or at least be willing to give it a try). Given the continued high price of mobile roaming charges, texting can actually prove to be a cost-effective alternative to telephoning the front desk, call center, or voice response unit (VRU). More importantly, guests who opt-in to mobile offerings generally represent a deeper degree of brand engagement.

Does your marketing platform support SMS messaging in a manner integrated with your marketing database and your other direct marketing channels? If not, you’ll need to upgrade your marketing infrastructure before launching your SMS program.

Focus first on value-added services, not transactions…As a first step, focus your SMS messaging strategy on communications that enhance the guest experience. For example, text a traveler to tell her which track her train leaves from, in which parking space she can retrieve her rental car, or the time and place of the complimentary happy hour. Once a customer experiences the value of “operational” SMS communications, they will be much more accepting of this channel for marketing messages. You’ll want to take it slow: earn your customers’ trust, and then maintain it with selective and highly relevant communications thereafter. Use the same analytic techniques with which you track email responses and assess effectiveness. Carefully analyze the results from these “early adopters”, learn from them, and iteratively refine your text communications to achieve the highest impact.

Implement your cross-channel strategy with mobile in mind…Don’t assume that your mobile marketing communication can be independent from your overall cross-channel marketing strategy, or that it is somehow “optional.” With up to half of email recipients reading them on mobile devices, and SMS messaging becoming the communication channel of choice for many, mobile communication considerations should be a key component of your cross-channel marketing strategy.

Mobile Marketing in Action

Use your imagination. There are literally hundreds of positive, value-added ways you can touch your customers via mobile. Say you’re a family resort:

• Send the guest an extended weather forecast a day or two before they travel to help them choose a wardrobe.
• Present an upgrade offer the morning they’re due to check in.
• Allow them to check-in and check-out with their phone.
• Prompt the guest to download an app that allows their mobile device to act as their room key (one less thing to lose)!
• A guest booked a reservation at the spa for a facial at 11:00. Send a text reminder two hours before the reservation. Also, tell her about the manicure special you're offering that day.
• Her husband booked a tee time for 1:00 p.m. Send a text letting him know that an earlier tee time is available if he's interested.
• Send a text letting a parent know about the teen-oriented comedy show.
• Invite mom and dad to the manager’s cocktail hour in the lounge at the same time.
• Provide offers on local excursions and activities.

Again, be careful not to overwhelm them. Relevance is key, perhaps even more so than the other direct channels.

When creating your campaigns, there are a few additional considerations to keep in mind:

• Start with the lowest common denominator: Rich media campaigns are enticing, but when it comes to reaching a broad audience using a wide range of mobile devices, basic text messages are often most effective because they can be read by everyone.
• Keep campaigns simple and compelling: Eliminate unnecessary verbiage and include a clear call to action that can be immediately undertaken using the recipient’s mobile device.
• Be mindful of the language of the channel: In the SMS world, you don’t “enter” your response, you “text” your response.
• Look for ways to improve usability: Make it easy for recipients to respond. Keep interactive mobile dialogues as short as possible. Embed URLs where appropriate.

In Closing

Mobile is here, whether you’re ready for it or not. Look at it as an opportunity to reach your customers at virtually any time, and in virtually any location. Used effectively, mobile dialogues can engender greater brand loyalty, increase engagement and lead to increased sales. A thoughtful mobile marketing approach -- tightly integrated into an overall cross-channel marketing strategy -- will get you there.

With more than 20 years of experience in the travel and hospitality industry, Robert King has held marketing, sales and senior management positions at a variety of organizations. Mr. King works with ClickSquared clients throughout North America, Asia and Europe to develop and implement highly targeted, timely, interactive customer relationship programs that result in increased ROI. Mr. King can be contacted at 480-603-9403 or bking@clicksquared.com Extended Bio...

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