Ms. Fields

Mobile Technology

Mobile Marketing: Enriching and Monetizing Today’s Guest Experience

By Brenda Fields, Founder, Fields & Company

Contending with today’s powerfully evolving mobile landscape, small chains to independent hoteliers are faced with a new challenge of quickly acquiring expertise in a 24/7 marketing environment, created by the rapid evolution of technology and the never-ending opportunities to deliver higher levels of customer-centric initiatives with more efficiently generated revenues. Throughout 2010, internet-enabled mobile enjoyed immense growth, primarily due to the rapid ascendancy of smartphones. In the U.S. alone, they are now at 61MM in the U.S. and climbing. Smartphones have played a sleek and trendy “star role” in defining today’s “hand-held” remote on multiple professional and personal levels, with the core areas focused on guiding, organizing and communicating, all to support increasingly “wired” lifestyles.

Statistics bear out that one of the industry’s most sought after segments, the business traveler, is also increasingly reliant on mobile devices to search, plan and book their trips, whether on the road, at the airport or on the train. According to PhoCusWright, 67% of all travelers and 77% frequent business travelers use their devices to find local services such as lodging and attractions.

Now with the new year, it is apparent that a paradigm shift is happening in consumer-direct marketing, eCRM and alternative “hand-held” distribution channels, due primarily to the immense popularity of smartphones. These gadgets are a hand-held computer, TV, phone, game and video player, all in one.

A mobile strategy can be a stand-alone or part of a comprehensive digital strategy program. According to Kathleen Taylor, CEO, Four Seasons Hotels and Resorts. “…digital wasn’t even on our radar fifteen years ago. In 2011, it represents more than half of our total marketing budget.”

Mobile Commerce Daily, January 12, 2011 stated that InterContinental Hotels Group’s fastest-growing revenue channel is mobile commerce. Driving the growth rate right now seems to be the adoption of smartphones, as call-centric phones continue to be replaced by more multifunctional mobile devices where calling is just one thing you can do on it. Del Ross, vice president of sales marketing for the U.S. at IHG, Atlanta stated “We continue to see improved functionality and incredible growth for the foreseeable future. The adoption rate of our apps is great, and the booking rate and transaction volume is growing like crazy.”

Entering 2011, many leading market indicators point to a more sustained but slow-moving, economy climate in the U.S. and globally. And with smartphones, they will continue to aggressively multiply in distribution, with the next major sphere of adoption toward the U.S. mass market.

It is anticipated, that by the end of 2011, 85% of all U.S. mobile phones will be internet-enabled; thus providing more validation that mobile usage isn’t just about texting and calling, clearly, its escalating to far more data-driven usage, such as mobile web surfing, playing video, email, social media mobile, etc. (Mobi-Thinking, 2010)

According to Insight Express, December 2010, for each of their survey’s metrics, mobile enjoyed double to triple the percentage of online ad effectiveness compared to PC’s across a wide swath of metrics. Specifically, to name a few, their findings showed mobile ad awareness is 23% compared to 8% for online, while purchase intent for mobile is 11% versus a mere 3% for online/PC’s.

Additionally, as previously stated, 77% of frequent business travelers now use mobile for planning and/or booking their trips, and at 31%, the U.S. travel market leads in being projected as the #1 market of mobile commerce, with computer usage right behind, at 20%. (ABI Research 2010)

In going forward with an introductory plan that can evolve into a new, tactical-driven distribution channel of revenues with “hand held” eCRM initiatives, the following will provide some areas to address in getting started.

Activating a Mobile Strategy: Why Now?

For small to mid-size chain hoteliers and upscale independents who target the business and leisure traveler, the “sweet spot” of their most high yield and year-round guest segment is incredibly reliant on using their smartphones, whether for work or play, since staying “wired” has become more threaded throughout our lifestyle, though on the upside, will hopefully make us more productive and organized. (we can always hope)

Moreover, as mentioned above, since 77% of frequent business travelers use their smart phone to source location services (e.g.lodging) and attractions, the time truly is now, for today’s savvy hotel marketers to integrate more timely, tactical ways to reach these highly predisposed prospects and/or past guests, who not only represent today’s “on demand” lifestyle...they comprise a serious role within the projected (2011) increase in room demand, that will fill more upscale rooms over 2010, which includes the usage of mobile.

Thus, whether integrating highly targeted marketing communications, mCommerce for bookings, “repurposed” web design from your PC site or concierge efforts, these areas comprise a few of the essential areas that meet the professional and personal needs of your most valued guests, and is already proven by major brand hotels who have implemented successful ROI-driven mobile programs in last year and in 2009, with no doubt, continuing quest to cultivate largest (projected) 2011 growth driver, in occupancy and ADRs, through affluent business travelers.

What Kind of Resources Will I Need?

• Start with selecting a mobile marketing expert or handle through your agency, preferably one with hospitality expertise, to evaluate a range of platform operational efficiencies and the ease with system integration for ultimately, choosing most viable mobile provider.
• In working with a mobile provider, you will have option to choose one that provides a comprehensive self-service driven platform,whereby your staff is trained on how to develop (and manage) their own mobile campaigns, eCRM, web site design, SMS messaging, landing pages, social media, etc. in-house. The other option is to fully outsource not only development of hotel’s entire mobile multichannel program, but ongoing management that span a range of aforementioned mobile initiatives.
• Mobile is not a stand-alone vehicle. Objectives need to be clearly defined in integrating various mobile capabilities with your overall marketing, eCRM and revenue/inventory goals.
• From a personnel standpoint, likely best to assign a (key level) marketing person, your agency contact or expertise of a consultant, to manage overall process of customizing mobile program’s build out with the platform provider, as well as your IT person, which is naturally critical for multi-system integration, regarding PMS, CRS, CRM, POS, etc.

It’s All in the Palm of Your Hand -- Enriching & Monetizing Guest Experience Through Mobile

Under one cohesive platform, there is a host of mobile capabilities to implement which thus, requires utilizing a mobile platform provider with a proven record of success. The overarching point is to have seamless system integration (between the mobile platform and your systems), to dynamically manage a range of product and service content; to name a few, such as browsing a hotel’s key content areas to concierge services, video footage, real time bookings, loyalty rewards, multi-channel messages that integrates SMS, email and social media messages, all within the scalability of your mobile web site or app that services iPhone, Android and Blackberry owners.

Toward that end, investing in a progressive-based “hi touch” guest experience with a mobile program that’s as feature-reach and tactical as your hotel’s web site, is a first step to strategically build a multichannel mobile platform program for business, leisure and groups, which span a range of guest rooms and amenities, and by extension, deliver a new channel of efficiently-derived revenues, that authentically enriches the guest experience and ensures a great ROI.

Brenda Fields is a strategist and sales and marketing expert honed from a successful track record in the hospitality industry. Brenda is a member of the prestigious ISHC, recently served on the Americas Board of Directors for HSMAI, and is Immediate Past President of the Hospitality Sales & Marketing Association International. Brenda was honored as one of "The Top 25 Most Extraordinary Minds in Sales and Marketing" by HSMAI as well as the "Leadership Development" award. She is an industry leader and spokesperson; a member of the Editorial Board of HotelExecutive.com; contributes regularly to international publications Hotel News Now; Hotels Online, Hotel Resource Weekly Network News, eHoteliers, and many others. For more information visit www.fieldsandcompany.net Ms. Fields can be contacted at 518-789-0117 or brenda@fieldsandcompany.net Extended Bio...

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