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How to Turn Loyal Customers Into Salespeople

An HSMAI Partnership Presentation

with Zuberance

March 10, 2011

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Overview of Format and TopicOverview of Format and Topic

Webinar ModeratorFran BrasseuxExecutive Vice President, HSMAI

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POLL QUESTION #1POLL QUESTION #1How many people are participating in

this webinar at your location today?

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Leading Brand Advocacy company

Award-winning Zuberance Advocate Platform

Mission: Drive advocacy, leads, sales; 10x ROA

About Zuberance

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Today’s Today’s Presenters: Presenters:

Panel Moderator: Fran BrasseuxExecutive Vice President, HSMAI

Panelists:Rob FuggettaFounder/CEO, Zuberance

Robin KormanSenior VP, Global LoyaltyAnd Strategic PartnershipsWyndham Hotel Group

John MoserChief Marketing & Brand OfficerDenihan Hospitality Group

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Rob Fuggetta

Founder/CEO, Zuberance

Energizing Brand Advocates in the Hospitality Industry

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Brand Advocates are different than loyal customers

Brand Advocates are your most valuable customers; spend & recommend more

Turn your Advocates into powerful social media marketing machines

Three Main Messages for Today

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Brand Advocate Solution

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Brand Advocates, Definition

Highly-satisfied customers who pro-actively recommend brands or products without being paid to do so. ►Beyond like, love, or loyalty: Advocacy

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Advocates are 9s & 10s

How likely are you to recommend our brand or products to your friends?

“Ultimate Question” for Customer Loyalty

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Advocates: Unique, Powerful Segment

50% guests are highly likely to recommend

94% prospects trust Advocates

90% say Advocates influence sales

Social media amplifies Advocates

Bu

sin

ess V

alu

e

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Loyal Customers Not Best Marketers

“Your loyal customers are probably not your best marketers.”

Harvard Business Review, “What’s the Value of Word of Mouth?”

12X ROI by turning enthusiastic customers into Advocates

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Advocates 5X More Valuable

Avg Customer

Brand Advocates

Spend Value

2XSpend Value

Sources: Deloitte; Owen, Brooks, Zuberance

$3,000Value of one

Advocate for hotel company

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Advocate Reviews Boost Hotel Sales

Sources: Chadwick, Martin, Bailey

Consumers 3X More Likely to Book Hotels

with 5-Star Ratings than 3-Star Ratings

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Advocates vs. Loyal Customers

Identical Offer from Brand, Dramatically Different Results

Source: Zuberance

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The New Marketing Funnel

AwarenessConsideration

Conversion

Loyalty Advocacy

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Identify Advocates…

Website banners

1. Engage customers2. Identify Advocates

Facebook posts

Twitter monitoring

Emails

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…Mobilize Advocates…Advocate Ratings & Reviews Advocate Stories

Advocate Answers Advocate Offers

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…Track Results

Track clicks, opens, leads, sales

Track Advocate activities

View and share results

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Real-World Advocacy Results

50% 30%Write reviews or testimonials

13%Answer prospects’ questions

30%Share or publish content and/or offers

“How likely are you to recommend our brand or product?”

Source: Zuberance-powered surveys

Within First 90 Days…

(Average across all Zuberance customers. Results vary.)

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Energizing Advocates Delivers 10X ROI

Return

Media & Sales Value

Investment

Zuberance “WOMonmics”

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Budget Motel Activates Advocates

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Summary: Energize Advocates Now

Your competitors are energizing their Advocates 72% marketers using or plan to

use advocacy in 2011 (source: Forrester)

Missing major opportunity to cost-effectively generate qualified traffic, leads, sales

10X ROA

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Robin Korman

Senior VP, Global Loyalty

And Strategic Partnerships

Wyndham Hotel Group

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Loyalty Programs Are the Platform to Create

Great Customers and Great Experiences

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Factors influencing hotel selection 1. Location2. Price 3. Loyalty Program

60% 92%

Source: Phoenix Marketing SCORES 2009 Frequent Guest Programs

0% 10% 20% 30% 40% 50%

Never

Rarely

Some of theTime

Most of theTime

All of theTime

17%

0% 10% 20% 30% 40% 50%

Never

Rarely

Some of theTime

Most of theTime

All of theTime

32%

0% 10% 20% 30% 40% 50%

Never

Rarely

Some of theTime

Most of theTime

All of theTime

6%

0% 10% 20% 30% 40% 50%

Never

Rarely

Some of theTime

Most of theTime

All of theTime

43%

0% 10% 20% 30% 40% 50%

Never

Rarely

Some of theTime

Most of theTime

All of theTime

0% 10% 20% 30% 40% 50%

Never

Rarely

Some of theTime

Most of theTime

All of theTime

1%

0% 10% 20% 30% 40% 50%

Never

Rarely

Some of theTime

Most of theTime

All of theTime

Loyalty Programs Influence Hotel Choice 92% of the Time

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Spend More

Stay More

Stay Longer

Less sensitive to price and competitive offers/rates

Buy more ancillary products and services Upgrades, F&B, spa services, program credit card, time shares, etc.

Generate word of mouth/become brand advocates

Hotel Loyalty Program Members More Valuable than Non-Members

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Loyalty Programs Should Create Engagement Along the Customer Lifecycle

Life Cycle

Acquire

Re-Activate

Win Back

Recognize

Grow Share/Retain

On-Board

Activate

Engage

Cu

sto

mer

Valu

e

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Need to Go Beyond Points to Create Emotional Engagement

Engage between stays• Lifecycle-based communications

– Recognize milestone; anniversary date, elite tier achievement• Ancillary products to increase relevancy/keep top-of-mind between stays

– Credit cards, time shares, point-earning partner offers

Create positive experiences• Deliver promised hotel benefits consistently • Personalized conversation at front desk

– “We haven’t seen you in a while”, – “I see you are a Platinum member…”

• Surprise and Delight • Aspirational redemption• Insider Access

Converse and spread the word in social and mobile channels

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AspirationAspirational al

RedemptioRedemptionn

Insider Insider AccessAccess

Surprise and Surprise and DelightDelight

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Engage: “Talk” With Your Customer

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Share insider info

Engage with games

Solve customer

issues

Problem-solve real-

time

Deliver marketing message

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• Earn points and perks from your favorite program for checking-in with Facebook Places, Foursquare or Gowalla.

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Loyalty Programs Are the Platform to Create Great Customers and Great Experiences

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John Moser

Chief Marketing & Brand Officer

Denihan Hospitality Group

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About Denihan Hospitality Group Captivating hotels in coveted urban locations.

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“Denihan is charting a fresh course to innovate and has a hotel concept to fit any market.”

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Increase share during midweek by attracting road warriors who are accustomed to points

Change their buying from OTA’s to lower cost booking channels

Encourage more repeat stays

Attract boutique hotel travelers from other key markets

Loyalty Program Needs

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Compete w/Big Brands, Great Experience

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Need to generate revenue by driving increased occupancy and longer stays

Advocate Program Needs

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Market Metrix reports that 75% of Denihan’s guests are defined as secure customers… Both likely to return and willing to recommend

Energize existing Affinia Advocates identified through Market Metrix

Advocacy Opportunity

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Create a Brand Advocacy program to mobilize Affinia’s existing Advocates

Mobilize Advocates to Create Reviews and publish to key 3rd party sites (e.g., TripAdvisor)

Mobilize Advocates to share unique offers with friends and colleagues

Advocacy Solution

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Invite Advocates to Write a Review

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Advocate Reviews

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Advocate Shared Offers with Friends

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652 reviews created so far 70% took the action of clicking to publish to TripAdvisor Very high 20% of those ended up completing the action

of publishing – 93 ended up publishing

Advocate Influence Ratio for both reviews and offers performed very strong Each share delivers an average of 3 inbound clicks

Few days after 1st Advocate outreach Delivered 5 bookings converting at 7.5%

Advocacy Results

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Identify more Advocates Scale Advocate Mobilization

Leverage multiple existing touch points

brand website, email, newsletter Mobilization includes use of Reviews and Offers

applications

What’s Next on Advocacy Front…

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Questions?Questions? Panel Moderator: Fran BrasseuxExecutive Vice President, HSMAI

Robin KormanSenior VP, Global LoyaltyAnd Strategic PartnershipsWyndham Hotel Group

John MoserChief Marketing & Brand OfficerDenihan Hospitality Group

Panelists:Rob FuggettaFounder/CEO, Zuberance

Upcoming Webinars:

March 15 – Ten Must Do’s for Online Reviews, With Holly Zoba, Signature Worldwide

Digital Marketing Series: Session 3: March 22 – How to Use Geolocation Sites to Build Your Presence - With Gordon Liametz, Revenue Performance, Inc.

The HSMAI University 10-part 2011 Revenue Management Series – Session 1 on March 29 – What is the Future of Business Intelligence? Special rates for registering for entire series

June 2 – Portrait of American Travelers, With Peter Yesawich, The Ypartnership

To register for these and more, please go to www.hsmaiuniversity.org.

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