mindtree Brief 2016

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Transcript of mindtree Brief 2016

  • Winning in the Age of PersonalizationGlobal survey compares traveler expectations against travel and hospitality company initiatives

  • About This Report

    In the fall of 2015, Mindtree commissioned independent market research firm Vanson Bourne to discover: Where do most travel and hospitality organizations fall on the digital transformation timeline? How do the travelers using the services or products of these organizations perceive the digital experience? What do travelers expect from these organizations moving forward?

    To obtain this valuable insight, Mindtree surveyed 180 buyers from travel and hospitality industries. In addition, Mindtree also surveyed over 3,300 travelers. The regions/countries where the interviews were conducted included the U.S., Europe (U.K., Germany, Benelux), and APAC (Australia, New Zealand, India, China). Respondents from the organizations that were interviewed had at least 2,000 employees.

    Due to rounding, not all percentage totals in this report equal 100%.

    About Vanson Bourne

    Vanson Bourne is an independent specialist in market research for the technology sector. Their reputation for robust and credible research-based analysis is founded upon rigorous research principles and their ability to seek the opinions of senior decision-makers across technical and business functions, in all business sectors and all major markets. For more information, visit www.vansonbourne.com

  • Introduction ........................................................................................................................................................................................ 04

    The Phy-gital Journey Begins and Ends with Personalization ............................................................................... 05

    Mindtree Phy-gital Journey Survey: Traveler Expectations vs. Seller Initiatives ........................................ 06

    Travel and Hospitality Survey Global Highlights ...................................................................................................... 07

    Travel and Hospitality Survey Region by Region Highlights ............................................................................... 10

    What Our Travel and Hospitality Survey Results Mean to You .............................................................................. 14

    A Personalization Framework for Travel and Hospitality Companies ............................................................... 15

    Summary Winning in the Age of Personalization ...................................................................................................... 16

    Table of Contents:

  • www.mindtree.com info@mindtree.com 04

    Age of Personalization: Survey Travel and Hospitality Global Report

    Introduction As e-commerce continues to drive new revenue opportunities around the globe for travel and hospitality companies, travelers are gaining more control of their purchase experience. Unlike traditional travelers who were limited to arranging travel plans at offices, or by phone, todays travelers demand more convenience and less friction across their phy-gital (physical + digital) journeys. They want to use their favorite mobile devices to shop from anywhere at any time. And they want companies to understand their needs and suggest personalized recommendations based on their history and preferences.

    A new study by Mindtree (www.mindtree.com) suggests that travelers expect to reach their ideal balance of online versus offline commerce over the next three years. To maximize profits and drive new opportunities in this traveler-driven landscape, travel and hospitality companies must develop strategies to deliver a truly personalized experience.

  • www.mindtree.com info@mindtree.com 05

    1Cindy Waxer, Direct Marketing, September 1, 2015 Its Time to Face Marketings Impact on Customer Experience. http://www.dmnews.com/customer-experience/its-time-to-face-marketings-impact-on-customer-experience/article/435386/

    Its a well-known business axiom that repeat customers drive current profitability while new customers drive current growth and future profitability. Yet, acquiring and retaining customers is harder than ever before. Thats because travelers are expecting personalizationexperiences tailored to their needs and preferences based on their implicit behavior and explicit permissionacross all their interactions with sellers. Not delivering on this appears as a failure in the eyes of the traveler. The impact can be huge: for every customer experience failure, companies will lose an average of 65% of that customers wallet share during the following year.1

    In the past, travelers have been invited to travel offices, websites and mobile apps controlled by travel and hospitality companies. But over the next few years, travelers will push companies beyond these boundariesfrom social media buy buttons to over-the-top messaging services with integrated payments such as WeChat to concierge services and full-fea-tured mobile wallets, these will all become selling channels.

    In return, travelers are willing to provide rich digital body languageonline and offline behavior that signals their inten-tion and preferences. However, this digital body language is all but lost on sellers, especially in-store. Thats because until now personalization has largely been the domain of online travel retailers (Kayak, Expedia, and so on) or the e-commerce teams of brick and mortar companies.

    To stay relevant, companies need to embed themselves in the ongoing phy-gital lives of travelers and earn the right to be part of a continuous stream of engagement. But, they cant do it by following traditional means of marketing, communications and customer service. Personalization is their way in.

    The Phy-gital Journey Begins and Ends with Personalization

    Age of Personalization: Survey Travel and Hospitality Global Report

  • www.mindtree.com info@mindtree.com 06

    Mindtree Phy-gitalJourney Survey: Traveler Expectations vs. Seller Initiatives

    To help travel and hospitality companies understand and capitalize on the changing nature of how travelers explore, engage, purchase, and advocate a product or service, Mindtree surveyed 3,317 people across the U.S., Europe and Asia-Pacific (APAC). To gauge how companies realize how traveler behavior across the phy-gital journey impacts their business and digital investments, Mindtree also surveyed 180 decision-makers from travel and hospitality companies in those same regions.

    The survey provides several key insights that point to a digital divide between travelers and those who serve them. For example, Over half (58%) of the decision-makers at companies identified themselves as pioneers in adopting and investing in digital technologies. However, while these companies are in a digital transformation mode, there is a mismatch between what travelers want from online channels versus what companies are investing in. Lets take a closer look at the survey findings.

    Age of Personalization: Survey Travel and Hospitality Global Report

  • www.mindtree.com info@mindtree.com 07

    Providing more targeted promotions (59%) is the most common way that travel and hospitality organizations have improved their online sales over the past 12 months. To encourage online purchases, companies are using personalized promotions on relevant products or services travelers have not purchased before (92%), personalized promotions for products or services travelers have purchased before (92%) and recommendations from peers (87%). Organizations are using a variety of personalized ways to engage with travelers including social media campaigns (51%), subscription-based mobile app-based notification (43%) and recommendations for suitable purchases (42%). Traveler data is captured by several methods to support targeting and personalization: customer profile data (91%), loyalty (88%), social media usage (83%) and others. 57% of respondents are planning to enhance the purchasing experience by sharing their customer data with other companies within and across industries. Contrary to their apparent conviction of the value of targeted, personalized customer engagement, just (26%) of decision-makers confirmed that their organizations are investing in personalization to improve the online purchasing experience, compared to expanding payment options (39%).

    Personalization is driving revenue growth for companies, but they don't invest in it nearly as much as other features that have an unknown impact on revenue.

    02

    01 Companies are finally starting to understand that their online presence is about serving customers as much as it is about selling to customers. The study found organizations are adopting digital technologies to improve:

    64%ACCESSIBILITY

    63%CUSTOMER SERVICE LEVELS

    53%ENGAGEMENT WITH CUSTOMER

    49%VALUE OFFERED

    Travel and Hospitality Survey Global Highlights

    The traveler survey included approximately 3,300 adults from each of the three regions who made online purchases between October 2014 and October 2015, and 180 travel and hospitality decision-makers from each of the three regions. Here are several valuable insights the study revealed:

    Age of Personalization: Survey Travel and Hospitality Global Report

  • www.mindtree.com info@mindtree.com 08

    Travelers see ease of comparing products and pricing (49%), or the ability to quickly target the product or service they are seeking (43%) as benefits of shopping online over in-store. Travelers w