BACK TO SCHOOL: A MARKETING 101 REFRESHER FOR HOSPITALITY PROS (Part 2/4

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Throughout the month of September we’re celebrating back-to-school season with some concepts from marketing class. So grab a seat in the McConnell Marketing Classroom and try to pay attention, this will be on the test.

This week’s marketing concept is the Unique Selling Proposition or USP.

An easy way to understand USP is by thinking of it as your “different and better.” What’s different and better about your company compared to the competition? While you’ll probably be able to generate a pretty sizeable list of things that separate you from your competitors, USP represents your biggest differences and advantages. Narrow your list of qualities down to one or two key points to come up with a USP.

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What makes you special?

Okay, So I Understand My Unique Selling Proposition, Now What?

Billionaire entrepreneur Lynda Resnick has this to say about the USP:

“What makes you different than your competitors? Wrap your advertising message around that USP and communicate it in a clear and concise manner.”

Her comment highlights the two-part nature of an effective USP. First, identify the USP, then figure out how to communicate it to your audience. If you can’t effectively express what your Unique Selling Proposition means, then it’s useless!

Hotel Example:

To illustrate what the USP means for hoteliers, we’re going to use a property located just down the street from us, the Courtyard Youngstown-Canfield by Marriott.

The Courtyard is located right next to Kennsington Golf Club and has easy access to route 224, a major local thoroughfare which can take guests to nearby attractions including Youngstown State University and Mill Creek Park.

We’re doing this from an outsiders perspective so it’s hard for us to narrow down their true USP, but just as an estimate from hotel marketers we’d  identify the Courtyard’s USP as #1 their convenient golf course access, and #2 the Courtyard by Marriott experience. They are the only Courtyard in the area so brand recognition alone is a big differentiator and having the extremely close access to a golf course is also something most other hotel’s cannot offer.Though the hotel’s access to route 224 is certainly a benefit, there are other properties nearby that offer the same access so we can’t consider it a part of their USP.

Overall, the Courtyard does a good job of promoting both their golf course access and their brand through their marketing material, they are a good example of an effectively communicated USP.

Feeling smarter yet? Stay tuned for the rest of our back to school marketing series throughout the month of September, and be sure to check out part 1 if you haven’t. 

BACK TO SCHOOL: A MARKETING 101 REFRESHER FOR HOSPITALITY PROS (PART 1/4)

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Kids are getting on buses in the morning, high school football stadiums are lighting up on Friday nights and the leaves are starting to change color. It’s back to school season!

In honor of this exciting time of year, grab your backpack, sharpen your pencils and take a seat in the McConnell Marketing classroom. Here’s a concept from marketing 101 that’s worth a review.

1. Segmentation – Targeting – Positioning

The S-T-P framework is a part of marketing strategy that involves the following three steps:

1. Segmentation – Dividing consumers into separate, distinct groups.
2. Targeting – Deciding which of those groups make the most sense to target.
3. Positioning – Making sure your brand and promotional materials are aligned to best target that group.

Why you should use S-T-P

You might be thinking “We already have a target market, I don’t need to think about marketing strategy.” You’re right, at least as far as your hotel’s overall brand goes, but on a smaller scale S-T-P is a valuable tool.

Think about it. Of course every hotel has a target market, but are all of their individual marketing campaigns targeted towards the same people? Is a lobby poster promoting cocktail hour geared towards the same group as an email blast highlighting kid-friendly rooms and vacation rates? Probably not, which is why using something like S-T-P should be a regular part of the marketing process.

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Hotel Example:

Using S-T-P as a guide is a great way to think more strategically about marketing projects. Here’s an example of how someone in the hotel industry could apply this framework. For this example let’s pretend you’re trying to create a brochure that highlights your property’s meeting space.

Segmentation
Instead of just diving into the creative part of the project, start by identifying different, distinct segments of people who need a place to have meetings. Though all businesses have a need for meeting space, not all businesses have the same type of need. Small businesses have different meeting requirements than Fortune 500 conglomerates and companies across different industries have different needs than one another as well. While one type of company might be fine with a meeting space that just has a few tables, another might need access to white boards and audio-visual equipment.

Targeting
Next, you’ll move on to targeting. At this point, you decide which of the segments you identified make the most sense to focus on. After identifying them, some segments should naturally appear more attractive than others. This might be because certain segments are more profitable, your  hotel is better suited to satisfy that particular group’s demands or some other reason.

Whatever the case, you have to remember that you need to choose one or two segments and not try to reach everyone. If your time and money were unlimited you could try to hit every segment but targeting is all about getting the most out of your money and maximizing your marketing results.

Positioning 
Now that you’ve got a specific market segment to target, you have to make sure that your marketing is aligned with that target. This is done by keeping your target in mind while making creative choices. Rather than just thinking vaguely about audience, positioning is about making sure you are choosing the right creative strategy for your specific target.

It’s easy to get caught up in the creative and practical side of producing a marketing piece, but using the S-T-P model can can help you think more strategically about what you’re doing and develop an even more effective piece!

Feeling smarter yet? Stay tuned for the rest of our back to school marketing series throughout the month of September! 

 

MARKETING TO MILLENNIALS PART 3: UNDERSTANDING NEW SOCIAL NORMS

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Perhaps one of the strangest habits of the Millennial Generation is what some observers are calling “isolated togetherness.” This paradoxical term refers to times when young people might seem like they’re isolated from one another but are actually socializing.

For example, we’ve all seen groups of 20-somethings with heads down looking at their phones not talking to one another. From the outside it looks like a very anti-social situation but in reality most of them are using their phones to socialize, be it texting, checking email or posting on social media.

The fact is, physical distance is becoming less important to this generation when it comes to social interaction. The traditional idea that the person nearest you should have priority for your attention is falling to the wayside.

New Social Norms Means New Travel Norms

ThinkstockPhotos-471419234One of the strangest parts about this generation’s social life is that despite their introverted appearance, millennials are actually even more dependent on their social circle than generations before them, and that includes instances that involve travel. Here are some surprising social habits of the millennial traveler: 

They like to travel together
58% of millennials prefer to travel with friends. According to the hospitality consulting firm HVS that’s 20% more than other generations, who are more likely to travel with family and spouses.

Getting input from others is critical to decision making 
Forbes Magazine points out that more than two-thirds of millennials “don’t make a major decision until they have discussed it with a few people they trust,” compared to around half of all non-millennials. Social approval is a key part of this generation’s decision making process. Additionally, 70% of millennials are “more excited about a decision they’ve made when their friends agree with them, compared to 48% of non-millennials, and they overwhelmingly believe that their friends are the most credible source of information.

While friends are the most important piece of the puzzle, people they don’t know also plays an important role for millennials when making a choice. On average, millennials consult 10.2 sources before booking a trip. That includes sources that depend on the experience of strangers like review sites such as Trip-Advisor and Oyster.com as well as sources that give feedback from friends like social media sites including Facebook and Twitter.

Social media becomes even more important while traveling – While normally 75% of millennials share content on social media, according to groupsizesolutions.com that number jumps to 97% when they are traveling. While on vacation, millennials treat their Facebook and Twitter accounts like digital journal of the trip, documenting everything from trips to the beach, restaurants and hotel rooms.

Social interaction not important for transactions
But despite the need for social interaction when making a decision it seems less important when it comes to actually making transactions. According to HVS, 36% of millennials prefer automated self-service kiosks when checking in to a hotel compared to 19% of non-millennials.

How Hotel Pros Can Use This Information

It’s a lot of information to digest, but understanding the role social norms play on millennial travelers is invaluable to hospitality industry marketers.  Here are just a few ways you can start taking advantage of this information today: 

• Start offering more packages that cater to groups that travel

• Have a GREAT online presence, respond to comments on social media and reviews on Trip-Advisor type sites.

• Focus your digital marketing budget on social media optimization

• Develop your reputation. Instill in your staff that every guest is potentially influencing future business by their online endorsement or negative comment.

For more tips on the best way to market to millennials, be sure to check out part 1 of this blog series How to Win on Mobile Platforms and part 2 The Adventure They Want From Travel.

 

MARKETING TO MILLENNIALS PART 2: THE ADVENTURE THEY WANT FROM TRAVEL

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Understanding the motivation behind travel is important to creating a great hospitality experience.

For the Millennial Generation travel is something completely different than it was for the generations that came before them. Part 2 of this blog series is all about what exactly millennials are looking for in a trip, and how we as  hotel professionals can use that information to target them more effectively.

Adventure, Experience and Immersion

Millennials view travel as a key component to individual growth and an invaluable resource when it comes to learning. One study by PGAV Destinations showed that 70 % of millennials felt they could “only achieve learning something new in immersive, cultural destinations.”

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Millennials travel for excitement, not just relaxation.

Millennials don’t want to be tourists, they want to dive headfirst into an authentic experience. And above all they want to do something that will help them to grow as a person.

Similarly, millennials don’t want to kick back and relax for a week when they go on vacation, they want to have a fun experience where they can make memories and bring back interesting stories. In fact, according to an article by dangerous-business.com, 78% of millennials are “more interested in thrilling, active vacations than lazy trips!”

It should come as no surprise that this group is also more likely to spend money booking another night at their hotel than purchasing a souvenir, another survey cited by foxnews.com showed that six in ten millennials would rather spend their money on experiences than material things.

Volunteerism Related Travel
Another piece of the millennial travel puzzle is the fact that this group likes to not only have fun while on a trip, they like to try and make a difference in the world while doing so. 84% of millennials are willing to travel abroad with the purpose of participating in volunteer activities.

Making a Difference while on vacation.

Traveling to volunteer is a common trend for 18-34 year olds.

Even though that stat might be skewed by college-aged students taking part in school sponsored volunteer trips, there’s no reason to think that people who go on these trips in school won’t be looking for the same type of experience years later.

How to take advantage of these trends

Find diamonds in the rough
If you’re in a location that’s not known for its culture or excitement don’t worry. You might be surprised by how many millennial-friendly attractions are nearby that might get overlooked because they aren’t well known. There are also probably a few nearby attractions you might not have thought of as interesting but might actually be appealing to a millennial’s desire to capture immersive, cultural experiences.

For example, the regular Saturday morning farmer’s market, or your locally frequented coffee shop might not seem very exciting, but these types of places might offer enough authentic local culture to catch the attention of an 18 to 34 year-old.

Market local attractions
Once you’ve found nearby attractions that appeal to millennial guests, it’s time to put them to good use. Here are some ways to market your hotel by highlighting those areas of interest.

• Make a map – Have a professionally designed map printed and available to guests in the lobby that highlights unique cultural destinations.

• Add to your advertising material – If possible include the fact that your property is only 3 miles from a 75-year-old winery (or whatever you’ve found) to your sales brochures or google ads.

• Use social media correctly – This is another invaluable tool for capturing the attention of millennials. Rather than focusing your tweets, Facebook posts and Instagram pictures on the property itself, head out to nearby hotspots. Creating great content about the types of experiences guests can have outside of your hotel can go a long way.

Facilitate a great experience
It’s important to keep in mind that your role in the travel process should be as a facilitator, making travel experiences easy, comfortable and convenient. 2 simple ways to help millennials have a great experience includes:

1) Easy transportation – Offering bike rentals and shuttles are a great way to allow guests to freely explore without too much hassle.

2) Offer a volunteering opportunity – If possible, try to form a partnership with a local nonprofit or cause. You can provide discount rates while guaranteeing yourself repeat millennial customers for years to come.

Be sure to check out part 1 of this blog series if you missed it, it’s all about understanding the mobile space and how to take advantage of it, and stay tuned for part 3! 

MARKETING TO MILLENNIALS PART 1: HOW TO WIN ON MOBILE PLATFORMS

 

Knowing how to attract millennials isn’t optional anymore.

That’s especially true in the hospitality industry. The group born between 1980 and 1999 aren’t a small, specialized piece of the pie, they are quickly becoming the largest slice!

By 2030, millennials are expected to be the biggest group of travelers with 78 million people and by 2018 they are predicted to be the largest consumers of luxury travel accommodations as well.

 

Why marketing to millennials is different.

Unfortunately, getting this group’s attention requires a change in thinking by hotel marketers. The millennials are the first group of people to have grown up with the internet and their expectations and perceptions of companies, especially hotels, have been shaped by that.

One of the first things those in industry can do is recognize the importance of mobile technology. While it might be obvious that mobile is important, what might not be obvious is just how important, check out these eye opening stats about mobile use:

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Everyone has a device – in the next three years more than 99% of millennials are expected to be smartphone owners.

They are looking at these things constantly – Millennials touch their smartphones 45 times per day!

And… they are using them for booking – 52% of millennials book hotels rooms for business traveler with a smartphone or similar device.

Mobile marketing is one of the most effective vehicles for properties to reach millennials. Here are some tips on how to get the most out of your mobile marketing efforts.

 

1) Optimize, optimize, optimize.

Make sure all the features of your main website including information, property photos and the ability to book look just as good on the mobile version. Start assuming that guests will only ever visit your mobile site, and not your main site because that’s increasingly the case.

But optimization for mobile goes beyond just your site. Treat any digital content like it will be read on a mobile device first.  70% of consumers say they will likely immediately delete an email if it is not adjusted for mobile use, and a large portion of these are millennials.

It’s hard enough to get someone to open an email, let alone one that doesn’t look great.

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Different styles for different screens.

 

2) Get an app.

Though most major hotel brands have apps, there are still plenty of smaller boutique and independent properties that do not. Though it might seem like an extra feature that only makes sense for the major chains, as apps become more popular in the industry they are becoming more and more of a standard feature.

Apps not only make the mobile experience more user-friendly, they help build loyalty with customers and give you a great communication channel to talk to guests. There are plenty of companies that specialize in hotel app development, just check our article about this year’s HITEC conference to read about some of them.

 

3) Be interesting.

Being always connected to the internet means being susceptible to a constant stream of content vying for your attention. It’s harder and harder for marketers to stand out.

So as a rule of thumb remember to be interesting! Would you read your hotel’s email or click on your own banner ad? Or would it get drowned out by the latest Twitter trend or viral video.

Not every piece of content you put out there needs to be a blockbuster or the next social media sensation, but remembering that people are constantly being bombarded with information is absolutely critical!

 

4) Make your rooms mobile device friendly.

Wifi should be free. That’s a pretty consistent sentiment across millennials. It’s not something that business travelers need to check email, it’s something that most guests are accessing within their first 30 minutes in the room.

Also, hotel rooms should be friendly spaces for mobile technology, easy to find outlets or USB charging stations can go a long way to making younger guests feel comfortable.

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5) Have a social media presence.

Mobile and social go hand in hand nowadays. We’ll get more into the specifics of social media in a future post, but for now it’s important to at least understand that you need a social media presence.

If your property is managed under a brand page that’s fine, but if you’re independent and don’t have a Twitter account or Facebook page you may be missing out on plenty of millennial eyeballs!

 

Start implementing these tips and start winning mobile today! And be sure to stay tuned for the rest of this blog series where we will talk about everything else it takes to market to millennials effectively.