Is Customer Loyalty Earned, Bought or Both?

"Why was God able to create heaven and earth in seven days and seven nights? Because he didn't have installed customers and legacy technology to worry about." – Brad Smith, CEO, Intuit.

That’s what Smith told Fast Company earlier in the year when he was pondering this question: How do you actually move an existing group of customers from what they fell in love with to the next thing that could be great?

What he’s specifically talking about is near-field communications (NFC), a technology that uses a low-power radio signal to transmit information between two devices – such as a point-of-sale system and a consumer’s smartphone – and enables consumers to take actions such as making payments simply by tapping their phones against a terminal. I’ve written about NFC quite a lot, as well.

Mobile marketing pundits have been trumpeting NFC as the next big thing for several years, but as recently as September 2013 only 18% of American smartphone users owned an NFC-enabled device. And that’s primarily because tapping a phone isn’t all that different from swiping a card or handing over cash. 

In other words, consumers have been so well conditioned to using cards (prepaid, debit or credit) that it’s difficult to get them to embrace a new technology that requires them to change their habits – and there’s a similar dynamic in loyalty.

Loyalty program engagement has dropped 4.3% since 2010, but program memberships have continued to climb – there are 2.65 billion of them in the US alone! Clearly, consumers are used to joining loyalty programs, but when they find them unengaging, they stop using them, remaining members in name only. 

Not exactly a recipe for lasting brand loyalty, is it? Brands need to earn their customers’ goodwill and repeat business. That means communicating with them through their preferred channels and taking the necessary steps to know their wants and needs and so give them rewards that add actual value to their lives.

ThinkInk works with some loyalty companies that really get this.

For instance, Toronto-based Points, runs a virtual loyalty wallet where members can track, trade and redeem a variety of rewards currencies in one convenient location. Not only do consumers have more freedom to use their rewards how they want to, participating brands get to share some of their customer data for a clear picture of customer wants and needs that allows the brands to make relevant offers.

Another company, Kula Causes, built an online platform where brands can allow their loyal program members to convert unused points or miles into cash donations to the charitable organizations that mean most to them (there’s over 2.5 million to choose from!)

In this case, Kula’s partner brands, which include JetBlue and Kellogg’s, earn their loyalty members’ “brand love” – and longer-lasting business relationships – by acting as conduits for those customers’ charitable instincts.

We’re also lucky enough to work with Kobie Marketing, an award-winning loyalty marketing firm that has built many of the world’s most successful customer loyalty and CRM programs for brands including Verizon, AMC Theatres, TGI Fridays, BJs Restaurant & Brewhouse and Royal Bank of Canada. They were recently selected as a leader in customer loyalty services for the second time by Forrester Research, Inc. The findings were published as part of a comprehensive assessment of customer loyalty program service providers in the Forrester Wave™: Loyalty Program Service Providers, Q4 2013. The recognition showcases Kobie Marketing as a loyalty industry innovator while underscoring how companies such as Kobie help brands build programs that track, understand, reward and grow customer value and engagement. Go Kobie!!

Another client, the Fuel Rewards Network is a free rewards program that significantly cuts consumers fuel costs. Members of the FRN program are rewarded at the pump and through their regular purchases at local grocery stores, restaurants and online retailers with cents-per-gallon off savings that can then be redeemed at Shell gas stations around the country. In just over a year, the Fuel Rewards Network has saved Americans more than $240 million in fuel costs with members saving an average of .28¢ on every gallon. All of us at ThinkInk have enrolled in the program – and it’s open to everyone. Visit www.fuelrewards.com to learn more.

Last but not least is PointsHound. PointsHound, which launched in beta in October 2012, is a new type of online hotel booking site that caters to the coveted and valuable frequent traveler demographic by offering an unprecedented rate of airline, hotel and retail rewards for every hotel stay booked on the site, at more than 150,000 properties around the globe. Travelers can choose to earn points and miles with a growing roster of 12 loyalty rewards programs, including American Airlines AAdvantage, My Best Buy, Flying Blue and Virgin America Elevate when making their hotel reservations at PointsHound.com.

You could argue that customer loyalty is bought with discounts – and that’s true if we’re talking about a program that incentivizes exactly the same behaviors without being imaginative and thinking about the whole customer experience. And in an age of diminishing loyalty engagement, the overall experience is more important than ever to earn and keep a customer’s ‘brand love.’

So, while it’s actually some of both, I’m of the opinion that the best and most powerful loyalty is earned by brands that go the extra mile to better know their customers and give them the kind of true value that can drive those relationships for a lifetime.

If you belong to a loyalty program – and chances are you do – how does the brand earn your “love,” if at all? What experiences have enhanced or diminished your brand loyalty? Share your stories with us below.

Unleashing Your Brand Advocate Weapon, Consumer-Generated PR

Every so often I read an article or blog post that cuts through the digital clutter and states something intuitive, but not entirely obvious.

An article in The Next Web by Henriette Weber gave me my week’s “ah-ha” moment so kudos to her. Happy Friday!

As a PR professional I speak (and write) frequently about the need for content generation. Whether through social media, blogs, original thought leadership articles, client interviews and tweets, feeding the content beast is a never-ending assignment. And as we expand our client list, the beast grows hungrier still. Brands, too, face similar challenges. The larger they become the more they have to write about their expanding enterprise. According to Rob Fuggetta, founder and CEO of Zuberance and author of Brand Advocates: Turning Enthusiastic Customers into a Powerful Marketing Force (citing his own sources), 28%-33% of marketing budgets goes toward content marketing.

Brand advocates, as Fuggetta rightly argues, can become a brand’s most important and cost-effective weapon. How? True, brand advocates work for free and do some of the heavy lifting for you. But too often marketers today think of their brand advocates as people who require expensive loyalty program catering. Or that outsourced IT teams must design highly engaging gamified portals. While all of these techniques are a legitimate form of marketing and customer nurturing outreach, it’s important that technological wizardry doesn’t trump the fostering of genuine experiences – or obfuscate brand failures.

I’ve written about a number of my genuine brand experiences and so have several ThinkInkers (Honda, BlackBerry, etc). I was once a BlackBerry diehard, eager to defend against all naysayers. Even after I made my bittersweet goodbyes, it wasn’t until I received an absurdly belated email asking for my returned business (nearly a year after I left) did I fully renounce my brand advocacy badge. But I’ve also received personalized emails of late, actual handwritten letters and, yes, even sample perfume from other companies.

None of these outreach methods are expensive. In fact, they’re right in line with what traditional customer retention budgets go toward. But unlike in decades past, where I might have only told a select few people about my positive experiences, via phone or word-of-mouth, I’ve freely given brands hundreds of words of free online publicity. Do I expect something magnanimous from them like a Birkin handbag or a Cable Heart Chain Necklace in return? Absolutely not – only that they empower me with the brand advocacy tools I require. And yes, I would appreciate an engaging loyalty program too. But that’s not what I’m looking for first and brands need to remember that.

Instead of brands banging their proverbial heads against walls trying to figure out what to write and how to afford the effort, why not empower brand advocates to blog, vlog, tweet and post about their most positive brand experiences? Of course, you’ll still need a professional staff to vet and review copy. But if properly engaged there’s a literal army out there of consumers looking to continue your brand’s unique conversation across multiple channels.

And I’m one of your loyal foot soldiers – armed and ready to serve.

Are you a brand advocate? If so, what about the brand inspires your spreading their good word and how do you do it? Share your thoughts with the ThinkInk community in the section below.

Top mobile technologies to watch out for in 2013

I recently spoke with Mobile Marketer's Rimma Kats about 2013's top mobile technology innovations and why existing technology is here to stay.

You can read the full article below, as well as on Mobile Marketer.

Let me know what your predictions for mobile technology in 2013 are in the comments below.

Top mobile technologies to watch out for in 2013

Augmented reality brings content to life

It is evident that mobile has captured the attention of many top brands, and technologies such as QR codes and augmented reality have helped pave the way. Now, marketers are looking for the next big trend that will drive customer interactions and, ultimately, sales.

Mobile is becoming the go-to medium for many companies and marketers are integrating it into their day-to-day initiatives. In 2013, marketers must make a bigger investment into the space and look at new technologies to help develop deeper relationships with consumers.

“Mobile provides marketers a wealth of creative opportunities to get their messages in front of mobile subscribers – for example, geo-fenced advertising, scanable codes, Shazam, and interstitial ads on music and video apps,” said Tim Richie, vice president of North American sales and account management at Open Market.

“Ultimately, each of these technologies aims to do the same thing: drive consumers to action by putting a powerful message in front them when they are open to receiving it,” he said. “This trend and the technologies that support it will gain momentum in 2013, helping marketers deliver more value.

“Businesses are facing many technology challenges today – sharing data across systems and teams, managing multiple vendor solutions, and increasing user demands. This year, companies will look to consolidate systems, and leverage cloud-based solutions for cost savings and improved SLAs. Technology that is modular, flexible and enables a number of use cases will be most attractive to enterprises.”

Key message
To be most effective, marketers need to deliver a message that resonates with the consumer at a relevant time via the appropriate messaging channel.

The extent to which a marketer can execute on this objective dictates their success, per Mr. Ritchie.

Marketers should aggressively seek out flexible messaging systems that facilitate their communications to consumers across multiple channels.

“Over several years, marketers have struggled to identify how mobile fits into the marketing mix,” Mr. Ritchie said. “Initially, it was an interesting experiment, then Apple ushered in the age of mobile applications which became a key mobile strategy.

“Increasingly mobile has become a business-as-usual communication channel alongside more traditional communication and advertising methods,” he said. “The real growth in mobile adoption for businesses in 2013 won’t be sexy.

“Businesses will find ways to leverage mobile to replace or augment existing systems and processes to become more efficient and reduce costs."

Mobile payments
Last year, many were speculating that 2012 was going to be the year of mobile payments and near-field communication.

That proved to not be the case.

However, mobile payments and NFC are seeing a great outlook this year.

Mobile payments will no doubt play a big role this year.

Consumers are becoming more comfortable making purchases using their smartphones and companies such as Starbucks, McDonald’s and Dunkin’ Donuts are making it easy for consumers to order their favorite meals and beverages and pay for it using their mobile phone.

Furthermore, Apple has helped in making mobile commerce a success through its recent Passbook implementation, which helps build on loyalty.

"We should see more mass availability of mobile payments,” said Jeff Hasen, chief marketing officer of Hipcricket, New York.

“While its ridiculous to think that the mobile wallet will make cash extinct by Tuesday, businesses will successfully compete if they make the in-store buying experience painless through Square and the like,” he said. “The wallet hype will continue but is years from becoming a mass activity.

"Overall, mobile will get more of the marketing spend with those who succeed being more pragmatic than groundbreaking with brand new mobile products. SXSW will get lots of headlines, but it’s not the place to go to build a foundational mobile program."

Integrated experiences
According to Wilson Kerr, vice president of business sales at Unbound Commerce, Boston, 2013 will be all about mobile-triggered consumer interactions.

“Now that having an integrated mobile commerce site is established as essential, my prediction is that the next big trend will be around tracked mobile-triggered consumer interaction, at the point-of-sale,” Mr. Kerr said.

“Brands and retailers can drive incremental, secondary, add-on sales and tracked consumer engagement by tapping real-world mobile ‘triggerpoint marketing’ opportunities,” he said.

“QR codes mean adding mobile triggerpoints at point-of-sale is easy and economical. NFC will start to become ubiquitous in smartphones in 2013 and, as such, is something smart marketers are learning about now.”

While most brand and retailer marketing departments lag behind, consumers are thirsty for more ways to interact and engage via mobile.

“The potential of mobile is no longer the story,” Mr. Kerr said. “The story is now the day-to-day reality, regarding the fact that mobile is poised to drive the lion share of tracked consumer interaction and related purchases.

“PayPal saw a 250 percent increase in mobile payments in 2012 and expects to process $20 billion in 2013,” he said. “Additionally, 15 percent of all ecommerce in 2013 will be conducted via mobile and tablet commerce is growing faster than mobile did.

“A mobile site is no longer something that can be covered by a screen scraped derivative of an ecommerce site. Mobile and tablet commerce sites should be powered by an API ecommerce integration, so they can be distinct channels with distinct mobile marketing opportunities.”

Existing technology
This year we’re going to see companies take the technology that exists and make more use of it, per Vanessa Horwell, chief visibility officer of ThinkInk PR.

“I don’t think we’re going to see an explosion of NFC, but we’re going to see more utilization,” Ms. Horwell said. “Also the key things we’re going to see will revolve around data and analytics.

“We know that consumers are engaged, but how are businesses and marketers going to use that data?” she said. “They have to do something actionable with the data.

“That’s going to be the challenge for any types of marketers. Taking action with all that information. That’s a key thing this year.”

Loyalty To Go: How Mobile is Remaking Guest Allegiance

This article by Vanessa Horwell, Chief Visibility Officer of ThinkInk, originally appeared in the Hotel Business Review on 11/19/12. 

The ballots are in. The votes tallied. And President Barack Obama successfully avoided joining the more than 12 million unemployed. While pundits will argue his re-election was as much about an aggressive (and expensive) negative ad campaign as it was substance, there will be just as many supporters who will point to his recent speeches and swearing in address earlier and say they’re loyal to the man who offered a list of promises – prevented financial meltdown, began an economic recovery, fixed healthcare, hunted down Osama Bin Laden – and delivered, and so on.

Yet supporters will say even more. Obama loyalty remains multi-faceted: from his cool, calm, demeanor, to his matter-of-fact style, to his reliance on tech-savvy youth to help get out the vote via smartphones and tablets, to his all-too-human human blunders, (remember the Beer Summit?) people were also loyal to the person for good or for worse, and not the politics. As President Obama placed his hand on the bible and swore to “preserve, protect, and defend the Constitution of the United States,” his immediate concerns over citizen loyalty came to a close.

But when it comes to industry loyalty, and specifically the hospitality sector, hotel operations don’t run in four year cycles, and nor can they take presidential retreats to Camp David to collect their thoughts. Committing to loyalty is a constant process, where even the slightest misstep could impact occupancy rates and the equally important revenue per available room, (REVPAR). In these still-challenging economic times, for hotels as in other industries, retaining existing patrons – like voters – is vital. And to a large extent, mobile is the ideal medium to drive that engagement. While 2012 has proven to be a banner year for mobile and its incorporation into hotel hospitality and loyalty, 2013 is where hoteliers must get creative. They must move beyond mobile’s low-hanging fruit e.g. mobile booking, checkout, trip itinerary planning and really break new ground.

Why?

Because the above mobile amenities list is becoming as standard (and unimpressive) as the placard boasts of “in-room color TV.” As the New Year removes its training wheels, sobering itself from the parties and hoopla that closed out 2012, the new “loyalty party” is fast moving toward the realm of social media. Only through the combination loyalty programs and social media, and the ways in which guests are being empowered to become the next generation of brand ambassadors is where the as yet uncharted hotel loyalty territory lies.

The Rise of “Socialized Loyalty”

Just like the President’s mislabeled healthcare reform, “socialized loyalty” is not about a government or hospitality takeover of social media – far from it. But it is recognition that social media, specifically mobile social media is rapidly becoming standard and a must-have component for hotel loyalty programs.

In the last 12 months, US smartphone adoption has continued to surge and by all accounts, has exceeded critical mass. Business and leisure travelers alike now enjoy adoption rates above the 56% U.S. average (around 84% for business travelers) and others report that smartphones and tablets might be the world’s fastest spreading technology ever, beating out telephones, electricity, radio, television, computers, and others. Or put another way, according to a recent Flurry report, iOS and Android adoption rates are moving 10 times faster than the 1980s PC revolution, twice the speed of the 1990s Internet explosion, and triple the speed of social network adoption.

And with 3G broadband mobile Internet access nearly ubiquitous and 4G access being provided by Verizon, AT&T and Sprint in 2012 and T-Mobile joining the ranks in 2013, it’s clear consumers crave constant connectivity – even if many consumers are still uncertain what differentiates one broadband carrier from another.

Increasingly that connectivity includes their social media connections to brands as well as people. Consider these five staggering stats:

·         91% of adults use social media regularly

·         70% of adult “social networkers” shop online – which bodes well for loyalty programs

·         Every minute of the day 684,478 pieces of content are shared on Facebook

·         Facebook enjoyed a 67% year over year mobile growth rate

·         28% of consumers share deals, (coupons and discounts) through social media

So if social media is where consumers are already heading in other facets of their lives, why can’t hotels move their mobile initiatives one step further and join the social media conversation?

Socializing Guest Allegiance

The good news is that hotels are beginning to get the mobile message and are readily taking to social media in new and novel ways. But before we address those, one of the most effective approaches is for hotels to incentivize guest social media usage through loyalty programs. In July 2012, MGM Resorts International expanded the provisions of its M life loyalty rewards program to include points accumulation and tier status upgrades for members of various social media sites including, Twitter, Facebook, Foursquare and Instagram. All members have to do is rely on their smartphone’s embedded location-based technology so that their physical presence and social media shout out (worth 500 credits per tweet, Facebook post or Instagram picture) at MGM-owned properties in Las Vegas, Mississippi, and Detroit generates excitement and buzz from other would-be guests. Doing so earns members rewards that can be used beyond the casino floor, like restaurant dining. Dedicated loyalty members can rack up 6,000 credits each day and up to 30,000 a year.

Essentially, guests are rewarded for what they’re already doing naturally even before the rise of social media: telling people, both friend and stranger alike, that they’re at “such and such” a location, have had a positive experience, and directly and indirectly nudging others to “go check it out.”

Looking ahead, future use of social media and loyalty may involve aspects beyond the digital shout out and include items like gaming – another online and mobile activity that’s become increasingly social. Staying within the casino-hotel sphere, imagine if a casino offered a virtual gaming experience where future guests could play poker against other future guests and all of the winnings linked to one’s loyalty program membership? Rather than waiting for guests to arrive, they’ve already been incentivized possibly weeks before their journey. And, the more casino-hotels that offer such mobile amenities, the more their allegiance will be secure. Casino-hotels (and any others looking to drive guest allegiance via mobile loyalty) that fail to keep up will essentially be rolling snake eyes.

Caution in the Coming Quarter

While linking mobile, social media, and loyalty together are an essential 2013 next step, equally important is to be mindful of the basics and the realities of the current global economy. Even though stock markets have settled some following the presidential election, the world’s economic outlook remains uncertain at best: Europe’s debt crisis looms like an unpaid (and unwelcomed) hotel guest bill and the US “fiscal cliff” (the mandatory government spending cuts that went into effect some three weeks ago) is just beginning to be managed and dealt with.

That being said, there’s no denying that for hoteliers, 2012 was a positive year. As of this article’s writing, the week of October 2012 saw gains in three important year-to-date metrics: REVPAR grew 11%, to $71.42, occupancy rose 6% to 65.1% and the average daily room rate was up nearly 5% to $109.65.

But the proper implementation of social media and mobile means that it must be done in a way that doesn’t upset other budgets, or undermine the basics of what hotel brands do well: provide an unsurpassed, unique brick and mortar (read: traditional) customer experience. If the basics can’t be covered, mobile’s next-level incorporation may have to wait. Besides, assuming your hotel brand has been successful in the years leading up to 2013, it’s likely you’ve earned at least some leeway with your most loyal guests – before they reconsider.

The ballots may be in for the President and the Electoral votes cast. But in the early weeks of 2013, when it comes to the latest in lodging loyalty, hotel guests have yet to cast theirs. The hotel “election season” is just beginning and it’s looking like the merging of social media with loyalty programs might break the race wide open.

A new race is on and all hotels are up for a vote!

This article by Vanessa Horwell, Chief Visibility Officer of ThinkInk, originally appeared in the Hotel Business Review on 11/19/12. 

Communication Gap and an Un-American Decision: Sandy Sinks More Than Property

By: Vanessa Horwell, Chief Visibility Officer

Sometimes 140-characters isn’t enough.

In my continuing efforts to practice what we preach at ThinkInk when it comes to the importance of social media, yesterday I tweeted about two retailers, The Gap, and American Apparel and their careless  (some would add heartless and foolish to the list of descriptors) marketing ploy. Both tried to weasel their way into “competitive advantage” following the devastation and destruction wrought across the Northeast and Mid-Atlantic by hurricane/super storm/nor’easter/post-tropical storm/Frankenstorm Sandy.

Both companies reached the absurd conclusion that marketing to customers during a tempest that rivaled the ferociousness of weather not seen since 1888 was a smart idea - and a novel way to win loyalty.

Wrong. And this Tweeter needed to go on her own tear.

American Apparel’s 36-hour, 20% off “in case you’re bored” sale was geared toward residents in nine of the 11 states in the grip of the crisis: New York, New Jersey, Pennsylvania, Maryland, Delaware, Virginia, North Carolina, Connecticut, and Massachusetts. Why Rhode Island, a New England state where summer cottages fell into the sea and West Virginia, pounded with some 3 ft. of snow in higher elevations, were left off the “generous” list remains unknown. For its part in the PR fail, Gap sent out a tweet that while telling people to be safe, also nudged them to consider a dose of retail therapy.

Needless to say, the public reaction has been swift and the Twitterverse is alive with derision, with “the lowest of low,” being a very common tweeted and re-tweeted sentiment.

Misery loves company as the saying goes, so of course there are plenty of examples of Gap and American Apparel-like PR blunders. Just last year Kenneth Cole’s Twitter account tweeted:

“Millions are in uproar in #Cairo. Rumor is they heard our new spring collection is now available online.”

Really?

But returning to the recent crisis at hand, as a PR professional I wanted to go on record and add my voice to the chorus of disapproval. It’s truly disturbing that someone, somewhere, likely paid a decent to very decent salary, had the light bulb go off in their head and thought, “Wow, I’ve got the brainiest of ideas! Let’s use a natural disaster for our own gain and corporate greed.”

Well, I’m sure that in many Gaps and American Apparels across the Northeast and Mid-Atlantic their light bulbs (and their heat, and phone lines, and computer systems) really are off now. Perhaps time spent in the cold and dark, thrown back for a moment to simpler times, will remind executives and higher ups at these retailers and beyond that the almighty dollar is not always king.

Many of our clients speak about the importance of driving quality experiences. Having a dose of humility and knowing when not to hard sell, soft sell, or anything-else sell is also a respectful way to move beyond the pettiness and triviality of our daily lives.

When New Jersey Governor Chris Christie, a staunch Republican, praises President Obama for a job well done handling this historic calamity, you know you’re approaching the humility, honesty and transparency of which I write.

Eventually, every state impacted by Sandy’s arrival will rebuild. Beaches will open for summer. Amusement parks will charge overpriced tickets. Communities will come together and the lights will come back on. Just know that for every American Apparel and Gap blunder, there are other companies, nonprofits, communication companies, and everyday citizens all-too-eager to lend a hand and help.

None of them come 20% off. They’ll be there 100%.

Shame on American Apparel and the Gap – two companies whose despicable actions won’t fast be lost to the waves, nor this PR executive.

And if you would like to help your fellow citizens who were impacted by the storms, here are a couple of links where you can donate money or blood to the relief efforts.  If they were half-clever, that’s what American Apparel and Gap should have been encouraging people to do, not banking on others’ misfortune.

Engagement After The Fact: How Mobile Technology is Becoming a Hotel’s Best Post-Stay Emissary to Maintain the Guest Connection After Checkout

The following article by Vanessa Horwell, Chief Visibility Officer of ThinkInk, originally appeared on Hotel Executive.

“A good rule to remember is that a guest is always a guest once they have stayed with you and the services you provide.”
– Scott Nadel, Chief Operating Officer, DMC Hotels/Dhillon Management.

It may not seem like a profound statement or idea, but it’s surprising how so many hotel brands and hoteliers fail to remember and act on this simple piece of advice. At its heart is the optimistic, glass half full notion, that in a perfect scenario, the customer experience never truly ends – not if you’re trying to engage guests and keep them loyal. It just evolves into different stages and levels of outreach and engagement. For once a guest leaves your hotel, business and leisure travelers alike often begin planning for their next trip, eager to lock in competitive prices, air travel benefits and potential room upgrades. For guests, barring something unexpected or calamitous, another getaway is always around the corner. And once they turn that proverbial corner, your hotel should be the first one they think of and consider. But it isn’t unless you are creating some form of continued engagement after they’ve checked out of your property.

The Start of Something Beautiful

In the last few years, mobile technology in the form of feature phones, smartphones and tablets have gone far to reinvent and re-imagine the continuing customer experience. While much has been written about mobile’s pre-stay and in-stay possibilities, including mobile booking, mobile checkout and a host of in-room and on-site hotel amenities, the post-stay experience has been largely ignored or thrown in as a last-paragraph addendum. But connecting with a guest after the bellhop has delivered bags and the bill paid is equally important and should be considered not the last step in a transaction, but the first step in a future stay. Think of it is as the start of a long, meaningful relationship – if done properly.

Restaurants and Mom’n’ Pop stores are often fond of hanging from their doors vintage red and white signs that read, “Please come again soon” or “Thank you for your business.” But for hotels looking to maximize mobile, turning the medium into the ultimate post-stay emissary, “please come again soon” shouldn’t be a siloed request – it should be an expectation that is carefully and non-intrusively cultivated. In other words, mobile can (and should) be a privacy-respecting approach that entices, not enrages and can include follow-up emails, Twitter and Facebook interaction, digital surveys, future deals and discounts, as well as providing the transparency for open guest dialogue, and the granting of reviews, whether they’re positive or negative.

There’s no getting around the fact that we live in a what-have-you-done-for-me lately culture. Failure to connect with a guest via mobile following their stay is like saying a brand doesn’t care. In these still-uncertain economic times, hoteliers would be wise to avoid that perception at all costs.

Hitting “Send” at the End: Why Mobile’s a Must

But before delving head first into the specifics as to what mobile can do for improving the post-stay experience, it’s important to recognize why mobile has become such a dominant player in the hospitality industry to begin with. For starters, mobile has in only a few short years, grown to become the dominant everywhere and anywhere technology. Nearly half (46%) of all US adults own a smartphone, says the most recent Pew findings, and tablets enjoyed a significant 2011 holiday season uptick too, nearly doubling to a 19% percent adoption rate. Combined, the adoption rate for smartphone owners who also own a tablet is expected to grow by 40% by 2016, according to Javelin Strategy & Research. Already consumers use their mobile devices to “window shop,” purchase goods, price compare, book flights, arrange travel plans and discuss these transactions with their friends via social media sites like Facebook, Twitter, Foursquare and others. Mcommerce, while still only a fraction of overall commerce spending, has grown considerably and if current forecasts prove accurate, global transaction values could grow to $37 billion by 2016.

Airlines have been great examples of how to monetize the mobile experience and to weave its pocket-powered potential into their ancillary revenue profitability models – at least during pre-flight and in-flight. Air passengers not only expect but demand that their mobile devices keep them connected pre-flight and even pre-gate. In fact, a recent study by PC Housing, a temporary housing corporate provider, showed that business travelers are all-but addicted to their mobile devices. Most are between 25-50 years old, are workaholics and they carry three to four mobile devices – 95% own a smartphone and 64% own a tablet. Both percentages show a marked increase from 2011 with 44% and 33% adoptions rates respectively. And bringing it back to the hotel, fully 90% of these mostly male (60%) travelers expect WIFI connection at their place of lodging.

If travelers expect mobile to be a critical component to all aspects of their lives, there’s no reason why the same expectations wouldn’t apply at the end of their travel experience as they leave the hotel lobby.

Socializing the Digital Post-Stay Emissary

One of the most important post-stay tactics hoteliers should consider has garnered a good deal of press lately but it deserves constant restatement. Since the first lodgings opened their doors, guests have remained eager to discuss their travel and hotel experiences. Customers will discuss their bad experiences more than their good ones, and hotel guests are no different.

But that’s why mobile and social media can be such powerful teammates. Hotels that design their mobile websites and apps should consider letting guests have the freedom to write about their experience – no matter its positive or negative spin. Doing so instills a perceived sense of honesty, trust and transparency. And confronting negative reviews with follow-up emails or phone calls demonstrates earnestness in learning from past mistakes. Wyndham Hotel Group, for instance, is the latest hotel chain to make such an offer. In March 2012 Wyndham began displaying TripAdvisor ratings and customer reviews. The program began on the Wyndham Rewards loyalty program website, but the company plans to expand that offering. Whndham’s move was but the latest of a slew of hotels that have embraced this level of post-stay guest communication. Starwood initiated website-published customer reviews in October, along with Marriot and Four Seasons shortly thereafter. Meanwhile Hilton Worldwide said they would be adding customer reviews by the end of the year.

Together these steps reinforce what Kate Zabriskie, author of Customer Service Excellence: How to Deliver Value to Today’s Busy Customer has said about the customer experience: “The customer’s perception is your reality.” The bottom line is that with Facebook averaging around 500 million mobile users per month, and upward of 300 million photos were uploaded (many directly from high megapixel smartphone cameras) guests are already posting and sharing their travel experience. Hotels have an opportunity to get ahead of this communications bandwagon, not by controlling the online conversation per se, but encouraging its redirection back toward a hotel’s mobile website, app, or standard web landing page.

From the Soft Sell to the Harder Sell: Discounts, Deals and Follow-ups

If the possibility of continuing mobile dialogue and willingness to post even negative reviews is about “soft selling” a hotel brand – indirectly trumpeting it’s eagerness to please guests even after they’ve left, then the second post stay mobile benefit comes down to the “hard sell,” or more aggressive marketing tactics like discounts, package deals and the possibility of upgrades. Here, email and SMS can work just as effectively as social media. But if a hotel tries to attract repeat guests with rich media or augmented reality maps showcasing a hotels’ latest improvements or a promotional video, smartphones and better still, tablets (and laptops), are far more capable of delivering that content.

But if budgets are strained, simpler approaches may work best. Telluride Alpine Lodging, of Telluride Colorado, for instance, owner of several branded hotels, offers 10% discounts to: repeat guests, military veterans or AAA members. On the other side of the country, VillaDirect vacation homes, of Kissimmee, Florida, (specializing in rented vacation homes near Orland and Disney World) also offers returning guests discounts divided into three tiers: silver, gold and platinum with discount rates of 5% to 7.5%. A quick check on the company’s Facebook page reveals 48,289 “likes,” and as of this article’s writing, 412 people were talking about the company. In addition, the company’s Twitter page showed 155 followers. Increasingly, mobile will be the dominant way in which users access this information.


Much More Than a Digital Post Card

It’s hard to believe that it wasn’t too long ago that hotels corresponded with their guests via traditional post cards, follow up thank you notes, and the occasional six month phone call. While some hotels continue this tradition out of a sense of nostalgia, its purpose has lost much of its meaning – especially in view of the mobile and digital times we live in. The greatest difference between then and now: mobile allows the potential for a constant two-way dialogue through multiple communication channels (social media, email, SMS) all in a single device.

Too often mobile’s hotel progress has been consigned to a guest’s pre-trip planning and in-trip (and in-room) lodging amenities. But the reality is, when a customer checks out, their next check in could be only a matter of weeks or months away. Guests will always be guests as Nadel rightly points out, but whether or not they return, is what matters most. Sam Walton, the Founder of Wal-Mart, characterized a customers’ importance like this:

“There is only one boss. The customer. And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else.”

Mobile is increasingly the ideal way to prevent that from happening, interacting with guests, offering deals and discounts, and providing a medium for them to discuss their travel experience anywhere and everywhere – and long after they’ve left your hotel.

The following article by Vanessa Horwell, Chief Visibility Officer of ThinkInk, originally appeared on Hotel Executive.

Why Groupon WON’T Save Your Company

Current economic environment notwithstanding, most consumers are attracted by ways to save money - not in their bank account, but on stuff - because they are going to spend. Businesses, naturally, oblige by offering “deals,” the growth of which has exploded thanks to Groupon, LivingSocial, Daily Deal and the dozens of other wannabes. Of course, the growing number of daily deals appeal to our human nature – getting the best offer before the next person does. One doesn’t have to be a coupon hoarder or penny pincher to fall in that category, and Groupon has been most “helpful” in transforming so many of us into online deal hunters.

In less than a year, the “Groupon experience” has become incredibly popular with retailers and restaurants trying solicit new customers and get the cash register ca-chinging again. But if they expect a lot of these new customers to jump all over non-Groupon prices after paying heavily discounted rates at the start of the relationship, they are delusional and tragically mistaken.

Last month, I posted a comment on a Loyalty group I’m a member of on LinkedIn:

“While relatively innovative, Groupon is not a company that helps brands build loyalty. Because Groupon offers consumers discounted goods/services from an ever-changing variety of companies, it inherently encourages consumers to purchase a scattershot of different items, driven by heavy discounts offered during a short timetable - not through developing brand loyalty. The process works against loyalty because it drives consumers to try many new brands – rather than sticking with one brand consistently - all on a single factor. Price. Groupon essentially says to consumers, why stick with the usual go-to salon/restaurant/bookstore when you can try this coupon for another, different company that's much cheaper than what you're probably paying? Companies may increase business by using Groupon to bring in new consumers who might not normally try their brand, but in terms of encouraging long-term brand loyalty the service simply isn’t equipped to offer real results. I've always argued that when marketers go down the discount highway, it's almost impossible to turn back around. Think about it... it's highly unlikely that a consumer making a purchase decision based on a percentage discount from an unknown retailer/brand will return to that retailer/brand for "non-Groupon" prices. Why would they? Instead, they'll simply look for the next bargain delivered by Groupon from yet another retailer/brand... and so on.”

That discussion is gaining a lot of traction as the “Great Groupon Debate” is argued among retail marketers and business reporters alike:

- Bryon Morrison, president of The Marketing Arm's wireless practice discusses the cons of Groupon in his article featured in Mobile Commerce Daily Countering the Groupon effect and linking tactics to strategy
- And Fred Minnick, writing for Stores, asks if daily deal sites good or bad for retail in his article “The Great Groupon Debate”

In a recent Slate feature, Noreen Malone lived off Groupon for a week. There was a lot of effort involved (20-minute walks each way for a coffee shop? No thanks.) and a little pressure (don't forget your coupon!), and Malone noted that it's also an easy way to be blinded by the deals: “We might not know, sitting in our cubicles, that we want these things—but take 50 percent off the sticker price, and suddenly we do,” she said.

And that's the trouble with Groupon. In a social deals-type environment, we look at sticker price, not at brand value. Groupon is less about the brand, more about the price. Why go back and pay full rates if you're always presented with something new—and that deal you grabbed wasn't even nearby?

Yes, we are even willing to go out of our way for a good deal, but will we return to the same place when we don't have a chance at a discount? Fat chance. In a recent survey by Cooper Murphy Copywriters, 82 percent of companies that had Groupon promotions in the past said that they were unhappy with the level of repeat business they received after running their promotion.

To continue Groupon momentum, a company might consider another deal, and another one... and they're continuing that cycle of margin giveaways in the process, not to mention alienating loyal customers who have been paying standard prices for months or even years. With an influx of new customers waving deals, will the regulars have the same level of service, the same experience?

It's better to concentrate on customer connections in the long run. Keeping costs low for all buyers—not just the Groupon set—will ensure repeat customers. Specialized pricing and competitive edge can hook new clients, but how can we keep customers coming back? is a better question than how low can prices go this month?

There is no quick fix to finding new customers – any marketer worth their grain in salt will tell you. The experiences that consumers are having with Groupon like not being able to redeem coupons for 4+ months (personal story that I’ll share with you next week) or finding out that the deals are only available at very limited times will and work against Groupon, the business and their brand.

My advice? Treat Groupon and its ilk with caution and think about long term ways to connect with customers to build profits – not give away margins and alienate existing customers through deep discounts.