big data marketing - hftp · company profile: ts&c •founded in 2005 in munich •partner of...

Big Data Marketinglike the OTA’s

Dr. Michael ToedtCEO, TS&C GmbH

dailypoint.com

#dailypoint

1© Michael Toedt, TS&C - 2015

Company Profile: TS&C

• Founded in 2005 in Munich• Partner of leading hotel

societies• 30 employees• 800 hotel clients• dailypoint Big Data Marketing

and CRM Software• Consulting • Lecturer• Researcher• Author

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PIONEERs IN BIG DATA© Michael Toedt, TS&C - 2015

Why we are here?

2015: Only 24%of all bookings are

direct bookings

Huge negative effects on profitability!!!

3© Michael Toedt, TS&C - 2015

WHY ARE OTA‘S SO SUCCESSFUL?

The question to answer:

4© Michael Toedt, TS&C - 2015

Why are OTA‘S so successful?

Amazon started 1995

John Bezos vision:

Talking to the right people, at the

right time and offering the rightproducts.

Today: 53% of all online shopping starts at Amazon

Google 36%, eBay 7%

5© Michael Toedt, TS&C - 2015

Why are OTA‘S so successful?

• Amazon was never a book store – it was a Big Data company from the beginning on!

• OTA’s are no Hotel booking platforms, they are data driven companies!

• Hotel companies regard themselves as hoteliers. The hotel is just the product!

Hotels must be guest centric,data centric to become successful again!

6© Michael Toedt, TS&C - 2015

The success formula

Big Data companies do not ask, they listen.

They listen to the data!

• What does a customer buy?buying patterns, interests, booking frequencies, purchasing power…

• What does a customer say?Social web: Facebook, evaluation platforms…

• What is a customer doing?open emails, click on links, visit website, which pages…

7© Michael Toedt, TS&C - 2015

Cleaning

The concept of Big Data

Collecting Analyzing Acting

In a living & learning environment

8© Michael Toedt, TS&C - 2015

Big Data

• OTA’s know exactly who their customers are!

• OTA’s do not explicitly ask

• OTA’s implicit what the customer wants

Hotel companies who ask their guests what they want showing their

data impotence!9© Michael Toedt, TS&C - 2015

Big Data marketing – simplified

COMPLAINT-M.

RE-TARGETING

MARKETING AUTOM.

ANALYTICSWEB

EMAIL

Res.System

QM$ VALUE €INTERESTS

10© Michael Toedt, TS&C - 2015

The Hotel Business

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SALES

Loyalty

Lettershop

Concierge

ComplaintQM

Up-selling

Html Conf.

E-directory

CRS

App

facebooktwitter post mail

emailsms

CHANNELStripadvisor

Google+

CO

RE

PR

OC

ESS-

M.

OTH

ERS

Wifi

Smart TV

Hotels run about 15 different Systems with relevant guest data!

WhatsApp

POSPMSFOSCIS

CMS

IBE

Table Res.

Shop

Log Files

Vouchers

Forms

Extra-net

Loyalty ENL

WEBSITE

© Michael Toedt, TS&C - 2015

Hotel status quo

COMPLAINT-M.

RE-TARGETING

MARKETING AUTOM.

ANALYTICSWEB

EMAIL

PMS,POS …

QM

12

NO CONNECTIONS

© Michael Toedt, TS&C - 2015

Powerfull data locked in different systems

but not usable at all

THE RESULT

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BIG DATA IT

A new IT environment is needed!

14© Michael Toedt, TS&C - 2015

Why a new IT-structure?

The 5 characteristics of Big Data:

• a huge amount of data Volume

• handle many different sources Variety• processing much data in real-time

Velocity

• cleaning data Veracity• linking and tagging data throughout the

universe Value15© Michael Toedt, TS&C - 2015

Big Data IT-structure

THE HEART

MIDDLEWARE

BIG DATA MODULES

Master Data Management (DQM)

Big Data Warehouse

Business Intelligence

CampaignManagement

Quality Management

OPERATIONAL LEVEL(EXISTING)

PMS WEBPOS EMS … …

BIG

DA

TA IT STR

UC

TUR

ECOMMUNICATION CHANNELSEmail – Website – Social Media – App – Offline …

16© Michael Toedt, TS&C - 2015

Big Data examples

Smart Couponing:

Turn lookers into bookersNewsletter subscribers who haven‘t booked within 4 weeks receive a 5 % voucher, valid 4 weeks on the hotel website

Result (within 14 months):

358 direct bookings; 990 nights

Distribution costs: 3.07%

17© Michael Toedt, TS&C - 2015

Big Data examples

Smart Couponing:

Booking ReminderPeople who haven’t booked a stay within the last 12 months receive a $ 40 voucher, valid 4 weeks on the hotel website

Result (within 14 months):

47,210 direct bookings; 139,079 nights

Distribution costs: 5.31%

18© Michael Toedt, TS&C - 2015

Retargeting

19© Michael Toedt, TS&C - 2015

Pre-Stay: Revenue driver

The more a customer knows about a

hotel, the more he spends!

Results for a resort hotel (avg. Length of stay: 3,8 days)

+ 21 % F&B Revenue

+ 28 % Other Revenue

+ 17 % Total Revenue

20© Michael Toedt, TS&C - 2015

WHY IS COMMUNICATION FOR HOTELS SO IMPORTANT?

Big Data: Evolution of Marketing

21© Michael Toedt, TS&C - 2015

Loyalty

Hotel loyalty model

Satis-faction

Time

Frequency

Media Channel

The influence of communication

on loyalty: 11 %© Michael Toedt, TS&C - 2015 22

Why is communication so important?

• Location based product: guests

have to pass by to remember your hotel!

• Small marketing budgets – no

brand campaigns reminds the guest about his experiences

• Communication-Overload – If you

don‘t communicate, the customer forgets you!

23© Michael Toedt, TS&C - 2015

Remember!

• If a guest stays 3 nights at your

property, he is 362 days on his own.

• Without communication, no

remembering effects are generated

• No remembering effects mean less bookings!

24© Michael Toedt, TS&C - 2015

Communication frequency

OTA‘s have learned their lessons!

They send 2 to 5 newsletters per week, some even daily!

Be cautious: Quality Matters

25© Michael Toedt, TS&C - 2015

Content marketing

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We are all different!

No target groups any more.

Each guest is its own target!

Micro-Segmentation

© Michael Toedt, TS&C - 2015

The world of OTA communication

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Communication overload

Need to create

remembering effects

Raise

communication frequency

Deliver

relevant information

Requires a

big data guest profile

Content marketing

capabilities

Marketing automation

Loyaltyincrease booking

frequency

© Michael Toedt, TS&C - 2015

SUMMARY28© Michael Toedt, TS&C - 2015

BIG DATA FIRST OF ALL:

CONCENTRATE ON STRUCTURED DATA

29© Michael Toedt, TS&C - 2015

Big Data marketing – simplified

COMPLAINT-M.

RE-TARGETING

MARKETING AUTOM.

ANALYTICSWEB

EMAIL

PMS,POS …

QM$ VALUE €INTERESTS

30© Michael Toedt, TS&C - 2015

Don‘t become the next Kodak!

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It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change! Charles Darwin

© Michael Toedt, TS&C - 2015

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„Knowing is not enough; we must apply. Willing is not enough; we must do.“Johann Wolfgang von Goethe

© Michael Toedt, TS&C - 2015

Now is the time!

QUESTIONS33© Michael Toedt, TS&C - 2015

TS&C GmbH

Michael.T@dailypoint.com@MT_TSC #dailypoint

LinkedIn, Xing, Facebook, Twitter

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© Michael Toedt, TS&C - 2015