Étiquette : SME

Catégories
etourism and technology Management Marketing @en

Web marketing for SMEs

You may think it’s impossible to increase your company’s Internet effectiveness with a marketing budget of only $3,000, but a variety of low‑cost strategies exist, whether you need to enhance your Web presence or conduct an email campaign. According to Merrill Lynch, over 39% of all travel‑related transactions will be conducted online by 2007. Many hotels already book over half their rooms online. For other businesses, embracing the World Wide Web is more difficult and takes longer to produce results.

Start with a Website

The first basic principle is that no business is ever too small for a website. Many web design tools do not even require specialized computer knowledge. This accessibility is just one reason that the number of online blogs has mushroomed in the last year (over 100 million).

However, the best solution is to call on the services of a web design firm, who will be able to produce professionally looking content that delivers the desired result. By the way, not all site design techniques are created equal. It is crucial that the selected supplier be well-versed in tourism marketing. On average, a small inn would need to set aside a budget of $2,000 to $4,000 for the design and creation of a website.

Search engine optimization

If a site is well designed, it will be easily found by search engines. However, there are many strategies for increasing site traffic. The technique of search engine optimization can be very effective, but it may be too expensive for organizations with limited budgets.

Another, less expensive, way to increase visibility is to get other sites to include links to yours. Link popularity is an important criterion used by search engines like Google and Yahoo when ranking sites in search results. Incoming links to a site are interpreted as a « vote of confidence » by search engines and are considered in placement rankings. In a Google search using the same terms, this can make the difference between appearing on page 1 or page 10. Regardless of the strategy used, time is also an important factor. Often, the longer a site has been online, the more success it enjoys with search engines.

Develop networking opportunities

One does not need an enormous marketing budget to build online business connections, simply some time. Here are some strategies for increasing the number of sites with links to yours:

  • Explore and identify the main points of contact with potential customers. Place a link to your organization on sites containing some tourism-related content such as your local business development centre, a directory of small hotels and inns, a tourist attraction in your region, a snowmobile club, your regional tourism association, etc.
  • Create links on sites frequented by potential customers, even if they are not exactly travel-related (e.g., a bird club, wedding planner, chamber of commerce, etc.).
  • Target only high-quality sites relevant to both your product and your clientele.
  • Ensure your website address is clearly visible in all your communication tools, especially your email signature.

One way to assess the performance of your referencing strategy and the true contribution of your business partners, in terms of incoming links, is through tracking tools such as Alexa. This site instantly supplies very pertinent data on any website, completely free of charge. As an example, we used Alexa to analyze the site for Auberge des Falaises in Charlevoix (Illustration 1). Although not an exact science, Alexa produces statistics like traffic generated, number of pages visited, percentage increase in the past three months, etc. If a site generates enough traffic, one can also get graphs illustrating the breakdown of visitors and visits during a specified time period.

Illustration 1

Alexa1

The Related Links section in particular contains highly relevant information to help you better understand the influence of other sites in relation to your organization. Alexa draws up a list of the sites that send visitors to your site (Illustration 2). This data enables you to quickly see which sites send the most visitors and their traffic ranking, whether you are familiar with these sites or unaware of their existence.

Illustration 2

Alexa2

Finally, it is interesting to find out where else your visitors browse. If you have a lot of traffic but very few transactions, this information will give you a better idea of where your lost customers are going. You will also find out more about your potential customers’ interests. In our example, the most popular site among browsers of the Auberge des Falaises site was that of the Corporation du parc régional du mont Grand-Fonds (Illustration 3).

Illustration 3

Alexa3

Convert visitors into customers

The ultimate goal of attracting a visitor to one’s site is obviously to encourage this potential customer to make a reservation. However, according to search engine statistics, only 3.7% of visits to hotel websites translate into a sale. What usually makes the difference is the site’s professional appearance and usability.

The firm eMarketer has published a ranking of the best online marketing tactics, as well as the worst performing, according to a survey of tech-savvy online advertisers (Figure 1). Paid search ads and house email lists are the two methods that received the highest ranking. On the other hand, sending emails using rented lists was relatively ineffective.

Figure 1

CP_2007-02_marketing_web_grphq1

Email segmentation

If you operate a small business, segmenting your email lists may be an effective marketing strategy. Purchasing email lists from specialized distributors may well be beyond your means and this strategy offers mixed results at best, so the ideal solution is to build your own email list.

Segmenting your list means grouping current and potential customers together by what they have in common: interests, purchasing behaviour, demographics, etc. Compiling this data enables you to more effectively target your efforts, adapt your message and obtain a better response rate than you would with blanket email marketing initiatives. On average, specialized firms that conduct such email campaigns charge anywhere from $15 to $150 per month, depending on the size of your list.

Regardless of the company’s size, a well-segmented house email list can encourage customer loyalty and increase sales, convey information relevant to the needs of potential customers, and create a high-quality channel of communication with customers.

There are many tools and strategies available to business owners; one has only to adopt them and use them effectively. We live in an era when the role of technology is to further the development of small business, not hinder it. With a minimum of investment, some good advice, several hours of research, a little curiosity and a dash of resourcefulness, you will be well positioned to market your business like the big players.

Sources:
– eMarketer. « What Works, and What Doesn’t, in Online Marketing, » February 7, 2007.
– Goodman, Gail. « Email Segmentation for Small Businesses, » iMedia Connection, August 30, 2006.
– Husin, Linda. « Booking Is the Keyword, » ehotelier, November 29, 2006.
– Salerno, Neil. « So, You Have a New or Improved Hotel Web Site – Now What – How to Promote Your Web Site, » HotelOnline, November 2006.
– Salerno, Neil. « Production Benchmarks for Your Hotel’s Web Site, » HotelOnline, August 2006.
– Max Starkov and Jason Price. « Strategic Linking in Hospitality: Build a Robust Link Popularity, » HotelOnline, September 2006.

Catégories
Accommodation

Marketing 101 for small inns and hotels

Marketing is never an easy undertaking, especially for small inns and hotels with limited time and budgets. While the following does not provide an exhaustive list of advice, options and how-tos, it does offer a checklist of various suggestions for improving visibility.

Turn an improvised strategy into an effective one

Starting with some general information (e.g. the typical guest at a small inn or hotel is a leisure tourist who has selected this type of lodging for its ambience and personalized service, and more often than not, these customers reserve by phone) and doing a little background work (defining the target audience, determine distinctive features, etc.), a business can begin the marketing process.

Exploiting the opportunities of the internet

Although the internet is not currently the means by which most small inn and hotel guests make their reservations, it is still a primary source of information. More and more people are automatically turning to the Web when they need to find or recommend a place to stay.

While the internet offers a sea of opportunities, there is also the danger of drowning in it. For this reason it is not enough to have a Web presence; the site must also be searchable. However, understanding how search engines work is a complex task requiring time and expertise. At the same time, because these engines evolve and change along with the competition’s positioning, there must be a strategy for periodically reviewing the process.

Trying to compete with the major players on their own territory is a waste of time, so small inns and hotels are better off using other methods. Instead of associating the site with the most popular terms typed into search engines, focus on those used by the target audience. For example, many such people will refine a search by typing « Saguenay inn » rather than « Quebec hotel. » Another option is to sponsor a link on the search result page of a local festival.

Improve and assess the effectiveness of methods used

Once again, to make a product stand out from competing major hotel chains, one must innovate and adopt original presentation methods (visuals, ways of communicating, etc.).

  • Clearly define the target audience so reach it effectively
  • Develop a specific niche (such as family parties, company activities, honeymoons, special events, etc.)
  • Establish partnerships with companies – even those outside the industry – to develop an unusual product or innovative marketing strategy

To measure the validity of promotional efforts and retain only the most effective measures, ask guests where they found about the establishment and how they made their reservation.

Sources:
– Carroll, William J. et al. « A Comprehensive Guide to Merchandising Bed and Breakfast Inns, » Cornell University, School of Hotel Administration, The Center for Hospitality Research, CHR Tools, No. 8, August 2006.
– Hursh, Patricia. « Winning Big with a Small Search Marketing Budget, » [searchenginewatch.com], August 28, 2006.

Catégories
Management Marketing @en

Finding your (new) niche!

Competing with Marriott, Disney and Air France is not an easy task, but it is possible to carve out a place among the giants. This product or service « niche » represents a small, unexploited or underexploited market segment that appeals to a particular clientele.

Dream big but think small

When you're playing with the big boys, creating a niche is the best way to eliminate direct competition. At a time when clients are demanding increasingly personalized services, the niche meets a previously overlooked or neglected consumer need, such as focusing on the specific requirements of a certain group.

Rather than focusing on price, the best strategy for small and medium-sized businesses that want to develop a market niche is to narrow their business focus, since niche customers prefer to deal with companies that have specialized expertise.

Listen for the sound of opportunity knocking

Niche ideas are not shouted from the rooftops. To find them, you need to know how to listen to people, understand their problems, pick up on casual remarks and analyze lifestyles.

After a staff member overheard a group of expectant mothers nostalgically recalling their vacations, Woodside Hotels and Resorts (that operates 5 luxury California hotels) developed the « babymoon. » This product is aimed at couples who want a trip or weekend away to help them relax and reconnect before baby arrives. Socio-demographic data prove the relevance of this new niche: couples are waiting longer before starting a family and, because they usually have two incomes, are fairly prosperous and used to spending money on themselves.

Leave your competition in the dust

Simply put, the way to stand out in a highly competitive market is to develop a different approach. To do so, you need to venture off the beaten track and explore new horizons. Here are some strategies to help you carve out a niche for yourself:

  • Create a specialized product within an existing product market;
  • Adapt your product to target another market segment (expectant mothers, for example);
  • Discover a promising product and invest in it;
  • Examine what works in other businesses or industries and see if you can adapt those strategies to your product;
  • Add elements the competition doesn't have, or create new combinations of elements that either improve your product or produce a new one;
  • Find ways to personalize your product;
  • Look for an area in which you can beat out the competition: safety, speed, quality, ease, convenience, (opening hours), etc.

Venture off the beaten track

Striking out on your own can mean improving the product or service itself, the way it is distributed, managed or advertised, and so on. Here's what some enterprising travel industry players are doing:

  • After analyzing consumer behaviour and changes in luxury travel, some tour operators have come up with stylish, unique concepts: 4-wheel-drive your way through Chile with breakfast in front of a geyser, travel through India like a Maharaja, stay in a beach bungalow on stilts and stroll among the seabirds, have a bottle of champagne delivered to your home when you reserve and a fresh bouquet of flowers awaiting your return.
  • Other operators are exploring more unusual leisure activities: driving around a track at the wheel of a Formula 1 racing car, taking part in a modeling shoot or riding in a hot air balloon. The French company MagicDay packages its products as original gift ideas.
  • When tourism authorities at Fairbanks, Alaska decided to capitalize on the Northern Lights, they negotiated with the Japanese government to attract Japan Airlines flights to the city's airport.
  • Disney Theme Parks have always revolved around storytelling, with employees as the actors, visitors the audience and the park as the stage. Artistic directors and stage managers work out the overall theme and individual roles.
  • In an attempt to revive tradition, the historic city of Kyoto, Japan is providing free access to public transit and museums to anyone wearing traditional Japanese dress. Foreign tourists are invited to learn how to put on a kimono.
  • The slow travel movement, an offshoot of the slow food movement, is based on the idea that tourists can discover a region and its customs at their own pace by renting an apartment or villa.

So, why not try something a little offbeat? After all, remember all the things people find they can do with duct tape!

Sources:
– AFP. « Métro et musées de Kyoto gratuits pour les porteurs de kimono, » 8 mars 2005.
– CCT. « Le tourisme auroral a le vent dans les voiles, »mars 2005.
– Chanial, Jean-Pierre. « Tour-opérateurs de charme », Le Figaro, 8 décembre 2004.
– Fralic, Shelley. « Babymoons: the final fling, » National Post, 31 juillet 2004.
– Hanzal, Al. « Niche Your Way to Profits, » [www.ecomhelp.com].
– Primm, Roy. « How To Create A Niche – And Grow Rich!, » [www.ecomhelp.com].
– Primm, Roy. « The 14 Commandments Of Creating A 'Wealth Pulling' Niche!, » [www.ecomhelp.com].