Marketour February/March 2000

THE MARKETOUR

A MARKETING GUIDE FROM THE WISCONSIN DEPARTMENT OF TOURISM

February /March 2000

HOW TO MAKE DIRECT MAIL WORK FOR YOU
In the last decade, many organizations, including the Wisconsin Department of Tourism, have increased their emphasis on niche marketing. In fact, the Department's target marketing efforts have evolved beyond the niche concept and now include the targeting of individual consumers, a practice dubbed "one-to-one" marketing.

Although one-to-one (or direct) marketing strategies can employ numerous tactics, one of the most commonly used is direct mail. Unlike mass market media, such as television, direct mailings can reach audiences comprised only of those with a high propensity to buy - which is why the mailings are often described as a "rifleshot," rather than "shotgun," approach to marketing. Direct response mailings also differ from mass marketing efforts in that their impact is extremely measurable. And, while mass market advertising usually generates a lower cost per impression figure than direct mail, well-conceived direct mailings typically deliver a lower cost per response.

Not surprisingly, marketers of a wide variety of goods and services have employed direct mail. However, most advertising experts agree that it is particularly effective when offering products which appeal to specific audiences, are seasonal in nature and naturally lend themselves to database gathering. The criteria fits most businesses in the Wisconsin tourism industry.

"Having confidence in your database (mailing list) is the key to a successful mailing," says Sarah Klavas, director of the Bureau of Marketing Services for the Wisconsin Department of Tourism. "That is why we make updating and maintaining our customer database a very high priority."

Klavas' observations are borne out of the response generated by recent Department mailings. For example, a postcard offering 1999-2000 winter materials to past winter customers netted an amazing 36 percent response.

Klavas also points out that databases can be used as the basis for reaching hot prospects, as well as existing customers. This can be done in several ways, including techniques such as "cross-selling" and "cloning." Cross-selling relies on studies, such as those conducted by the Department and other tourism organizations, which show correlation between activity sets in different seasons. For example, research shows that bicyclists may also enjoy cross-country skiing. Such data was the impetus for last year's highly successful cross-season direct mail campaign, where summer travelers (such as bikers) were invited to receive winter travel-planning materials.

Cloning is done by taking geographic and demographic information, such as zip code, travel history and spending patterns, from the existing customer database and identifies targets with matching profiles. This year's Wisconsin Tourism "Inside Story/Outside Story" winter mailing used a list combining existing customers and cloned prospects. While responses from that mailing are still coming in, the early indication is positive.

Compiled and maintained by the Department of Tourism, the customer database is available for use by the Wisconsin tourism industry. "We think of database marketing and direct mail as key weapons in our marketing arsenal. By making the proper tools available for the industry to use, we are able to offer an important service at an affordable price. We hope the industry will take advantage of it," says Klavas. Names from the database are available for a cost of $10/thousand.

If you would like to find out more about the Wisconsin Department of Tourism's cooperative database marketing program, contact Nicole Baker of Advertising, Boelter & Lincoln at 414/271-0101.

RESEARCH FOCUSES ON GEN XERS AND BABY BOOMERS
Last October, the Department of Tourism conducted focus groups in Chicago, Detroit and Minneapolis to gain a deeper understanding of the Generation X (ages 25-34) and Empty Nester/Baby Boomer (ages 45-54) market segments. All study participants were Midwest travelers in the identified age groups who had annual household incomes over $30,000. Here are some of the key findings:

* The Gen Xers and Baby Boomers had surprisingly similar tastes and habits when it came to traveling in the Midwest. More differences were found between geographic groups than between age groups.
* Most participants did not consider the Midwest as a destination for their "real" vacation. Midwestern trips were generally taken by car and involved as few as one or as many as three nights, with travelers often taking advantage of extended weekends for these trips. The participants considered their "real" vacations to be those for which they traveled farther and planned more extensively; these trips lasted a week or longer.
* The purpose of their short getaways was relaxation. This meant a break from the daily routine, yet all wanted active relaxation rather than passive activities, such as lying on a beach. Members of both the younger and older groups mentioned bicycling, hiking, visiting scenic and historic attractions, shopping, fishing and camping. Their preference for activities varied more according to individual interests than age.
* Many emphasized the fun of traveling without a lot of preparation. They liked the sense of adventure that comes with waiting until they arrive at a destination to decide what to do. Several participants were resistant to the idea of making too many plans, saying that their daily lives were very structured and they wanted to escape from this. Making lodging reservations was as much planning as they were likely to do, unless they were traveling to attend a specific event that required tickets or wanted to golf at a course that required reservations.
* All were open to finding out about new places to travel, and many said that they like to try a new destination on every trip. Their destination decisions were based on a variety of sources, including word-of-mouth recommendations, magazine and newspaper articles, and advertising. For lodging information, they turned to the Internet, AAA guides and brochures that they requested from CVBs. When choosing restaurants and activities, they used these same sources and sought recommendations from friends before their trips and from locals once they arrived at their destination.
* Although many, especially Gen Xers, said that they have used the Internet to gather travel information, neither age group showed much willingness to make online reservations or purchases. This was partly due to fear about the security of credit card information and partly because they want to talk directly to a person. Many said that this way, they can get a better feeling for the destination, get the most current information and have an individual to hold accountable if anything goes wrong.
* Nearly all were willing to travel in any season, with winter being the least popular time. The Detroit and Minneapolis groups saw fewer reasons to travel for winter sports, since they have ample snow where they live. A few Chicago residents said that if they were to go on a skiing trip, they would not choose a Midwest destination.
* The prospect of an all-inclusive, special-focus vacation package sparked some interest but not great enthusiasm. Groups considered this kind of package most suitable for first-timers to an activity - for example, someone new to snowmobiling might book a package including equipment, lessons and trail guides with recommendations on rest stops. They felt that people who were already devotees of an activity would not be interested in such a package, since they already know the activity and would prefer to use their own equipment and knowledge.
* City tours met with a similar response. Participants considered these only for a first-time visit because they only hit touristy spots and participants are limited in where they can go and aren't free to spend extra time at destinations along the tour.
* Participants' examples of delightful customer service included getting "local insider" advice about where to eat and what to do. They shared stories of "friendly locals," people other than the staff at lodging properties and restaurants, who recommended a sight or restaurant. Such contact was extremely desirable across all groups.

For a copy of the complete research report, contact David Scheler, 608/261-8187. Highlights of the report are also available online at research.shtm.

RIDING THE TRENDS OF THE MOTORCOACH INDUSTRY
"Wisconsin has been generating quite a buzz at recent motorcoach trade association meetings and shows," says Peggy Bitzer, executive director of Circle Wisconsin, the state's motorcoach-planning organization. "Increased awareness of what the state offers has led to more tour bus groups from across the nation - and even Canada - to request Wisconsin trips."

Here are a few trends Bitzer has noticed that can help you in marketing to the motorcoach industry:

* Tours with an African-American heritage theme are grabbing attention. Motorcoach tour operators are seeing an increase in the number of people requesting trips that include sites with multicultural and historical significance. For example, the itinerary might include stops on the Underground Railroad or museums focused on African-American heritage.

* Tours targeted at women are becoming increasingly popular. This could mean a trip for a women's gardening club, women's auxiliary or other such group. A new twist on women-only tours are trips for individuals with the same first name - for example, a "Marys" tour.

* Tours for religiously affiliated groups are on the rise. These tours do not necessarily include only religious events and attractions. Participants are members of the same religious group, perhaps a single church, and enjoy traveling together.

* Operators are adding luxury features to their motorcoach buses. Passengers are expressing a willingness to pay extra for amenities such as more comfortable seating, music, and hors d'oeuvres and wine served en route. Some motorcoaches now have mini kitchens at the back of the bus to enable staff to wine and dine travelers.

With these trends in mind, Bitzer emphasized the power of partnering with other tourism businesses when marketing to the motorcoach industry. For example, if your attraction appeals especially to women, think of other tourism properties with a similar draw and market your businesses together. You may first want to think regionally; but don't limit yourself to a small part of the state, since some motorcoach tours (particularly if the travelers are coming from a greater distance away) cover hundreds and thousands of miles.

For more information on how to market your business to the motorcoach industry, call Peggy Bitzer at Circle Wisconsin at 1-800-223-0652.

DON'T PROMISE MORE THAN YOU CAN DELIVER
Driving down a highway and running into road construction can be a very frustrating experience. The same can be said for navigating through the Internet and finding a big yellow screen with the words "This Area Under Construction" at the site you've been looking for.

A well-designed, attention-grabbing home page is useless if the rest of the site leads to screen after screen of "Under Construction" messages. Most visitors have come to realize that many sites supposedly under construction are never completed, and few will return to a site once they have hit one of these signs. Web surfers want information right now and don't want to wait two weeks, two days or even two hours to get it, so the best option is to wait until the Web site is complete before posting the site.

10-SECOND WRITING CLINIC
It's vs. Its
Use the contraction it's when you can substitute the words "it is" in the sentence. Use its when the phrase calls for a possessive form.

Correct: It's a great time to travel to Wisconsin. The hotel changed its name.

Who's vs. Whose
Similarly, use the contraction who's when you can insert the words "who is" and whose when you need a possessive form.

Correct: Who's going on the trip? Whose car will she be driving?

MEDIA LEADS
Travel Values, a syndicated column by Norma Schonwetter, is looking for information on value-oriented travel destinations that show special interest for seniors. Send information to Norma Schonwetter, 32251 Glen Cove #2, Farmington Hills, MI 48334, phone/fax 248/324-7056.

Travel is on the menu at www.boomercafe.com. The online magazine appeals to baby boomers who enjoy an active lifestyle and travel. The travel column is looking for unique travel opportunities aimed at its 50-plus market. Materials can be sent to david@boomercafe.com, or call 703/323-8601.

PR'S GREATEST HITS
The state has put an increased focus on gaining TV exposure and has been rewarded with spectacular coverage on many major networks and their affiliates.

The Milton House was the center of attention when The History Channel visited for its new two-hour documentary titled "Secret Passages." The Milton House segment focused on the house's ties to the Underground Railroad, highlighting its underground tunnel, the only truly underground segment of the Underground Railroad. The documentary will air in February.

The unique imagery and culinary delights of Wisconsin were recently featured on WDIV-TV, Detroit's NBC affiliate. The 30-minute "Wake Up in Wisconsin: Famie's Adventure in Cooking" show featured southeastern Wisconsin locations, including Cedarburg and Kohler. The show aired Dec. 12 and grabbed the No. 1 rating in its time slot.

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	Strategic Plans Programs & Services Media Room Research & Travel Trends Partners & Resources Driving Directions Online Toolbox Governor's Conference on Tourism Travelwisconsin.com		THE MARKETOUR A MARKETING GUIDE FROM THE WISCONSIN DEPARTMENT OF TOURISM February /March 2000 HOW TO MAKE DIRECT MAIL WORK FOR YOU In the last decade, many organizations, including the Wisconsin Department of Tourism, have increased their emphasis on niche marketing. In fact, the Department's target marketing efforts have evolved beyond the niche concept and now include the targeting of individual consumers, a practice dubbed "one-to-one" marketing. Although one-to-one (or direct) marketing strategies can employ numerous tactics, one of the most commonly used is direct mail. Unlike mass market media, such as television, direct mailings can reach audiences comprised only of those with a high propensity to buy - which is why the mailings are often described as a "rifleshot," rather than "shotgun," approach to marketing. Direct response mailings also differ from mass marketing efforts in that their impact is extremely measurable. And, while mass market advertising usually generates a lower cost per impression figure than direct mail, well-conceived direct mailings typically deliver a lower cost per response. Not surprisingly, marketers of a wide variety of goods and services have employed direct mail. However, most advertising experts agree that it is particularly effective when offering products which appeal to specific audiences, are seasonal in nature and naturally lend themselves to database gathering. The criteria fits most businesses in the Wisconsin tourism industry. "Having confidence in your database (mailing list) is the key to a successful mailing," says Sarah Klavas, director of the Bureau of Marketing Services for the Wisconsin Department of Tourism. "That is why we make updating and maintaining our customer database a very high priority." Klavas' observations are borne out of the response generated by recent Department mailings. For example, a postcard offering 1999-2000 winter materials to past winter customers netted an amazing 36 percent response. Klavas also points out that databases can be used as the basis for reaching hot prospects, as well as existing customers. This can be done in several ways, including techniques such as "cross-selling" and "cloning." Cross-selling relies on studies, such as those conducted by the Department and other tourism organizations, which show correlation between activity sets in different seasons. For example, research shows that bicyclists may also enjoy cross-country skiing. Such data was the impetus for last year's highly successful cross-season direct mail campaign, where summer travelers (such as bikers) were invited to receive winter travel-planning materials. Cloning is done by taking geographic and demographic information, such as zip code, travel history and spending patterns, from the existing customer database and identifies targets with matching profiles. This year's Wisconsin Tourism "Inside Story/Outside Story" winter mailing used a list combining existing customers and cloned prospects. While responses from that mailing are still coming in, the early indication is positive. Compiled and maintained by the Department of Tourism, the customer database is available for use by the Wisconsin tourism industry. "We think of database marketing and direct mail as key weapons in our marketing arsenal. By making the proper tools available for the industry to use, we are able to offer an important service at an affordable price. We hope the industry will take advantage of it," says Klavas. Names from the database are available for a cost of $10/thousand. If you would like to find out more about the Wisconsin Department of Tourism's cooperative database marketing program, contact Nicole Baker of Advertising, Boelter & Lincoln at 414/271-0101. RESEARCH FOCUSES ON GEN XERS AND BABY BOOMERS Last October, the Department of Tourism conducted focus groups in Chicago, Detroit and Minneapolis to gain a deeper understanding of the Generation X (ages 25-34) and Empty Nester/Baby Boomer (ages 45-54) market segments. All study participants were Midwest travelers in the identified age groups who had annual household incomes over $30,000. Here are some of the key findings: * The Gen Xers and Baby Boomers had surprisingly similar tastes and habits when it came to traveling in the Midwest. More differences were found between geographic groups than between age groups. * Most participants did not consider the Midwest as a destination for their "real" vacation. Midwestern trips were generally taken by car and involved as few as one or as many as three nights, with travelers often taking advantage of extended weekends for these trips. The participants considered their "real" vacations to be those for which they traveled farther and planned more extensively; these trips lasted a week or longer. * The purpose of their short getaways was relaxation. This meant a break from the daily routine, yet all wanted active relaxation rather than passive activities, such as lying on a beach. Members of both the younger and older groups mentioned bicycling, hiking, visiting scenic and historic attractions, shopping, fishing and camping. Their preference for activities varied more according to individual interests than age. * Many emphasized the fun of traveling without a lot of preparation. They liked the sense of adventure that comes with waiting until they arrive at a destination to decide what to do. Several participants were resistant to the idea of making too many plans, saying that their daily lives were very structured and they wanted to escape from this. Making lodging reservations was as much planning as they were likely to do, unless they were traveling to attend a specific event that required tickets or wanted to golf at a course that required reservations. * All were open to finding out about new places to travel, and many said that they like to try a new destination on every trip. Their destination decisions were based on a variety of sources, including word-of-mouth recommendations, magazine and newspaper articles, and advertising. For lodging information, they turned to the Internet, AAA guides and brochures that they requested from CVBs. When choosing restaurants and activities, they used these same sources and sought recommendations from friends before their trips and from locals once they arrived at their destination. * Although many, especially Gen Xers, said that they have used the Internet to gather travel information, neither age group showed much willingness to make online reservations or purchases. This was partly due to fear about the security of credit card information and partly because they want to talk directly to a person. Many said that this way, they can get a better feeling for the destination, get the most current information and have an individual to hold accountable if anything goes wrong. * Nearly all were willing to travel in any season, with winter being the least popular time. The Detroit and Minneapolis groups saw fewer reasons to travel for winter sports, since they have ample snow where they live. A few Chicago residents said that if they were to go on a skiing trip, they would not choose a Midwest destination. * The prospect of an all-inclusive, special-focus vacation package sparked some interest but not great enthusiasm. Groups considered this kind of package most suitable for first-timers to an activity - for example, someone new to snowmobiling might book a package including equipment, lessons and trail guides with recommendations on rest stops. They felt that people who were already devotees of an activity would not be interested in such a package, since they already know the activity and would prefer to use their own equipment and knowledge. * City tours met with a similar response. Participants considered these only for a first-time visit because they only hit touristy spots and participants are limited in where they can go and aren't free to spend extra time at destinations along the tour. * Participants' examples of delightful customer service included getting "local insider" advice about where to eat and what to do. They shared stories of "friendly locals," people other than the staff at lodging properties and restaurants, who recommended a sight or restaurant. Such contact was extremely desirable across all groups. For a copy of the complete research report, contact David Scheler, 608/261-8187. Highlights of the report are also available online at research.shtm. RIDING THE TRENDS OF THE MOTORCOACH INDUSTRY "Wisconsin has been generating quite a buzz at recent motorcoach trade association meetings and shows," says Peggy Bitzer, executive director of Circle Wisconsin, the state's motorcoach-planning organization. "Increased awareness of what the state offers has led to more tour bus groups from across the nation - and even Canada - to request Wisconsin trips." Here are a few trends Bitzer has noticed that can help you in marketing to the motorcoach industry: * Tours with an African-American heritage theme are grabbing attention. Motorcoach tour operators are seeing an increase in the number of people requesting trips that include sites with multicultural and historical significance. For example, the itinerary might include stops on the Underground Railroad or museums focused on African-American heritage. * Tours targeted at women are becoming increasingly popular. This could mean a trip for a women's gardening club, women's auxiliary or other such group. A new twist on women-only tours are trips for individuals with the same first name - for example, a "Marys" tour. * Tours for religiously affiliated groups are on the rise. These tours do not necessarily include only religious events and attractions. Participants are members of the same religious group, perhaps a single church, and enjoy traveling together. * Operators are adding luxury features to their motorcoach buses. Passengers are expressing a willingness to pay extra for amenities such as more comfortable seating, music, and hors d'oeuvres and wine served en route. Some motorcoaches now have mini kitchens at the back of the bus to enable staff to wine and dine travelers. With these trends in mind, Bitzer emphasized the power of partnering with other tourism businesses when marketing to the motorcoach industry. For example, if your attraction appeals especially to women, think of other tourism properties with a similar draw and market your businesses together. You may first want to think regionally; but don't limit yourself to a small part of the state, since some motorcoach tours (particularly if the travelers are coming from a greater distance away) cover hundreds and thousands of miles. For more information on how to market your business to the motorcoach industry, call Peggy Bitzer at Circle Wisconsin at 1-800-223-0652. DON'T PROMISE MORE THAN YOU CAN DELIVER Driving down a highway and running into road construction can be a very frustrating experience. The same can be said for navigating through the Internet and finding a big yellow screen with the words "This Area Under Construction" at the site you've been looking for. A well-designed, attention-grabbing home page is useless if the rest of the site leads to screen after screen of "Under Construction" messages. Most visitors have come to realize that many sites supposedly under construction are never completed, and few will return to a site once they have hit one of these signs. Web surfers want information right now and don't want to wait two weeks, two days or even two hours to get it, so the best option is to wait until the Web site is complete before posting the site. 10-SECOND WRITING CLINIC It's vs. Its Use the contraction it's when you can substitute the words "it is" in the sentence. Use its when the phrase calls for a possessive form. Correct: It's a great time to travel to Wisconsin. The hotel changed its name. Who's vs. Whose Similarly, use the contraction who's when you can insert the words "who is" and whose when you need a possessive form. Correct: Who's going on the trip? Whose car will she be driving? MEDIA LEADS Travel Values, a syndicated column by Norma Schonwetter, is looking for information on value-oriented travel destinations that show special interest for seniors. Send information to Norma Schonwetter, 32251 Glen Cove #2, Farmington Hills, MI 48334, phone/fax 248/324-7056. Travel is on the menu at www.boomercafe.com. The online magazine appeals to baby boomers who enjoy an active lifestyle and travel. The travel column is looking for unique travel opportunities aimed at its 50-plus market. Materials can be sent to david@boomercafe.com, or call 703/323-8601. PR'S GREATEST HITS The state has put an increased focus on gaining TV exposure and has been rewarded with spectacular coverage on many major networks and their affiliates. The Milton House was the center of attention when The History Channel visited for its new two-hour documentary titled "Secret Passages." The Milton House segment focused on the house's ties to the Underground Railroad, highlighting its underground tunnel, the only truly underground segment of the Underground Railroad. The documentary will air in February. The unique imagery and culinary delights of Wisconsin were recently featured on WDIV-TV, Detroit's NBC affiliate. The 30-minute "Wake Up in Wisconsin: Famie's Adventure in Cooking" show featured southeastern Wisconsin locations, including Cedarburg and Kohler. The show aired Dec. 12 and grabbed the No. 1 rating in its time slot.
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