THE MARKETOUR

A MARKETING GUIDE FROM THE WISCONSIN DEPARTMENT OF TOURISM

February-March, 2001


DATABASE MARKETING: AN INTERVIEW WITH LARRY DICKERSON

Database marketing and the Internet are two of the hottest topics in the business world today, and will be among the topics highlighted at the 2001 Governor's Conference on Tourism. We talked recently with one of the featured speakers at the upcoming conference, Larry Dickerson of Destination Marketing Group, to get his views on these subjects. Here is what he had to say:

Q. Many small businesses are leery of the expense involved in database marketing. Should they be?
A. No. While it is possible to spend a lot of money on it, you don't have to. In fact, developing a database can begin by simply saving e-mails from customers or by asking for home addresses and e-mail addresses when you answer customer phone calls. Either way, you have the chance to amass knowledge of your consumer. The challenge is to take advantage of it. Of course, you should inform your customers that you intend to contact them in the future and allow them to "opt out" of any future communication.

Q. Does the same hold true for Web site development?
A. Yes. Many smaller businesses - and some large ones, too - are overly cautious when it comes to Web sites and the Internet, either because of costs, technology concerns or both. In fact, some people have the attitude that "computer technology changes so fast, I don't want to waste money on it right now." Unfortunately, they don't realize that the technology explosion we've experienced isn't an oval track. It won't come back, it will only go over the horizon. So, I think the best advice is to just get started and don't be afraid to make a mistake.

Q. Do you feel sites need to be technologically sophisticated to be effective?
A. No. In fact, I tell people to "think America Online" (AOL) when they are beginning to develop their sites. As you know, sites seen through AOL browsers usually have fewer graphics and "techy" features. But AOL is the biggest search engine and will deliver the most visitors to your site. Since most of them are coming in over slower, 28.8 or 56K modems, you don't have to have the latest technology, just good, easily usable information. So a basic Web site design is definitely okay.

Q. How important is it for small- and medium-sized tourism businesses and destination marketing organizations to develop databases?
A. If you believe in the concept of one-to-one marketing, then it is crucial. And organizations should think in terms of both product and consumer databases. The product database can be as simple as making sure that 800 number operators have access not only to your facility's information, but to all pertinent information about your area - which ideally is on your Web site. As far as consumer databases, they don't need to be extremely complicated to be effective. As I said earlier, one good way to start an e-mail database is simply to save all customer addresses you receive in your existing e-mail program. From there you can easily develop a "contacts" list from those agreeing to receive future communication from you and send out mass e-mails whenever you have special offers, events or whatever. There are also many true database programs, such as Access, which you can save addresses into and send blast faxes and mass mailings out of, either directly or through a vendor. I would strongly suggest having your 800 number people ask for database information when customers call. Also, make sure your Web site has a guest book that asks visitors for both e-mail and street addresses.

Q. Any other suggestions for organizations trying to get their technology initiatives started?
A. I would suggest seeking out partners, both external and internal. Internally, consider developing your own "dot-com" team, a group that meets regularly to discuss what you are doing, whether it is working, what should be done next, and so on. Also, I think organizations must be willing to reallocate funds and to let go of some of the old paradigms for determining success, such as conversion studies.

Q. Conversion studies are a staple of the tourism industry. What do you think their future is?
A. Well, they may be de-emphasized because they under-report Web traffic by as much as 60-75 percent. Since the Web consumer isn't generally required to give information in order to fulfill his needs, the Web doesn't lend itself to conversion studies. With an 800 number, on the other hand, you must give an address to receive the fulfillment piece, which means you can be reached by a study.

Q. So how should organizations evaluate the success of their Web initiatives?
A. First, I'd look at overall economic impact. If I were a CVB, I'd ask myself if tax revenues were up, employment was up, room nights were up, etc. Secondly, I'd give incentives to consumers to provide feedback about my site. Thirdly, I'd pay a lot of attention to site visit reporting software, such as Web Trends. If there is a huge jump in the number of user sessions and a corresponding drop in 800 number calls, that tells you to consider reallocating some of your budget.

TIPS FOR REACHING THE GROWING AFRICAN AMERICAN MARKET

Travel and tourism marketers nationwide are paying increased attention to the African American community, and with good reason. According to American Demographics magazine, this population segment has experienced a 42 percent increase in spending power since 1998, and last year spent more than $41 billion on domestic travel and tourism. The Wisconsin Department of Tourism recently took a more in-depth look at this market, conducting focus groups with middle-income African Americans in Chicago, Milwaukee and Minneapolis. Here is an overview of the findings:

*Mass media can be effective in reaching this market. African American adults in Chicago and Minneapolis expect and appreciate marketing messages designed to communicate with them. This can be easily accomplished through ads directed at the mass market that include photographs of African Americans enjoying recreational activities.

* Vacation planning has more to do with life-stage than ethnicity. Across the board, African Americans with children like vacations that have a mixture of adult and child-oriented activities. As with most parents with kids, African Americans with children plan vacations around school schedules.

* Show "whole family" units in photos. African Americans were very vocal about the importance of depicting African American families and appreciate images of mothers, fathers and children in recreational activities while on vacation. Publication photos, print and television ads depicting these images are ideal for attracting African American families. They want to see more families with children and parents enjoying the wealth of Wisconsin activities.

* Avoid stereotyping. Study participants said they enjoyed a variety of seasonal activities and indicated that television ads, print ads and publication photography should portray them participating in those activities. Ideal images would include realistic situations and avoid being staged or posed. The focus groups also noted that ad copy shouldn't use slang or colloquial dialects, nor should music attempt to be "ethnic." While musical genres such as jazz, blues and R & B are popular with many, this sound is not associated with the image of Wisconsin and its use could dilute the overall Wisconsin message.

* Couples and friends groups. African American empty nesters, young professionals and singles, as we found in focus groups among these segments in the overall population, prefer vacation destinations that offer a variety of seasonal indoor and outdoor recreational opportunities that are not geared to the family market. Although the warmer months of the year are most popular, they also expressed significant interest in activities of all four seasons.

* Minneapolis is a harder sell. Participants in the Minneapolis focus group were less impressed with Wisconsin's attractions. Although some had visited Wisconsin Dells, the majority of the participants felt that Wisconsin offered very little that they don't already have in Minnesota - including summer festivals and winter activities. To best reach them, show them what is unique to Wisconsin's landscape and tourism attractions.

WEB TIPS: THE CHANGING FACE OF BANNER ADS

Long known as the standard unit of Internet advertising, Web "banner" ads are undergoing a major transformation. According to a study by AdRelevence, banner clickthrough rates (CTR) have been in steady decline from their high of three percent in 1997 to less than 0.5 percent in the first quarter of 2000. Today's Web users are becoming more accustomed to the continuous stream of advertising at the top of the screen, making it extremely difficult for individual banners to stand out and create action.

Despite the continuing decline in CTR, banner advertising is a long way from dead. Many industry analysts feel that the residual branding effect of a banner ad may be much more important than the actual number of clicks. A Web user doesn't need to link to a hotel's Web site from the banner ad to make it successful, as long as the brand sticks in their memory and they consider booking a room there the next time they are traveling to the area.

No matter how a banner's success is evaluated, in the highly competitive world of online advertising it is undoubtedly becoming more difficult. In order to reach audiences effectively, consider the following suggestions:

Know the audience: As with any marketing communication, know your target audience and tailor every aspect of the message to them including the design, message and offer.

Research the online publisher: Make sure the Web page that displays your banner reaches the exact target market you are trying to reach. Also, consider using design aspects of the host page in the banner to give it and the online publisher a cohesive look.

Keep it clear: Stay away from tricky headlines and confusing offers. Spell out exactly what you are promoting and what users can expect if they click on your banner.

Try odd sizes: The standard 468x60 banner at the top of the page has become so common that many audiences are beginning to scan right past them. Consider using odd sized banners placed along the side rails of a page to grab attention.

QUICK TIPS

MEDIA LEADS: Major media outlets from across the nation are looking for travel information for young and old.

My Generation, a new AARP publication targeting Baby Boomers and set to debut in March 2001, is looking for travel-related information for its "Journeys" section. Story ideas and press materials can be sent to My Generation at 780 Third Avenue, New York, NY 10017.

Nickelodeon's weekly children's news program, "Nick News," is interested in information on travel and activities with a strong children's angle. Information can be sent to Mark Lyon at Lucky Duck Productions, 96 Morton Street, Fourth Floor, New York, NY 10014.

10-SECOND WRITING CLINIC

Here's the lowdown on a word usage mistake we frequently hear:

Adverse/Averse: Adverse means unfavorable: He predicted adverse weather.
Averse means reluctant, opposed: She is averse to change.

PR'S GREATEST HITS

Several major national magazines highlighted Wisconsin's winter and holiday activities during the month of December. In a special feature titled "Christmas for Kids," Midwest Living explored some of the best ways for families to enjoy the holiday season. Included in the article were Kohler's American Club and Spring Green's House on the Rock. The Osthoff Resort in Elkhart Lake was also featured in a story highlighting top Midwest resorts for holiday getaways.

Downhill skiing and snowboarding were featured in the December issue of Home & Away magazine. Illustrated with full-color photos of various Midwestern ski facilities, the article included information on Devil's Head Resort, Cascade Mountain, Skyline and Tyrol Basin.

Wisconsin also made a splash in international media when the German-language travel magazine, America Journal, chose to feature Milwaukee in its November/December issue. Harley-Davidson, the Milwaukee Art Museum and the Pfister Hotel were just a few of the attractions discussed.