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Path to Purchase Knowing where and when to reach buyers Examining online hotel bookers

Path to Purchase - Experian€¦ · Path to Purchase Knowing where and when to reach buyers Examining online hotel bookers

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Page 1: Path to Purchase - Experian€¦ · Path to Purchase Knowing where and when to reach buyers Examining online hotel bookers

Path to Purchase Knowing where and when to reach buyers

Examining online hotel bookers

Page 2: Path to Purchase - Experian€¦ · Path to Purchase Knowing where and when to reach buyers Examining online hotel bookers

Agenda

The new complexities of the consumer journey

Our approach explained

Example insights

Q&A

Page 3: Path to Purchase - Experian€¦ · Path to Purchase Knowing where and when to reach buyers Examining online hotel bookers

The traditional marketing funnel

Source: Forrester Research, Inc.

The Traditional Marketing Funnel

Page 4: Path to Purchase - Experian€¦ · Path to Purchase Knowing where and when to reach buyers Examining online hotel bookers

The customer engagement cycle

Source: http://blog.competingoninformation.com/

Page 5: Path to Purchase - Experian€¦ · Path to Purchase Knowing where and when to reach buyers Examining online hotel bookers

When, where and with what message?

Website visit

Email

Facebook

TV Commercial

Search Purchase

Mobile App

Page 6: Path to Purchase - Experian€¦ · Path to Purchase Knowing where and when to reach buyers Examining online hotel bookers

Consumer experience at each stage

Awareness

Product awareness and historical brand experience

Consideration

How consumers research products and services

Decision

Where, how and why consumers make a purchase

Experience

Brand loyalty, engagement and advocacy

Page 7: Path to Purchase - Experian€¦ · Path to Purchase Knowing where and when to reach buyers Examining online hotel bookers

Our approach Survey and observe in-market and recent purchasers

Demographics

Attitudes & opinions

Traditional media

Web browsing

Social media

Search behavior

App usage

Digital tablets

Personal Computers

Smart phones

Lifestyles

Influences

Brand affinities

Purchase intent

Page 8: Path to Purchase - Experian€¦ · Path to Purchase Knowing where and when to reach buyers Examining online hotel bookers

Examining the path to booking hotel visits online

Page 9: Path to Purchase - Experian€¦ · Path to Purchase Knowing where and when to reach buyers Examining online hotel bookers

Who are online hotel bookers?

67% are married

57% have children in

the HH 74% are

employed

2X Grad Degree

Age Household Income

Source: Consumer Insights; Simmons Connect, Fall 2013

Page 10: Path to Purchase - Experian€¦ · Path to Purchase Knowing where and when to reach buyers Examining online hotel bookers

How they plan for a trip

They are looking for loyalty rewards, with 2/3 participating in hotel frequent guest programs.

Unique travel is a badge of honor. More likely to: • Travel somewhere different every trip • Plan travel experiences that differentiate them from

friends

Business travelers • 61% of domestic travel is for business

• 75% of foreign travel is for business

Source: Consumer Insights; Simmons Connect, Fall 2013

Page 11: Path to Purchase - Experian€¦ · Path to Purchase Knowing where and when to reach buyers Examining online hotel bookers

Influences for online transactions

Source: Consumer Insights; Simmons Connect, Fall 2013

100 105 110 115 120

FINDING MY FAVORITE BRANDS

BEST PRICE

EASE OF NAVIGATION

FINDING SPECIFIC PRODUCTS

PEER REVIEWS

SITE SECURITY

FRIEND OR FAMILY RECOMMENDATIONS

SPECIAL PROMOTIONS

Online hotel bookers (indexed to all hotel users)

Page 12: Path to Purchase - Experian€¦ · Path to Purchase Knowing where and when to reach buyers Examining online hotel bookers

Reaching online hotel bookers

Source: Consumer Insights; Simmons Connect, Fall 2013

Page 13: Path to Purchase - Experian€¦ · Path to Purchase Knowing where and when to reach buyers Examining online hotel bookers

Internet and mobile • 24% more likely to use a tablet as their

primary Internet access device

• Travel, travel agencies and ticketing sites among top indexing mobile site categories

• Over index for news, location and travel apps on mobile

Page 14: Path to Purchase - Experian€¦ · Path to Purchase Knowing where and when to reach buyers Examining online hotel bookers

Traffic peaks differ by category

0

10

20

30

40

50

60

70

80

Tota

l Vis

its

(in M

iillio

ns)

Online Traffic to Key Travel Categories

Hotels OTAs Airlines

OTAs 6/30/2012

Airlines 6/16/2012

Hotels 7/14/2012

Page 15: Path to Purchase - Experian€¦ · Path to Purchase Knowing where and when to reach buyers Examining online hotel bookers

Measuring the behavior of online purchases through observation

Identify online behavior around the transaction:

• Volume • Sources of converting traffic • Converting search terms

Visits to www.onlinestore.com

Online Purchasers

Visits to www.onlinestore.com/thankyou.html

Identify all other online behavior:

• Online categories & websites visited

• Search behavior • Demographics & Lifestyle

Page 16: Path to Purchase - Experian€¦ · Path to Purchase Knowing where and when to reach buyers Examining online hotel bookers

Immediate sources of conversion

Hilton Booking

OTAs 3%

Search 30%

Email 5%

3% visited a competitors’ website immediately before booking on Hilton’s website

3% visited an airline website immediately before booking

on Hilton’s website

Page 17: Path to Purchase - Experian€¦ · Path to Purchase Knowing where and when to reach buyers Examining online hotel bookers

Top online categories visited by hotel bookers

0% 3% 6% 9% 12% 15% 18%

Travel

Sports

Education

Lifestyle

Email Services

News & Media

Portal Frontpages

Business & Finance

Shopping & Classifieds

Entertainment

Social Networking & Forums

Search Engines

Hotel Bookers Online Pop

Page 18: Path to Purchase - Experian€¦ · Path to Purchase Knowing where and when to reach buyers Examining online hotel bookers

Top online travel categories

0.00% 0.50% 1.00% 1.50% 2.00% 2.50%

Cruises

Airlines

Maps

Travel Agencies

Travel Destinations &Accommodations

Hotel Bookers Online Pop

Page 19: Path to Purchase - Experian€¦ · Path to Purchase Knowing where and when to reach buyers Examining online hotel bookers

Top online destination & accommodation websites

0% 2% 4% 6% 8% 10%

StarwoodCarnival Cruise Lines

Quality InnVacation Rentals by Owner

Comfort InnHampton Inn and Suites

Best WesternChoice Hotels

IHGMarriott

HiltonHotels.com

Booking.comTripAdvisor

Hotel Bookers Online Pop

Page 20: Path to Purchase - Experian€¦ · Path to Purchase Knowing where and when to reach buyers Examining online hotel bookers

Hotel bookers spent 41% more time on TripAdvisor

Hotel Bookers

Online Pop

0:08:11

0:05:49

Average Visit Time - TripAdvisor

Page 21: Path to Purchase - Experian€¦ · Path to Purchase Knowing where and when to reach buyers Examining online hotel bookers

Top travel agency websites

0% 5% 10% 15% 20%

HotelPlanner.comLowfares.com

Onetravel.comBookIt.com

TravelzoobookingbuddyYahoo! TravelCheap Tickets

CheapOairKayakOrbitz

HotwireTravelocity

Priceline.comExpedia

Hotel Bookers Online Pop

Page 22: Path to Purchase - Experian€¦ · Path to Purchase Knowing where and when to reach buyers Examining online hotel bookers

Short purchase cycle for booking hotels online

0

50

100

150

200

250

300

-60 -56 -52 -48 -44 -40 -36 -32 -28 -24 -20 -16 -12 -8 -4 0

# of

Vis

its

# of Days Before Booking

Visits to Hotel Websites - # of Days Before Online Hotel Booking

Page 23: Path to Purchase - Experian€¦ · Path to Purchase Knowing where and when to reach buyers Examining online hotel bookers

Visitation pattern is similar when booking direct with hotel

0

10

20

30

40

50

60

70

60 days 30 days 14 days 7 days

Aver

age

Num

ber o

f Vis

its

Average Number of Days Before Online Hotel; Booking

Visited a hotel website & booked a hotel

Visited a hotel website & booked on a hotel website

Page 24: Path to Purchase - Experian€¦ · Path to Purchase Knowing where and when to reach buyers Examining online hotel bookers

Shoppers consult reviews immediately before booking

Same Day as

Purchase

0

10

20

30

40

50

60

70

80

90

100

-30 -28 -26 -24 -22 -20 -18 -16 -14 -12 -10 -8 -6 -4 -2 0

# of

Vis

its

# of Days Before Booking

Visits to TripAdvisor - # of Days Before Online Hotel Booking

Page 25: Path to Purchase - Experian€¦ · Path to Purchase Knowing where and when to reach buyers Examining online hotel bookers

Majority of review research takes place within 2 weeks of transaction

7.5 9.9

14.1

21.1

60 days 30 days 14 days 7 Days

# of Days Before Booking

Average # of Visits - TripAdvisor

Page 26: Path to Purchase - Experian€¦ · Path to Purchase Knowing where and when to reach buyers Examining online hotel bookers

Engagement with reviews increases close to transaction

13:45 15:03 15:45

26:55

60 days 30 days 14 days 7 Days

# of Days Before Booking

Average Time Spent - TripAdvisor

04:23

32:41

37:45

43:11

05:53

4 Days Before

3 Days Before

2 Days Before

Day Before

Day of Purchase

Page 27: Path to Purchase - Experian€¦ · Path to Purchase Knowing where and when to reach buyers Examining online hotel bookers

Researching airfares before booking a hotel

0

10

20

30

40

50

60

70

80

90

-90 -87 -84 -80 -77 -73 -70 -67 -64 -61 -58 -55 -52 -49 -46 -43 -40 -37 -34 -31 -28 -25 -22 -19 -16 -13 -10 -7 -4 -1

# of

Vis

its

# of Days Before Booking

Visits to Airline Websites - # of Days Before Online Hotel Booking

Page 28: Path to Purchase - Experian€¦ · Path to Purchase Knowing where and when to reach buyers Examining online hotel bookers

Concurrent research taking place with air & hotel

0

10

20

30

40

50

60

70

60 days 30 days 14 days 7 days

Visited a hotel website & booked a hotel

Visited airline website & booked a hotel

Page 29: Path to Purchase - Experian€¦ · Path to Purchase Knowing where and when to reach buyers Examining online hotel bookers

Closing thoughts • Increasingly complex challenge

Budgets are spent guessing where target customers will appear when ready to purchase

• Unique capabilities of Experian

Surveys and longitudinal observation of online and on-device behavior to identify key opportunities along the consumer journey