As sustainable business practices continue to become the norm, pressure is building in many industries where natural resource consumption is high, and where technology has created viable alternative options. There are few such areas where this is more evident than in the direct mail industry. According to a study earlier this year by The Winterberry Group, direct mail spending in the United States totaled $58.4 billion in 2007. A staple of direct marketing for decades, hoteliers and other hospitality industry businesses rely on direct mail marketing to reach both prospects and existing customers alike, and to keep a funnel of new business coming through the front doors.
The phenomenal success of this marketing channel is evident by the growing volume of mailings that the average household now receives, which for many consumers has reached a tipping point. On the heels of the successful “Do Not Call” registry, which went into effect nationally on October 1, 2003, both state and federal lawmakers have considered various proposals for a “Do Not Mail” registry, legislation that would have a significant impact on the direct mail industry.
While that would seem to be enough for direct mail firms and the businesses who rely on them to worry about, pressure to be eco-friendly has added more fuel to the anti-mailing fire. This has been exacerbated by the viability of technology to reach consumers through vehicles such as e-mail, and more recently, mobile communications, as potential replacements. These channels afford marketers the ability to segment users as much, if not more so, than traditional physical mailings. However, while consumers have proven to be open to receiving marketing messages through electronic means, the rules of engagement include only permission-based communications, a clear distinction from most physical mailings.
Effectively Reaching Consumers Through E-mail
Are you wondering how you can reach potential future guests effectively through e-mail? According to a recent ResearchCorp study, 77 percent of all companies are marketing to their house file via e-mail. In addition, while once thought to be in significant decline, e-mail list rental remains a viable alternative to direct mail. There are indications in the slowing economy that e-mail list rental prices, typically sold on a CPM (cost per thousand) basis, are dropping, making this a great time to explore this channel.
If you’re not currently leveraging e-mail, marketing to a house list is a great place to start. It’s a very cost-effective way to communicate special events and packages available at your hotel, as well as progress on your efforts to meet and exceed environmental standards. Pursuing aggressive new green certifications? Use e-mail to tell your most loyal guests about it. Using e-mail to communicate not just special offers and events, but content that may be of interest to your customers can help increase your e-mail open rates and response.
If you’re already marketing to your existing database via e-mail, consider extending your reach through e-mail list rental. Companies like InfoUSA allow you to market your lodging services to targeted prospects, much like you can with direct mail. This is a great way to build your house file while exposing your brand to potential new customers. Consider separate messages for prospects versus past guests, as the same marketing message may not work for both. And above all, make it very clear how recipients can opt out of your communications, and promptly honor all such requests to maintain consumer trust.
Targeting Potential Guests Via Mobile Devices
Since bursting onto the digital marketing scene, mobile marketing has long been hyped as the next great opportunity for marketers. Only recently have there been signs that this may be becoming an accepted medium, as Apple’s iPhone has dramatically increased the percentage of consumers who now access the Web via a mobile device. In particular, marketers have utilized mobile campaigns encouraging consumers to request more information by sending text messages, often using an exclusive or special offer as a hook. It has proven to be a useful tool in reaching on-the-go consumers who may otherwise be difficult to reach.
One such difficult-to-reach demographic for many hoteliers is business travelers. They are difficult to target through mainstream vehicles like TV or direct mail, but are often tethered to mobile devices such as a BlackBerry or iPhone while on the go. It was this logic that led Hampton Hotels to launch a mobile campaign in July of 2007 to increase brand awareness to this demographic. Advertising on weather.com’s mobile WAP (wireless application protocol) site, Hampton aimed to make their brand name and message more relevant to business travelers for future travel planning. According to results released by the leading industry trade organization, the Mobile Marketing Association, Hampton Hotels reported seeing a 37 percent lift in message association, while also seeing a 27 percent increase in brand favorability as a result of the weather.com campaign.
In short, effective digital marketing is all about permission. While you don’t have to abandon direct mail or other print-heavy vehicles, consider testing e-mail against a channel like direct mail to measure whether it can be effective. You may also want to consider giving your most favored guests a choice of how they wish to hear from you in the future. This practice is already in use by many marketers, and can create positive feelings about your brand by relinquishing this control. Consumers are not all alike. Marketers who understand these differences and can target their message through the right mix of vehicles will be most successful in the end.
Jon Eggleton is a Cleveland, Ohio-based Internet strategist with more than 10 years of experience utilizing the Web for customer acquisition and retention efforts. He is also the publisher of DrinkTheEarth.com, a site aimed at organic wine and beverage consumers, launched in October, 2008. For more information or to contact Jon, visit his website at www.joneggleton.com.
