The Power of Geo-Targeting | Boston Hospitality Review - 0 views
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companies using digital marketing techniques had, have, and will have to adapt the targeting methods to reach their audience.
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companies must target audiences efficiently with appropriate messages, not just demographically, but also geographically.
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Geofencing creates a radius or boundary where ads are posted, whereas geo-targeting regards a more general location.
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Electronic word-of-mouth communication refers to any positive or negative statement made by potential, actual or former customers about a product or company which is made available to multiples of people and/or institutions and is spread over the internet (Cheung et al, 2010).
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“Hotels can no longer take a blanketed approach towards their consumers; they must understand where guests are coming from and the impact of a hotel’s digital footprint.”
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Hotels prioritizing direct business capture approximately 95% more revenue versus the 80% revenue from indirect channels (Revenue-Hub.com).
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According to Stratosjets.com, “72% of mobile bookings happen within 48 hours of last-minute Google searches that include the words ‘tonight’ and ‘today,’ and 70% of all customers conduct their research on a smartphone” (Steve Deane, 2021).
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. According to SmartBugMedia, 71% of consumers prefer a personalized ad experience, and three of four consumers complete an action after receiving a message when approaching a specific location (Amber Kemmis, SmartBugMedia, Jan 2020).
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VPN allows the user to locate the device in a location other than the actual one. Thus, it could prevent appropriately targeting a user.
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Existing and past guests are “far more precious” to a property (Starkov) since the CAC (customer acquisition cost) is far less than acquiring new guests.
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Where are the hotel guests coming from? Are the incoming guests here for leisure, business, or are they group travelers?
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Use of CRM technology such as Cendyn, Revinate, and SHR, allows the property to create 360-degree guest profiles.
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Denny’s implemented a geo-targeting strategy that sent specific promotions to existing customers that were within a location which resulted in an 11.6% increase to in-store visits.
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Geo-targeting is a step above geo-fencing and like that of Proximity marketing is a digital marketing technique meant to geographically target consumers within a set of parameters. The purpose of this is that while digital marketing has been around, is being used and the future of it is quite relevant it requires companies to adapt using various methods of marketing to reach the consumer. And geography is an area that is highly required. And unlike geo-fencing, geo-targeting is more generalized in the locale. It is asserted that companies need to have a better understanding of their guests at a basic level than before. "Hotels can no longer take a blanketed approach---understanding where a guest is coming from and the impact of a hotel's digital footprint" is just as important. A reason hotels might want to use geo-targeting is that direct business captures "95% more revenue than that of indirect channels". Interested enough many guests book last minute and that accounts for 72% off mobile bookings. Geo-targeting relies on revenue to determine its success. One issue noted is the use of VPNs can create miss-targeting when users are receiving messages from a location they are not in. Several things to note are prioritizing a focus on existing and prior guests because they cost less than advertising to new guests. Secondly, using CRM can create personalization through guest profiles and add an extra special factor to their experience. One example shown was Denny's and it showed an increase in visits. Geo-targeting is a marketing strategy that can help companies stay relevant.
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This take on proximity marketing is interesting in that it requires a little more thought in implementation because you aren't just narrowing it down to a specific locale, you are creating a wider net to catch people in. That means you have to have a broader understanding of who you are catching which would be multiple targets that may not be alike, but have similar needs. They used the pandemic as an example of how it benefited them to use geo-location, While not marketing to a whole section of the US they targeted a more localized net ( a state away) but not too narrow as to leave out a specific target. It showed some success in that they were able to save money and help bring brand awareness to a different type of consumer. They not only target those locally but "neighbors" and I know that I as a new guest appreciate seeing local people utilizing a product or service and come back for more because it gives me an idea that the product or service or both is appealing to guests. This also helps hinge on the word of mouth of the customer. That is an additional positive aspect of this type of marketing. Seeking local rather than national or global customer-created brand devotion.