Presentation on theme: "Website Evaluation & ROI Project For WACVB Members"— Presentation transcript:
1 Website Evaluation & ROI Project For WACVB Members March 26, 2009
2 TNS World’s largest custom research business Company owned offices in over 80 countriesRevenue exceeding $2.1 Billion (2007)Over 14,500 employeesLargest travel research practice in the U.SNumber one ranked ad and branding research firm
3 A Website Evaluation Study —Why is it important DMAI Futures Study—Number Two Behind Hotel TaxesYour brandMain planning toolYour storefrontBest opportunity to close or enhance the traveler experienceCompetitive is fierce
4 Research objectives of travel destination websites Understanding site visitorsWho are the site visitors?Why do they visit the site?Understanding the effectiveness of the siteIs the site persuading visitation to the destination?What is the ROI of the site?4
5 Website Evaluation Key Questions Answers What impact does the website have on brand association, affinity, and purchase intent?What is the website’s role in the buying process?What is the value of a website visit and what is the website’s ROI?What types of travelers are visiting?Which forms of advertising are driving traffic?
7 Traditional WACVB Approach to Website Evaluation Website SurveyTNS will intercept visitors on your site. Using a test and control method, TNS will determine the impact of your website on visitation. Analysis in Power Point format provided.Conversion Study with ROI AnalysisTNS will re-contact respondents from website survey to determine if they actually came to your destination and collect spending data. Both conversion and ROI will be provided in PowerPoint format.7
8 Our Unique Design Cookie Tracking TNS Panelists Email Recontact Phase IPhase IIWebsite Evaluation SurveyConversion Survey & ROICookie Tracking TNS PanelistsRecontactTNS will tag the website with an invisible beacon that indicates which TNS panelists have visited the siteA test/control group are intercepted to measure the effectiveness of those exposed to the site vs. those that have not visited the siteUtilize standardized questionnaire design; destination specific attributes can be added to core set of attributesTNS will re-contact website visitors at some point in the future to determine if they visited the destination and what activities they enjoyedsample comes from the TNS panel of those that have visited the siteCVB provide website related expenditures and expenses related to the websiteCalculate ROI using unique visitors (web-log data), conversion rate and visitors spending (re-contact survey), and website investment inputs8
9 Benefits of this unique approach 40% cooperation rates vs. less than 1% for most pop-upsAbility for more advanced analysis through longer surveysPanelist-centric approach controls for cookie deletionMuch easier to conduct follow-up surveysAbility for deeper analysis based on frequency and time since last exposure No more pop-ups!TNS is a research company that has developed this technologyThe same tagging approach can be used to track exposures across all digital communications, including online ads, websites and e-newsletters.Managed panel
10 The Process: Regardless of the approach Define objectivesConsult with your IT teamDesign Survey ~10 minute website survey and 3 minute ROI surveyProcess the dataReport/presentation—Evaluation and ROISpecial thank you to Tucson and PortlandClient Service
11 Schedule Project Milestones Estimated time Website Survey Questionnaire Development/Scenario Testing3 weeksData CollectionDepends on trafficData Processing2 weeksReporting and AnalysisConversion Study1 week
13 Travel Portland Specifically, the research covered: Site effectiveness Site usageCompetition and performancePerceptions and expectationsMotivatorsTraveler characteristicsROI
14 Website Effectiveness “Positive impact the site has on likelihood of visiting the destination”
15 (Experienced the Website) (Only Entered the Website) Assessing Website EffectivenessOne group has experienced the site & the other group only entered the siteCompare the two groups to isolate the effects of the website.For example, if “likelihood of visiting destination” differs significantly between a test and control group, then the website is effective in influencing likelihood of visiting the destination.TEST GROUP(Experienced the Website)CONTROL GROUP(Only Entered the Website)??Invited to take survey after experiencing the siteInvited to take survey before experiencing the site2 samples are collected & later compared
16 First-Time Users’ Likelihood to Visit No statistically significant difference exists in top 2 box likelihood of visiting PortlandOpportunity to influence incremental revenue by increasing likelihood of visitingTEST GROUP(Experienced the Website)CONTROL GROUP(Only Entered the Website)Test and control is among travel related users of the website (results do not includes those who work in the travel or media industry nor those using the site for non-travel purposes).No significant difference at 95% confidence. Test N=197; Control N=217. A similar Test/Control comparison among repeat travel users also did not show a significant difference.
18 Repeat Travelers to Portland Vast majority of users have traveled to Portland in the pastThe site’s brand experience should focus on deepening an existing brand relationship, rather than creating a relationship (i.e., making users feel part of the community or reconnected with the community, rather than being introduced to the community)Enter Survey and Likely Visitors: TravelPortland.com Users N=382; Q31: How many trips have you ever had in Portland for a vacation or leisure /combination leisure & business/business trip?
19 Repeat Website UsersThe vast majority of website users have visited Portland previously (82%), but only one in three have experienced the website beforeOver half of past Portland travelers will be experiencing the website for the first timeEnter Survey and Likely Visitors: TravelPortland.com Users N=382; Q3: Is this your first visit to this website?
20 How They Heard About TravelPortland Search engine results reached the most usersSearch should be the corner stone of MARCOM efforts directing users to the website, at minimum, Search Engine OptimizationEnter Survey and Likely US Visitors: OR/WA Residents N=67;Other US Residents N=167; Q21: How did you hear about this website?
21 Other Sources for the Potential Trip Users rely primarily on own/friends/relatives’ experiences—a website feature of other travelers’ experiences may emulate this type of learningIn addition to TravelPortland, over a quarter intended to use either a travel provider website or a full-service travel website—an opportunity for TravelPortland to satisfy their planning needs and/or to provide a highly qualified audience to those service providersEnter Survey and Likely US Visitors: OR/WA Residents N=67; Other US Residents N=167; Q6: What other sources, if any, have you used or intend to use for this purpose? (purpose for which they are visiting the TravelPortland website)
23 Threat to ROI—Potential Alternative Destinations A sizeable proportion of likely Portland travelers are considering an alternative53% of those considering an alternative destination are considering the alternative as strongly as Portland. This means over one in five (22%) potential Portland travelers are at high risk of switchingEstablish points of difference with top competitive setThe fact that highly qualified consumers are on the TravelPortland.com website provides an opportunity to ‘close the deal,’ thereby thwarting the competition (i.e., compelling Portland brand story/ deals/ promotions/ booking/ no sales tax/ relevant and satisfying website experience, etc.)Alternatives:Seattle 10%San Francisco 4%Vancouver 3%Other 46%N=382 (Enter Survey and Likely Visitors), Q13: Which destination, if any, are you considering as your most likely alternative to Portland?
25 Website Performance vs. Benchmark More TravelPortland users find ‘Helps me save money’ to be applicable to them (86% vs. 77% benchmark). However, TravelPortland does not have a relative advantage vs. benchmark despite deals being offeredCompared to other sites, TravelPortland does not enable as many users to tailor a trip according to their budget. Consider more price transparency in lodging and food since they comprise ~60% of users’ in-destination budgetThough not statistically significant with current base sizes, the site directionally has more users being helped with choosing accommodations and feeling that the purchasing/reserving on the site is worthwhile (next slide)Travel Portland N=242 and Benchmark up to N=306 depending on whether. Some statements have a lower base depending on how many respodents found the statement applicable (non N/A). Benchmark consists of likely visitors to 3 other CVB websites after leaving the sites, some questions were not asked of all 3 websites. A statistically significant difference exists when an attribute is highlighted (10% risk).
26 Website Expectations among First Time Users The vast majority expect the site to help them choose things-to-do and to provide useful mapsA large number of first time users, who had yet to experience the site, did not expect TravelPortland to help them choose accommodations or to provide a worthwhile online purchase/reserve experience.However, among those who had recently experienced the site, these two benefits were among the most widely received benefits (previous 2 slides)N=239 (First-Time Users, Enter Survey and are Likely Visitors), Q22d: How important is it for Portland’s website to provide each of these benefits?(10=Extremely Important; 1=Extremely Unimportant)
27 Motivations for Visiting Destination and Primary Activities
28 Motivations for Visiting Portland Portland is a beautiful and clean place that is familiar and safe. The people are friendly and there is a lot of things to do. The shopping is great, hotel and meal costs are reasonable, and the nightlife and entertainment is good.Other USOR/WATravel PortlandBenchmark SiteIt's a very beautiful, scenic place69%59%66%56%Lots of things to do there49%52%16%I can see and do new things, have new/different experiences41%48%44%Have been there before and liked it very much38%67%47%28%The environment is clean/unspoiled43%21%36%25%Good weather and climate37%24%33%61%I can spend more time with my spouse/family30%32%31%Reasonable cost of hotels/mealsIt's a great chance to relax, get rid of stress26%No schedules to meet, I can do what I want, when I wantGreat place to shop/buy things17%27%18%It's a very relaxing place29%I feel alive and energetic when I travel22%It's a safe and secure area23%15%Local people are very friendlyThis trip can renew my mind, body, and soulEnter Survey and Likely Visitors: TravelPortland.com Users N=222, OR/WA Residents N=66; Other US Residents N=159, Benchmark site N=436, Q29: What contributes to your desire to go to Portland for a vacation or leisure trip/combined business and leisure trip/business trip?. Shaded areas represents a significant difference between OR/WA residents vs. Other US Residents or between site users vs. benchmark site users (95% confidence).
30 Modes of Transportation To & Within Portland Vast majority of residents outside of OR/WA will travel by planeTrains and local buses are popularEnter Survey and Likely Visitors: N=67 OR/WA residents, Other US residents N=167; Q23: Please indicate all modes of transportation that you will likely use on your potential upcoming vacation or leisure trip/Combined business and leisure trip/business trip to and within Portland.
31 AccommodationsLarge majority will stay at a hotel/ motel, while nearly 1 in 5 will stay in a private homeN=234 (Enter Survey, Likely Visitors, and staying overnight) Q26: You just indicated that you might stay overnight in Portland for your potential upcoming vacation or leisure trip/Combined business and leisure trip/business trip. Please specify the accommodations you will likely stay at during the trip.
32 Travel Party Size 17% of likely travel parties will bring children Average party size is 2 personsN=355 (Enter Survey and Likely Visitors), Q24: Please indicate the number of travel party members, including yourself, who will likely travel with you to Portland on your potential upcoming vacation or leisure trip/Combined business and leisure trip/business trip.
33 AgeCompared to another site, TravelPortland draws more year oldsN=355(Enter Survey, Likely Visitors, and answered question), Q35: What is your age?
34 Website Return-on-Investment (ROI) “Number of tourism dollars each Website Return-on-Investment (ROI) “Number of tourism dollars each website dollar reaches”
35 ROI Input—Estimated & Actual Trip Value Likely visitors’ estimated budget is $1,267In a re-contact survey, travelers actually spent $1,111The budgeted and actual stay were both 4 nightsShopping contributed more than originally budgeted for (does 0% sales tax help?)Likely BudgetActual SpendLodging$490$373Shopping/Gifts/Souvenirs173260Food/Beverage/Dining (excluding groceries)301259Transportation (excluding parking) within Portland9970Entertainment (excluding gaming)/Admissions9853Groceries3136Other3025Parking18Amenities (golf fees, spa, health club, etc.)2423Casino/Gaming34Total$1,267$1,111N=286 (Enter Survey and Likely Visitors, mean average includes 0), Q27: Approximately, how much would you and your personal travel party likely spend in Portland for your potential upcoming vacation or leisure trip/combined business or leisure trip/business trip? N=99 Re-contact survey, were travel users in the first web-intercept survey, non-industry households, who actually visited .
36 ROI Predicted Actual # of Monthly Website Users 102,500 Every web site dollar invested is estimated to reach $11,600 of actual travel spendingLooking from a cost perspective, the web site costs 10 cents per conversion ($5,000/52,275=$0.10). The gross value per conversion is $1,111The website is investing 10 cents to reach a convert, however, the site’s ability to influence likelihood of travel is measured by the test/control experiment (later slide), which showed the site did not influence travel likelihood. However, the site is drawing a highly qualified audience (over 50% later travel to Portland). This highly qualified audience can be leveraged with stakeholders/advertisers to generate potential site investments or revenuePredictedfrom site intercept surveyActualfrom re-contact survey# of Monthly Website Users(Travel Portland's million annual unique visitors/12 months=125,000/month minus industry users (18%)=102,500)102,500X % Travel Converts57%51%# of Monthly Website Users Visiting Portland58,42552,275X $ Spent per Website User Visiting Portland$1,267$1,111$ Spent in Portland by Website Users$74 million$58 million/ $ Monthly Website Related Investments(Travel Portland’s 2008 $61,000 web site related investments/12 months=$5 thousand)$5 thousandMonthly ROI (Travel $ Reached per Website $)$14,800$11,60036
37 ROI—When Spending Will Likely Occur Nearly all potential spending will likely occur within 1-3 monthsFocus time sensitive information/listings on things that will occur 90 days away or lessN=382 (Enter Survey and Likely Visitors), Q28: When will you likely go to Portland for your potential upcoming vacation or leisure trip/combined business and leisure trip/business trip?
38 Sources of Visitors & Revenue ~3 out of 4 tourism dollars will likely come from US residents outside of OR/WAN=382 (Enter survey and Likely Visitors). N=99 Re-contact survey, were travel users in the first web-intercept survey, non-industry households, who actually visited.
40 Key Insights Their web efforts are money well spent Easy to buy, easy to sell—hotels and restaurantsProfiles for their packagesThe booking process—chatRevised planning sourcesOpportunity to deepen the relationshipClose or someone else will
42 Study Overview Compete Google Understand researchers and bookers January 2009Leisure Only
43 Online travel is now back to levels seen in 2007 Reality of today’s market: Online travel has weakened2008 had been up 25%+ from year before until JulyChange in Online Travel Bookers(% change from 2007 to 2008 in online travel bookers)Read As:2.6% fewer consumers booked travel online in Nov 2008 compared to Nov 2007
44 Air, Hotel, and Car Rental all following a similar trend Each category now within 5 points of 2007 levelsHotel holding on the bestChange in Online Travel Bookers(% change from 2007 to 2008 in online travel bookers)Read As:There were 5% more online hotel bookers in Nov 2008 than a year earlier in Nov 2007
45 And many individual brands are growing their audiences Despite downturn, every travel sub-category still has winnersGrowth in Online Researchers(% change from Nov ’07 to Nov ’08 in website traffic)Read As:Online researchers on the Mobissimo website in November 2008 were 64% higher than in November 2007
46 RESEARCHERS are visiting fewer travel sites… Researchers visited nearly 3 sites in ‘07; same people now closer to 2 sitesThis recent decline may be temporaryTravel Retail Sites Visited Per Researcher(sites visited among those who researched in both 2007 and 2008)Read As:Consumers who researched travel online in both Nov 2007 and Nov 2008 visited 2.2 sites on average in Nov 2008
47 …Yet BOOKERS are increasingly active The average booker is visiting more retail travel sitesHigher share of bookers have heavy activity (10+ sites)Travel Retail Sites Visited Per Booker(# of travel retail sites shopped in 30 days before booking)% of Bookers Visiting 10+ Sites(% of travel bookers visiting 10+ unique travel retailers)
48 While consumers still plan to travel, they will belt-tighten Most expect the economy will have some impact on dollars spentLess likely to be an impact on trip length and mode of transportWhat impact will the current economy have on your 2009 travel?(n=881 consumers who use the Internet to research travel)Total % Impacted92%86%79%78%75%71%
49 The mix of search referrals is relatively stable Over 70% sourced from Google, 20% from YahooTravel Search Referral Mix(% breakdown of search referrals to travel retailers from each engine)Read As:5% of search engine clicks to travel retail sites came from MSN/Live Search in November 2008
50 Maintain activities in high-ROI channels like Search Few opportunities for improved conversion rates in this marketClick for click, Search delivering increased conversion ratesRead As:In Nov 2008, 4.7% of all search referrals to travel retail websites resulted in an immediate bookingSearch Referral Conversion(% of search clicks resulting in an immediate booking)
51 Use value-adds to try and hold prices intact Freebies, Add-On’s, and other non-rate incentives have wide appealThese will push many consumers over the edge3 Deals Most Appealing for Your 2009 Travel(% selecting the following as one of 3 choices made, n=881 consumers using Internet to research travel)
52 Despite recent weakness, there are reasons for optimism Growth has slowed, but online travel activity is in line with 2007 levels.Maintain marketing activities in high-ROI channels like Search and understand the ROI of your Banner Ads.Stay focused on what consumers want: Destination & Experience.Use value-adds to convert researchers while trying to hold prices intact.Marketers have opportunities to connect with their target audiences.
53 Travel and the Recession Advertising/Marketing…Three Stages…Distress, Acceptance, and Moving OnMental Wallets…Basic, Sanity, Lifestyle, and FunBig contradiction… Cut Costs/Lifestyle…Hope for Leisure Travel in ‘09 …Leisure Travel is a Lifestyle WalletThere will be spending pressure …Business travel is the huge ? …
54 The Trip Are you winning with every trip aspect? Follow upArrivingStayingPlanningNeedsDepartingConsideration Set
55 From the largest Custom marketing research company in the Country and the number one ranked advertising and brand research company by Inside Research--the bible of the Marketing Research Industry55