62% of consumers will ignore travel brands after receiving offers that don’t correspond with where they are and what they are doing, according to Boxever Survey
Boston, Mass. – July 14, 2015 – Consumers are growing increasingly frustrated with the amount of untargeted marketing offers sent by airlines and travel providers, according to a Boxever survey of more than 500 travelers. In fact, for 55% of consumers and 58% of business travelers, three out of every four travel offers received are completely irrelevant to their needs and preferences.
“The volume of untargeted and poorly-personalized communications sent by travel companies is surprising – especially considering the amount of customer data available to brands today,” said Dave O’Flanagan, co-founder and CEO of Boxever, the predictive marketing and customer intelligence platform for airlines and travel retailers. “The travelers we surveyed made it clear that they are not receiving the level of personalized and value-orientated offers they desire, which affects how they plan to engage with brands in the future.”
When airlines and travel providers overwhelm customers with untargeted communications, the consequences can be severe. Of the travelers surveyed by Boxever, 59% said they would unsubscribe from a company’s content after receiving numerous, irrelevant offers, 50% would be less likely to open that company’s next offer and 40% would be less inclined to buy from that company.
Millennial travelers are even quicker to pull the trigger after negative engagements with brands. Compared to the general population, Boxever found that millennials are 13% more likely to unsubscribe from a company’s content and 10% more likely to delete a company’s mobile app after experiencing non-targeted and poorly-personalized engagements.
Survey respondents agreed on several common marketing pitfalls that negatively affect their engagement with brands. Consumers surveyed by Boxever who travel at least several times a month identified the following as the worst marketing communication offenses:
- Offers that don’t correspond with where an individual is and what he or she is doing (62%)
- Communications that aren’t tailored to an individual’s needs and interests (43%)
- Interactions that make the recipient feel like the brand doesn’t know him or her (29%)
Travelers Crave Contextual, 1:1 Engagements
Boxever found that the key to engaging travelers successfully is offering goods, services, and resources that make them feel personally engaged, and not part of an enormous marketing list.
“Outside of price and discounts, the most influential outbound offers are those that add value to something the consumer is already doing or planning to do,” said O’Flanagan. “The second most impactful type of outbound communication, according to our survey, is when an offer revisits a trip or event in which the consumer has previously expressed interest.”
Similar trends influence where a traveler decides to book. The survey found that outside of price, schedule, and loyalty programs, a website’s ease-of-use for searching and booking was far-and-away the most influential factor in determining where a traveler makes his or her reservation. Another factor that differentiates travel companies in the search and booking stage is the intuitive capabilities of the brand’s website. Travelers prefer websites that can remember their unique preferences, and send targeted offers and resources (based on past website interactions) to make the planning process and actual trip easier, more productive, and enjoyable.
Leveraging Customer Intelligence to Drive Traveler Loyalty
Travel purchases tend to be significant expenditures for consumers, which makes the customer experience critical. But despite a travel provider’s best effort, mishaps – such as delays, cancellations, lost baggage, and reservation mix-ups – will happen occasionally. And if the letdown is significant, there can be cascading effect on brand reputation and loyalty.
However, travel retailers have a massive opportunity to differentiate from the competition with how they respond to and manage negative experiences. For example, after having a negative experience with an airline, such as a lost bag or significantly delayed or cancelled flight, 91% of travelers identified at least one proactive action that the airline could take to improve the customer relationship:
- 77% said that offering coupons and discounts on future flights would help repair the relationships with the airline
- 60% identified being proactively offered seat upgrades as a valuable gesture
- 39% said being offered premium services for free – such as in-flight WiFi and entertainment – would be appreciated
- 23% identified early boarding privileges as a simple way to help make up for past travel mishaps
“Travel companies can improve customer loyalty by leveraging what’s already known about a customer to create small, meaningful experiences. For example, I often ask airline executives if they know who the five most valuable passengers are on each flight, and where they are sitting,” said O’Flanagan. “Another situation: can flight attendants identify which travelers recently had a negative experience, like a cancelled flight, and then be empowered to remedy the situation? For travel providers, the ability to collect and analyze data across multiple platforms, and make it actionable for the customer service staff on the frontlines can be a massive differentiator.”
For the full survey results and strategies for how airlines, hotels, and travel companies can advance and contextualize customer communications and marketing efforts, download the full report, Grounded by Untargeted Marketing: Travelers Frustrated with Airline, Travel and Hospitality Communications.
Boxever‘s predictive marketing platform helps travel retailers, such as airlines and online travel agents (OTAs), deliver personalized, 1:1 marketing experiences to their customers across all channels and at all stages of the customer lifecycle. Companies like Ryanair, Air New Zealand, eDreams ODIGEO, Tigerair, Wideroe, and more achieve higher conversion rates, increased revenue, and improved loyalty using Boxever’s SaaS-based platform. The company is headquartered in Dublin, Ireland, and its U.S. office is located in Boston, MA. Learn more at boxever.com or follow us on Twitter @Boxever.