DIGITAL TRANSFORMATION

(travel & hospitality industries)

Fernando Polo @abladias

A long, long time ago… I found myself cofounding a startup to build an online monitoring software. It was visionary but early… too early :-)

When we started discussing about “text mining” technologies with the academic world, they said: “listen, in 30 years progress has been small. A robot won’t read as a human being. If machines could read, they would write as well…”

“By 2018, 20% of business content will be authored by machines”,

Gartner Inc, Oct 2015

EXPONENTIAL GROWTH

MOORE’S LAWHow could professors be so shortsighted back in 2003. The answer is quite simple. Humans -as Brynjolfsson and

McAfee stated in their awesome “The 2nd Machine Age” book- are not prepared to understand exponential growth. Let’s put aside foreseeing the effects of a non ceteris paribus evolution.

technologypeople

organisations

Organisations are failing to keep up with the frantic pace of the technological revolution.

Digital Transformation is related to: TEXTO DEL SUBTÍTULO EN MAYÚSC.

20% 40% 60% 80% 100%

36%39%

51%65%68%

76%79%New Distribution &

Loyalty ChannelsClient Management and Knowledge technology

Customer Journey Digitisation

Big Data

Open Innovation Platforms

Social Corporate & Business Accounts

Creating an Innovation Area

Territorio creativo partnered with the LSE to carry on a research about digital transformation. Several hundreds of executives related “Digital Transformation to “consumer related” topics.

DIGITAL TRANSFORMATION FRAMEWORK

DIGITAL CUSTOMER

DIGITAL BUSINESS

DIGITAL ENTERPRISE

Brand / Sales / Loyalty

Channels / Product & Services / New Biz Models

Leadership / Processes / Organization / Culture

DIG

ITA

L SK

ILLS

But we wrote an exhaustive white paper back in 2014 to understand what digital transformation is all about. And we have now clear that it is not only related to the digital customer, but also to new ways of producing revenues, and a

whole new way of organising enterprises internally.

DIGITAL CUSTOMER

NEW CUSTOMER FUNNEL

Source: McKinsey June 2009

2/3 of the touch points that influence purchase decisions aren’t generated by companies. They are created by consumers.

Some time ago, McKinsey conducted a massive research to better understand the new customer journey. They discovered that most of the touchpoints critical to influence purchase decisions at the active evaluation stage weren’t

produced by the companies themselves, but by other consumers.

DIGITAL CUSTOMER JOURNEY

Car Parks.

AIRPORT

shopping center near the

car park

free places optimization

Who am I?

Social Media

channels

THIS Airport is different

Shopping Experience

Customers needs

€shopping areas

Public Toilets

Aged

Tierra Pasaporte

VIP Lounge

CRM

New spaces. Fitness /Wellness

We’ve been recently thinking about the social /digital traveler, the new digital consumer and how airports can rethink their customer journeys and improve their user experience, specially through digital touchpoints.

This is just a graphical simulation of an airport user experience, created by Iñaki Bagazgoitia @ibagaz

In 2013, we conducted an extensive research commissioned by NH Hotels.. Even if the physical experience of travelling, staying in a hotel, visiting tourist destination has the biggest impact, there are more and more digital

touchpoints being added every day to the traveler journey. It means that the traveler experience is becoming more digitized. Thus -as many digital companies know well- the mantra “user / people / customer first” becomes a survival imperative., which is still difficult to understand for the hospitality industry, still too focused on their physical assets.

DOWNLOAD (pdf )

dreaming

planning

Social Media

channels

Destinations

Sharing Experience

Sharing

€

trip reviews

When redefining the customer journey and understanding how the digitisation of physical spaces is taking place, we forget too often that our customers carry powerful digital weapons in their pockets. Digitisation is not about putting

bigger displays at the stores. It’s about improving the experience through digital tools. A simple example: I never buy anything above 10 eur, without previously asking my wife over whatsapp :-)

EXPERIENCE IS EVERYTHING

Changing the conversation

from advertising to experience

GoodRebels.com is our brand for non Spanish speaking countries. And this is our tagline: changing the conversation “from advertising to experience”.

DIGITAL CUSTOMER EXPERIENCE FRAMEWORK

CUSTOMER GRO

WTH

BRAN

DSALES

AwarenessEngagement

AdvocacyReputation

Customer satisfactionSocial CRM

LoyaltyLife Time Value

Lead GenerationShopper Engagement

ConversionsSales Networks

BRAND /// SALES /// LOYALTY

When creating digital experiences., is the brand left behind? How do we create awareness, engagement in the digital / social age?

FROM TARGET TO COMMUNITY

Traditional Communication

Network Communication

1) Proactive Listening

2) Fan Centric

3) Earn (don’t buy) attention

• Content and utility

• UGC and advocacy

The digital / social platforms have changed the rules about digital branding and digital identity.

KLM: FROM COMM 2.0 TO PRODUCT 2.0

From

KLM Surprise

to

KLM Meet & Seat

A well known example from the Travel Industry. KLM went from creating a witty campaign based on improving the flyer experience, to introducing digital / social functionality in the flyer journey. Though KLM meet & seat hasn’t proved

extremely succesful so far, it depicts a digital mindset.

NH HOTELES#WAKEUPPICS3

We started working with NH Hoteles in 2010. Little months afterwards, Instagram was born and 1 million users joined the social network in 2 months. Creating one of the first world campaigns on IG, positioned NH as an early adopter and

an innovative digital brand (read the story in BusinessInsider.com).

WATCH VIDEO

A B

The new challenge is all about creating experiences, in order to foster engagement between nodes inside a big network.

HOW TO CREATE ENGAGEMENT

CREATIVITY

DATA

TECHNOLOGY

A B

#peoplefirst SET OF PRINCIPLES

SKILLS & METHODOLOGIES

TECH ENABLERS

How to translate a TV spot into a Facebook campaign, putting the fan at the center of the stage and using personal data (with explicit permission), creativity and technology to convey emotions.

WATCH VIDEO

DATA IS EVERYTHING

BIG DATA APPLICATIONSTOURISM INDUSTRY

Demand & Business Forecast

Real Time Information

Industry Knowledge

Operations Management

Client Acquisition

n/a

Source: Invattur / Territorio creativo 2015

DATA SOURCES & OBJECTSBIG DATA TOURISM INDUSTRY

Online Reputation

Bookings & Services data

Declared Interests in SNs

Sociodemographic Information

Cultural Activities

Geolocalisation

Safety

Health

Mobility

Weather

More to less valued Source: Invattur / Territorio creativo 2015

AAKER APPLIED TO A CAR BRAND

We used “big data” (or not so big) to analyse the brand personality following Jennifer Aaker’s model, using hundreds of thousands of online conversations.

CUSTOMER JOURNEY CASE STUDY

An we’ve used “big data” (or not so big) to improve the customer journey of a retailer (brick & mortar), and many other companies.

CONSUMER EXPERIENCE

WHEN HOWWHYWHO WHAT

Motivations

Understanding the impulse and the person behind each moment.

★ Value proposition

★ Empathy Mapping

★ Buyer Persona

★ Casting: internal & external influence

Timeline

Determining the timing of each interaction.

★Moments map

★ Periodicity and seasonality timelines

Touchpoints

Identifying direct and indirect points of engagement.

★ Channels mapping

★ Service staging (recreating environments around each touchpoint)

★ Casting

Actions

Understanding the actions and needs met at each moment.

★ Pain/Wow moment measurement

★ Action plan

★ Transactional analysis

Buyers

Defining the main actors across the journey.

★ Buyer Persona

5 PILLARS OF GOOD REBELS / TC METHODOL.

CONSUMER EXPERIENCE

1 2 3 540

Segmentation

Role Plays Data

Actions

Measurement

OU

TPU

TPR

OCE

SS

Workshops

Interviews

Research (Data, Surveys)Interviews

CJ Canvas

Archetypes

Client Shadowing

Workshops (in store/ office)

Ideation

IdeationCustomer

Service

Digital Monitoring

CJ MetricsFramework

Profiles

Empathy Maps

PEO

PLE • Front End team

• Back End team• Clients • Front End team • Back End team

• Clients • Front End

team • Back End team

• CJ Team • Front End team • Back End team

• Clients • Specialists • Internal Teams • Partners

• CJ Team • Internal Teams

Segmen-tation

Buyer Persona

CJ Mapping Measure-ment

Improvement cycle

Business objectives

Lean Tactical Plan

5

• CJ Team • Front End team • Back End team

Action Plan

CJ Analysis

Ideation

METHODOLOGY: PROCESS

Disney MyMagic+

Another example of Big Data applied to the travel and leisure industry (read more)

DIGITAL CUSTOMER EXPERIENCE FRAMEWORK

CUSTOMER GRO

WTH

BRAN

DSALES

AwarenessEngagement

AdvocacyReputation

Customer satisfactionSocial CRM

LoyaltyLife Time Value

Lead GenerationShopper Engagement

ConversionsSales Networks

BRAND /// SALES /// LOYALTY

And what about digitising loyalty programs?

STARBUCKS LOYALTY PROGRAM

Source: Starbucks

STARBUCKSDIGITAL LOYALTY PROGRAM GROWTH

Source: Starbucks

anal

ytic

scrm

LOYALTY & CRM IN THE DIGITAL

oper

atio

nal s

crm

digi

tal/s

ocia

l lo

yalty

social business intelligence

LOYALTY & CRM IN THE DIGITAL AGEINFORMATION FLOW

web gp

s

mob

ile a

pp

gam

ifica

t.

face

book

tw, i

n, In

st.

open

dat

a

stor

es

e-co

mm

erce

wea

rabl

es

int.

of th

ings

polls

tran

sact

ion

onlin

e co

nt.

mob

ile

soci

al

hard

war

e

Client ID

data arch.

analysis

soci

al B

I

promotion/gamification

promotion/gamification

DIGITAL BUSINESS

NUEVOS MODELOS DE INGRESOSTEXTO DEL SUBTÍTULO EN MAYÚSC.

New Distribution

channels

New products / services

New Models

NEW DIGITAL BUSINESS MODELS

eCommerce Digital Products / Services New Models

Organisations are finding ways to market new products and services improved or redefined by digital technologies.

STARBUCKS MOBILE PAYMENT

Source: Starbucks

But many tourism and hospitality companies are finding ways to take advantage from digital technologies to build completely new business models. Is not only about “product digitalization”. Is about “digital disruption”.

STARBUCKS & SQUARE

Source: Starbucks

Starbucks announced months ago, that they will develop and sell their own mobile payment technology (even competing with their former partners, Square).

Room Mate Hotels launched Be Mate, a platform to let private owners rent their appartments with Room Mate services, like cleaning or checkin services.

DIGITAL ENTERPRISE

TEXTO DEL SUBTÍTULO EN MAYÚSC.

Less investment:

21% invest 0€

PEOPLEPROCESSES AND ORGANISATION

18% invest 0€

As in many other industries, one of the major obstacles to overcome when transforming companies digitally, is that the investment in people and organisation is still very rare.

TC DIGITAL ENTERPRISEFRAMEWORK

LEADERSHIP

SKILLS

ORG

AN

IZAT

IONO

PERATION

S

VALUES

DIGITAL CULTURE

MOTIVATIONS

We at Good Rebels / Territorio creativo, have developed a framework to help companies put their house digitally in order.

20th c. efficiency

Because old hierarchical structures are focused on efficiency.

21st c. innovation

But to thrive in the XXIst century we will need corporate structures oriented towards innovation.

And we’ve written a whole book to explain how to migrate from old management principles to new ones. How to introduce digital values in our organisations. #Leadertarians was published by Planeta in Spain in January 2015. If you

want to read this book in English, just send me an email to abladias@gmail.com .

In our book there are more than 20 cases explaining how to work with less bosses, less bureaucracy, and less bureaucracy. Like Valve. (Read the Valve Employee Handbook, PDF)

But it is not only about digital cultures. One of the most fascinating example of self management can be found in Brazil. (Read about Semco Story))

INTRISIC MOTIVATIONS

VISION

DEVELOPMENT AUTONOMY

DIGITALVALUES

Based mostly on the framework explained in Daniel Pink’s book, Drive: the incredible truth about what really motivates us, we are building a company where people can look beyond their daily work and understand the impact of their

effort to create a better world, have enough freedom to take most of their decisiones and feel that they become better professionals each day. It’s all about creating “intrinsic” (not extrinsic) motivations.

OPEN LEADERSHIP

• connected leader

• the leader as a teacher

• communicator (read, write, speak)

• co-leadership

• “intrapreneurial”

• control vs. freedom + responsibility

• humble

• helpful (servant leadership)

DIGITAL TRANSFORMATION FRAMEWORK

DIGITAL CUSTOMER

DIGITAL BUSINESS

DIGITAL COMPANY

Brand / Sales / Loyalty

Channels / Product & Services / New Biz Models

Leadership / Processes / Organization / Culture

DIG

ITA

L SK

ILLS

HOW TO CREATE ENGAGEMENT

CREATIVITY

DATA

TECHNOLOGY

A B

#peoplefirst SET OF PRINCIPLES

SKILLS & METHODOLOGIES

TECH ENABLERS

a human-centered world

#peoplefirst

CREATIVE AGENCY AND CONSULTANCY DIGITAL TRANSFORMATION & CONSUMER EXPERIENCE

#TcBlog

BRIGHTON - MADRID - BARCELONA - BOGOTÁ - CD MÉXICO - LIMA

+200.000 FANS

COUNTRIES5 & GROWING

130PROJECTS

120WORKERS

+40ACTIVE CLIENTS

MM €8TURNOVER

COMMUNITYFIRST MKT BLOG IN SPANISH

Thanks for reading this far. I am Fernando Polo, partner and CEO of Territorio creativo group (GoodRebels.com) creative agency and consultancy of Digital Transformation and Consumer Experience. You can follow me on Twitter (@abladias) or on my blog FernandoPolo.com. Or read our vision about the future of marketing in #Socialholic, or the new digital management in #Leadertarians.

goodrebels.com • territoriocreativo.es/en

Brighton • Madrid • Barcelona • Bogotá • México • Lima

From advertising to experience