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E-commerce And Social Media. Business Models Business models are plans, activities, processes designed to result in profit 8 key elements 1.Value proposition.

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Presentation on theme: "E-commerce And Social Media. Business Models Business models are plans, activities, processes designed to result in profit 8 key elements 1.Value proposition."— Presentation transcript:

1 E-commerce And Social Media

2 Business Models Business models are plans, activities, processes designed to result in profit 8 key elements 1.Value proposition 2.Revenue model 3.Market opportunity 4.Competitive environment (life cycle) 5.Competitive Advantage 6.Market strategy 7.Organizational development 8.Management team

3 E-COMMERCE Revenue MODELS $ MODEL$ SOURCEExample AdvertisingPaid for messagingYahoo, Google, OTAs, blogs SubscriptionPaid access to content or services WSJ.com, consumerreports.org Transaction feesCommissions for executing or enabling exchange E-bay, E*trade, previously OTA fees SalesDirect selling of goods, services information Amazon, retailers Affiliate $ for business referralMyPoints, others…

4 Technology is the Enabler Ubiquity Global reach Universal standards Richness Interactivity Personalization and customization Information density Social networking technologies

5 It’s the Technology, Sunny! Hardware: Web servers Software: OS and Server Software Networking: Routers Security: Encryption E-commerce Software for B2C, B2B Streaming and Rich Media, RSS CRM Software

6 It’s the Technology, Silly! Payment systems – the technology behind iTunes story, and PayPal Performance Enhancements Databases – the big ones Oracle, MS, IBM Hosting services – getting you on the “highway” What might be next? Where?

7 Influences of Internet Porter’s Five Forces Model Substitutes – Pro: expand size of market – Con: threats of substitution Power of Suppliers Rivalry among existing competitors Barriers to entry Bargaining power of channels Bargaining power of end user

8 Social media: select categories More than Facebook Streaming video Media sharing, Pintrest, YouTube Blogs and microblogs, Twitter Review sites, TripAdvisor Wikis, widgets RSS feeds, message boards

9

10 Social Media & Distribution Social media contribute to search engine optimization. Social media can improve travel experience. Social media is the new “PR” Social media can feed traditional media such as talk shows, news programs, and vice versa. Most social media outlets are owned by established media (newspapers, TV, other)

11 Facts about Social Media & Travel Features used while travel shopping: 66%: interactive maps 62%: consumer reviews 52%: professional reviews 47%: professional photos 41%: consumer photos

12 Facts about Social Media & Travel Features used while travel shopping: 29%: social network posts (FB, Twitter) 26%: professional video 23%: consumer video 20%: travel company’s social network (FB, etc) SURPRISED? (PhoCusWright 2012)

13 Attribution of Social Networks to… OTAs – 3.5% Airlines – 6.1% Hotels – 3.3% Cruise – 7.0% 89% of consumer “Like” or “Follow” brands but on 29% do so for TRAVEL…..

14 Social Network Behavior 43% post comments or photos about travel 33% Ask for advice on travel using networks 28% share travel deals 30% search for deals for travel 42% post and share WHILE traveling 25% download apps to use on social network pages for or about travel Thoughts?

15 C U S T O M E R E X P E R I E N C E Consumer Behavior Today DreamingShoppingConsumingSharing

16 S E O & S E M Organic Search Local Search Paid Search Retargeting Ads

17 R E V I E W S & D I G I T A L I N T E R A C T I O N

18 T O P L I N E Revenue B E N E F I T S Review Sites % of Total # of Travelers Reviews 2008: OTAs – 53% Review Sites – 47% 2011: OTAs – 71% Review Sites – 29%

19 Some Thoughts on Reviews 86.6% of all Reviews (NOT on OTAs) are on TripAdvisor (watch TA) # of Reviews is Proportional to room supply in Star categories When ADR (US$) goes up, positive reviews (“Sentiment Index”) goes down. Economy & Luxury manage guest expectations 2, 3, and 4 Stars have challenges doing so

20 Hamilton Island Case Study Encouraged guest reviews – 77 percent increase 2011 to 2012 – Cooperation between operations, revenue management, and marketing departments Closely monitored and responded to reviews – 60 percent increase in responses 2011 to 2012

21 Hamilton Island Case Study Visits to Brand.com tripled 2011 to 2012 94% increase in room nights SOLD in 2012 Direct revenue from TripAdvisor doubled Conversion – Every dollar spent managing TripAdvisor converted to $6 in direct online sales

22 P R O P E R T Y 2012 R E V I E W S T O T A L R O O M S R E V I E W S/ R O O M S James NY Soho4591144.03 60 Thompson2421002.42 Mondrian Soho6342702.35 The Standard6523381.93 Hotel Gansevoort3812091.82 Crosby St.122861.42 R E V I E W S: More Reviews = More Positive Scores = More Revenue (Source: Revinate)

23 R E V I E W S Case Study: M O N D R I A N S O H O p e r r o o m 2012 Ratio 2.35 2012 Comp Set Rank 3 2012 Comp Set Average 2.29 2012 Reviews per Room Index 102.61 (Source: Revinate)

24 G R O U P S O F P R O P E R T Y R E V I E W SR E S P O N S E S% R E S P O N S E All Properties5470245845% Hudson122544036% London Hotels60036561% Miami Hotels138069550% Mondrian122363052% Northeast Hotels2531105142% West Coast Hotels97734736% R E V I E W S: M O N D R I A N S O H O r e s p o n d i n g t o r e v i e w s 2012 (Source: Revinate)

25 G R O U P S O F P R O P E R T Y ★★ ★ ★ ★ ★★ ★★ ★★ ★ ★ ★ ★★ ★ ★★ ★★ ★ ★ All Properties48%44%45% 33% Hudson31%36%38%44%31% London Hotels61%63%69%86%60% Miami Hotels55%48% 42%38% Mondrian Hotels51%52%60%53%46% Northeast Hotels45%40%41%46%31% West Coast Hotels33%40%42%32%19% R E V I E W S: M O N D R I A N S O H O r e s p o n d i n g t o r e v i e w s (Source: Revinate)

26 Encourage additional reviews from guests and patrons Respond to additional reviews Continue to monitor and analyze reviews Monitor and analyze Twitter and Facebook chatter R E V I E W S: A C T I O N A B L E I T E M S Increase total reviews Respond to 75 percent

27 1.Become leader in digital competitive set 2.Increase total digital chatter 3.Increase traffic to brand.com 4.Enhance guest experience 5.Increase room nights and revenue R E V I E W S: I N C R E M E N T A L B E N E F I T S

28 Social media helps 1.Drive traffic to brand.com 2.Highlight brand distinctions 3.Increase brand awareness 4.Promote guest retention

29 Thoughts on Mobile Hotel bookings: Last Minute Travel experience enhancement Destination Marketing opportunity Business travel managers have not endorsed BUT…..it is the device of social SO-LO-MO is here

30 How Mobile is Fueling Social

31 US Moms Buy & Buy Travel


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