The is a guest blog by Laurens van den Oever, global director travel of GfK Asia Pte Ltd.
Laurens van den Oever, global director travel, GfK Asia Pte Ltd
Who could have foreseen 20 years ago that, in 2014, 3% of people would be booking holidays from their bathrooms?
The customer purchase journey is unrecognisable compared to only 10 or 20 years ago. It is now all about omnichannel and multiple devices. People can, if they wish, research their next holiday while waiting in line at the supermarket, commuting to work or even having a bath!
This is an exciting and intensely challenging time to be part of the competitive travel industry. Digitalisation and the new technology allow us to understand consumer behaviour better than ever before. As travel agencies and holiday companies compete for customers in an increasingly fragmented market, an understanding of hybrid customer behaviour is essential in order to make the most of every opportunity.
1: Purchase journeys integrate online and offline channels
Imagine that a consumer is buying a new tablet. Research shows that while offline touchpoints still account for 61% of behaviour, more than half of customers’ searches are generated by search engines. So customers are mixing offline and online activity. Rather than competing the two channels work in a symbiotic relationship, each relying on the other to assist consumers in their tasks. Brands need to provide a seamless, effortless transition between channels.
2: More than half of consumers do their research online
Online is as important as word of mouth in terms of reaching customers. Travel related search engines now achieve more than 91% of the reach to consumers. Not only do consumers love to research holidays online, they don’t mind investing a considerable amount of time in this activity. A consumer spends five hours on average online to find the best flight deal. This is a lot of time for a flight that may last less than two hours!
Here are three important insights into the travel customer’s online journey.
- Approximately 25% of travel bookers don’t know they are going to book a holiday only three months before purchase.
- Customers who are booking a holiday actually consider 10 times more brands than they expect to upfront.
- After making their booking, customers forget two thirds of the brands they considered.
3. Customer journeys are complex, but understanding them leads to increased return on investment
Travellers use more than three devices for researching and booking a flight. (Image credit: koo_mikko/iStock)
The customer journey has never been more complex. Consumers can carry out research online anywhere, anytime and on multiple devices. When researching and then booking a flight, more than 65% of customers will use more than three devices.
Travel companies need to ensure they have a comprehensive knowledge of every stage in the customer journey. By understanding the customer journey they can take advantage of every opportunity to reinforce their brand message, and to reach customers at critical points in their purchase journey.
4. The much anticipated mobile revolution is happening NOW
Between 2011 and 2013 the sales of mobile devices rose by 269% globally – 48% in the developed world and 164% in emerging countries. 100 million mobiles are now being sold each quarter in the Chinese market. Global mobile transactions are predicted to reach an incredible $617bn in 2016.
Mobile web access is now the norm for most consumers worldwide. So mobile is the key channel for driving business growth in any industry. Having a mobile optimized website is only the first step. It is crucially important to have a thorough understanding of the mobile/cross-device behavior of your consumers. Simply investing in mobile is not enough, it’s important to measure the ROI of all your mobile activities.
5. Omnichannel is a hybrid approach between online and offline roles. Ensure messages are consistent across the touchpoints and that your brand is present everywhere
With customers going truly omnichannel, it’s never been more important for companies to make sure that all of their messages are in place everywhere and are consistent. The consumer-brand relationship is changing, and consumers are in charge of how they interact with brands. When buying motor insurance, 82% of customers research online, but are not 100% driven by cost. Almost half of the drivers surveyed (49%) agree that it’s worth paying more for a brand with a strong reputation. And renewal letters drive online activity, increasing engagement with the brand. So advertising, customer relations and reminders are all key communications and touchpoints, and they all influence the ultimate purchasing decision.
6. If it can be digital, it will be digital
In our technology-enabled, fast-paced world, people have grown used to getting what they want as quickly as they want it, and grow increasingly impatient if instant gratification is not an option. No wonder the digital option is so attractive to consumers.
40% of shoppers will abandon an e-commerce site that doesn’t load in three seconds while 80% of users will click away if a video stalls while loading. People associate innovation with speed – in fact 85% of young people (or ‘Generation Y’) would agree that innovation is ‘a faster way of doing something’.So people will choose digital, and they want immediate results. Time is becoming the most valuable asset.
