In a Travolution article, Qubit's Travel Lead, Dan Bensley, shares how personalization can help travel brands to improve their customer retention rates - find the full article here.
How ecommerce is changing the travel industry
Globally, travel ecommerce is expected to generate $1,955 billion by 2026, growing at a rate of approximately 12% between 2018 and 2026 according to a recent report by Zion Market Research. But now that airlines, hotels, and other travel brands can sell directly to customers online instead of exclusively through a travel agency, the sector’s ecosystem is once again changing fast, and in order to compete, companies are having to find new ways to drive customer loyalty and differentiate online.
Price, although important, is no longer the main factor when choosing to travel. Instead, according to Skift 2019 Digital Transformation Report, younger travellers in particular, expect a personalized experience when engaging with a brand. In fact, Qubit research found that 81% of customers are willing to switch their loyalty for a more personalized experience.
Personalizing the new customer journey
Customer loyalty and lifetime value are the key metrics travel brands should be focused on. When in the booking phase, it’s no longer about just getting the cheapest price, but consumers are on the hunt for unique experiences and inspiration. These experiences start with the personalization of the user journey. In addition, with the continued influence of platforms like Instagram and YouTube, offering unrivaled discovery and inspiration, the customer journey is more complex and digital than ever. Whether the visitor is new, returning, or a long-term VIP of the site, being able to understand the intricacies of every engagement and their purchasing drivers in real-time is what will make the difference.
Personalization focuses on using a customer’s behavior to make an experience more relevant and timely. The strategy plays on heuristics – the ways the human brain processes things - and takes into account a visitors’ cognitive biases to enable them to make better decisions about the products and services offered. When heuristics are applied through personalization, Qubit has found that it can impact revenues by 6 percent.
To read the full article on Travolution, click here