Should DMOs Stop Using Funnels?
Episode 4, Oct 31, 2024, 04:15 PM
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Episode Summary:
In this episode, Stuart and Adam dive into a lively debate on two different approaches to the traveler’s journey: the traditional marketing funnel versus the loyalty loop. The conversation explores how destination marketers should view their visitors and craft strategies that foster long-term emotional connections rather than just transactional relationships. They also touch on Barcelona’s anti-tourism campaign and whether or not it’s addressing the root cause of visitor behavior problems.
Key Topics Covered:
Stu’s News:
Barcelona’s Campaign Targeting Visitors to Behave: https://www.meet.barcelona/en/visit-and-love-it/responsible-tourism
Stuart shares insights from a Destinations International newsletter about Barcelona’s new signage and marketing campaign aimed at modifying tourist behavior. The campaign highlights points such as noise control, waste management, and water conservation.
Both hosts critique the campaign, calling it condescending and lacking emotional appeal. They suggest a stronger focus on storytelling that evokes empathy for local residents, rather than a punitive, finger-wagging approach.
Main Topic - Funnels vs. Loyalty Loops:
Stuart’s Take:
Stuart rejects the concept of a traditional marketing funnel, arguing that it treats visitors as mere transactions rather than individuals on a journey. He proposes a continuous, circular "loyalty loop" that starts at awareness and moves through the anticipation phase, the stay, the post-stay, and eventually back to awareness for repeat visits. His approach emphasizes building emotional connections with visitors at every stage to foster loyalty and return visits.
Adam’s Take:
Adam agrees with Stuart on the outdated nature of the traditional funnel (awareness, consideration, purchase), but believes the funnel still has a place when looking at marketing on a large scale. He sees value in visualizing how a mass audience moves through different stages—from engagement to becoming active members of a community—before reaching the transaction or conversion phase.
Breaking Down the Customer Journey:
Anticipation Phase:
Stuart stresses the importance of engaging travelers in the "anticipation phase," between booking and arrival. This is when they’re most excited, and DMOs can upsell experiences or extend their stay.
In-Destination Engagement:
Both hosts agree that most DMOs miss the opportunity to communicate with visitors while they’re in the destination, potentially influencing their experience and boosting in-destination spending.
Post-Stay Follow-Up:
DMOs should continue engaging travelers after their visit, not only to encourage repeat visits but to turn them into advocates for the destination among their friends and family.
Are Funnels Still Relevant?
Adam: While he agrees with Stuart that individual traveler behavior is not linear, Adam maintains that the funnel still works for large-scale marketing efforts, like TV or YouTube advertising, where personalization isn’t as feasible.
Stuart: He argues that even mass marketing should be more personalized, using data to treat each guest as an individual. He gives an example of email marketing, where segmentation and triggered emails can create a tailored, personal experience for each traveler.
Bringing the Funnel and Loyalty Loop Together:
The hosts agree that while the marketing funnel is useful for large-scale audience management, the loyalty loop is a more powerful tool for fostering long-term relationships with visitors and creating advocates for the destination.
In this episode, Stuart and Adam dive into a lively debate on two different approaches to the traveler’s journey: the traditional marketing funnel versus the loyalty loop. The conversation explores how destination marketers should view their visitors and craft strategies that foster long-term emotional connections rather than just transactional relationships. They also touch on Barcelona’s anti-tourism campaign and whether or not it’s addressing the root cause of visitor behavior problems.
Key Topics Covered:
Stu’s News:
Barcelona’s Campaign Targeting Visitors to Behave: https://www.meet.barcelona/en/visit-and-love-it/responsible-tourism
Stuart shares insights from a Destinations International newsletter about Barcelona’s new signage and marketing campaign aimed at modifying tourist behavior. The campaign highlights points such as noise control, waste management, and water conservation.
Both hosts critique the campaign, calling it condescending and lacking emotional appeal. They suggest a stronger focus on storytelling that evokes empathy for local residents, rather than a punitive, finger-wagging approach.
Main Topic - Funnels vs. Loyalty Loops:
Stuart’s Take:
Stuart rejects the concept of a traditional marketing funnel, arguing that it treats visitors as mere transactions rather than individuals on a journey. He proposes a continuous, circular "loyalty loop" that starts at awareness and moves through the anticipation phase, the stay, the post-stay, and eventually back to awareness for repeat visits. His approach emphasizes building emotional connections with visitors at every stage to foster loyalty and return visits.
Adam’s Take:
Adam agrees with Stuart on the outdated nature of the traditional funnel (awareness, consideration, purchase), but believes the funnel still has a place when looking at marketing on a large scale. He sees value in visualizing how a mass audience moves through different stages—from engagement to becoming active members of a community—before reaching the transaction or conversion phase.
Breaking Down the Customer Journey:
Anticipation Phase:
Stuart stresses the importance of engaging travelers in the "anticipation phase," between booking and arrival. This is when they’re most excited, and DMOs can upsell experiences or extend their stay.
In-Destination Engagement:
Both hosts agree that most DMOs miss the opportunity to communicate with visitors while they’re in the destination, potentially influencing their experience and boosting in-destination spending.
Post-Stay Follow-Up:
DMOs should continue engaging travelers after their visit, not only to encourage repeat visits but to turn them into advocates for the destination among their friends and family.
Are Funnels Still Relevant?
Adam: While he agrees with Stuart that individual traveler behavior is not linear, Adam maintains that the funnel still works for large-scale marketing efforts, like TV or YouTube advertising, where personalization isn’t as feasible.
Stuart: He argues that even mass marketing should be more personalized, using data to treat each guest as an individual. He gives an example of email marketing, where segmentation and triggered emails can create a tailored, personal experience for each traveler.
Bringing the Funnel and Loyalty Loop Together:
The hosts agree that while the marketing funnel is useful for large-scale audience management, the loyalty loop is a more powerful tool for fostering long-term relationships with visitors and creating advocates for the destination.