In this insightful episode of the Tourism Hub Podcast, host Despina Karatzias delves into part five of her compelling seven-part series, "Igniting Smart Marketing for 2025 and Beyond." This series, inspired by the latest ebook from the Institute of Excellence, is a must-listen for anyone in the tourism industry looking to elevate their marketing strategies.
Despina highlights the importance of focusing on existing customers, revealing that acquiring a new customer can cost up to five times more than retaining an existing one. She shares fascinating insights, such as how increasing customer retention by just 5% can boost profitability by up to 95%, according to the Harvard Business Review.
Listeners will learn how to build genuine relationships and personalise marketing efforts to make every customer feel valued. Despina breaks down the difference between customer acquisition and retention, emphasising the need for a balanced approach. She explores the three distinct types of customers in the tourism industry: direct customers, trade customers, and industry partners, each requiring tailored strategies for acquisition and retention.
This episode is packed with actionable strategies on how to leverage data to understand customer behaviour, personalise communication, and use tools like CRM systems to enhance customer relationships. Despina also discusses the importance of loyalty programs, reputation management, and effective communication channels in building strong customer connections.
Join Despina in this episode to discover how to transform your customer relationships into a powerful network of advocates, driving sustainable growth for your business. Whether you're a tourism professional or a business owner, this episode offers valuable insights and practical steps to enhance your customer retention strategy.
00:43 - The Importance of Customer Retention
02:09 - Understanding Customer Acquisition vs. Retention
03:07 - Tailoring Strategies for Different Customer Types
05:35 - Building Strong Customer Relationships
06:56 - Personalization in Relationship Management
10:31 - Tools and Strategies for Retention
15:18 - Action Plan for Improving Retention
Grab your FREE copy of the must-read Top 25 Marketing Mistakes Your Small Business Must Avoid eBook today!
Connect with Despina Karatzias:
Website: Institute of Excellence
LinkedIn: Despina Karatzias
Instagram: @despinakaratzias
Follow us on social media for updates:
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
(00:00):
Well, hello, beautiful humans oftourism and the visitor economy.
(00:06):
And welcome back to theTourism Hub podcast.
I'm your proud host, Espina Kratias,and today we're diving into part five.
of our seven part series, IgnitingSmart Marketing for 20, 25 and Beyond.
Part of the latest e book, whichis Downloading Like Hotcakes,
(00:28):
if that's how things download.
So you can find that on theInstitute of Excellence.
com website, , where, , all themagic happens and what this tourism
hub podcast is brought to you by.
Today's episode, however, is all aboutfocusing on the customers you love.
(00:52):
Did you know that acquiring a newcustomer can cost up to five times
more than retaining an existing one?
So that's what we're going to discover.
We focus all on the new, new, new.
What about what we do to share thelove, love, love with those who already
know us, like us, and have trustedus enough to buy from us in the past?
(01:17):
Did you also know that Increasingcustomer attention by just 5 percent can
boost your profitability by up to 95%.
And that's stats from theHarvard Business Review.
But retaining customer isn't justabout loyalty programs or discounts.
(01:38):
It's about building genuinerelationships and using
Personalization in your marketingto make every customer feel valued.
And that's what we're exploringon this episode, how to elevate.
And that's exactly what we'reexploring on this episode.
How to elevate your customerrelationships, make your marketing more
(02:01):
personal, and leverage the tools thatyou have that deepen these connections.
So let's dive straight in.
By breaking down the difference betweenthese two marketing terms, customer
acquisition and customer retention.
Customer acquisition is all aboutattracting new customers through
(02:24):
marketing and your outreach.
It's essential for business growthbut comes with significant costs
and requires constant effort to getthat new lead and that new customer.
Customer retention, on the otherhand, however, focuses on keeping your
(02:44):
wonderful customers engaged and loyal.
These customers, they already trustyou, they already love you, they
already know about your business.
And making retention a priority.
More part of your strategy really doescreate a more costful and impactful
strategy over time for your business.
(03:07):
Now, let's bring this intothe context of the business of
travel, hospitality and events.
Unlike many other industries,we have three distinct type
of customers to consider.
Number one to consider, we start with ourdirect customers, our direct visitors, our
direct guests that are making bookings.
(03:28):
These are the visitors who book withyou directly, either through your
website, by calling you, or in person.
Then the second lot.
Of customers or segmentis our trade customers.
These are our customers whoact more as third parties and
(03:48):
these can be travel agents, tourwholesalers, inbound tour operators,
online travel agents, otherwiseknown as OTAs, professional
conference organizers, destinationmanagers, and other third parties.
distributors, also known as third partysellers who bring you business by selling
(04:10):
your experiences, your products, yourservices to their clients on your behalf.
So they sit in the middle betweentheir customers and their clients.
and you who ultimately do become yourguests, but they are really, they are your
biggest source of growth to maintain andcapture and retain those relationships
(04:34):
with those trade customers is whatcan bring volume into your business.
Then we have our third category, which ismore your industry partners and referrals.
Now this consists of of your local,regional, state and national tourism
councils and organisations, as wellas your business networks that provide
(04:57):
valuable referrals and collaborations thatdrive bookings, partnerships, exposure
and connections to organisations likethe trade organisations like we mentioned
earlier, as well as direct referrals.
Now, each customer typerequires a tailored approach
(05:19):
to acquisition and retention.
But what I do find is that much ofour focus and strategic goals and
alignment is focused on acquisition,but not much love is given to retention.
So building these strong relationshipswith all three categories can
(05:40):
create a great ripple effect.
We're satisfied directcustomers leave great reviews.
Trade customers further recommend you andtrust to keep sending you more business.
And then there's the industrypartners who promote with pride and
confidence your business on theirplatforms and to their networks.
(06:03):
In tourism, I think for all of uslistening and watching and all of my
previous episodes, we can all attest thatin the wonderful world of tourism exists
the wonderful world of relationships.
It really is the foundation andbedrock of everything that we do.
(06:24):
And when you do prioritise strategicretention and relationship management
across all three categories, you'renot just keeping customers, but
creating a network of advocates whodrive sustainable growth to your
business and to your experiences.
(06:45):
What I've learnt is that is that thereis no shortcut, I'm afraid, my friends.
And it's most definitelya marathon, not a sprint.
Now let's flip this now to relationshipmanagement, meeting personalisation.
How do we do this?
What do we mean by that?
(07:05):
Now let me try my bestto unpack this with you.
Retention starts with buildingmeaningful relationships.
And personalization, on the other hand,is the secret sauce, the sweet spot.
People want to feel seen,heard and understood.
And here's how to combine relationshipmanagement with personalization.
(07:28):
Number one is using data tounderstand your customers.
This is when we think about your bookingsystems, your website analytics, your CRM,
customer relationship management system,social media insights, that hold a wealth
of information about your customers.
Analyzing this data canhelp uncover trends.
(07:52):
Who are my repeat customers?
What services or productsdo they enjoy most?
What are they coming back to?
And when do they typically make a booking?
Number two is makingpersonalisation a priority.
Using the data you've collected to tailoryour communication and your offers.
(08:12):
For example, sending that birthdayemail with a special discount or value
add, particularly if you're collectingbirthdays, or, recommending a new
experience based on past bookings.
For example, I worked with a touroperator who used their CRM data to
identify frequent family travellers.
(08:33):
They sent personalised emails highlightingfamily friendly activities and seasonal
discounts, leading to a 25 percentincrease in re bookings in three months.
Focus grows where focus grows.
goes.
So the more focused we are inthis data and this information and
(08:56):
the action and the strategies andthe we take, the more focused can
be the results that we achieve.
Number three is buildingstronger connections through
your communication channels.
all relationships.
Let's thrive on good,wholesome communication.
(09:16):
And here's some tips on how youcan deepen these connections
through your communication.
Regular check ins.
After one of your customers visits orbooks a service, following up with a thank
you email or a survey or better a call.
Now, whether it's a direct customer ortrade, this just compounds like interest.
(09:40):
It just helps you keep building that good,good relationship and all the good feels.
Systemizing the process and wowing.
Your customers at that incrediblemoment of anticipating your
experience is a golden flex moveand providing proactive updates.
(10:02):
If you're launching a new product ortour, let your loyal customers know first,
nothing speaks VIP likean exclusive glimpse.
to your VIPs before you go public.
By focusing on relationship buildingalongside personalisation, you're not
(10:24):
just retaining customers, but creatingadvocates and champions of your brand.
Moving on to tools.
and strategies for retentionand relationship management.
There are many tools availableto help you manage relationships
and make personalization easier.
(10:44):
Here are three must haves when you aregoing down this path and really focusing
on your retention A game and strategy.
Number one is your customer relationshipmanagement systems, your CRM.
Your booking system canoften act differently.
as a useful CRM.
Alternatively, a CRM like HubSpot,ActiveCampaign, or even MailChimp
(11:10):
allows you to track customerinteractions, automate personalized
email campaigns, interests andpreferences, and create tags and notes.
If you are starting out, do not stressor feel overwhelmed or overcomplicate or
(11:31):
get analysis paralysis and do nothing.
Simply starting with a well maintainedExcel spreadsheet is all you need of
only the basics of name, you know,first name, last name, email, contact
number and a column about your lastinteraction and what will happen next.
(11:51):
I always Always, in any booking systemI've worked on and any CRM I've worked
on since, every profile, every customerneeds to finish off with what the
next step is, what the next action.
Even if it means touch base again in sixmonths, that's what is noted on there.
(12:12):
diarised calendar.
If you're not there yet with a CRMto be able to send you that ping.
Really, really important.
You can stop anybody.
Can start with an Excel spreadsheet.
Number two is loyalty programs with apersonal touch, offering rewards that
resonate with your audience, exclusivediscounts, free upgrades, or personalized
(12:35):
perks for your most loyal customers.
Leverage your CRM to monitor theseinteractions, enabling timely follow ups
with Personal check ins to deepen theserelationships is where you can create that
wow factor and reward your best clients.
(12:56):
Engaging your trade partners and directcustomers by creating these incentives
that drive bookings and referralsyou Using your CRM, whichever one you
choose or whichever one you use tomanage and communicate these campaigns,
these conversations, this communicationseamlessly is where you can continue
(13:20):
these steps to scale up and do thisat a greater volume consistently.
which is the other side of this when itcomes to effective communication is also
maintaining consistency of doing the work.
and following up.
Now, number three, we look at thesereputation management tools because
(13:44):
your online reputation plays a criticalrole here in your customer retention.
Because even thoughYou're tried and trusted.
Things like online reviews can havean impact on changing a mind as well.
So tools like Google Alerts and ReviewTrackers or Trustpilot help you monitor
(14:08):
and respond to reviews in real time.
to maintain that reputationwhere you left it.
A swift response to negative feedbackcan turn a critic into a loyal customer
show how high your care factor is.
But remember, we don't justrespond swiftly to negative
reviews to protect our reputation.
(14:31):
Re review.
Respond swiftly to allreviews to be able to do that.
For instance, I want to share with you oneof my clients noticed a trend in reviews
mentioning a lack of vegan food options.
They immediately updated their menuand reached out to reviewers to thank
them for their feedback and thatthey've made a change as a result.
(14:57):
Now, the result and the aftermathof that is improved ratings and
a new growing vegan client base.
So, there you have it.
A brief little touch base with youdedicating this episode to leveling
up your customer retention and A game.
(15:18):
Here's your action plan for thisweek and this part of the series.
Start with the simple step to improveretention and intentional relationship
management for your business.
Identify your topcustomers comes in first.
Use your CRM or your B booking system tofind your most frequent customer and send
(15:43):
them a personalized thank you message.
Or call just for no reason atall outside to say, I value you.
I respect you.
I appreciate you and thank you.
Creating a loyalty offer, designinga special promotion for returning
customers, like a discount or afreebie with their next booking.
(16:06):
or gift voucher.
Another great way toretain your customers.
They've experienced your product,your experience that you offer.
How about offering them now to give thegift of experience to their loved ones.
Analyzing your reviews.
Spending 30 minutes reading yourrecent reviews and identifying any
(16:30):
actionable trends that can improve theexperience and service that you offer.
And of course, personalizingyour next campaign.
Start to look at sending a targetedemail based on your customer's
past behaviors or preferences.
Customer retention.
(16:51):
More than keeping customers, it's aboutcreating lasting relationships that
drive loyalty, advocacy and growth.
By focusing on personalisation andrelationship management, you're
setting the stage for long termsustainable business success.
for Thank you, thank you times atrillion for tuning in to this episode
(17:17):
of the Tourism Hub podcast whereour dedication is to bring you the
people, places, processes, and purposeto make your week and your business
better today than it was yesterday.
This episode is brought to youby the Institute of Excellence,
your source of inspiration.
School for Tourism and Small BusinessGreatness, and speaking of greatness,
(17:40):
if you're ready to take your customerstrategy to the next level, please
I invite you to download our freee book, Top 25 Marketing Mistakes
Your Small Business Must Know.
Avoid to thrive at instituteofexcellence.
com and if you are watching orlistening to, please leave a review
(18:01):
and don't forget to subscribe to theTourism Hub podcast on your favorite
platform so you never miss an episode.
Until next time, my beautiful humanof tourism, stay ignited and inspired
and remember to Personalization buildsconnection and connection builds loyalty.
Well, hello, beautiful humans oftourism and the visitor economy.
(00:06):
And welcome back to theTourism Hub podcast.
I'm your proud host, Espina Kratias,and today we're diving into part five.
of our seven part series, IgnitingSmart Marketing for 20, 25 and Beyond.
Part of the latest e book, whichis Downloading Like Hotcakes,
(00:28):
if that's how things download.
So you can find that on theInstitute of Excellence.
com website, , where, , all themagic happens and what this tourism
hub podcast is brought to you by.
Today's episode, however, is all aboutfocusing on the customers you love.
(00:52):
Did you know that acquiring a newcustomer can cost up to five times
more than retaining an existing one?
So that's what we're going to discover.
We focus all on the new, new, new.
What about what we do to share thelove, love, love with those who already
know us, like us, and have trustedus enough to buy from us in the past?
(01:17):
Did you also know that Increasingcustomer attention by just 5 percent can
boost your profitability by up to 95%.
And that's stats from theHarvard Business Review.
But retaining customer isn't justabout loyalty programs or discounts.
(01:38):
It's about building genuinerelationships and using
Personalization in your marketingto make every customer feel valued.
And that's what we're exploringon this episode, how to elevate.
And that's exactly what we'reexploring on this episode.
How to elevate your customerrelationships, make your marketing more
(02:01):
personal, and leverage the tools thatyou have that deepen these connections.
So let's dive straight in.
By breaking down the difference betweenthese two marketing terms, customer
acquisition and customer retention.
Customer acquisition is all aboutattracting new customers through
(02:24):
marketing and your outreach.
It's essential for business growthbut comes with significant costs
and requires constant effort to getthat new lead and that new customer.
Customer retention, on the otherhand, however, focuses on keeping your
(02:44):
wonderful customers engaged and loyal.
These customers, they already trustyou, they already love you, they
already know about your business.
And making retention a priority.
More part of your strategy really doescreate a more costful and impactful
strategy over time for your business.
(03:07):
Now, let's bring this intothe context of the business of
travel, hospitality and events.
Unlike many other industries,we have three distinct type
of customers to consider.
Number one to consider, we start with ourdirect customers, our direct visitors, our
direct guests that are making bookings.
(03:28):
These are the visitors who book withyou directly, either through your
website, by calling you, or in person.
Then the second lot.
Of customers or segmentis our trade customers.
These are our customers whoact more as third parties and
(03:48):
these can be travel agents, tourwholesalers, inbound tour operators,
online travel agents, otherwiseknown as OTAs, professional
conference organizers, destinationmanagers, and other third parties.
distributors, also known as third partysellers who bring you business by selling
(04:10):
your experiences, your products, yourservices to their clients on your behalf.
So they sit in the middle betweentheir customers and their clients.
and you who ultimately do become yourguests, but they are really, they are your
biggest source of growth to maintain andcapture and retain those relationships
(04:34):
with those trade customers is whatcan bring volume into your business.
Then we have our third category, which ismore your industry partners and referrals.
Now this consists of of your local,regional, state and national tourism
councils and organisations, as wellas your business networks that provide
(04:57):
valuable referrals and collaborations thatdrive bookings, partnerships, exposure
and connections to organisations likethe trade organisations like we mentioned
earlier, as well as direct referrals.
Now, each customer typerequires a tailored approach
(05:19):
to acquisition and retention.
But what I do find is that much ofour focus and strategic goals and
alignment is focused on acquisition,but not much love is given to retention.
So building these strong relationshipswith all three categories can
(05:40):
create a great ripple effect.
We're satisfied directcustomers leave great reviews.
Trade customers further recommend you andtrust to keep sending you more business.
And then there's the industrypartners who promote with pride and
confidence your business on theirplatforms and to their networks.
(06:03):
In tourism, I think for all of uslistening and watching and all of my
previous episodes, we can all attest thatin the wonderful world of tourism exists
the wonderful world of relationships.
It really is the foundation andbedrock of everything that we do.
(06:24):
And when you do prioritise strategicretention and relationship management
across all three categories, you'renot just keeping customers, but
creating a network of advocates whodrive sustainable growth to your
business and to your experiences.
(06:45):
What I've learnt is that is that thereis no shortcut, I'm afraid, my friends.
And it's most definitelya marathon, not a sprint.
Now let's flip this now to relationshipmanagement, meeting personalisation.
How do we do this?
What do we mean by that?
(07:05):
Now let me try my bestto unpack this with you.
Retention starts with buildingmeaningful relationships.
And personalization, on the other hand,is the secret sauce, the sweet spot.
People want to feel seen,heard and understood.
And here's how to combine relationshipmanagement with personalization.
(07:28):
Number one is using data tounderstand your customers.
This is when we think about your bookingsystems, your website analytics, your CRM,
customer relationship management system,social media insights, that hold a wealth
of information about your customers.
Analyzing this data canhelp uncover trends.
(07:52):
Who are my repeat customers?
What services or productsdo they enjoy most?
What are they coming back to?
And when do they typically make a booking?
Number two is makingpersonalisation a priority.
Using the data you've collected to tailoryour communication and your offers.
(08:12):
For example, sending that birthdayemail with a special discount or value
add, particularly if you're collectingbirthdays, or, recommending a new
experience based on past bookings.
For example, I worked with a touroperator who used their CRM data to
identify frequent family travellers.
(08:33):
They sent personalised emails highlightingfamily friendly activities and seasonal
discounts, leading to a 25 percentincrease in re bookings in three months.
Focus grows where focus grows.
goes.
So the more focused we are inthis data and this information and
(08:56):
the action and the strategies andthe we take, the more focused can
be the results that we achieve.
Number three is buildingstronger connections through
your communication channels.
all relationships.
Let's thrive on good,wholesome communication.
(09:16):
And here's some tips on how youcan deepen these connections
through your communication.
Regular check ins.
After one of your customers visits orbooks a service, following up with a thank
you email or a survey or better a call.
Now, whether it's a direct customer ortrade, this just compounds like interest.
(09:40):
It just helps you keep building that good,good relationship and all the good feels.
Systemizing the process and wowing.
Your customers at that incrediblemoment of anticipating your
experience is a golden flex moveand providing proactive updates.
(10:02):
If you're launching a new product ortour, let your loyal customers know first,
nothing speaks VIP likean exclusive glimpse.
to your VIPs before you go public.
By focusing on relationship buildingalongside personalisation, you're not
(10:24):
just retaining customers, but creatingadvocates and champions of your brand.
Moving on to tools.
and strategies for retentionand relationship management.
There are many tools availableto help you manage relationships
and make personalization easier.
(10:44):
Here are three must haves when you aregoing down this path and really focusing
on your retention A game and strategy.
Number one is your customer relationshipmanagement systems, your CRM.
Your booking system canoften act differently.
as a useful CRM.
Alternatively, a CRM like HubSpot,ActiveCampaign, or even MailChimp
(11:10):
allows you to track customerinteractions, automate personalized
email campaigns, interests andpreferences, and create tags and notes.
If you are starting out, do not stressor feel overwhelmed or overcomplicate or
(11:31):
get analysis paralysis and do nothing.
Simply starting with a well maintainedExcel spreadsheet is all you need of
only the basics of name, you know,first name, last name, email, contact
number and a column about your lastinteraction and what will happen next.
(11:51):
I always Always, in any booking systemI've worked on and any CRM I've worked
on since, every profile, every customerneeds to finish off with what the
next step is, what the next action.
Even if it means touch base again in sixmonths, that's what is noted on there.
(12:12):
diarised calendar.
If you're not there yet with a CRMto be able to send you that ping.
Really, really important.
You can stop anybody.
Can start with an Excel spreadsheet.
Number two is loyalty programs with apersonal touch, offering rewards that
resonate with your audience, exclusivediscounts, free upgrades, or personalized
(12:35):
perks for your most loyal customers.
Leverage your CRM to monitor theseinteractions, enabling timely follow ups
with Personal check ins to deepen theserelationships is where you can create that
wow factor and reward your best clients.
(12:56):
Engaging your trade partners and directcustomers by creating these incentives
that drive bookings and referralsyou Using your CRM, whichever one you
choose or whichever one you use tomanage and communicate these campaigns,
these conversations, this communicationseamlessly is where you can continue
(13:20):
these steps to scale up and do thisat a greater volume consistently.
which is the other side of this when itcomes to effective communication is also
maintaining consistency of doing the work.
and following up.
Now, number three, we look at thesereputation management tools because
(13:44):
your online reputation plays a criticalrole here in your customer retention.
Because even thoughYou're tried and trusted.
Things like online reviews can havean impact on changing a mind as well.
So tools like Google Alerts and ReviewTrackers or Trustpilot help you monitor
(14:08):
and respond to reviews in real time.
to maintain that reputationwhere you left it.
A swift response to negative feedbackcan turn a critic into a loyal customer
show how high your care factor is.
But remember, we don't justrespond swiftly to negative
reviews to protect our reputation.
(14:31):
Re review.
Respond swiftly to allreviews to be able to do that.
For instance, I want to share with you oneof my clients noticed a trend in reviews
mentioning a lack of vegan food options.
They immediately updated their menuand reached out to reviewers to thank
them for their feedback and thatthey've made a change as a result.
(14:57):
Now, the result and the aftermathof that is improved ratings and
a new growing vegan client base.
So, there you have it.
A brief little touch base with youdedicating this episode to leveling
up your customer retention and A game.
(15:18):
Here's your action plan for thisweek and this part of the series.
Start with the simple step to improveretention and intentional relationship
management for your business.
Identify your topcustomers comes in first.
Use your CRM or your B booking system tofind your most frequent customer and send
(15:43):
them a personalized thank you message.
Or call just for no reason atall outside to say, I value you.
I respect you.
I appreciate you and thank you.
Creating a loyalty offer, designinga special promotion for returning
customers, like a discount or afreebie with their next booking.
(16:06):
or gift voucher.
Another great way toretain your customers.
They've experienced your product,your experience that you offer.
How about offering them now to give thegift of experience to their loved ones.
Analyzing your reviews.
Spending 30 minutes reading yourrecent reviews and identifying any
(16:30):
actionable trends that can improve theexperience and service that you offer.
And of course, personalizingyour next campaign.
Start to look at sending a targetedemail based on your customer's
past behaviors or preferences.
Customer retention.
(16:51):
More than keeping customers, it's aboutcreating lasting relationships that
drive loyalty, advocacy and growth.
By focusing on personalisation andrelationship management, you're
setting the stage for long termsustainable business success.
for Thank you, thank you times atrillion for tuning in to this episode
(17:17):
of the Tourism Hub podcast whereour dedication is to bring you the
people, places, processes, and purposeto make your week and your business
better today than it was yesterday.
This episode is brought to youby the Institute of Excellence,
your source of inspiration.
School for Tourism and Small BusinessGreatness, and speaking of greatness,
(17:40):
if you're ready to take your customerstrategy to the next level, please
I invite you to download our freee book, Top 25 Marketing Mistakes
Your Small Business Must Know.
Avoid to thrive at instituteofexcellence.
com and if you are watching orlistening to, please leave a review
(18:01):
and don't forget to subscribe to theTourism Hub podcast on your favorite
platform so you never miss an episode.
Until next time, my beautiful humanof tourism, stay ignited and inspired
and remember to Personalization buildsconnection and connection builds loyalty.
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