Media Emerging

A revenue analyst at a well-known luxury resort recently posted this question (and follow-ups) on LinkedIn.

How do you get guests to stay in a luxury resort in a down economy?

With gas prices high and consumers cutting their travel budget to save on costs, how does a luxury resort market to their guests (leisure and corporate)? How do you stay unique in [an] industry where everyone is already offering gas cards and discounts? What can you do to differentiate and increase bookings in a slowed economy?

Since many of you may be in a similar situation, I thought I’d share my response:

First, let’s pin down who your customer is:

We’re talking luxury resort, so off the bat we’re talking about people with some disposable income. Income bracket – Above $100,000? Higher? Is he his own boss, or does he work for someone else? Is your target guest traveling for business or pleasure? Age range? Working or retired? Is he/she bringing family/kids? Does he/she even HAVE kids? What amenities matter most to this guest? Entertainment? Dining? Wi-fi and business services? The more specifically we can define your ideal guest, the more focused your marketing can be.

Now let’s talk about your guest’s motivators:

Is the down economy really affecting him/her? How? Has his income been hurt, or is he/she just struggling with higher expenses? Gas and food, or is there more? Does he/she have investments that have taken a hit? Is he working extra hours to make ends meet, to land more accounts, or do the work of laid off staffers? Maybe he needs a vacation. Luxury is nice, but is there another way to promote the benefits your resort offers? After all, luxury is a tough sell when belts are tighter. What about convenience? Or the ability to work while you’re away? Do you include perks that other hotels charge extra for?

Next, strategy:

Here, we’re not talking just gimmicks and giveaways. I’m talking about how you find and reach your guest. Ad revenues are down, so you might find cheaper space in magazines and newspapers, but subscriptions are down, too, to reflect leaner household budgets. Choose carefully. Online is a good option. Social media sites are booming…do you have a presence in the appropriate places? MySpace reaches primarily teens and 18-34yo crowd. What about a social networking site targeting retirees/seniors? There are sites for working moms, too. Evaluate your placements to see how well they match your guest profile. Gas cards and coupons are short-sighted, lazy strategies. They work in some cases, but your industry needs a more sophisticated marketing plan.

There are two lessons I hope you’ll take away from this. First, LinkedIn is a powerful business-building tool with many features (such as Q&A) that you may not be using yet. It’s not about adding names to your rolodex, it’s about forming value-laden relationships that lead to transactions.

Second, marketing is a sophisticated process that can keep your company profitable in any economy if you do it right. Resist the temptation to abandon your marketing program in a sluggish economy. There are ways to market more creatively and more cost-effectively — it just takes a pro to find them.

Google Alerts are a good way to monitor your company’s online reputation. But they have plenty of other business applications, too. Here are a few:

Keep an Eye on Your Competitors
A Google Alert that notifies you when competitors are mentioned online can provide valuable business intelligence. Google lets you create e-mail alerts that check the web, news sites, blogs, video, and groups. Set up alerts to track each competitor — by company name and by the business owner’s name.

Get to Know Reporters and Editors (and bloggers, too!)
Journalists who cover your industry should be your best friends. By creating an alert that notifies you when a reporter publishes a new article, you’ll be able to track what types of story attract that reporters attention. Doing your homework will make you a more useful source.

Follow Industry Trends
If you’re in the automotive industry, for example, you could create Google Alerts for "automotive industry," "automobile industry," "auto manufacturers," "car dealerships," and plenty more. It’s a good way to stay up-to-date on trends. Potential customers will recognize you as an expert who knows his stuff.

 Pay Attention to Your Best Customers
This one works particularly well for B2B companies. If your revenues are linked to a handful of big accounts, you should be intimately familiar with what those clients are up to. Google Alerts for your biggest clients can notify you of leadership changes, new projects, cutbacks, news coverage and more.

Research Your Top Prospects
If you’re in an industry that features a long sales cycle, daily or weekly Google Alerts can give you regular information about the activities of your prospects. Research through other channels, too, but don’t overlook Google Alerts as powerful pre-pitch information.

Play Mind Games
In sports, it’s called getting inside their heads. Psychological intimidation disarms your opponent (see "The Art of War," by Sun Tzu). If your competitor uses Google Alerts, too, he’ll be reminded every time you’re first to market, quoted in the press, or landing a big account. Knowing you’re getting beat can be very demoralizing, don’t you agree?