Using Research to Make Smart Decisions RRC Associates SANY / PSAA Fall Expo September 2012
Presentation Outline • Lies, Damn Lies, and Statistics Why Do Research? Using Consumer Information • How to display and visualize information • How to implement strategies based on research Beyond Net Promoter Score Benchmarking Other data sources Page 3
Customer Research • Why do customer research? To answer questions To identify and celebrate successes To reveal weaknesses and make improvements To benchmark your results against historical and industry norms To understand visitor dynamics To confirm (or refute) a “gut feel” For reliable information in master planning, advertising, economic impact, tourism grants, market share calculations, etc. Page 4
Using Maps to Display Information Page 5
Using Maps to Display Information Page 6
Using Maps to Display Information Page 7
Using Maps to Display Information Page 8
Importance-Satisfaction Grid 5.0 SCORES (3.6) MIDPOINT OF RATINGS Higher Importance/ 5 Higher Importance/ Higher level of needs being met Lower level of needs being met Neighborhood parks Importance of each facility to your household (average rating) 4.5 Natural areas Trails 4.0 Osborn Aquatic Center Athletic fields 3.5 MIDPOINT OF RATINGS SCORES (3.4) Park shelter Dog off leash areas 3.0 Community rooms Tennis courts Chintimini Senior Center Fenced dog park 2.5 Skate park Lower Importance/ Lower Importance/ Lower level of needs being met Higher level of neds being met 2 2.0 2.5 3.0 3.5 4.0 4.5 5.0 2 5 How well needs are currently being met (average rating) Page 9
Implementing Research • Examples of Implementation National level strategies State level efforts Resort examples Page 1 0
National Strategies • Consumer research is used extensively in national-level strategies Learn to Ski/Snowboard Model for Growth Helmet legislation Lobbying efforts Demographics National economic analysis and impact Page 1 1
National Example: NSAA • Data used to develop, measure, and refine Model for Growth What can we do to increase visits? Measuring size of groups: beginner, core, revival Measuring rates of conversion, participation, retention Page 1 2
National Example: NSAA Page 1 3
State Level Research • Accurate, representative data is critical for many state level functions • Economic Impact of Snowsports Utah, North Carolina, Colorado, New York, Pennsylvania, California, Wisconsin, & others • Grant applications for state tourism funding • Advertising and promotional efforts Market specific ad placement Messaging Competitive advantages Page 1 4
State Example: Ski NH • Partnership with Visit NH Where to target What message • Proximity • Grooming • Value Timing of promotion Page 1 5
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Resort Level Research • Consumer and other data can be used for strategic improvements and tactical shifts Marketing Advertising Demographics Customer service Products and Pricing Yield and profit margin Competition Page 1 8
Resort Example: Resort X • Fresh look at advertising strategies • Took very disciplined look at key markets, including state, market area, and ZIP code • Drilled into consumer research data to understand the specific customer mix in each of these geographies • Developed tiers of markets and ZIP codes using a variety of inputs • Use of data provided an objective ranking of the markets Page 1 9
Resort Example: Resort X • Objective look led to different hierarchy Market Proxim ity High Visitor Overnight Day W ealth Rank* Visitor Rank* Visitor Rank* STAY- Tier 1 Central CT X 1 2 2 ABC County X 2 1 4 tied Boston 3 4 3 Long Island X 4 3 4 tied STAY- Tier I I Northern NJ X 5 5 XYZ County X 7 6 5 DAY VT/ NH X 6 1 OTHER – 123 City * Source: RRC Visitor Research Summary 2011/2012 Report Page 2 0
Social Media Influence • How do you know how influential your social media efforts are, especial- ly compared to traditional media and your web site? Page 2 1
Facebook Fatigue? http://www.theonion.com/articles/number-of-users-who-actually-enjoy-facebook-down-t,29503/?ref=auto Page 2 2
Season Pass Renewal • Increasing the renewal rate has a lot to do with knowing your customer’s behavior Page 2 3
Season Pass Migration/Renewal 2011/12 Resort Pass Migration Report Mutli-card M.C. Season Pass Season Pass Nothing 11/12 RR% 11/12 RR% 11/12 TOTAL 866 6,702 2010/11 Multi-card purchasers 10.11 1,457 258 29.8% 188 2.8% 1,043 Season Passholders 10.11 8,869 103 11.9% 4,556 68.0% 4,260 Spring Passholders 10.11 2,022 31 3.6% 459 6.8% 1,538 New 11/12 Passholders (never had pass) 1,743 26.0% New Mutli-card Purchasers 608 70.2% 10/11 Passholders who renewed 4,556 68.0% 10/11 Multi-card Purchasers who upgraded to 11/12 Pass 188 2.8% 10/11 Spring Passholders who upgraded to 11/12 Pass 459 6.9% Page 2 4
Liftopia Research/Result Example Data/Research: In many cases Fridays have higher demand than Sundays Result/Action: Increased focus on multi day products overlapping with Friday Increased variability in pricing between Saturdays and Sundays
Mountain Collective • Another example of a joint ticket/ pass designed with consumer research inputs Page 2 6
Beyond Net Promoter • Is Net Promoter really “the one number you need to grow”? • More detailed research can help you understand the dynamics of factors that impact NPS How likely are you to recom m end this resort to a friend or colleague? Extrem ely Extrem ely Neutral Likely Unlikely Page 2 7
Beyond Net Promoter • Net Promoter has many problems 1) Doesn’t explain WHY a customer would or would not recommend the company 2) Not a predictor of growth or profitability, as claimed 3) Too much focus on it to the exclusion of other equally important metrics 4) Measures intention, not behavior – consumers don’t always do what they say they will do. More important is who is ACTUALLY referring your ski area to their friends. 5) Doesn’t capture inherent differences across customer segments – which can be significant (i.e., Baby Boomers vs. Gen X, by ticket type, by equipment type, etc.) 6) Can obscure major flaws in terms of the number of detractors (NPS of 50 could be 55% promoters and 5% detractors, or 70% promoters and 20% detractors) Page 2 8
Beyond Net Promoter Percent 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 18% Likelihood of Return Next Winter 78% 61% Overall Satisfaction with 30% 90% your Experience Today 60% 27% Overall Employee Service 74% NPS of 7s and 8s (for 47% individual attribute) 31% Overall Cleanliness of Resort 75% 44% NPS of 9s and 10s (for Satisfaction Attribute 42% individual attribute) Quality of Trail Grooming 78% 36% Difference 36% Lift Ticket Purchase Process 72% 36% 41% Availability of Lockers 75% 34% 42% Visibility of Slope Signage 75% 33% 43% On-Mountain Trail Singage 75% 32% 46% Cleanliness of Restrooms 76% 30% 49% Snow Conditions 77% 28% Lift Ticket Value 54% 80% (Quality For Price Paid) 26% Page 2 9
Benchmarking • Comparisons/Benchmarking • To prior • To goal • To industry norms Page 3 0
Satisfaction Benchmarking Resort ABC RRC Satisfaction Ratings Index, 2011-12 Season Overall Attributes (1 of 2) 10 9.9 9.7 9.7 9.5 9.4 9.4 9.2 9.2 (1=Extremely Dissatisfied, 10=Extremely Satisfied) 9 8.9 8.7 8.7 8.6 8.5 8.2 8.1 8.1 8 7.9 7.9 7.8 7.8 7.7 7.7 Average Rating 7.2 7.2 7 6.8 6.5 6.3 6 5.7 Average Minimum Maximum Resort ABC 5 4 Lift operators Overall lesson Overall rental Grooming Level of slope Variety/number of Overall lunch (71 out of 91 resorts) experience satisfaction (76 out of 96 resorts) crowding trails experience (37 out of 58 resorts) (4 out of 66 resorts) (77 out of 85 resorts) (29 out of 82 resorts) (40 out of 80 resorts) Page 3 1
Economic Benchmarking • Identify areas of strength and areas of opportunity Revenue per Skier Visit MOUNTAIN X $64.18 $70 Northeast 7,501 -20,000 VTF/H 80% $57.82 56.4% % Difference 60% 33.9% $60 29.0% 24.3% 40% 11.0% $40.08 $50 20% $32.23 0% -23.1% $40 -26.4% -20% $30 -40% $10.17 -60% $20 $6.50 $5.53 $5.49 $4.80 -80% $4.29 -100.0% $4.04 $2.92 $2.25 $2.11 $1.57 $10 $0.00 -100% $0 -120% Page 3 2
How’d We Do? 2011/2012 Email Open Rates 81,000,000 emails throughout 11/12 season 40 ski resorts (representative sample illustrated here)
Opens by Day of Week
Conclusions • Accurate and representative research is critical for informed decision-making • Focus on the most important numbers • Displaying information in a compelling way can help to make your point • Strategies and tactics based on research are superior to gut feel decisions • Benchmarking can reveal areas of strength and weakness in a variety of arenas Page 3 5
THANK YOU
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