Pelland Blog

Advertising Messages That Generate Immediate Response

March 28th, 2014

Most advertising is intended to build long-term brand awareness and customer loyalty, factors that are not measurable in immediate sales numbers. At other times, advertising is intended to generate a more immediate short-term response. This is the kind of advertising that is typified by the weekly department store or supermarket circular, with a list of specific items and prices. For a campground owner, both types of advertising will work, although short-term offers are generally far more effective after long-term brand awareness has already kicked in.

Let’s say it’s a Thursday morning, and you have 8 vacant campsites and 2 rentals available for the upcoming weekend. Leaving them unoccupied is lost income, and it is time to spring into action. If your average camping fee is $40.00 per night and your cabin rentals are $80.00 per night, just those vacancies on a Friday and Saturday night represent $960.00 in income, prior to any residual sales in your store, snack bar, game room, and elsewhere.

There are many cost-effective ways to reach people who are likely to respond to your offers, including newsletters, Tweets, and Facebook posts. The prerequisite is that you need a significant number of newsletter subscribers or followers on social media like Twitter or Facebook. If few people see your message, even an extraordinarily high response rate will generate little in terms of actual results. For a small business, that magic minimum number is generally in the 800 – 1,000 person range. With those 8 sites and 2 rentals to book, if your message reaches 1,000 people, you only need to attain a very realistic 1% rate of response. Building a significant number of people who will be likely to respond to your offers takes a combination of time and ingenuity, with ingenuity speeding up the process.

Building Your Numbers

Your first step is to grow the numbers of people who are subscribing to your newsletter or following your social media posts. Build your newsletter base by asking people to opt in during the online reservation process, asking them to “join your list” when they visit your booth at camping shows (preferably in real time, providing them with a laptop or tablet with Internet access), and including a sign-up form on your website. On Facebook, give people an incentive to “like” your page (but do not use “fangating” to force them to like the page in order to obtain the incentive). Encourage your followers to “share” and “retweet” your posts, helping to spread your message. Facebook Advertising is a highly effective and fairly inexpensive way to expand your reach. Just be sure to choose your demographics very carefully and always pay per click, not per impression. Of course, links to your social media pages should always be prominently featured on your website.

Very importantly, once you have gotten people to agree to receive your newsletter or to follow your posts, you must not abuse nor squander that privilege. Always provide timely and useful information that answers the reader’s question, “What’s in it for me?” Engage your followers, and get them excited about what you have to say. That generally means that you are providing them with some sort of offer that makes them feel like an “insider” who is receiving special treatment. Ideally, they will like what they read so much that they will look forward to hearing from you on a regular basis. Incidentally, that “regular basis” should usually not exceed once or twice a month for newsletters, three times a week for Facebook posts, and once or twice a day for Tweets. On one hand, you want to keep in touch, in order to avoid being forgotten. On the other hand, you do not want to become like an elderly uncle who seems to visit so often that he wears out his welcome. You work too hard to build a base of followers to see them unsubscribe or “unlike” your page.

Crafting Messages with a Sense of Urgency

Once you have the numbers of people within reach, it is time to present your followers with messages that will generate the desired response. There are generally three ways to accomplish this:

  • “Use it or lose it” limited time offers.
  • Limited availability.
  • Special bonus incentives.

Vacancies “this weekend” definitely constitute limited time offers, and “only three sites available” represents limited availability. Limited time offers have been a staple of price/item advertising for decades. Retail sales always have expiration dates, with occasional exceptions such as JC Penney’s disastrous attempt at giving itself a makeover and “retraining” its customers back in 2012. Even auctions on eBay generally show last-minute surges in bidding in the closing minutes (and seconds) of the sale of a popular item. On the other hand, if you have purchased airline tickets recently, you may have noticed that the airlines will often indicate countdown numbers such as the “last 2 seats” (true or untrue) for a given flight. That is an example of generating sales based upon limited availability.

Perhaps even more effective are special bonus incentives. In fact, special bonus incentives can be remarkably effective when combined with either a limited time offer or limited availability. What kind of incentive could help to persuade people to reserve those vacant sites? Experiment with different offers to find ones that fit. Examples might include free early check-in (which costs you nothing), a free bundle of firewood (particularly popular with tent sites), waiving the fee for additional family members (within limits), or a free one-hour boat rental (during certain times when you know that your boats would likely be tied to a dock). Maybe list three bonus options, and let people choose the one that they want. It has been proven that there is always magic in giving people a choice of three.

Rich or poor, from all walks of life, every human being likes to get a deal … or at least be given that impression. Once again, your ingenuity comes into play to make your advertising message both compelling and successful. Give it a try!

This post was written by Peter Pelland

Who Is Answering Your Phone?

March 20th, 2014

We all tend to think that technology makes life easier, believing that it can simplify the task of generating a new stream of business. While there is some truth to that idea, the fact is that the most effective technologies require a commitment of both time and old-school business principles. If you are a small business owner, the time that must be invested is quite likely to be your own.

The Internet is often seen as a technological panacea with respect to the harvest of a new base of customers. For campgrounds, the entire online process is typically funneled toward online reservations, the e-commerce component of the hospitality industries. Unfortunately, many people still buy into the “if you build it, they will come” concept that was the mantra of the 1989 fantasy-drama film, Field of Dreams. Things are not that simple in real life, and the reservation process rarely flies on autopilot.

In many instances, prospective online customers have pre-purchase questions that must be answered prior to making their decisions. These inquiries are almost always going to involve either e-mail or a phone call, with the customer expecting a prompt response (in the case of e-mail) or an immediate response (in the case of a phone call).

For campgrounds in the northern states and Canada, winter is the off-season, when owners are operating with skeleton staffs and simply trying to pay their utility bills and mortgages. Others are more fortunate and are able to vacation when their parks are closed for the season. This is perfectly understandable in either case; however, the off-season is the prime time for campers to make reservations for the upcoming season, and it is also the time when you, as a campground owner or manager, are likely to have the least number of interruptions competing for your attention.

If somebody is determined to camp exclusively at your park, they may be more patient in awaiting a response to an immediate question; however, a camper who is seeking a park in your local area may very well be contacting you and several of your competitors. Being the first to respond is the equivalent of getting your business to appear on the first page of Google or Bing search results.

If you are away from the office or away on vacation, either make arrangements to access and respond to your e-mails or delegate that responsibility to a trusted employee. Never use an auto-responder, which simply encourages the recipient to look elsewhere. Try to use personalized templates that will streamline the response process and that will minimize the number of back-and-forth e-mails that must be exchanged. Next, check to insure that the sender name on your e-mails is clear and intuitive to the recipient. It should include the name of your business. I am amazed at how many e-mails arrive in my inbox identified solely by vague sender names such as ‘info’, ‘reservations’, ‘office’, or some other generic term. If a customer has contacted several parks, ensure that he or she can immediately identify the source of your response. Finally, your e-mails should always include a “signature” that includes the full range of alternate contact information, including your mailing address, phone number(s), and social media addresses.

As you may be aware, at some point in 2014, the typical website will see the scales tip, when over 50% of online traffic will involve users of mobile devices. Internet users, in general, are characteristically short on patience, and users of mobile devices carry the need for speed to a new level. Anything that interferes with a smooth process can effectively become a roadblock. Typical hindrances (in the eyes of your potential online customers) include:

  • A slow or unresponsive website.
  • Content that is not easily viewed on a mobile display.
  • An overly complex process, including non-essential questions.
  • Lack of information. For example, what is the price of a site? What are the check-in and check-out times? Is wi-fi available?
  • Lack of social reinforcement. Provide testimonials or links to review sites that will help to assure new customers.

To overcome last-minute obstacles, provide your online visitors with one or more alternate means of contact. Online chat is great, as long as you have somebody available to respond at any given time; however, the single most important alternative is a telephone number. According to a recent Google AdWords report, 70% of users of mobile devices are likely to “click to call” either prior to or rather than completing an online purchase, and this statistic equally applies to online reservations at campgrounds. A smartphone user may be ready to make a reservation but would prefer to do so over the phone rather than fumbling through an online process.

What happens when someone calls your campground in the off-season? Do they get a message telling them that you are out of the office and will reopen in April? If so, you can almost be certain that you have lost a sale every time your phone rings. According to online industry statistics from SeeWhy, an average of only 3% of first-time website visitors finalizes a purchase, with 72% bailing out before hitting the ‘submit’ button. In other words, it could be a long wait before your next phone call, so you need to make each call count!

Of course, callers should expect to reach your voice-mail during off-hours and on weekends; however, if you are available to take a call during those times, do so. The caller will be highly impressed. What callers do not want to sense is a lack of response, whether that is an unanswered phone, a non-reassuring outgoing message, or a phone that is answered in an unprofessional manner. It is essential for the business phone number to forward directly to either the owner or manager of a campground and that the call be either immediately answered or returned within minutes. Do not include an alternate phone number “for a faster response” in your outgoing message. If another number will reach you more directly, forward the call to that number, rather than expecting the caller to write down that number and then place a second call. That second call is unlikely to be made.

When attempting to make the most of e-commerce, online reservations, or any other buying process, the bottom line is for you to put yourself in the shoes of the person at the other end of the transaction. When the transaction involves the Internet – and mobile devices in particular – be aware that the process is time-critical and do everything possible to respond accordingly.

This post was written by Peter Pelland

Y’All Come Back Again!

March 8th, 2014

Anybody who has been in business for more than a month knows that it is far easier to get a repeat sale from an existing customer than it is to generate a new customer from scratch. As long as you provide a positive experience at the time of stay, and a first-time camper enjoys the company of his fellow guests, your main task is to simply invite him to return. Most of us have preferred “go to” businesses for almost everything in life. We do the bulk of our food shopping at one supermarket, have one favorite restaurant, and have a long list of preferred providers of a wide range of products and services – from auto mechanics to hair stylists, from dentists to cell phone service providers. What you want to become is the “go to” place for camping.

Catering to your existing clientele in order to generate repeat business is nothing new, but some businesses and industries have capitalized upon this concept better than others. For years, airlines have teamed up with credit card companies to offer frequent flyer programs, creating an unprecedented brand loyalty in a market that is otherwise highly price-sensitive. Supermarkets and pharmacy chains have reward cards that encourage repeat purchases and offer product discounts. Then, of course, is the highly competitive credit card industry itself. One thing that they almost all have in common is a plastic card that implies some sort of exclusivity and “membership”.

The Card Is the Key

Good Sam CardKOA Rewards Cards

The Good Sam Club and its accompanying card have been around for years. For as little as $22.00 per year, members get a 10% discount at participating Good Sam campgrounds, discounts on RV parts and accessories at Camping World, discounts on fuel purchases at Pilot and Flying J stations, and other less directly monetary benefits. KOA, on the other hand, offers its KOA Value Kard Rewards program. For $24.00 for the first year, participants get a 10% discount on registration fees at KOA campgrounds and earn points that can be redeemed for camping rewards. After earning 20,000 points, memberships are automatically upgraded to VIP status, which accelerates the earning of additional points. There are many other camping discount and membership rewards programs within the industry, including Passport America, Camp Club USA, and membership campgrounds like Thousand Trails. The latest player is the AmeriGO RV Club, offering the same sort of 10% discount on stays at affiliated campgrounds, along with other values, for an introductory annual membership fee of only $9.95.

To succeed at this concept, you do not need to belong to a group or a franchise. Your goal is simply to generate repeat business for your individual park. In fact, it may not be necessary to offer your customers a discount on registration fees to lure their repeat business. After all, if a 10% discount becomes too commonplace, it loses its perceived value altogether. Let’s look outside the camping industry to see how to make the customer rewards concept work as productively as possible.

Amazon Prime

Amazon Prime

Amazon Prime is a membership program that the online marketing behemoth launched back in 2004. The $79.00 per year bundle offers free streaming of more than 40,000 movies and TV shows (which capitalize upon the bandwidth that Amazon has at its disposal – through its Amazon Web Services division, the world’s largest Internet hosting services provider), free e-books (which help to spur sales of its Kindle readers), and – most importantly – free 2-day shipping on unlimited purchases of millions, without a minimum order size. Bingo! Shipping costs have always been the biggest barrier to online commerce, with free shipping the means to dramatically increased sales.

According to a recent article in the online edition of Forbes Magazine, even with Amazon’s logistical efficiencies and exclusive volume discounts with UPS and FedEx, the company loses money on its Prime program. On the surface. With over 20 million members (many lured in by the free 30-day trial program during the checkout process at the time of purchase), the Amazon Prime program has created a “go to” mindset that makes Amazon the first (and presumably only) place for its members to order merchandise online. According to Amazon, over 1 million buyers joined the program during the third week of December 2013 alone. Most are attracted by the free shipping, and Amazon reaps the rewards.

According to a recent report from Consumer Intelligence Research Partners, the average Amazon Prime customer spent over $1,300.00 with Amazon.com last year, as opposed to the average Amazon customer who is not a member of the Prime program spending about $600.00. Amazon is continually willing to experiment with its program, currently contemplating an increase in the annual fee, while extending the concept into its Prime Fresh discount, same-day produce and grocery delivery program being tested in Los Angeles, San Francisco and Seattle.

That’s Amazon.
What About Your Campground?

First of all, determine that you are already doing everything possible to generate repeat business before creating a rewards program. The following are prerequisites:

  • When guests check out, do you ask them if you can book their next stay? Right then, before they leave.
  • Do you maintain a database of your active customers? These are probably people who have camped with you within the past two or three years, flagging guests who have already stayed multiple times.
  • Are you maintaining an e-mail marketing program and a direct mail program to reach out to these key customers both prior to the season and during any slumps within the season? Even a simple (and inexpensive) postcard, summarizing your weekend activities and mailed out during the winter months (for campgrounds in the North), can trigger early event-based reservations.
  • Do you have social media programs in place, particularly on Facebook and Twitter? Engage your followers, and encourage them to become a part of upcoming events.

Only once those prerequisites have been covered is it time to consider launching a rewards program. When you are ready, give your concept some serious thought to ensure the maximum success.

  • Order professionally designed plastic cards. They cost far less than you may think, and they provide a tangible sense of membership and belonging.
  • Determine the annual fee that you will charge for your program. It is entirely conceivable that you could provide your program for free; however, I would strongly encourage a fee-based program that will at least cover your administrative costs and a portion of the anticipated income lost from the rewards that will be offered. On one hand, you do not want to discourage participation by charging too high a fee; on the other hand, keep in mind that a paid service will intuitively have greater perceived value than an identical free service. The perfect balance will be a fee that users feel they will easily recover while enjoying added benefits from the program.
  • Allow people to sign up for your rewards program, immediately obtaining benefits, at the time of reservation and at the time of registration. The annual fee that you charge will represent immediate income.
  • Determine what you will offer as the key benefits of your rewards program, based upon both your profit margins and specific products and services that have significant perceived value among your guests. I cannot overemphasize that it is not necessary to offer a discount on camping.
  • Potential rewards might include express check-in, free site upgrades (if available), points toward a free future stay, waivers of early check-in and late check-out fees (based upon availability), discounts in your store and snack bar, free wi-fi or dump station services (if these are otherwise fee-based), discounts on things like mini-golf and boat rentals, a waiver of guest fees, free morning coffee in your store, and discounts for nearby businesses.
  • Be willing to experiment by changing your reward program’s benefits from year to year, based upon customer response and feedback.

Think about the types of benefits that will appeal to your customers, but also keep in mind the proven concepts that are working for others, most notably the examples and lessons to be learned from Amazon Prime. By offering free coffee or a store discount, you are getting people into your store, where they will buy merchandise, move inventory, and increase high profit margin sales. By offering free early check-in, you will stagger arrivals and reduce registration lines and the stress level of your staff. By waiving guest fees, you may be introducing your park to its next paying campers. And by offering discounts to local businesses, you open the doors to a wide range of reciprocal and cross-promotional possibilities. Imagine if, like Amazon, you could get your typical rewards program member to spend more than twice as much with you each year than your conventional campers. That would be a profitable program indeed!

This post was written by Peter Pelland