The Analysis Process: The importance of formulating a problem for a destination marketing organisation

In my last two blogs I wrote about a customer engagement strategy for a Destination Marketing Organisation (DMO) and how to implement a service design framework. However, in order to do this we need information of the customer in order to address the right needs and wants. Therefore, I give a deeper insight in the importance of formulating a problem within the analysis process.

Having the right data available as an organisation is essential to approach the right customer with the right offer at the right time. But how do we achieve that? This information needs to be analysed, which can be done in different ways. There are several methods available that enables you to analyse the right data suitable for your organisation. However, before you decide on the right method, you need to know what type of information is relevant for your organisation in order to address your customer correctly, because each analysis method researches only a certain part of the information that is available. In order to define the type of information that is essential for your organisation is to organise for example brainstorm sessions, or write out what you think you need to know in order to sell your product. For a DMO, I held a brainstorm session and the figure below indicates what is important to know as a DMO.

Figure 1

Based on the type of information you need, you start considering the different methods that are available. The following types of formulations are relevant to consider in order to analyse the right information:

  • Segmentation and selections – enables a company to create homogeneous customer groups and to create a list of names, addresses and age information per person. Take in mind that segmenting is only needed when sending out brochures for example and not with online marketing. This type of analysis can be interesting for a DMO in order to know what kind of market you attract. Where do they come from? How old are they? With who do they travel? This information is relevant in order to promote the destination in the right area (country). Furthermore, it enables a DMO to decide on what kind of attractions and trips to promote to the right target market.
  • Acquisition analysis and selections  – focusses on acquiring new customers. Whenever a DMO has new customers interested in the destination, this type of analysis helps to determine if the customer is a potential customer for the long-term or not. It creates a selection in what kind of customers there are and who will visit the destination once of more. This enables a DMO to focus more directly on the right potential long-term customer target group.
  • Customer analysis and selections – focusses on retention of the customer as in the early identification of determining a relationship, as well as relationship development. A DMO could use this type of analysis to gain insight in who returns to the destination and who will not return to the destination. This enables the DMO to target their promotions to the right people. Why spending money on people who will not return to the destination after they have been there?
  • Analysis to determine the effectiveness of the customer approach – focusses on response of marketing campaigns. This type of analysis is extremely useful for a DMO, because of their marketing activities. Using this analysis will help a DMO to determine whether a campaign has been successful. This can be all kinds of campaigns as in online or offline, within a certain area or targeted at a specific group of people. It enables a DMO to indicate if the campaign has been useful and what to improve next time.

Based on these four type of analysis, you can decide which type would be the most relevant to use for you as an organisation. It is important to decide on what kind of analysis you want to choose in order to define your research question (Peelen & Beltman, 2013).

Bibliography

Peelen, E., & Beltman, R. (2013). Customer relationship management. United Kingdom: Pearson Education Limited.

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One thought on “The Analysis Process: The importance of formulating a problem for a destination marketing organisation”

  1. Which analyses a DMO can use is an interesting question. You mention four kinds of analysis. For the structure of your blog it might be helpful if you describe for each kind how a DMO can use it and give a practical example.

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