The way cross-selling is applied within DMOs and how this can benefit them

The use of cross-selling within Destination Marketing Organizations is yet in its early stage. Cross-selling can be defined as; “the sale of products to current customers who are already purchasing one or more products from the supplying company” (Peelen & Kowalczyk, 1999). When applying effective cross-selling, a range of data needs to be acquired in the first stage. The example of the DMO of Fjord Norway explains how they used cross-selling within their business.

Within cross-selling, several cross-selling analyses could be conducted to acquire the information needed. An exploratory analysis could be conducted to determine the economic significance of cross-selling. In this analysis DMOs can indicate the amount of purchases made by visitors, the amount of turnover and profit. Some potential visitors make frequently purchases and these visitors are important customers for the DMO. Stratification of visitors could indicate the importance or value of the different visitors for the DMO. The rule extraction algorithm technique, explains that the cross-selling probability is a certain percentage depending on the combinations of customer profiles and customer history. This technique is used to determine the probability that a visitor responds to the cross-selling product, offered by the DMO. Ultimately, it could be indicated which product categories have the highest probability of a cross-sell, as one product needs to be chosen for conducting a cross-selling analysis (Peelen &Beltman, 2013).  As this is often the more expensive product, this could be an exclusive city tour that is offered via the website of the DMO.

Fjord Norway, the DMO of Western-Norway used a ubiquitous approach of omni-channels, where the DMO appeared on social networks as Twitter, Facebook and their own website. Moreover, with its partnership with Trekksoft, an online booking system, Fjord Norway created a network with other tourism suppliers that were all using the same system of Trekksoft. It created stronger positioning for the region, as all tourism entities within the region collaborated. Through this system, visitors could book accommodations through their website. Subsequently, the visitor’s email address is registered and visitors will receive emails to enhance their stay to book activities to combine with their stay. Moreover, visitors are in the Customer Relationship Management system and will receive emails about interesting discounts and inspiration on which places there are more to explore. Within the CRM system, all information of the visitors is gathered; product history and customer profile). In this way Fjord Norway uses cross-selling to engage their customers in more purchases based on their product history and customer profile. As visitors can already get inspired and excited about the destination by the information provided on the DMOs website, it will be more likely that the visitor books these services offered on their website. This makes the information and offered services coherent and will create a better experience for the visitor. The purpose of executing different cross-selling analyses for companies is to make more effective cross-selling efforts to its customers. It creates insights for DMOs to indicate how visitors could be better targeted to increase cross-selling probability.

 

 

 

 

References

Direction, S. Big data needn’t be a big headache: How to tackle mind‐blowing amounts of information. Strategic Direction28(8).

Fjord Norway. (2016). Search & Book. Retrieved September 26, 2016, from http://www.fjordnorway.com/

Peelen, E., & Beltman, R. (2013). Customer relationship management(2nd ed.). United Kingdom: Pearson.

Raconteur. (September 1, 2016). Get to know customers better by monitoring social media sentiment. Retrieved September 27, 2016, from http://raconteur.net/business/get-to-know-customers-better-by-monitoring-social-media-sentiment

Raconteur. (September 1, 2016). How connected data is targeting your customers. Retrieved September 27, 2016, from http://raconteur.net/business/how-connected-data-is-targeting-consumers

Trekksoft. (April 11, 2016). How DMOs and DMCs can benefit from adding an online booking system to their website. Retrieved October 1, 2016, from https://www.trekksoft.com/en/blog/booking-system-for-dmo-dmc

Advertisements

One thought on “The way cross-selling is applied within DMOs and how this can benefit them”

  1. An interesting article, but sometimes a bit difficult to follow. I doubt whether most readers know all the terms used. What is a ubiquitous booking system, the rule extraction algorithm technique, Bayesian problem analysis? Explain those kind of concepts or give an example. For people who did not study destination marketing, it might be useful to tell what Fjord Norway exactly sells on the website and give examples of cross selling possibilities.

    Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s