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The psychological economics of sensory experience: Hotels

“Geography of Senses”

Johanna FyrbjörkHoward Moskowitz

Rieko Shofu

Marco Bevolo

David Moskowitz

Alex Gofman


Experimental design of ideas Applications to experience

Economics of ideas What experiences are worth paying for

Practical applications Segmentation to improve individual experience Typing to recognize people

What this presentation will provide YOU

ZenInSightFused Research

Today’s Advertising Practice

Messages…not-targeted, not-relevant Retailers / Manufacturers ->

...Traditional advertising Messaging targeted to large audiences Simple classification descriptors and what

they purchase It’s how media is bought

Your Customers Advertising strategy assumes/hopes for

group homogeneity…Men want “Y”, Women want “X”

Result Lots of messages No regard to ‘true/effective’ messages &

motivators ‘that really work’ for each customer

Demographics - Behaviour


People differ from each other Conventional methods divide them by easy-to-buy information (geo-demos) Other methods divide them by high-level psychographics (general world views) Still others divide people by what they buy, etc.

We are going to segment the respondents based on how they react to these new ideas

This is called mind-set segmentation It is granular, specific to the particular product and opportunity And it is up-to-date

Mindsets Create Business Opportunities


The Addressable Mind™ SolutionTargeted by mind-set, very relevant messaging

Retailers - Manufacturers ->

IdeaMap.Net Foundation Database/test for each

retailer/manufacturer

Discover Segments Create Typing Tool Identify Message Drivers

Classify/Segment Classify new population into

segments THEY LOOK THE SAME BUT

THEIR MINDS ARE DIFFERENT

Target Now, Target best messages to

each segment and do it by each manufacturer and retailer

IdeaMap.net

Discover MindSegments:Green ConsciousOnly The Best

Identify Mechanism For Segmentation

Identify Importance Of Each Message byTotal, Segments etc.

GREEN

GREEN

GREEN

BEST BESTBEST


Knowledge about the “sensory components” is valuable … it identifies what the customer value and will pay for different minds exist among customers, you should do to please them..get them and keep them

These three pieces of information enables the us to identify what to feature in business, and how to personalize/optimize individual communications to current and prospective customers/guests.

Which “sensory components” should a business offer?


What are the guests experiencing...“It was a unique experience, as each hotel is designed using a specific magazine for cues to furnishings, senses, wall colors, etc. Ours was based on the New Yorker magazine.

The walls were painted citrusy yellow and chartreuse colors. Black and dark brown furniture. You’d expect John Steinbeck to come around the corner.

I can still smell the citrus thyme scent of the building, my toiletries, etc. The impression they set will remain with us for a long, long time.”

“The hotel exudes comfort, sophistication and style which made me as a guest feel very luxurious and relaxed.

The attention to details regarding materials, lighting, artwork, service etc. has made the hotel my top choice of hotels globally.“


The pilot study with 315 respondents show that customers around the world differ in what they want. BY CITY: There may be large city-to-city differences. Knowledge of

these differences can suggest strategies appropriate for a city. BY MINDSET: There are mind-set segments for the different sensory

aspects, so that someone may be a fragrance seeker touch/ kinesthetic seeker, and so forth.

Knowledge of the segments can enable creation of generalized strategies for communication to the segments.

TYPING A GUEST PROSPECT OR A NEW GUEST: The person-to-person differences can be harnessed by a short intervention, the guest mind-set typing, to identify the mind-set segment to which a new guest or prospect belongs.

Which “sensory components” should a hotel offer to maximize the price a guest is prepared to pay for an evening?


Online survey


16 Phrases - Combined Into Small ConceptsFour Silos - Four Phrases Each

Silo 1 Feeling/Touch

Rich, lush and soft ... uniquely crafted bed and pillows in your room for a comfortable sleep

Natural selected linen and towel with pleasant texture and colors

Rooms equipped with a massage chair

Showers have an aromatic steam option to stimulate relaxation ... the ultimate experience

Silo 2 Seeing/Sight

Know what to expect inside just by looking at the exterior of the hotel

The lobby elevator color schemes are carefully selected for peace and comfort

Hotel rooms color schemes carefully selected for peace and comfort

Themed hotel restaurant coordinated with the deco of the lobby

Silo 3 Smelling/Smell - Fragrance

At lobby, guests welcomed by a pleasant fragrance

All rooms equipped with an air purifier that has an aromatic function

Bathroom ambiance included with an aromatic effect for relaxation

Hotel features a "Fragrance Bar" ... test many fragrances ... choose best fragrance for your room

Silo 4 Hearing/Sound

Unique background music in the lobby developed ... for warm welcoming

Unique background music in each room ... for a comfortable sleep and fresh awakening

Sound on demand system in every room ... choose from a variety of music

Soundproof room offers quiet stay


What Features Make the Guests More Interested

The data set tells us what people find interesting in the sensory experience of the hotel…

Avoid the reds…any element which has a ‘red score’ for a segment is to be avoided because at least one group really dislikes the element…

Go for greens..


Will the guests pay more?

But…. will guests pay ‘more’ for these features…

Table shows % saying they would pay 20% or more for their hotel room to get these features

Here is the opportunity Look for the greens on the

right side


Finding Mindsets to customize Messages

When creating mind-sets the data shows how to tailor the message

When knowing or more easily being able to discover prospect’s mind set, one can offer the right “sensory components“ to the right person.

Again…avoid the reds…


Now … really please some of the guests

Give them the ‘right sensory components’

And.. Of Course …tell them in the marketing materials

Finding Mindsets to customize Messages


1

Conduct a 45 second ‘scratch test’ to mind-type a guest or prospect ..either upon meeting the

prospect … or by internet

1

How interested are you in staying in a hotel with EACH SPECIFIC FEATURE?1 = Not at all…9 = Very Likely

6Hotel rooms color schemes carefully selected for peace and comfort

2Sound on demand system in every room ... choose from a varietyof music

9Themed hotel restaurant coordinated with the decor of the lobby

4Hotel features a "Fragrance Bar" ... test many fragrances ... Choosebest fragrance for your room

Scratch Test for Mind-Typing

Knowing how a guest or guest prospect rates interest in three sensory experiences gives better odds of knowing the mindset segment to which the guest will belong. That knowledge tells what you should communicate and offer.

We use a discriminant function program to selects the limited number of elements needed to ‘classify’ guests and prospect guests.

Natural selected linen and towel with pleasant texture and colors

Hotel rooms color schemes carefully selected for peace and comfort

Hotel features a "Fragrance Bar" ... test many fragrances ... choose best fragrance for your room

Unique background music in the lobby developed ... for warm welcoming


Examples of personalized landing page for site visitors

Sensory Seekers Fragrance and Touch

Design and Relaxation


Groups highlighted in orange are the target for a strategy

Tot

Seg1 F

eel Luxury

Seg2 Smell

Seg3 Feel & Sight

Q1_M

ale

Q1_Fem

ale

Q2_30 -38

Q2_39 - 44

Q2_45 - 52

Q2_53 - 64

Q7_The Ritz Carlton

Q7_The H

ilton Hotels

Q7_The M

arriott H

otels

Q7_The Sheraton H

otels

Q7_The H

oliday Inn Hotels

Q12_Black/A

frican-Am

erican

Q12_H

ispanic/Latino

Q12_W

hite/Caucasian

Q13_M

oderate spender (I splurge for special occasions)

Mean 47 38 52 47 39 49 53 44 51 45 67 64 58 62 50 61 48 47 54Median 46 38 51 47 39 49 53 44 51 46 68 64 59 62 50 61 46 46 54St.Dev. 6.3 5.3 6.3 9.8 5.8 7.0 6.4 7.9 7.6 7.1 6.9 6.9 6.7 6.8 8.4 7.9 9.2 7.0 8.6

% of concepts l> 50 35% 0% 60% 40% 4% 47% 69% 23% 53% 28% 99% 97% 88% 99% 48% 91% 36% 38% 67%% of concepts l> 55 9% 0% 29% 23% 0% 21% 40% 9% 30% 8% 95% 94% 68% 82% 29% 77% 26% 10% 47%% of concepts l> 60 2% 0% 11% 10% 0% 7% 15% 1% 12% 1% 83% 69% 41% 61% 13% 56% 7% 4% 25%% of concepts l> 65 0% 0% 2% 3% 0% 0% 4% 0% 4% 0% 62% 46% 16% 32% 3% 37% 2% 0% 11%% of concepts l> 70 0% 0% 0% 0% 0% 0% 0% 0% 1% 0% 35% 22% 2% 15% 0% 12% 0% 0% 4%% of concepts l> 75 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 13% 7% 0% 2% 0% 4% 0% 0% 1%


Addressable Minds enable mind segmentation using conjoint analysis Segmentation based on the reaction/interest in sensory experiences

Three segments were found interspersed in the population: Sensory Seekers Fragrance and Touch Design and Relaxation

Knowledge can be used to create a “scratch test” Quick and reliable way to segment customers and prospects 65% accuracy in classifying a prospect

Very few are prepared to pay for the sensory experiences they want. It should instead be viewed as a competitive advantage.

Conclusions

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