Market to ‘People Not Like You,’ Expert Advises

Whether it’s Vietnamese immigrants, Latino families, college students or vegans, travel agencies must target groups outside their existing customer base if they want to thrive in today’s diverse environment.

Doing so takes both a strong commitment and a nuanced approach to marketing, according to Kelly McDonald, author of How to Market to People Not Like You (Wiley), which has been on Inc. magazine’s list of bestselling business books for the past five months.

McDonald, a frequent speaker at travel industry events, including the recent Florida Governor’s Conference on Tourism, is president of Dallas-based McDonald Marketing, named by Advertising Age as one of the top ad agencies in the U.S. in 2009.

Travel Market Report asked McDonald for her insights on how travel agencies can effectively expand their marketing reach.

Have changing demographics made it essential for a business such as a travel agency to target groups who might be very different from those in its existing client base?
McDonald: If you want to grow your business, you need to reach out to groups that you may not have done business with before. We are more diverse as a nation than we’ve ever been, so there are expanded opportunities.

Some groups have not been targeted, yet there are travel dollars to be had. If you put out the welcome mat, people will respond, whether they are Asians, African Americans, immigrants, seniors or Generation Y.
 
How might an agency determine which new groups to direct their marketing efforts toward?
McDonald: It starts with looking around the community and taking note of how it is changing. Most communities are very different than they were 10 years ago. For example, in Dallas, where I live, there is a growing population from Mexico. As a result, there are bus companies who run regular routes to Mexico from Dallas. It’s a thriving service that I’ve seen developed in the last few years.

If you’re in a location with a large Asian population, you could go to the Asian Chamber of Commerce and learn how to tap into the community. You could put together and promote attractive packages to Asia, perhaps aimed at people returning home to visit loved ones.
 
If you’re in a college town, there could be opportunities to develop and promote spring break packages. It’s important to ask: What are the services my community needs?

In your book you talk about the importance of ‘narrowcasting’ as an effective approach to marketing. What is this?
McDonald: The idea of narrowcasting – the opposite of broadcasting, which means casting a broad net – is not reaching a lot of people but reaching the ones you want to reach in a relevant way. If you reach 10 people who will buy from you, it’s better than reaching 100 who will not buy from you.

‘Spray and pray’ marketing, where you spray your marketing efforts all over the place and pray that it works, is history because our population is more diverse, not a homogenous chunk. People respond to marketing messages that are targeted to them

What about the language barrier when targeting an ethnic group different than your own?
McDonald: You really need a person on your staff who can speak the language and, even better, is part of the community you want to reach. It gives you credibility. You can genuinely market that ‘You speak Mandarin; so do we.’

Also, it’s important not to just literally translate brochures and other collateral into another language, but to make sure the translation is culturally relevant. For instance, translating the term ‘bottom line’ into Spanish would be meaningless, as that term is not used in Hispanic culture.

So rather than using a translation service, you might want to hire a marketing company that directs its efforts toward the group you’re trying to reach. 

How about understanding cultural differences and how they influence travel decisions?
McDonald: It’s incredibly important to understand and address cultural nuances.

For instance, Hispanics often travel with extended family, sometimes with three generations. They are also very likely to combine a business trip with leisure, including bringing the family along to a conference. So you need to develop marketing messages that show you are aware of this, that you understand their particular needs.

You say that information is shared and spreads quickly among cultural groups, making good customer service paramount. Please elaborate.
McDonald: Word of mouth is very important among cultural groups, particularly among Asians and Hispanics, who very much trust what they hear from each other. It carries more weight than advertising.

So if someone has a good experience with your agency, it can result in a lot of referral business. If someone has a bad experience, the opposite will be true.

This means you have to be very customer service oriented. All the marketing in the world won’t overcome bad service. Customer service and marketing are two sides of the same coin. You can’t have one without the other.

So how can you ensure a good customer experience?
McDonald: If you tap into a new market, you have to be ready to serve them. Your marketing has to be backed up operationally. Everyone in the agency needs to be on board. They need to understand what you are doing and what their role is. If they don’t, bad behavior can result. 

For example, my marketing firm had a client who spent millions on marketing to Hispanics in Spanish. We did some mystery shopping and called the company with a question in Spanish. The employee who answered the phone said, ‘This is America. Speak English!’ One individual had sunk their marketing efforts.

You mention in the book that political consumerism – choices based on political or ethical convictions –  is a growing force.
McDonald: People who tend to have a larger world view, people who recycle, care about human rights, the planet, etc. are a high-potential target. More people want to feel they are making a difference in the world, so a vacation for them is not just about rest and relaxation.

Baby Boomers are especially trending toward this – they’ve made money, raised a family, now they want to give back.

How should agencies address this type of traveler?
McDonald: Logical places to connect with them are through fairs, festivals and local businesses who cater to this market. In large cities, there are businesses who cater to environmentally conscious people. Why not co-promote with them by holding an evening travel lecture or event at their store? You’re not competitors, and you have similar customers you can both reach.

As a general marketing tip, you encourage people to share their expertise.
McDonald: Yes, it’s good to contribute articles to publications, blog about what you know. Travel agents have a lot of good inside tips to offer. Sharing expertise doesn’t mean you are giving everything away. It makes you an authority.

A good example is (personal finance expert) Suze Orman. She gives away free advice, but it doesn’t mean that she’s giving away all her knowledge. You still want to buy her book.

It’s the same for travel agents. When you inform people, you’ve established trust and you can sell to them. It’s about planting seeds and harvesting them later.