📌 Hospitality Highlights: 24th July 2023
Latest Marketing News, Trends, Buyer Insights & Strategic Intelligence
I want to thank everyone for their kind wishes following my unexpected hospital visits. In addition to these trips, I recently received a diagnosis of High Functioning Autism, which was no surprise considering my lifelong fascination with hospitality and marketing. You could say that Hospitality is my hyperfocus.
During my hospital stay, I had time for reflection, and it's become clear that I need to take some time to understand and adapt to my conditions. Due to my recovery, I am scaling back my retainer and ongoing project work. Instead, I will focus on creating content and courses here and providing marketing audits, research and strategies at DG Consulting.
I'm incredibly grateful for the ongoing support from my wonderful subscribers. Please continue to support me and let me know what topics you'd like me to cover in future newsletters and articles.
In this week's Hospitality Highlights Newsletter
Instagram Adds Improved Reels Template Options to Provide Creative Inspiration
Early Data Shows That Brands See Good Engagement on Threads
If You Don't Start Using Threads, You Will Fall Behind — Here's Why
85% Of Gen Z Have a Bitmoji. Here’s Why Snapchat Is Redesigning Them
Pinterest Adds Mobile Deep Linking to Drive More Purchase Activity
YouTube Rolls Out New AI-Powered Video Title Generator
TikTok Announces New Music Licensing Agreement with Warner Music
Twitter Announces Coming Restrictions on How Many DMs Non-Twitter Blue Users Can Send
Elon Musk Says Twitter’s Cash Flow Still Negative as Ad Revenue Drops 50%
Facebook Puts More Emphasis on Video Again With New Discovery and Editing Tools
Can Hospitality Boot Camps Solve Restaurant Recruitment Woes?
End of the Bartender? The UK Vending Machines Pouring Pints
#AskDawnGribble What Is the Cost Sunk Fallacy and How Does This Apply to Marketing?
☕ Let’s Get Started
Hospitality Highlights
🎞️ Instagram Adds Improved Reels Template Options to Provide Creative Inspiration
Instagram is introducing upgrades to its Reels templates feature, making it easier for users to find inspiration and create engaging reels.
The new Template Browser allows users to browse templates by category, such as Recommended and Trending.
Users can access the Template Browser when creating a reel or through the Reels Tab. They can also tap the "Use Template" button on a reel they like or view how others have used templates made by their favourite creators.
Templates can be customised to add or remove clips, adjust timing, or edit preloaded elements. http://askdawn.link/u9lhfX
❤️ Early Data Shows That Brands See Good Engagement on Threads
Early usage insights of Meta's new Threads app show some positive indicators, including brands generating good engagement on Threads compared to Twitter.
World leaders are signing up for the app, such as Sheikh Mohammed bin Maktoum of the UAE, and user interest is high. However, there are also negative signs, such as declining engagement and lower user engagement compared to Instagram and Twitter. The Threads team is planning updates to improve user retention.
Overall, the app has the potential to become a successful social app if it addresses key elements like functional improvements and moderation. http://askdawn.link/ILfpn6
❗ If You Don't Start Using Threads, You Will Fall Behind — Here's Why
Businesses risk falling behind if they don't use Meta Threads because it offers efficiency, productivity, and customer engagement benefits. With features like direct customer communication and real-time feedback, businesses can enhance their customer relationships and satisfaction.
The platform also enables businesses to streamline operations, manage projects effectively, and attract new customers, giving them a competitive advantage in their industry. By embracing Meta Threads, companies can maximise their efficiency, stay ahead of the competition, and tap into growth opportunities. http://askdawn.link/zREes0
🤳 85% Of Gen Z Have a Bitmoji. Here’s Why Snapchat Is Redesigning Them
Snapchat's Bitmoji, which allows users to create cartoon avatars of themselves, is undergoing a significant redesign. The new 3D Bitmojis will be fully animated, with enhanced facial expressivity designed for better-augmented reality experiences.
The update also includes more realistic proportions and the ability to wear clothing and accessories developed by third parties, opening up new revenue streams for virtual clothing. Bitmojis have played a vital role in Snapchat's user retention and engagement, and 85% of Gen Zers in the US have their own Bitmoji.
Bitmojis are popular among Snapchat's user base, as they can help build connections and enhance visual expression in communication. The redesign offers opportunities for brands to create and monetise virtual products and experiences within the Snapchat ecosystem. http://askdawn.link/kKgiGJ
🔗 Pinterest Adds Mobile Deep Linking to Drive More Purchase Activity
Pinterest is introducing a new feature allowing brands to drive mobile app traffic. By using deep links from Pins, brands can direct users to a specific page within their app, simplifying the path to purchasing or booking.
This feature aims to capitalise on the purchase mindset of Pinners, providing a more seamless user journey and boosting conversions for advertisers and retailers.
Deep linking provides a more direct traffic benefit from Pinterest, potentially driving more customer traffic to mobile apps and increasing engagement and sales. http://askdawn.link/PzAiZE
🤖 YouTube Rolls Out New AI-Powered Video Title Generator
YouTube is introducing a new AI-powered tool that generates video titles based on the transcript and description provided by creators.
The platform aims to provide equal opportunities to all creators and avoid unintentional bias. The suggested titles will be displayed below the title field in the YouTube Studio during the upload process.
This move is part of YouTube's efforts to expand user surveys and gather data about which videos come from specific creator communities. This tool and other assistive features, such as A/B testing for thumbnails, will help creators improve content performance and reach. http://askdawn.link/sJu2Q1
🎵 TikTok Announces New Music Licensing Agreement with Warner Music
Warner Music Group and TikTok have announced a partnership that benefits artists and songwriters while offering new marketing and revenue opportunities.
The deal allows TikTok access to Warner's music catalogue and promotes collaboration and innovation between the two companies. This partnership is important for marketers as it provides avenues to reach TikTok's billion-plus users, boosting exposure and engagement with music content.
It also explores new monetisation features and alternative economic models, showcasing TikTok's influence in music promotion.
I can’t wait to see what hospitality brands will come up with!
http://askdawn.link/CbsUOr
✉️ Twitter Announces Coming Restrictions on How Many DMs Non-Twitter Blue Users Can Send
Twitter is implementing new restrictions on Direct Messages (DMs) for non-subscribers of Twitter Blue. The aim is to combat DM spam and reduce unwanted messages.
Unverified accounts will have daily limits on the number of DMs they can send. This change follows Twitter's recent update, which allows only verified users to send DM requests to non-followers.
Implementing DM restrictions may change how marketers engage with journalists, PR and other users through Twitter's DM feature. Marketers should be aware of these restrictions and adjust their strategies accordingly, exploring alternative avenues for outreach if necessary.
I'll continue to monitor the impact of these changes on user behaviour and the adoption of Twitter Blue, as this could influence the platform's effectiveness as a marketing channel. http://askdawn.link/hJfA5Q
📉 Elon Musk Says Twitter’s Cash Flow Still Negative as Ad Revenue Drops 50%
Twitter's ad revenue dropped by nearly 50%, and Elon Musk says cash flow remains negative, contrary to his previous expectations.
This suggests ongoing challenges for marketers advertising on Twitter, requiring them to reassess strategies and expectations.
With Twitter Spaces not generating revenue yet, marketers may need to explore alternative avenues to reach their target audience on the platform.
Staying informed about these challenges is essential for making informed decisions about advertising budgets and strategies on Twitter. I'll continue to bring you the updates that matter. http://askdawn.link/DS1rJA
📺 Facebook Puts More Emphasis on Video Again With New Discovery and Editing Tools
Facebook has introduced new video-related features to compete with YouTube and TikTok.
The company is renaming its "Watch" tab to "Video" tab to consolidate all video experiences in one place. Users can now create short and long videos from the main feed using the editing tools initially designed for Reels. Additional editing features like speed adjustment, clip reversal, and replacement are being introduced, along with support for HDR videos on Reels. Facebook is also making finding audio tracks easier, reducing noise, and recording voiceovers on videos.
This update presents opportunities to reach a wider audience and engage with users through various video formats. By unifying video experiences under the "Video" tab, Facebook aims to provide a seamless and appealing platform for creators and viewers. http://askdawn.link/5W2PFI
🏨 Can Hospitality Boot Camps Solve Restaurant Recruitment Woes?
According to a report from The Telegraph, the UK government is considering introducing "boot camps" to help fill the approximately 100,000 vacancies in the hospitality sector.
These boot camps would train unemployed individuals to work in pubs, bars, and restaurants, primarily targeting younger people seeking employment. The scheme aims to upskill individuals rapidly and offer employment opportunities to economically inactive people. Some industry experts suggest that tapping into the over-50s demographic might be a solution to the current staff shortages in the sector.
The introduction of boot camps could provide a trained pool of individuals ready to fill the vacant front-of-house and kitchen positions in pubs, bars, and restaurants. Hospitality professionals should take note of this initiative and consider how it may impact their recruitment strategies. http://askdawn.link/QH28z2
🍺 End of the Bartender? The UK Vending Machines Pouring Pints
The EBar, a robot beer vending machine created by Sam Pettipher, is revolutionising how drinks are served at large-scale events in the UK.
The automated kiosks allow patrons to pour their own pints at the touch of a button, eliminating long queues and ensuring a convenient beverage experience. With 40 EBar kiosks already operating nationwide, the technology addresses the need for more skilled bartenders faced by hospitality venues, maximising potential sales.
Nick Beeson, CEO of EBar, plans to expand the technology to the US and Europe, emphasising that it is designed to increase accessibility to drinks rather than replacing human jobs. http://askdawn.link/iM33R4
🤔 What do you think? Let me know in the comments!
#AskDawnGribble
Each week, I answer your question and provide expert tips and advice to help you stay ahead of your competition.
What is the Cost Sunk Fallacy, and how does this apply to marketing?
Business decisions are often made following careful analysis of costs and benefits. However, a cognitive bias known as the cost-sunk fallacy can influence decision-making in counterproductive ways.
This fallacy occurs when individuals or organisations continue to invest in a failing endeavour simply because they have already incurred costs that cannot be recovered.
The Negative Impact of the Cost-Sunk Fallacy
Standing by a Bad Decision
One of the key negative impacts of the cost-sunk fallacy is the tendency to stand by a bad decision. Despite the effort put into evaluating the potential success of a decision, there are times when the outcome falls short of expectations.
Despite the signs that the decision could have been better, individuals or organisations may hesitate to reverse course due to the sunk costs already incurred, leading to further losses and missed opportunities.
For example, a restaurant may keep investing in a marketing campaign that is not showing results simply because they have already incurred the associated costs. This may lead to further losses for the restaurant, as they could use their marketing budget for more successful initiatives.
Biased Decision-Making
The cost-sunk fallacy can also lead to biased decision-making. When sunk costs are factored into the decision-making process, past investments may influence future choices, resulting in a skewed evaluation of options - as the goal shifts from objectively assessing each decision's benefits and drawbacks to recouping the sunk costs.
As a result, suboptimal choices may be driven by emotional attachment to their past investments rather than rational decision-making.
For example, a hotel may continue to invest in a costly direct mail campaign even though its target audience increasingly uses digital communication channels. The hotel may be hesitant to switch to a more cost-effective digital marketing strategy due to the sunk costs already incurred for the direct mail campaign, even though it is no longer the most effective way of reaching its target audience.
Adding Further Investment into Failed Endeavors
Another pitfall of the cost-sunk fallacy is the temptation to add further investment into failed endeavours to recoup sunk costs. This can be seen when individuals or organisations continue to allocate resources to projects or initiatives that have already proven unsuccessful.
The belief that additional investment will somehow turn the tide and lead to a positive outcome can be detrimental, as it perpetuates a cycle of losses and prevents the exploration of more promising opportunities.
Hoteliers and restauranteurs should be mindful of the cost-sunk fallacy when making decisions. When faced with a failed endeavour, they should objectively assess whether additional resources should be invested into the project or if it would be more beneficial to cut their losses and invest in more successful initiatives. They should also consider if their decision is influenced by the sunk costs already incurred and if it is the most rational option for the business. This is where a third-party audit or assessment can help.
Sunk Cost Marketing Opportunities
While the cost-sunk fallacy may have negative implications, understanding and leveraging this phenomenon can present unique marketing opportunities.
Hotels and restaurants can foster customer loyalty and drive conversions by strategically addressing and alleviating the effects of the cost-sunk fallacy.
Encouraging Engagement
One strategy to leverage the cost-sunk fallacy is to suggest to customers that only minimal effort is required to complete a purchase or make a booking.
Providing simplicity and ease throughout the buying process can help businesses tap into the desire to avoid wasting time and energy; this can be especially effective for generating impulse purchases and encouraging customers to complete the purchase.
Gamify to Increase Conversions
Progress indicators and gamification techniques can be powerful tools to increase conversions in the digital realm. By visually representing the progress made in a multi-step form or online checkout process, businesses can tap into the cost-sunk fallacy and motivate customers to complete their purchases.
Seeing how far they have come can create a sense of commitment and reduce the likelihood of abandonment, as customers do not want to "waste" the time and effort they have already invested.
For instance, online food delivery services often display a progress bar that shows how many steps are left until the order is placed.
Upselling and Cross-Selling
Leveraging the cost-sunk fallacy can also be effective in upselling and cross-selling. Once customers have invested significantly in a product or service, they are more likely to consider additional purchases that enhance their overall experience.
By offering complementary products or upgraded versions, businesses can tap into the desire to maximise the value of their initial investment. Customers are more likely to justify an additional purchase when the extra cost is significantly smaller than the initial expense.
Alleviate Buyer Remorse
Buyer remorse is a common experience, particularly when individuals feel they have wasted their money on a product or service that did not meet their expectations. By acknowledging and addressing this feeling, businesses can alleviate buyer remorse and strengthen customer relationships.
One effective strategy is to emphasise the product's or service's value and benefits, reminding customers of the positive aspects and the reasons behind their initial purchase.
For instance, hotels can send follow-up emails with additional tips to help customers get the most out of their trip, such as food festival dates or nature trails, or offer additional services that complement the product or service.
Sunk Rewards to Drive Repeat Purchases
Sunk rewards can be a powerful tool to drive repeat purchases and increase customer loyalty. By reminding customers of their initial investment and providing prompts for ancillary purchases, businesses can tap into the cost-sunk fallacy and motivate customers to continue buying.
Discounts and special offers can enhance the return on investment for customers who have invested a significant amount.
Fostering Customer Loyalty
Continually reminding customers of their ongoing relationship with the brand is another way to leverage the cost-sunk fallacy and foster customer loyalty.
By emphasising the length of their membership or the history of their purchases, businesses can create a sense of commitment and attachment that encourages repeat business.
Marketers can achieve this through personalised communications and targeted marketing campaigns highlighting the customer's unique journey with the brand. A personalised approach is key at this stage.
Recommend a Friend Scheme
Recommend-a-friend schemes are another effective way to leverage the cost-sunk fallacy and drive new customer acquisition. Businesses can tap into the sunk rewards associated with their initial investment by incentivising existing customers to recommend the brand to their friends.
Existing customers are more likely to recommend the brand to their friends and family as they feel attached and committed to the brand.
This approach can increase brand awareness and customer acquisition and foster community and loyalty among existing customers.
Sunk Costs: Key Takeaways
While the cost-sunk fallacy can lead to adverse outcomes such as standing by bad decisions or biased decision-making, it also presents opportunities for businesses to strengthen customer loyalty and drive conversions.
By alleviating buyer remorse, utilising progress indicators, employing balance payment systems, leveraging upselling and cross-selling, fostering customer loyalty, offering sunk rewards, and implementing a recommend-a-friend scheme, businesses can tap into the cost-sunk fallacy and create a sense of commitment and attachment among their customers.
Got a Question?
Simply comment on this newsletter or social media with #AskDawnGribble
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That’s a wrap for the week!
Please don't hesitate to contact me with any feedback or suggestions for future topics. Here's to Your Success 🥂
ICYMI
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Instagram Strategy - Part 3: Community Management
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