TALE TRACKING - Weebly

TALE TRACKINGA CUSTOMIZED TIVOLI EXPERIENCE

Jesper [email protected]

Anna C. Bjø[email protected]

Julie Bang [email protected]

Rie Scheuermann [email protected] Trine Christensen

[email protected]

Business Analysis

Concept

Implementation

This is a consultancy report addressed to strategic decision-makers at Tivoli A/S. The report consists of three main parts: The Business Analysis, The Concept and The Implementation.

The Business Analysis is initiated by a look into Tivoli Today, followed by an understanding of Tivoli’s Core Obligations. Next, we Meet The Visitors, narrow down the focus to one segment, and use these insights actively when Looking Over The Fence. Here, we look at both alternatives available to the chosen segment and at innovations in the industry of direct competition.

The Concept starts by Introducing Tale Tracking including our proposed concept that is carefully based on fi ndings from The Business Analysis. Then the concept is explained in four parts, starting with how the concept is A Customized Experience. Going more into detail, we provide technical explanation for The Technology Behind and unfold the concept further through descriptions of how it requires Collecting Tales and Tale Mining.

In its fi nal element, the report addresses the Implementation of the concept. By providing a detailed Implementation Map, phases, activities and milestones are clearly illustrated. This is followed by The Financial View and an outline of how A Friendly Reminder to the vis-itors about Tivoli’s off ers should be handled. Lastly, the report sums up the benefi ts of the concept, its po-tential impact and value creation in order for Tivoli to succeed Happily Ever After.

Table of Content

Tivoli Today

Implementation Map

The Financial View

A Friendly Reminder

Happily Ever After

Core Obligations

Meet The Visitors

Looking Over The Fence Introducing Tale Tracking

A Customized Experience

The Technology Behind

Collecting Tales

Tale Mining

Tivoli TodayBeing an amusement park working to amuse and entertain visitors, Tivoli operates within the very heart of the experience economy. Thus, offering distinctive and memorable experiences are both critical for business operation and success, and challenging due to its complex and intangible nature.

No Room for ExpansionTo date, the strategy for creating expe-riences for the visitors has been relying heavily on expansion and the estab-lishment of new rides. However, Tivoli’s location limits its possibilities in this regard and if existing rides and build-ings are to be preserved, it is no longer a valid strategy.

This becomes very clear when consider-ing that an outdoor employee area wasrecently replaced by the newly launched

amusement “The Merry Corner”.Therefore, Tivoli needs new ways to cre-ate experiences that still have the value of sensation without taking up space. By doing so, Tivoli would be able to create other opportunities for visitors and continue to stay relevant in the coming years.

A Short PerspectiveBesides taking up space, these new amusements have a short-lived value of sensation and typically decrease in earnings over time - with the exception of The Old Wooden Roller Coaster.

This creates a circular structure of constantly needing to expand and build new rides, which can be characterized as short-termed.

Looking at the Tivoli Experience Time-

line below, there have been far more short-term initiatives than long-term. However, the long-term initiatives such as The Season Card and Friday Rock seem to generate a sustained source of value and revenues. These are reflect-ed directly on Tivoli’s bottom line.

01Business Analysis

Based on the current limitations we identify a need to review the current strategy and create a long-term innovative initiative, taking into account Tivoli’s promise to deliver distinctive and memorable experi-ences.

= Building amusements = Establishing initiatives creating long-term value

The old wooden rollercoaster

1914

The bumber cars 1926

Season card1945

The Magic Carpet

1993

The Spinning Top1988

Hard rock cafe1995

The golden tower1999

The Star Ship2006

Vertigo2009

The balloon swing 1943

The Odin Express1985

The Little Plane1990

Open duringChristmas

1994Friday rock

1997The Demon

2004

Open during halloween

2006

Tivoli “music week”2012

2

Core Obligations

Indeed, tradition is the core resource for value creation and generates brand equity – It is embedded in all other resources and activities. However, when working to innovate business, tradition also limits the possibilities. For example, excessive use of modern technology could eliminate the nostalgic vibe in the garden.

Ubiquitous TraditionAs the second oldest amusement park in Denmark, Tivoli has a long history with many traditions. Visitors know what they get. In addition, Tivoli has deliberately chosen to build every business aspect on the foundation of its tradition – making it a valuable resource.

To mention a few, the tradition of Tivoli is embedded and communicated in: the website, events, buildings, appearance of the garden, brand and even the slogan: ”Always as nev-er before”. Hence, Tivoli’s tradition is unique and can’t be imitated. No competitors can claim the ownership, nor is it a common resource in the industry.

Expectations of TraditionBy letting the high level of tradition permeate all its units, Tivoli communicates a mes-sage of authenticity. Their long tradition creates strong emotional ties between Tivoli and its visitors.

The need for sharing or passing on the “Tivoli experience” through generations creates a loyal customer group. This is explicitly illustrated in Tivoli’s numbers: Tivoli is the most frequently visited attraction in Denmark. In 2011 the garden had 3,96 million visitors of whom 89 % were Danes.

Financial capacity

One system, many units

Loyal visitors and employees

Strong brand

1. Duality of tradition

2. Creating new, differ-entiated and shared experiences

3. The challenge of diversity

STRENGHTS CORE OBLIGATIONS WEAKNESSES

02Business Analysis

1. THE DUALITY OF TRADITION

The interesting internal aspects of Tivoli are not merely its strengths and weaknesses, but the components that fit into both categories. These are both considered Tivoli’s core strengths and causes of limitation in terms of renewal and innovation. These are defined as Tivoli’s core obligations.

Having existed for more than 150 years, they three obligations have been deeply rooted in the com-pany and its activities. Hence, they must always be considered.

Customer sensitive

Unable to expand

Expensive to establish new rides

Its hard to be innovative and still be the same

Expensive

3

Business Analysis

2. CREATING EXPERIENCES

3. THE CHALLENGE OF DIVERSITY

New ExperienceIn striving to create: “more reasons for people to visit”, the question of novelty must be taken into account. Sure, people visit Tivoli because of its tradition, but they also go there to experience something new, perhaps a new ride, a theme season, or a concert. When working to amuse and enter-tain, renewal seems to be the overriding demand. This considered, perishable initiatives such as activities and events are beneficial for Tivoli – and at a much lower price than the construction of a new ride.

Differentiated ExperienceNot only must the experience be new, it should also be different from others on the market. Here, Tivoli has a clear advantage in terms of the “expe-rience wrapping”. Regardless of the purpose people may have to visit, the garden and its nostalgic vibe add on value. Even if people just go there to drink a cup of coffee, Tivoli offers a unique setting in the heart of the bustling metropolis.

Shared ExperienceIn most cases, visiting Tivoli is a social affair. A place for shared experiences within and across generations: As children you go to Tivoli with your parents, as a teen you go there with your friends, then with your partner and finally you take your own children. Further offers and experiences should not deprive people of their shared moments. The social aspect is what Tivoli is about.

With a variety of different offers, Tivoli has a very broad appeal. However, in the attempt to create a “Tivoli for everyone” and satisfy all visitors, Tivoli must consider the risk of not targeting their offers clearly enough. Visitors may feel overloaded or they may not feel that they are offered experiences relevant to them. This might degrade the whole Tivoli experience and deter visitors from coming back. So Tivoli must find its way to to maintain a broad appeal but without misleading visitors.

“… it is part of the Tivoli

concept to cater for everyone

-Annual report 2012Tivoli

4

Meet the Visitors03Business Analysis

A large variety of people visit Tivoli. By dividing the visitors into segments with common goals and needs, the associat-ed insights will generate an understanding of which seg-ment provides Tivoli the best opportunity for innovation.

Businessmen/women is a group of business part-ners dining out in Tivoli. This constellation often includes some out-of-towners or foreigners.

Strollers are the ones who use Tivoli as an integrated part of Copenhagen. They stroll through Tivoli free of cost because of their season card.

Goals Awareness Planning Alternatives Loyalty Why Tivoli

Quality time, shared fami-ly experienc-es, bonding

Concert with friends, warm-up for a party, drinking, shared expe-riences with friends

High quality business din-ner, Danish culture

Cultural offers, stroll with loved ones, suc-cessful date

Family tradi-tion, TV adds, announce-ments of new rides

Word of mouth, talking with friends, Tivoli’s web-site, online and print adds

Word of mouth, adds, reviews

Word of mouth, talking with friends

High

Low/medi-um

High

Low

Dyrehavs-bakken, the Zoo, Den Blå Planet

Various con-cert venues in Copenha-gen

High end restaurants in Copenha-gen

Cafés in Co-penhagen, Free of cost activities: parks, city strolling.

High

Low / Me-dium

Low

Low/Medi-um

High quality experience, high level of tradition, chil-dren friendly environment

Cheap con-certs, good location

High quality, Danish cul-ture and tra-dition, good restaurants

Easy access, free with season card, beautiful suroundings, good atmo-sphere

Families with children is the umbrella term for any constellation of adults and children.

Friday rockers are young-er people going regularly to Tivoli’s concerts on Friday nights.

Considerations Before the Visit

5

Business Analysis

VISITORS’ TIVOLI JOURNEY

1-3 yearlyvisits

5-25 yearlyvisits

1-3 yearlyvisits

5-15 yearlyvisits

Entering Touch points $$$ Time spent

Families with children

3-5 hours (day time)

2-3 hours (evening)

3-5 hours (lunch time or evening)

1-3 hours (afternoon or evening)

Friday rockers

Business men/women

Strollers

Line up for paying entry

and rides passes

Season card, or line up for paying entry

Line up for entry

Season card

Rides, restrooms, outdoor food and beverage vendors, restaurants, game

stations, plays, floral arrangements

Beer vendors, restrooms

Restaurants, the garden

Cafés, restaurants, exhibitions, the garden, shows, perhaps game

station

1000 - 2000 Dkr per family

0-300 Dkr per person

500-1500 Dkr per person

0-1500 DKr per person

With their low level of planning and large variety on

money spent and touch points, the Strollers stand out

as the most impulsive and diverse segment.

1. Opportunity area: Taking advantage of their

high level of impulsiveness and accommodat-

ing their diversity.

Strollers and Friday rockers typically enter with their

seasonal cards and typically they spend the least

amount of money. However, they are the most

frequent visitors.

2. Opportunity area: Benefiting even further

financially by getting strollers to spend more

money per visit.

Opportunity Segment: The Strollers

6

Looking over the Fence04Business Analysis

There are numerous alternatives available to Tivoli’s visitors depending on their goals and pref-erences. Looking at the strollers moving around in Copenhagen, there is both a high and diverse quantity of alternatives.

Technology

Age diversity

Price

Sensation

Social

Personally targeted

Uniqueness

Planning

GamesWiiCimemaSmart TV/netflexAmazon.com

CafésExhibitionsRestaurants (high-end)Park strollStreet festivalsTivoli

The factors affecting the strollers´ choice of activity are:

Targeted OffersOne of the major driving forces for ‘strollers’ is receiving personal-ly targetted offers that suit their specific needs without having to actively seek out the offers. This trend is seen in e.g. amazon.com and on various social media sites. The model below shows how there is an opportunity area in creating an offer that takes advantage of Tivoli’s many offers available and couples them with personal targeting.

The Value of Sensation The strollers will naturally explore new experiences. New features - be it a bigger aquarium or a thrilling new ride – have a high degree of sensation. This is what drives many visitors in their decision-making.

More relevant factors are displayed in this model.

In many instances offers with technology are expensive for the users. So if implementing more technology the price typically increases for the customer. There are no offers that have a high level in uniqueness, personalization and the social aspect.

7

Opportunity area: offers that are both personalized and social

GAP 01 (Process): Looking at the industry actors´ innovation of the business process, they are very different. Top innovators are Disney and LEGOLAND due to their use of digital and wireless technology that support their core process and workers.

GAP 02 (Offers): There is a large diversity in the range of innovative services. Innovative industry actors accompany the amusement with a high level of service assistance. This service is often integrated as part of the experience.

Business Analysis

INDUSTRY AND INNOVATIONThe amusement parks’ abilities to innovate business are the source to more diverse, interesting and engaging experiences than compet-itors’. Recognizing and mapping innovation within the amusement industry reveal clusters and gaps. This provides a way to identify new opportunities and develop defensible innovations.

8

High innovation

Low innovation

Dyrehavsbakken

LEGOLAND

Disneyland

Tivoli

BonBon-Land

FINANCE PROCESS OFFERING DELIVERY

business model

networking enabling process

coreprocess

product performance

product system

service channel brand user experience

Gap

My Magic PlusDisney

LEGO: Q-Bot

05Concept

Opportunity AreaThe major industry rival and trend setter, Disney, has imple-mented RFID tags in order to support their processes and strengthen their customer relations. There are opportunities in looking towards this industry leader, noting what they do well and revising how Tivoli could apply some of these frameworks in a customized and value-adding manner that is relevant to Tivoli.

Keeping focus on the strollers and what appeals to them, there is a future opportunity to initiate an offer that combines a high level of uniqueness and customization with a social aspect.

Initiatives that support a more long-term aspects of Tivoli’s strategy have proven to be great successes, so there would be potential in creating a digitally anchored innovation support-ing this direction.

Tale Tracking Unlike Tivoli’s current strategy, the concept “Tale Tracking” is based on a long-term perspective. Thus, we introduce Tale Tracking. The purpose of Tale Tracking is to customize visitors’ Tivoli experience. This is done by applying RFID technology to collect and register visitors’ personal data (their tales) – including behaviour and purchasing patterns - when visiting Tivoli. The data will be used actively when planning new initiatives and events, and furthermore Tivoli will be able to commu-nicate more targeted to its visitors and remind them about events and activities that could be relevant to them.

A Customized Experience

The Tecnology Behind

Collecting Tales

Tale Mining

Tale Tracking is comprised of four elements

Introducing tale Tracking

9

A Customized Experience06Concept

The concept creates more reasons for people, especially strollers, to visit Tivoli. By tracking peoples behavior during visits, Tivoli is able to establish specific patterns and create relevant and specific offers. For exemple visitors who all go to jazz events on Sundays typically also use Tivoli on weeknights for a stroll with no purchases. Then Tivoli would benefit from creating, say, a one-time-only jazz night at one of the bars. These small, target-ed events and happenings will create small hubs within Tivoli where visitors feel like they belong.

The customization is divided into two phases:

1. Before people visit (planning and marketing)

2. While people visit (push strategy)

Introducing a New Feature

The concept adds features to the already existing season card and to the internal processes. By implementing an RFID tag to the season cards, Tivoli will increase the performance of the card and fully exploit its technological possibilities.

The data collected from an RFID-card will give Tivoli valuable insights about visitors behavior - insights that will grow deeper and stronger over time.

Visitor X: Behavior Visitor Y: Behavior Visitor Z: Behavior

Tivoli can suggest (or make a limited offer on) behavior which could potentially lead to behavior

aaa

a

bbb

b

cc

c

c

dd

d

d

Adding Value Through Customization

The higher level of customization of offers and suggestions will create an added value and more reasons to visit Tivoli for the strollers and others, resulting in more touch points and purchases made by the segment.

10

Concept

JYTTE’S TIVOLI EXPERIENCE

This is Jytte, she likes Jazz, Swing and Tivoli Big Band. She often visits Tivoli for a dinner and a show.

My husband and I de-cided to buy a season card to Tivoli some years back, and we have continued ever since.

It’s so nice that they send me e-mails with interesting events and activities. Then I have something to look for-ward to.

Let us take a walks around in the garden be-fore having dinner.

5pm

7pmDining

8pm9pm

Wine tasting

That is a really nice can-dlestick, I think I’ll buy it.

This wine is delicious

I show the e-mail to my husband and we make plans to go to Tivoli for a jazz concert this Wednesday.

It’s easy to enter Tivoli when I have a season card

Look - I just received a push message, it says that there is a wine tasting event at 9, let’s stay for dinner and try the wines afterwards.

“ “

“

How about we walk around to see the small shops while waiting for the wine tasting?

“ “ “

“

““

Monday at 1 pm

At work, talking to colleaguesMonday 8pm

At home

Wednesday at 2pm

4pmEnjoys jazz concert The concept enables Tivoli to inform Jytte of

relevant offers. In her everyday life she can be reached though personal e-mails that will make her planning process more man-ageable, due to the targeted content. When she decides to visit Tivoli; she will receive a push message, informing her of the offers and event of the day that has interest for her. This will change her journey though Tivoli. Sending out offers for her specific segment will make Jytte stay longer and have more touch points in the garden. Now Jytte will find joy in visiting Tivoli.

11

How Does it Work?07Concept

The concept is based on RFID-technology, which uses radiofrequency to trans-fer data for the purposes of automatic identification.

Basically, the system consists of two pieces of hardware: Tags and readers. The tag is incor-porated into the season card and consists of three parts: An antenna, a semi-conductor chip attached to the antenna, and some form of encapsulation. The RFID reader is responsible for powering and communicating with the card. It consists of an interface that serves as a scan-ning antenna which is connected to the core IT system.

By linking these components it is possible to collect and analyse visitors’ doings and hereby offer a customized Tivoli experience. So, the first thing to be done is to install the technological components. New tags with greater capacity will replace the current ones in the season cards. This is to be done while producing a new delivery of season cards – and the price is almost the same.

The implementation of the readers requires a little more resources. Two types of readers must be installed in the garden: Zone readers and cable readers.

a. The zone readers are positioned in the garden where events and activities take place: By the Lawn, The Harmoni Pavilion, The Aquarium, The Pantomime Theatre and other areas that Tivoli finds relevant. The zone readers will be able to identify and read the RFID tags within a range of 10 meters. b. The cable readers are positioned in places where visitors purchase items: In restaurants, cafés and shops. The readers are connected to the cash register and tags must be in direct contact with them to be identified and read.

Eventually, all collected data is transferred to a database in the core IT system where it is regis-tered and stored.

RFID tag

a. Zone reader

Core IT system

b. Cable reader

Season card

12

Collecting Tales08Concept

When the technical system components are installed, Tivoli is ready to collect data. The system does this automatically whenever a visitor makes a move into one of the zones or purchases something. Overall, the collection of data happens in two stages: When purchasing the season card and when using the season card.

Card handover/service encounter

slides the card

Date, time, place

Card handover/service encounter

slides the card

Date, time, place, items, amount

Wireless zone registration

Date, time, place

Wireless zone registration

Date, time, place

Activity

Data insightPurchases Activity/Event Exit

Data During PurchaseLooking at the online acquisition of the season card – not much is going to change. Users should still provide their name, age, address, e-mail and phone number, however, the phone number is no longer optional. The biggest change is the establishment of a new check box. It is located at the bottom of the page right next to the box in which users select wheth-er to receive the Tivoli newsletter. Currently users have to actively check the box. In the future, they should instead uncheck the boxes which will encourage them to receive the Tivoli newsletter and text messages.

Data During UsageWhen entering Tivoli, season card owners must bring their card and “check in”, since it is their evidence of the free admission. This will not change. The only new feature is that visitors hand over their card and a

service employee slides it through the cable RFID reader. Hereby date and time is registered, linked to the user’s profile, and stored in the database system.

When being inside the garden, far from every action is tracked. Visitors are only registered when they are in certain zones or when they purchase something. As for the zone tracking, visitors do not have to do anything Registration (date, time and place) happens automatically by the zone readers. It is done differently when the visitors purchase something. Then the procedure is similar to the one at the entrance: visitors hand over their season card and the service encounter slides it through the cable reader.

This enables registration of date, time, place, purchased items and the amount. Knowing that visitors need a carrot to do so, they are offered a discount of 5% on their purchases if the card is registered.

13

Entrance

Tale Mining09Concept

The collected raw data is sent from the RFID readers directly to the data-base. Here it is possible to transform the data into an understandable structure for further use. Through selection and transformation of data Tivoli is able to detect the patterns:

- Time spent?

- How much money do they spend?

- What do they spend it on and in which order?

- How often do they visit?

- Preferred days?

- Activities when visiting?

By answering these questions, Tivoli can create different pa-rameters that make it possible to customise offers, compare what visitors buy and match/suggest offers to visitors with same spending and behavioral patterns. An example of this is eBay - “Customers who bought item X also bought item Y”. This type of marketing is possible with the collected data and as a re-sult Tivoli gets a new opportunity to create targeted offers.

Input OutputDataware base Knowledge

Selected data

Transformed data

Patterns / Matching

Transform

Data mining

Select

InterpretationPurchase/Usage

DataCustomized o�ers

Planning/Marketing Push strategy

SMS

User profile

E-mail

14

1. V

iew

ers

2.Ta

ke p

ictu

res/

Expe

rienc

e

3. R

easo

n to

vis

it A

tmos

pher

e

4. H

allo

wee

n/D

og’s

Dag

2

.Feed the ducks/coffee

3.Season card as identification

Accessibility

1. Emotional

4. Two-for-one/New café

(actuality)

3. Group bounding

2. Rides/Cafes

1. Enjoyers

1. Eaters

2. Good food/ Fine vine

3. Reviews & prices/Atmosphere

4. Try food & wine tasting

1. Audience

2.Culture, dinning

3.Time/ date planning

4.Jazz festival/Wine tasting

Strollers

Foodie

Special Occasions

Culture/Music/

Habbits & Identity

Friends for fun4.Free coffee/Firework show

Concept

TYPES OF STROLLERS

Segmentation ModelThe presented model is a tool to characterize and segment the different types of strollers. The division shows the immediate possibilities for seg-menting the diverse stroller groups. The model reflects the factors that differentiate the types through their characteristics, what they want to do, what they find important, and what kind of offers they are interested in. Through the collection and analysis of visitors’ data, the various segments are further understood.

Security and Privacy Issues of RFIDLack of awarenessSince RFID tags can be read without being swiped or obviously scanned, the Tivoli visitor may not be aware of the fact that their behavior is regis-tered.

TrackingTaking privacy concerns into account, the system only registers the visitors in certain zones and touch points. When purchasing items it is optional for the visitors to give their card to the cashier.

Personal dataPrivacy issues is a common concern when it comes to storing personal data. It is important that the RFID transmission is encrypted, making the data unreadable by a third party. Furthermore, Tivoli is obligated to handle the personal data in a responsible and lawfully correct way.

15

Implementation Map10Implementation

Phases Start upFull scale implementation

Activities

Ensure that...

Milestone

-Set technical team-Define functions and working areas-Hire consultant support-Select hard/software-Select vendor-Design and develop-Pilot tests

-Establish database and connect to the core IT system-Install readers and connect them-Implement infrastruc-ture that support and supplies RFID related operations-Integrate tags-Train empolyees

-Ensure that readers are verified-Monitor data process-ing and ensure that it runs without problems-Technology mainte-nance

-Monitor data pro-cessing-Technology mainte-nance-Evaluate and adjust

Collecting data Data mining Planning

-Set the “Experience Team”-Define functions and working areas-Extract data-Ideate-Design and develop-Arrange events/ac-tivities

Marketing Customizedunit

-Communicate with “Experience Team”-Extract data-Ideate-Design and develop-Create templates-Choose channels-Distribute

-Register at entrance-Extract data for text message content-Distribute text mes-sage program-Register / collect data-Organize and estab-lish events-Push customized text messages to visitors-Evaluate and adjust

... the new system co-operates with existing and future systems

... everyone in the orga-nization knows about the project

... the system can han-dle large data streams from readers at high speed

... data is extracted and controled regularly

... the team cooperates with the rest of the organization

... the ‘right” amount and type of marketing is distributed to the “right” visitors

... visitors receive the customized message in time

1. Team established2. Closed deal with vendors3. Pilot test completed

1. Communicate chang-es to the organization2. All technology installed

1. X amount of data collected

1. X amount of data analyzed2. The first extract of data

1. Team established2. First program planned

1. Templates created2. Distrubution of marketing

1. Visitors stay longer2. Visitors have more touch points3. Visitors come more frequently

Implementation cycle

16

The Financial View11Implementation

Costs

RFID is a significant business investment. Basically, the main costs involve: Hardware, software and workforce.

First, Tivoli must procure all hardware and software components and integrate them into the other business activities. This initial phase involves the highest cost, as the components are purchased for the first-time.

The passive RFID tags constitute the lowest cost. In fact, tags are already implemented in the season cards and are only to be upgraded. Given the strongly declining prices and major supplies needed, Tivo-li’s recurring cost of tags will not change significantly. The readers are more expensive, however these are only a one-time cost. As the price of readers varies depending on their functionality, the cable readers are much cheaper than the zone readers. Both readers can be categorized as semi-intelligent and can be purchased for a reasonable amount.

The establishment of software is by far the largest start-up expense. In addition to the database, Tivoli must invest in enterprise applica-tions that can make use of data. Furthermore, middleware is a critical component of any RFID system, because it takes the raw data from the reader, filters it and passes on to back-end system.

When purchased and integrated into the business, Tivoli must include the costs of an ongoing maintenance and update of both hardware and software components. For this, Tivoli needs to invest in training their employees - particularly engineering staff who manage readers in the garden and IT staff who work on the system that manage data. More-over, salaries for the different workforces and involved employees are also a cost worth considering. These include not only internal employ-ees but also system e.g. integrators and consultants.

Revenues

In brief, streams of revenue are generated by visitors coming more often and staying longer in the garden. This is done by enhancing the visitors’ perception of relevance in terms of their Tivoli experience. As Tivoli com-petes on uniqueness and value of sensation and the fact that the custom-ized experience adds just this, it will provide a competitive advantage.

When visitors are kept entertained; they stay longer in Tivoli; have more touch points; and are more likely to spend more money. Moreover, if visitors always experience new and relevant events and activities, they are more likely to come back and do it more frequently. As described in the ‘costs’ paragraph, the concept has a long and expensive start-up phase but once implemented, the revenue streams will increase on the long term.

Finally, the intensified experience; customized offers; and a 5 percent dis-count on purchases in the garden are intended to increase the incentive to buy a season card, which locks visitors in.

Summarized, revenue streams rely on:

More visits - Longer stays - and more season cards sold.

This revenue model becomes possible due to the current cost structure of Tivoli i.e. costs do not increase (remarkably) when sales volume increases. More visitors means higher profits.

Money spent

Time spent

17

A F riendly Reminder12Implementation

Targeted E-mail MarketingWith the collected data in Tivoli’s database, the Tivoli experience can start even before visitors enter the garden. When signing up for the season card, visitors give out their e-mail addresses, which will be used for distribution of targeted offers.

Through personalized e-mails, Tivoli can suggest events that match the visitor’s interests and purchases based on their previous behavior in the garden. In the e-mails, Tivoli should use visitors’ first names and differentiate the e-mails rhetorically and visually based on their segment types. By focusing more on the visitor’s interests and likes, Tivoli can increase the chances of the e-mails being read. By communicating content that is inter-esting to the visitors, they are more likely to take action.

No spam: It is important that the e-mail appeals to the individual and that Tivoli does not distribute too many.

“The longer you stay , the more money you are likely to spend

Push Strategy Through Text MessagesWhen entering Tivoli, visitors (who sign up for the service) will receive a text message with a customized daily program. It consists only of the events and activities that are relevant to the visitor. A higher frequency of visits/data collected results in a more clearly defined programme suggestion due to the larger amount of data available to mine.The activities of the program are themed according to user needs based on the data collected. The idea is that the events in the pro-gram are organized close to each other to get the “Stroller” to spend more time in Tivoli - like bands at a festival.

What is in it for the CustomerThe purpose of the text message is to be specific about what value Tivoli creates for visitors in terms of clearly targeted offers, events and/or new initiatives on the specific day. Again, it is important that Tivoli does not spam people but instead communicates the Tivoli program text message as a service to the visitor. The text message can, like the targeted e-mail, be personalized with a first name to increase the sense of belonging. In addition, the visitors should feel they have a clearer overview of offers relevant to them.

What is in it for TivoliThe push strategy of distributing a customized program will give visitors a reason to stay longer and spend more money.By notifying the visitors about the relevant events of the day, the visitors will think twice before leaving Tivoli shortly after entering - a behavior not uncommon for the “Strollers”. By using Tivoli’s many offerings to its advan-tage, Tivoli can help guide the visitors and plan ahead on their behalf.

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- Kathryn Buschman VaselFox Business

Happily E ver After13Implementation

The concept is an RFID based system - incorporating the season cards - that provides customized offers and commu-nication to especially strollers who currently do not use all alternatives available in Tivoli. Unlike the current season card, our concept enables Tivoli to track the visitors’ behavior and suggest offers specifically tailored to their needs, potentially increasing their touch points and purchases.

The RFID system functions as a hidden technology and will not affect the tradition of Tivoli, which is the main source for value creation. The use of this system insures a long-term plan for Tivoli, which in turn will gain more returning visitors that stay longer. The execution of this plan will have a profit curve that will grow exponentially over time, as it generates more value for the visitors.

Visitors enter

Tivoli tracks

Data is analyzed

Planning andmarketing

Visitorsre-enter

Push strategy

Customized experience

Visitors stay longer

They spend more money

Enhanced value/experience

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