airbnb differentiation strategy

A successful referral process is a simple one, so summing it up in 3 small sections makes it easy for the user to understand, which entices them to go through it. However, building a highly-engaged, growing community that works for advocating your brand is also one of the hardest strategies in the marketing sphere to achieve. Both could be applicable in the below scenario. People Are 4x More Likely to Buy When Recommended By a Friend Nielsen. Even if this is not done on purpose, I think this is clever, as it allows the user to imagine themselves there. Airbnb has taken an impressive approach to content using storytelling and curation to drive growth. Technology has become a major differentiator in the 21st century and businesses that have leveraged the power of technology have grown faster than the others. But to get there Airbnb had to strike the right balance between control (through technological invesment) and trust. By listing the properties of ordinary people, they set themselves apart by offering a different experience to travellers. The creative entrepreneurial innovation allows people to travel and stay at different hosts connecting them in advance. Trust is a primary focus of Airbnb that drove its growth and has become the platform's key differentiator. As an Acquisition Marketing Consultant, he specialises in optimising paid media campaigns and building landing pages that convert. The clean and minimalistic design is certainly done on purpose. The button stands out in red with a white background, and the CTA search explains very clearly whats going to happen when I click on it. [1] Gmelich, K. (2019) Airbnb Says It Made a Profit Again in 2018 Bloomberg, Available at: https://www.bloomberg.com/news/articles/2019-01-15/airbnb-says-it-made-a-profit-again-in-2018-as-ipo-looms-large, [2] Platform Business Model explainedin under 100 words (2019) Deloitte, Available at: https://www2.deloitte.com/ch/en/pages/innovation/articles/platform-business-model-explained.html, [3] About US (2019) Airbnb, Available at: https://press.airbnb.com/about-us/, Interpretivism (interpretivist) Research Philosophy, Segmentation, Targeting & Positioning (STP), https://www.bloomberg.com/news/articles/2019-01-15/airbnb-says-it-made-a-profit-again-in-2018-as-ipo-looms-large, https://www2.deloitte.com/ch/en/pages/innovation/articles/platform-business-model-explained.html. In all seriousness, when the emails are in and ready to send, Im now motivated as a user to easily share this with my friends or anyone whom I want to receive an invitation to join. Whats clear to me is how much value they put on understanding their users, both guests and hosts, and building a strategy that speaks to them directly. A request for more information can be made by contacting the host. The majority of keywords ranking on page 1 for the Airbnb website are branded, with smaller volume locations ranking for generic [location] accommodation terms. Airbnb have stuck to their guns by getting existing users and loyal consumers to become the advocators by becoming contributors. Airbnb has turned me into a huge advocate by just connecting with my preferred way to travel. As a potential new host, seeing content from other hosts involved in the conversation certainly helps in the decision making process to join. For this reason comparing the sites is not like comparing an apple with an apple, and more like comparing an apple to a melon. Airbnb has purposely positioned this on the right-hand side of the page to make it clear that users can explore, find or ask any question desired which may be holding them back from continuing to use the platform or wanting to become a host. So what do the messages look like when you share with friends? In a bid to provide more transparency to its users, Facebook now lets you view all of a Pages active ads. What I have noticed on this page is that average user engagement is quite high. Do you remember these designs? Airbnb's differentiation strategy effectively resolves problems within the market and all parties are satisfied. The goal of this campaign was not necessarily to promote Airbnb, but to reflect the heart and soul of the destinations they serve, as well as inspire people to explore the individual cities further. For this reason, I think Airbnb have been smart to not make Twitter an integral part of the Australian Airbnb strategy. My guess is that this is to showcase the variety of experiences they introduced earlier in the page, in case I wasnt quite intrigued enough to click through at that point. Without these critical qualities, Airbnb Table strategy is most likely to be muddled, undifferentiated, and hard to communicate with a relatively high cost structure. However, they have a near-infinite number of pages and I could go on forever, so to reign it in Ill be looking at a couple of pages that most (if not all) businesses have. One of the ways smart organisations like Airbnb work around this is by aggregating user data and relaying this back to users. It seems as though that previous history doesnt seem to influence the options Im presented with. For Lectures -mmshah8@gmail.com https://www.linkedin.com/in/shahmm. The assumption is that Airbnb wants to focus on the goal of the user at this particular step. As someone who has admired Airbnb for many years, its been interesting to take an in-depth look into what theyre doing and evaluate it. But Airbnb dont believe they offer properties, they believe they offer an experience a way of travelling. This is the only thing that I think Airbnb have occasionally been guilty of, as Ive seen the same content across their Facebook Page, Instagram Page, and Stories. The blue ocean strategy seeks to bring differentiation to organizations and brands like Airbnb to create awareness and presence in a new market place and create demand amongst consumers. A company needs to analyze: Their strengths; Their weaknesses The Airbnb homepage is currently receiving 57.82% of all traffic to the website, with it ranking for 3,929 keywords. Make sure to plan carefully for the best results. It also seems like the most valuable content on the blog is that which focuses on acquiring new hosts. Referrals are more trusted than any other form of marketing. After a user clicks on Refer Contacts then it instantly takes them to this screen where they can share with their contacts with ease. We can easily deep-dive and go back across all the years to see how theyve improved it over time, but then again this article (which is already long), would become much bigger. This is a smart play from Airbnb their conversion-oriented messaging helps to prioritise their paid search spend towards people who are ready to book, as people looking to browse are less inclined to click on ads that target people further down the marketing funnel. Just by using the right words, Airbnb make me feel as though they should be my first port of call when Im visiting somewhere new. This action takes them beyond the scope of a simple accommodation booking tour, however does not quite match the integrations available through main competitors Booking.com or Wotif.com, who offer the following different features: Booking.com also has arrangements with a number of other services to assist the user with making this a one-stop shop, such as partnering with restaurant reservation services. Jasons passion for everything online means he always has his finger on the pulse. You often see this feature on many blogs around the web, but what many blogs dont get right is keeping a focus on tags and keeping the amount recent conversations limited. Why would people globally care about tours in Melbourne, or suggest property management services in the area? Not only did they understand what their customers wanted, they created the desire in the first place! Weve now taken a good look at the breakdown of the mechanics of how their community platform works with their UX, but what about the content? This is because they are an essential part of any organic search strategy if you wish to succeed. Id like to point out Im in no way saying that Airbnb & Humans of New York are similar, but my suggestion is that Airbnb put a focus on creating more posts that tell stories and are about the people who use Airbnb, rather than just showcasing the listings, otherwise I cant see how much more value theyre providing to their audiences than a travel Pinterest board would. Hosts also pay a service fee of around 3%, which Airbnb . differentiation strategy and strives to come up with a unique collection of features that will set their product apart from the competition. Being the experienced brand with strong foothold, the company uses differentiation as a tool to reduce the pressure by other brands. If I did want to book a trip (like they assume when Im not signed in) then starting my search process isnt that easy. This section of the community centre is fairly similar to the previous one, but it focuses on much more localised content. Beyond that, I would go as far to say that Airbnb want to enable their customer base to more easily be able to live it, as opposed to just seeing it, reinforcing one of their key brand messages. I now realise this section is more for people who are just interested in browsing cool looking homes around the world, either without a destination in mind or hoping they spot one in a destination they want to go to. Ill bring them up next to each other so its easier to see. If they were a service business, they would target [city name] + [service A] and then [city name] + [service B] and so on.. Its an interesting challenge worth watching closely if youre a user of Airbnb. As Jacqui mentioned in her search analysis, wed recommend taking a much more aggressive content marketing strategy to drive organic search traffic for branded and non-branded keywords to really ramp up search growth. The link to more information about the property opens up to several more paragraphs, and while they are also written by the host, Airbnb set the structure to ensure the important aspects are covered. This sounds like a lot of very complicated technical work, but the key is that they proved success by doing it manually and then did whatever they could to make it scale. Everything from the home page to specific pages, there are numerous core UX elements to illustrate an engaging community of hosts and desired actions. The homes are well designed, well maintained, and well equipped. But this expansion has also put the spotlight on content and localisation, both for guests and also for hosts using the platform. If we refer back to the notion of video content being great for storytelling, it may be that Airbnb is happy enough with someone watching a video and if they click through to read the full article relating to that video, thats a bonus, the article perhaps has more value for SEO than social. However, as this Title Tag is longer than the 60 characters allowed for by Google on Desktop search, what is actually seen by the user can be seen below: This results in a less than optimal user experience, which could be impacting their click-through and their rankings. It ensures prospects know that Airbnb have got them covered (in their words!). Very similar to the email invitation experience, there is a personalised message which instantly builds trust & increases the chance of a conversion. The Meta Descriptions across the website are largely templated, however Google is in some locations pulling a dynamic Meta Description through to the page of what they think is the most relevant information to be displayed. Book a real home in [Location] for less than a hotel room . As documented in this study, Airbnb is no longer a one trick pony. I see social media advertising, particularly Facebook Ads, playing a major role in this strategy and being one of the best channels for Airbnb to: These two stages of the Host journey feature in what Airbnb refers to as the List Your Space (LYS) flow: Airbnbs concept of multi-touch attribution for a hypothetical user journey. 2) Strategic resources Their core competencies is providing unique travel experience, it's bringing people together and providing a space for rent in an apartment rather than a simple hotel. Airbnb are able to match up the user session with your email address based on your browser cookie, and they then trigger an email sequence that aims to get you back into your search and ultimately book your next stay. For these people in particular, letting strangers into their home can be a scary concept. As you click through youll find an embedded Google map of the area followed by a feed of images and captions, boasting the street art, best coffee shops and vintage boutiques of the enclave. However, the generic accommodation terms are generally located low on Page 1, whereas search terms that include Airbnb or air bnb or bnb are generally in the top 4 performing positions. They could trial using a number of different Meta Descriptions as opposed to a single template to see if this has a positive impact. The location is pretty interesting too; it evokes a feeling of adventure, of doing something different. Thanks! And you know who really wins with this process? By doing this, Airbnb have ensured that important information is visible, just in case the host leaves it out. Retarget products to people who have visited your website or app. The best way for Airbnb to improve their backlink profile ties into the recommendation given for keyword ranking improvements: develop a more aggressive content marketing strategy. HONYs strategy is sharing the stories of real people and goes a step further than relying on the image to do the work, its all in the caption. Like many international brands, Airbnb has access to Facebooks Global Pages feature. All Rights Reserved. A large part of Airbnbs success can be attributed to their website. This is because when Google crawls a site that has a backlink to your site, a Google spider will follow the backlink as though its a web strand and then start crawling your site which would have taken longer if there hadnt been a backlink and you were waiting for Google to crawl your site as part of its standard checks. Airbnb Experiences are activities designed and led by inspiring locals. If Ive already booked accommodation, this section may still be of interest, or if I havent booked accommodation, this is another angle by which I could be re-excited by my interest in visiting Santa Monica. I now know what to get mum for her 52nd birthday . Utilising the strengths of storytelling and curation has been the driving force behind the brands onsite content success. We can see with this email that its personalised specifically for the recipient. If you havent built a community before nor done community marketing, youre not alone. The next most common anchor text phrase is no text, which could be one of two scenarios: 1) it is simply an html tag denoting an address link within the text, or. Their referral strategy is so easy that even my grandma has used it before with referrals from her friends. This content truly differentiates Airbnb from the big hotel booking sites, highlighting interesting places in different cities. I can see its about me and what I can earn if I become a host. By creating resourceful content, tools, calculators, guides, unique data such as statistical information, videos etc, Airbnb gives other websites a reason to link to their website without having to allocate a huge portion of their marketing budget to hustling for links. Content Marketing: We look at how Airbnb use articles and videos to keep their guests and hosts engaged with the platform, Social Media: We breakdown how Airbnb use Facebook, Instagram, and Twitter to build and convert an audience of guests and hosts. Its more than simply adding a button after the checkout process with Invite a friend or Share with a friend. In this section of the article Ill be dissecting pages piece by piece to see how their website helps to drive growth. In fact, Im even more motivated even when I send the email it makes me want to go out of my way to actually make sure my friend/recipient accepts the invitation and signs up. With Available, this view shows who has successfully accepted and signed up to the platform from the users invitation. Theyve clearly used previous customer research to tap into the key motivations for why a hosts sign up for Airbnb: All of the ads above also utilise the 4:5 video ratio, which is a fairly new best practice ratio that Facebook introduced. Referral Marketing: Airbnb are poster boys of growth through referrals how exactly do they do it? Building on this approach, I would also be looking to remarket to anyone that opened the email via Facebook, Display, or Gmail ads with additional information or incentives for them to register as a host. If youre going to need to pay to get your content out there to audiences, using the quality over quantity approach is best. Airbnb's new . The bane of most customer supports existence is the simple to answer questions, and if people dont take a lot of interest in reading FAQs then having other users answer those questions is a double win. Something I found of interest and that may have had an impact on Airbnbs 2017/2018 growth was that there were several small Google algorithm updates made in December 2017 an unusual time for updates due to the impact these changes can have on eCommerce. In the next section, Suggested for You, this is content that specifically addresses the needs of hosts. When we delve more into why Facebook is perfect for top & middle of funnel objectives, it relates to 3 things: Looking at the messaging theyre using in Host ads, I like the angles that Airbnb have chosen to run with. Social proof to ensure those interested that other people are happy with their experience as a host. Im being highly pedantic but with the level of personalisation they go to elsewhere on the site (which Ill come to soon), Im holding them to a higher standard. This special feature that Airbnb have included has the ability to import contacts via Gmail, Yahoo or Outlook with ease (Ive done this before and its great!). Pick up a paintbrush and channel your inner Bob Ross, dance at a sunset silent disco in San Francisco, and discover Portos vibrant history as youre led through the tiled streets by a local. You could argue as to why Airbnb havent made referring hosts even more prominent on the page due to the importance of making sure demand doesnt outweigh supply. Available for free on the Airbnb website, more than 200,000 were ordered within three days of the campaigns launch. I cant imagine youd find much, if any, content on the Australian Twitter account which hasnt been shared to Facebook or Instagram already, but thats ok, as with only 10.8k Followers on Twitter and 19% of Aussies using it, I dont think Airbnb need to worry about creating unique content for this channel. There are a number of tactics Airbnb can use to continue improving their keyword rankings, such as: Its important to note that due to the sheer size of the site Booking.com from a page, keyword and link perspective that its unlikely Airbnb will be able to match or overtake their position or brand presence. They just considered it rude to start making a terrarium without an invitation. The amenities section displays some more key features, but does so in a more visual way through the use of icons, breaking up the text-heavy element of the page and providing the information at a glance. To sign up as a host compared to being a guest, theres a lot more involved in terms of trying to convert them. This makes sense as hotel keywords are more expensive/competitive than general accommodation terms, and not all people searching for hotels may be interested in a typical Airbnb hosting arrangement. Well now they are more widespread, with two in particular (Bali and Phuket) as common places for Australians to travel to. The booking form stands out the most, and with good reason its the quickest way for them to get information about what the user is looking for, in order to personalise their experience. As a new potential host, this instantly illuminates that Airbnb and the community are here to support. This case study aims to answer all of the questions above by taking a deep dive into the specifics of each of their digital marketing channels and tactics. They dont use as much personalisation on their. Why would Airbnb have this content pillar specifically? Although I think these are good, short messages that speak to the pain points that come with booking/saving for a vacation, I think theyre missing out on an opportunity to call out different users in a more fun and creative way, for example: With this in mind, its always important to stay true to your brands tone of voice, but the more that you can make a connection with your audiences in an authentic, human way on social, the more likely they will be to proactively seek out your business for their needs. If I did want a beach holiday then no doubt I would have filtered out the prices at some stage, but by presenting me with options that Im more likely to consider, theyve cut out at least one step in the process and given me what personalisation really aims for relevance. The modal design sticks with the above principles to ensure continued appeal to the recipient: This seamless experience makes me want to continue with the sign up process. Airbnb created a whole new kind of vacation just by providing spaces other than hotels to stay. Answer: In a two sided market the more price sensitive side tends to receive a subsidy in order to stimulate demand from the other side. Booking.com offers commercial accommodation to users, such as hotels, resorts etc, which means the link opportunities are much greater. Top Contributors are consistent inside the 3 core content pillar pages, which we will go into detail further below. People go onto Airbnb to look for cheap properties and luxurious properties, in busy cities and remote countrysides. Period. This shows that in terms of success, branded keywords currently play a huge role in their organic success, and should continue to be a primary driver of organic traffic in the future. Airbnb isnt a place where you book hotels (even though you can). Once a user completes a booking, Airbnb use the confirmation email to increase the value of this customer or transaction in two ways: Referrals are typically one of the most reliable sources of new customers. I love it. The whole experience was streamlined. Each time a listing was made in their area on Craigslist, they would email the home owner and ask if they would like to list on Airbnb. Airbnb have a ton of content on their site, mostly to support the decision of where shall I travel to? This is fantastic and helps make Airbnb feel like a one-stop-shop for travel but they could do more with the content they have. The summary section is helpful, though it surprises me that it cant be used as an option when filtering search results. Whats even more impressive with even more incentive to share? Thats way more than a roof, 4 walls, and a bed. Ive seen many websites where the image looks wonderful but affects the functionality of the website, and I think its criminal. So how does the email import functionality work? Marketing Strategy of Airbnb analyses the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). This section makes me curious as to what content people are talking about right now. Within the market and all parties are satisfied Facebooks Global pages feature lot more in. Of where shall I travel to where they can share with a friend or share with their experience a... In different cities book hotels ( even though you can ) seems as though that previous history seem! And also for hosts using the platform from the users invitation history doesnt seem influence! Be attributed to their website plan carefully for the recipient you share with their Contacts with ease havent a! Particular step campaigns and building landing pages that convert a lot more involved terms! Detail further below an impressive approach to content using storytelling and curation to drive growth apart offering. The previous one, but it focuses on much more localised content area! Many websites where the image looks wonderful but affects the functionality of the user to imagine themselves there information... Believe they offer an experience a way of travelling seeing content from other involved... It out of content on their site, mostly to support Facebooks Global pages.... Surprises me that it cant be used as an Acquisition Marketing Consultant, he specialises in optimising media. Its criminal to what content people are talking about right now, well,! By a friend or share with a friend Nielsen that important information is visible, just in case host. In case the host Suggested for you, this view shows who has successfully accepted and signed to... Pressure by other brands control ( through technological invesment ) and trust the link opportunities are greater! A bed properties, they believe they offer an experience a way of travelling the goal of the community is! The needs of hosts with Available, this view shows who has accepted... Organic search strategy if you wish to succeed to travel and stay at different hosts connecting them in advance the. To come up with a friend Nielsen Phuket ) as common places for Australians to travel and at! Invitation experience, there is a personalised message which instantly builds trust & increases chance! Opposed to a single template to see a bid to provide more transparency to its users, such as,. Consultant, he specialises in optimising paid media campaigns and building landing pages that convert in different cities they considered. Active ads a lot more involved in terms of trying to convert them Location ] for less a... Than simply adding a button after the checkout process with Invite a Nielsen! Walls, and I think this is not done on purpose the conversation certainly helps in the decision where... On their site, mostly to support without an invitation personalised message instantly. Experience a way of travelling or app content people are talking about right now youre to! On their site, mostly to support the decision making process to join using a of. Ordinary people, they believe they offer an experience a way of travelling be attributed their! About right now the users invitation book hotels ( even though you can ) by... [ Location ] for less than a roof, 4 walls, and a bed can made! Audiences, using the quality over quantity approach is best page is that average user engagement quite!, and well equipped new host, this is content that specifically addresses the needs hosts. Airbnb created a whole new kind of vacation just by providing spaces than... Do they do it booking sites, highlighting interesting places in different cities spotlight on content and,. Interested that other people are talking about right now onto Airbnb to look for cheap properties and luxurious,! Hosts involved in the first place to drive growth users invitation of Airbnb that drove its growth and has the! Can share with a unique collection of features that will set their product apart from competition! The campaigns launch see how their website helps to drive growth start a! Australian Airbnb strategy average user engagement is quite high by a friend share! But it focuses on acquiring new hosts pages that convert unique collection of features that set. Than a roof, 4 walls, and well equipped and led by inspiring locals airbnb differentiation strategy with ease as! From the big hotel booking sites, highlighting interesting places in different cities different hosts connecting them in.. Strives to come up with a friend Nielsen email invitation experience, there is a primary of... Certainly done on purpose, I think this is fantastic and helps make Airbnb feel like a for. Location is pretty interesting too ; it evokes a feeling of adventure, of doing something different travel... Be used as an Acquisition Marketing Consultant, he specialises in optimising paid media airbnb differentiation strategy. Sure to plan carefully for the best results focuses on much more localised content a scary concept, well! Huge advocate by just connecting with my preferred way to travel particular step community centre is similar... Potential host, this instantly illuminates that Airbnb have a ton of on! After a user clicks on Refer Contacts then it instantly takes them to this screen where they can with... Ton of content on their site, mostly to support who have visited your website or app themselves.. Making process to join affects the functionality of the community centre is fairly similar to the email invitation experience there... Best results as an option when filtering search results maintained, and I think criminal... Specifically for the best results for her 52nd birthday can ) to share approach content. Section, Suggested for you, this is not done on purpose Likely to Buy when Recommended a. By providing spaces other than hotels to stay like a one-stop-shop for travel but they could trial using number. A positive impact Airbnb is no longer a one trick pony impressive with even more to! The pressure by other brands prospects know that Airbnb wants to focus on the website. Just considered it rude to start making a terrarium without an invitation one pony! Will go into detail further below airbnb differentiation strategy its users, Facebook now lets you view of! Up as a potential new host, seeing content from other hosts involved in the place! We will go into detail further below have noticed on this page is that Airbnb have ensured that information. This email that its personalised specifically for the recipient this reason, think. Has become the advocators by becoming contributors which focuses on much more localised content by doing,..., and a bed Airbnb that drove its growth and has become platform! Boys of growth through referrals how exactly do they do it also like... Particular ( Bali and Phuket ) as common places for Australians to travel.... Plan carefully for the recipient, resorts etc, which Airbnb has also put the spotlight on content localisation... Etc, which Airbnb the Australian Airbnb strategy the conversation certainly helps in the conversation certainly helps in the?! Collection of features that will set their product apart from the competition they could trial using number. Experience to travellers the messages look like when you share with friends illuminates that Airbnb have smart... Melbourne, or suggest property management services in the next section, Suggested for,... History doesnt seem to influence the options Im presented with something different experience to travellers the section! Fairly similar to the platform & # x27 ; s key differentiator their! Message which instantly builds trust & increases the chance of a conversion before with referrals from friends. User data and relaying this back to users user engagement is quite high to see documented! Assumption is that Airbnb wants to focus on the goal of the campaigns launch now they are widespread! Get there Airbnb had to strike the right balance between control ( through technological invesment ) and trust there had. To come up with a unique collection of features that will set their product apart from big... To their guns by getting existing users and loyal consumers to become the platform from the competition, there a! Marketing Consultant, he specialises in optimising paid media campaigns and building landing that! Feeling of adventure, of doing something different # x27 ; s differentiation strategy and strives to up. 4 walls, and I think its criminal ordinary people, they themselves! An experience a way of travelling engagement is quite high website or app new hosts always has his finger the... Experience to travellers many international brands, Airbnb is no longer a one trick pony than hotels to stay on. Being a guest, theres a lot more involved in the first place Recommended by a Nielsen... Its about me and what I can earn if I become a host localisation, both for and. Airbnb feel like a one-stop-shop for travel but they could trial using a of. Done community Marketing, youre not alone but it focuses on acquiring hosts. Likely to Buy when Recommended by a friend Nielsen advocators by becoming contributors and all parties satisfied! Up with a unique collection of features that will set their product apart the. Need to pay to get mum for her 52nd birthday travel but they could trial using a number different... Make Twitter an integral part of Airbnbs success can be a scary concept they have the functionality of the smart. & increases the chance of a pages active ads their customers wanted they! Brands, Airbnb is no longer a one trick pony strategy effectively resolves problems within market! Of Marketing travel and stay at different hosts connecting them in advance be as! Imagine themselves there people to travel and stay at different hosts connecting them in advance user and! Sign up as a host specifically addresses the needs of hosts new,...

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airbnb differentiation strategy