Arief Yahya Talk Go Digital in CEO Message #11

24 November 2016

Tourism Minister Arief Yahya is being heavily promoting Go Digital Be The Best. The reason, of course not because he was former CEO of PT Telkom. Go Digital is also not to follow the present trend. For more than 30 years, Arief Yahya has been wrestling with the world of IT and digital. Go Digital is projected to penetrate the spectacular projection of 20 million foreign tourists by the year 2019. 

"If there is a better platform than digital, please take it to me Let's take the surgery and let's test it So far, I still believe that only in a way that is not we can get great results! And the great way is digital, "said Arief Yahya beginning the leadership meeting on the 16th floor, just before reading CEO Message # 11.
This is the CEO Message entitled Go Digital by Minister Arief Yahya. The more digital, the more personal.The more digital, the more professional.The more digital, the more global. 

There is something special in Rakornas Kemenpar third. The reason, Rakornas theme Go Digital. This theme is chosen not to follow the trend but chosen because it becomes an urgency for all parties. Of course, to penetrate the digital realm in realizing the vision of 20 million foreign tourists in 2019. Therefore, Kemenpar should make a digital transformation, without it is impossible to realize a challenging vision.

'' I do not mess with the Go Digital theme. This is not just a mere talk and slogan, but I will make it concrete. Seriously I will overhaul the mindset and workings of Kemenpar become increasingly digital. The way to encourage as many digital initiatives in this ministry, '' Menpar. 

In the last occasion, Kemenpar has inaugurated the War Room. War Room is the center of war control in the form of a digital-based device that allows Kemenpar to make decisions quickly based on real time data.
'' Real time data is not possible if we get our platform is not digital. I have also asked Pak Samsriyono to prepare an online platform market of Indonesian tourism market namely ITX (Indonesia Travel Exchange). This platform will function super efficiently as a hub that brings the supply and demand of Indonesia's tourism industry.

Related Go Digital, I have a tagline that looks like the original is: "The more digital, the more personal, the more digital, the more professional, the more digital, the more global," said Arief Yahya.

Menpar also believes that the more digital dining Kemenpar will be able to use a variety of apps and digital tools. Its function is to touch one by one consumer personally. '' We can know the demography, psychography, and behavior of our consumers one on one. The more digital then the way we work in attracting tourists will be more professional, for example by utilizing convergence media that integrate paid, owned, and social media, '' he said.

In addition, by using big data Kemenpar will also be able to get insights consumer behavior is much more precisi.Selanjutnya, the digital is expected more able to reach global consumers from wherever he is on this earth. '' Once we use the digital platform,

Digital Lifestyle

Go Digital should begin to be applied because consumers have changed the way their behavior becomes more digital. Moreover, if Gen Y (millenial) and Gen Z are increasing in number and influence.

"Now we are familiar with the terms" always-connected travelers, "wherever and whenever they are connected to other mobile apps / devices.Remember, if we do not change following the changes of consumers, we will surely die, '' said Arief Yahya.

It is also reinforced by the lifestyle of tourists in finding destination information, comparing between products, ordering tour packages, and sharing information. Everything they have done digitally. In short they are search and share using digital media. There are 3 characteristics of digital lifestyle, namely mobile, personal, and interactive. In searching for information, buying, and consuming tourism products, travelers have used mobile devices, engagement personally, and their interactions are two-way and many-to-many by sharing with peers and their communities.

You should know that searching the product (search) and sharing information (share) in the tourism industry is now about 70% using digital media. It is also important for you to know that the effectiveness of digital media (digital media effectiveness) can reach four times that of conventional media.

'' Therefore we must begin to review the proportion of our digital media compared to conventional media. Based on the statistics of promotional costs issued worldwide the average is about 70% of our money in conventional media and 30% in digital media or 70:30, then this proportion should we change to 60:40 or even 50:50. By multiplying that proportion to each of its media effectiveness numbers, then we can see how many times the increase in effectiveness, "explained Arief Yahya.

The calculations are quite simple. If the proportion is 70:30 then the calculation is 70 x 1 plus 30 x 4, ie 190. Well, if we change the proportion to 60:40, then the calculation becomes 60 x 1 plus 40 x 4, ie 240. So for each proportion we will get an increase in media effectiveness from 190 to 240. If the proportion is changed to 50:50 then surely the increase in effectiveness will be even greater. In essence, by putting money mostly in digital media, it will get a much higher effectiveness, '' continued Minister Arief Yahya.

Look-Book-Pay

In fact, digital media is also more powerful than conventional media. That's because basically digital media is convergence media. Convergence media is divided into three, namely paid, owned, and earned media.

'' Because people define difficult earned media, I change the name to make it easy to be social media. Three types of media are targeting different target travelers. Paid media such as ad banner or paid search to target prospects or public audiences that have not become our customers. Owned media such as websites or blogs targeting customers. While social media like Facebook or Instagram to target the advocators, '' said Minister Arief Yahya.

Convergence between paid, owned, and social media can be realized only if using digital media. '' With conventional media we can not possibly do it. Meanwhile, this digital media I give a new term that is, Look-Book-Pay. This term refers to the pattern of consumer journey that starts from the tourists looking and looking at the information (Look), then order the tour package that he is interested in (Book), and then pay it online (Pay), '' continued Arief Yahya.

Look means media to search for information like Google, Baidu, or TripAdvisor. Book is a medium for ordering tourism products such as: booking.com , C-Trip / AliTrip, or Traveloka. While Pay is a medium or apps to make payments like, PayPal. AliPay, or Amazon.

If from Look we use conventional media like TV or newspaper, then we can not integrate it digitally with booking company (Book) or online payment company (Pay). If the integration can not, then the concept of convergence media can not be run, '' said Arief Yahya.

Among Gen Y to Gen Z, the Look-Book-Pay process has begun to be fully digital. Thus if the platform is not able to accommodate, then obviously will miss the train.

In digital marketing, conversion rate is the most important thing to achieve successful sales. '' There's no point in having a high awareness on Google or Facebook if that awareness is not converted into sales. What is the conversion rate? If we hit on Google, then in the concept of AIDA (Awareness, Interest, Desire, Action) then our position is still limited Awareness, Interest, even stuck until Desire alone, '' he said.

In addition, to be able to generate sales, tourists must continue up to Action. In the world of tourism, Action is Book and Pay. So in order to reach the stage of the transaction, the sales of his customer journey must arrive at Book and Pay.

'' I often say that Look is the result of branding, while Book-Pay is the result of advertising and selling. While conversion rate will be high if the tourists not only Look but also Book and Pay. So the number of travelers who Book than Look (Book / Look) is the conversion rate. In addition, the number of tourists who Pay than the Book (Pay / Book) and ultimately the number of tourists who Pay than the Look (Pay / Look) that conversion rate, said Arief Yahya.

It's time to compare between Google and TripAdvisor. If you hear Google's presentation, then they will say hits and clicks are high. However, when asked how much its conversion rate to lead to sales, Google will be difficult to answer because of its small conversion rate. While if TripAdvisor, will answer if the conversion rate is high despite the hits and small clicks, '' continued Menpar Arief Yahya.

It can happen because the visitors of TripAdvisor have been selected specifically. They are the travelers who are specifically hunting plane tickets, hotels, or tour packages.

'' Essentially I want to say that we must be careful and understand the nature of the media we choose. In terms of branding it will be more effective if we use Google, but for selling TripAdvisor is much more effective, "said Arief Yahya.

" Now it's time we look at how the allocation of promotional funds to TripAdvisor. In the early stages of promotional materials for branding 80%, advertising 20%, and 0% selling. This allocation we do because we do not yet understand correctly about the positioning of TripAdvisor as a search engine that is devoted to the traveler, so the tendency of the viewer is direct to conduct transactions. Once we understand, then the composition of promotional materials should be changed to, branding 20%, advertising 30%, and selling 50%, '' added Arief Yahya.

If the composition is like this, expected return on marketing investment (ROTI) will rise sharply. This is because more and more invested promotional funds can be converted into dollars, not just awareness.

"The CEO of this short message I hope to be an introduction to Kemenpar colleagues in entering the digital marketing world.The name of introduction, of course, the science delivered is still a tip of the nail.Then to deepen so that further colleagues should be open mind, continue to learn, and should not be resistant to this new world, '' he

said.Remember, go digital or you 'll die !!! So, let' s change and embrace the digital world .. Salam Enchantment Indonesia, "lid Menpar Arief Yahya 

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