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Since the first set of data from Longwoods International’s “Halo Effect” Study was released three years ago, we’ve been sharing the findings with clients and audiences with the simple suggestion that “Tourism is the First Date for Economic Development.” That, without a coherent and effective Destination Marketing effort, communities can’t compete as successfully for the attention and appreciation of entrepreneurs and investors as those cities, counties and states with creative and competitive marketing programs.
After hearing my recitation of the “First Date” concept at an event in Hammond last Spring, Don Babcock, Director of the Economic Development unit of Northern Indiana's power utility, phoned South Shore CVA President Spero Batistatos and said, “I’d never thought of it that way…but, it makes perfect sense.”
Historically, Economic Development efforts in Northwest Indiana have targeted Illinois and surrounding States by focusing on getting businesses to jump across the border to the Hoosier State. Some successes a few years ago caused the Governor of Illinois to infamously (and publicly) pledge to “rip the economic guts out of Indiana.” So much for regional collaboration.
Traditional economic development tactics target business owners, site selectors and entrepreneurs. But, Batistatos took the notion of “First Date” even further…by envisioning what Destination Marketing could do for workforce development, which is a critical (but often overlooked) aspect to any successful economic development strategy.
Within months, a campaign was envisioned and designed to take a decidedly different tack. While there had been some past pokes at Illinois’ tax hikes and underfunded pension liabilities (“Illinoyed?) by the Northwest Indiana Forum (the region’s Economic Development agency)…the new campaign would simply rely on facts to the tell the story by highlighting the reasons Illinois residents are choosing to live in Indiana.
“The Grass is Greener” encourages residents in Chicago and Northern Illinois to consider moving to Northwest Indiana by highlighting that taxes are lower, housing is more affordable and commutes to the Loop are faster than from many Chicago suburbs. Mobile ads targeting various high-impact groups tout the region’s lower cost of living, four-star schools, affordable in-state universities and green space. People who have moved from Illinois to Indiana offer testimonials about why they moved, such as “astronomically lower property taxes” and faster commutes to their jobs in the city.
“We’re not looking to bash our next door neighbors We just stress how our neighborhoods offer substantially more space for less cost,” said Batistatos. “People who work in the city and have their careers in Illinois can find lower taxes, a bigger yard, great schools, a quality of life and savings in commuting time in Indiana. It’s a positive message about how this corner of the state has many positives.”
Beyond the positive shift in persona, what really gives this initiative power is the consortium of players that have invested in the CVA to create and drive the campaign. Centier Bank, NIPSCO (the region’s power utility), Purdue University, a major residential developer, the region’s newspaper and the Greater Northwest Indiana Association of Realtors are all onboard, investing close to $100,000 in the initial campaign. Now that the private sector has bought in, the public sector (mostly municipalities) is starting to show interest in buying in and promoting their communities.
Initially, the campaign targeted families from Illinois that were visiting high volume attractions like Notre Dame and County Line Orchards by sending the message of "Lower taxes in Indiana." Now, it is focusing on families with children under 5 and Boomers. Future iterations will likely target Illinoisians who went to one of the region’s universities, such as Notre Dame, Purdue, Valparaiso, Indiana, Wabash and Indiana State.
In its first three months, the campaign has had triple the expected response. Nearly 218,000 impressions in March/April in the Chicago suburbs alone had a .54 click-through rate (34% above the industry average). As the campaign is strictly digital, the CVA and its partners can track clicks/impressions/time on site in real time. And, the campaign continues to evolve by testing different messages to see what resonates best with target groups.
The five founding investors always trusted and respected the CVA as masterful tourism marketers. As the paradigm began to shift to see “destination marketing” as more than merely targeting visitors, it became clear that the CVA was perfectly positioned to become the chief marketing agency for the region…period. The group began testing messages last fall before discovering that “The Grass is Greener” resonated most effectively.
For innovative DMOs like the South Shore CVA, it's more than just Tourism. It’s about marketing the destination for every reason. In Northwest Indiana, utilities, private sector businesses and realtors have turned to their DMO as the complete destination marketing experts.
Just another fascinating view of what Destination Marketing is becoming. As it should be.
Well played, South Shore CVA. Very well played.
Til Next Time,
Bill
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