250. How Vacation Rental Sampling Helps CPG Brands Reach High-Intent Consumers

0:01Rachel Vigil:Welcome to Startup to Scale, a podcast by FoodBevy. I'm your host, Jordan Buckner. Join me as I talk to aspiring entrepreneurs, seasoned industry experts, and everyone in between as we unlock the keys to growing from startup to scale.

0:18Rachel Vigil:Today we're talking about a sampling channel that most emerging brands aren't paying enough attention to, sampling in vacation rentals and short-term stays. So if you ever wonder how to get your product into the hands of high intent customers without burning through a lot of cash or fighting for shelf attention, this episode is going to be for you. My guest is Rachel with Up Close Marketing, and we're going to be digging into how to best utilize these sampling opportunities for your CBG brand. Rachel, welcome. Thanks. Thanks for having me, Jordan. Of course. Let's dive right in. You know, for brands who really haven't heard of this channel yet, like how does vacation rental sampling work?

0:55Rachel Vigil:I know everyone's familiar with, you know, Airbnb and Vrbo and all those companies. And a lot of us have stayed there. Where does sampling kind of play into those experiences? Yeah, you know, it's interesting. Within about the last year, I've heard from more brands of, yeah, we thought about putting product into Airbnbs and vacation rentals, but we just didn't know how to do it. And so we've been doing this for about eight years nationwide. wide. And it's just a unique way to get your product in front of consumers in a confined space. So not noise around. It's also no competition. On average, a guest will stay about three nights and about four adults.

1:34And you come with friends, you come with your family. So it's more we're creating that surprise and delight when you walk in. And we've all been a guest. I mean, you walk into a hotel, you walk into vacation rental, and you hope that there's something there for you. It's nice to have the basics, like if there's coffee, great. Now it's an elevated stay if you go beyond that. If there's snacks and a cold water waiting for you. And what we're doing is really elevating that guest stay and experience while giving brands the exposure and really creating that first off relationship between the direct consumer and the brand.

2:11So it's just a very unique way. You know, there's a lot of options out there of influencers and social media. And so you see and you want it. Well, this is creating that trial that you don't get unless you're out there in-store sampling at events, like getting the consumers to actually taste and try, get the hands on with your product. So that's what we're creating.

2:34Rachel Vigil:I love that. So I know there's a couple of different ways that this can can really be activated because you have like the short term stays or almost like a hotel experience. But then there's also people who are like midterm stays at residences and there's campgrounds, there's events, there's all these different areas. So talk with me about the different situations that people are staying in these properties and how they might vary a little bit. Yeah. So when you're thinking of your goals for the year, you know, what are you trying to accomplish? Are you trying to scale? Are you trying to drive to retail?

3:07Is it in stores, online? So depending on that goal, that's where we work with you on the right placement. So if you're just looking to scale, you just want a mass amount of people trying your products because you know conversions are high, then vacation rentals are a great place for that. On the other hand, you need to have the quantity to supply that. Because think about all the guests that are coming through just one property. So we do three-month campaigns where you ship enough product for three months to one property. The minimum is 100 homes, but you multiply that out. you're looking at quite a lot of product, especially if it's a one-to-one sample or even a full-size sample.

3:47So in that case, you're going to ask the guests for a call to action. So on the marketing, you're going to, of course, list out the benefits, why they should buy your product, you know why they should love it, and then a call to action. So it could be a QR code to, my favorite is to take a survey. So let us know what you thought. So the message is, try me, let me know what you thought, not try me, buy me, because that's so pushy and it doesn't work as well on vacation. So scan that QR code, give us your email, of course, and take a couple question survey. And then you have them in your database.

4:22So you can continue to market past their stay, remind them how much they loved it during their vacation. So that's one strategy. And then you can follow up from months and months of you can find us in store here, or you can purchase online at a discount here. So that's more of vacation rentals. And think traditional like Airbnbs, VRBO. We work with the self-managing host as well as the property management companies that are huge. Biggest one, I think, is 1 ,800 units. Yeah. And you can be very targeted by geography or by the type of guest. So if you're saying, oh, groups of women, that's my audience, I'd say, okay, well, first, how old are we talking?

5:01Are you wanting more the older skewing where maybe they're wine tasting and they're going to Sedona and Napa? Or do you want the bachelorette parties? And I'd say, let's go to Nashville and Palm Springs. So different ways to hit that different demographic. Now, take midterm rentals. These are your 30-plus day stays. These are traveling nurses, corporate stays, professionals, relocating families. These are ones who you know will be in the property in that area for a set amount of time. So they are grocery shopping. They need to restock. They need to get items. So these work best for, it could be full size or if you want to drive to a specific retailer.

5:45So maybe you're opening up and you're starting to work with stores in Houston. I would say, okay, let's take all midterm rentals in about a 10-mile radius of that store. Give them a sample. So when they go in, they right off the bat have a sample, but then their call to action is go redeem in store. Here's a coupon. Go find us in store. So that's a great way just to drive. And then it creates a repeat customer during their scene when they go back home. So, yeah, those are midterm. And then our third is campgrounds. So these are an opportunity where the campgrounds get exposed to your product as well as the consumer.

6:20So when somebody checks in to either go glamping, which a lot of campgrounds are now staying in treehouses and cabins, or they're pulling their trailer and they're staying. They're getting this welcome gift, which is your product. And in that process, it's possible that the camp store will then say, well, let's restock and carry it. Because now their guests are happy and they're seeing there's a demand for it. So then you can offer them a wholesale pricing for their camp store.

6:45Rachel Vigil:They're probably like going into the store and like, oh, I had this in my cabin. Like, can I buy something? They're like, oh, no. But if enough people do that, they're like, yes, we don't want to turn people away from something they want to buy. Exactly. Yeah. Yeah. Yeah. And the same can be said with the host side. So any restock essential like dish soap, laundry pods, sheets, you know, all of those that a host is already buying, once they see that their guest is happy, because as a host, I'm a host too. Once a host sees a guest is leaving that five-star review and they're even calling out and commenting about some of the products, they want to continue that.

7:20So you can even offer a wholesale pricing to the host to restock in their properties and property managers, then you're talking a large scale.

7:27Rachel Vigil:I think that's so exciting. I mean, you just kind of touched on it a little bit, but what types of products tend to perform best in these settings and then which ones usually struggle? Yeah, it's kind of a mix. I would say your consumables are great. So it could be snacks, really healthy, something different, unique. We've done a variety of different kind of snacks and drinks and energy drinks, healthy shots, sleep gummies have done really well. Because when you come on vacation, you want to relax and you want to have a good night's sleep. So anything that can help with a good night's sleep, like sleep gummies, is always popular.

8:01Those are never left behind. Also, I've seen, because there's cooking that happen. So if it's spices or sauces, those are also really nice or just instant meals. We've done some like with mac and cheese and just right off the bat, because once you walk in, you're hungry and you're thirsty and you're tired. What helps with that. And then we can move more into the more durable items like sheets and mattresses. So if it's a really nice mattress and that guest has the best sleep, they're going to ask the host, what was that mattress? I need that at home. I want to recreate this experience back home.

8:38So we see some of those performing well. We've done e-bikes and that was kind of at the beginning when e-bikes were just starting to come out. Now everybody has an e-bike. But at the beginning, I was like, oh, I've never ridden one. So here's my chance. I get to write it on vacation. And then here's a discount to then go purchase it. So we did see some great success from that as well.

8:58Rachel Vigil:So any product categories that typically like maybe not get as much as response or maybe it's not a product category, but anything that you've noticed where it's like, oh, that's not as as people, I guess aren't as interested as we might have thought. I think it's something that's really specific to a certain group. So you have to be very careful with where you place it. So you're hitting that correct guest and consumer. Otherwise, it's kind of that missed opportunity. It may not be our right fit. So, you know, we've done some like fitness and gym equipment. And for some, we go on vacation and we don't want to work out.

9:31We don't want fitness. Where others, we do. And so like that would be a better fit for midterm rentals because, you know, they're staying longer. They're going to exercise. Vacation, maybe not so much. Maybe they'll try it. But is it enough to then go purchase it? So I would say more of the expensive ones or very specific don't perform as well as the ones that are easy. I mean, if you try a snack bar and you know I can get it at Sprouts, then it's easy. You're going to walk down that aisle, remember that and buy it because it's easy. It's convenient. It's right there in front of you.

10:03Rachel Vigil:Yeah, I think that makes sense. How does consumer behavior differ when someone is trying or discovering a product while traveling or maybe attending an event versus sampling when they're in store? Yeah. So when you go to an event, and I'll use Coachella as an example, is it's overwhelming. There is just so many people. There's so much noise, so much going on. And you have a mission. You are going to go see your favorite band perform. But along the way, there's all these brands trying to give you their stuff and talk to you. And so that in itself is overwhelming. and you're giving all these samples out and the attendee is taking it and doing what with it?

10:44You have no idea. They might try it. They might throw it in the trash. You really have no idea. So yeah, events inside can be tricky and expensive. Yeah. Wait, now I totally lost my mind.

10:56Rachel Vigil:I know you've worked with a lot of like Coachella's coming up. A lot of people are going to those events and they're staying in vacation rentals. How does that experience then differ for them like when they're back at the vacation rental. Yeah, so now they're going to come away from all the noise to relax and to have that confined space just with their friends, hang out. That's the time because there's no other competition. And that's one thing that makes it unique is we're not giving these properties just a lot of the same thing. Once you have that category in that property, there's no other competition within that category.

11:30So it's yours during that time. It's like buying shelf space within a property, but it's the whole property. So it's more of a quality interaction because they are trying, they're talking about it. And then we're asking them for a call to actions. You know, you have metrics that we're able to see, whereas in an event, you really don't know. You've stuffed it. You've given all these samples away. But what are the results? Here, we can actually track the results. We can do a number of scans. We can see redemptions. We can get emails. So there's follow-up as well. So it's just a higher touch point, a higher quality and way less cost as well.

12:07Rachel Vigil:And speaking about those metrics, right, how should brands be thinking about success in this channel? Is it usually more about awareness or their social sharing or something else? Yeah, I always like to be clear because everyone thinks they have the best product. I mean, it is. They think someone's going to try it. They're going to want to buy it right then and right there. And that is not always the case. Sorry to break it to a lot of you, but that's just what happens. it's repetitive exposure. So you will see definitely the trials. We know on average how many guests are coming through, how many are trying it.

12:41We're going to ask the host for feedback. Did the guests ever leave it? Did you have any negative? What were the positive? So you're going to see all of that as well as social media. So the hosts have requirements. They do get these items complimentary. So do the guests. In return though, the host needs to do certain things. And that's taking a photo. So you can see what the setup is in their property and then share that across social channels. I think it's great when both the host likes to brag about the products they're providing and the partnerships they have with brands. So they'll put it on social, tag the brand, we'll come up with a hashtag, and then the brand will own all the images too.

13:19So you can reshare and use those as well. And then if you do the guest survey, then that's your chance to really dive into some research on the consumer side. But I just always give caution of don't expect that you sample. And if they don't even know your brand, that you're going to convert them on the spot. It takes constant communication. That's why I get the email.

13:43Rachel Vigil:Yeah, I think that's so important because it really does take kind of multiple exposures, right? Even when you're sampling a product in other areas or getting someone to try it, like they're going to want to try it a couple of times usually before they consider buying in. So I think that's really important with this. So are there specific moments that you realize within there where like either vacations or celebrations, group trips, where sampling usually has an outsized impact? Like you're getting more engagement from those samples. Like is it the big events like Coachella versus like your everyday stay at the hotel or that like brands who really target?

14:18Rachel Vigil:Like if they're starting this for the first time, should they just do a general campaign in the city or is it really like let's target Coachella because there's a lot more engagement there? So my mindset, just also from the host side, is that every vacation is special. So when somebody is spending money to stay in your property, it doesn't matter why they're coming or for how long, you make it as special as you can because they're coming there for some occasion. Even if they're coming for work, same thing. So you treat them the same. I would say events, if you're just looking for a very specific target audience, like if younger audiences is your target, then Coachella is a great place for that.

14:56If you're just looking for, like I said, groups of women, bachelorette parties are great. And what that is, is you're creating an experience together as a group that they will remember. And for one example, we have worked with ESW as a sheet mask, like a women's, or it could be co-ed, sorry, men and women, a sheet mask for the face. And that was fun because they take selfies. It's not the most flattering look when you have them on your face. And so they love sharing it. That created some really nice exposure and follow-up because when you are with groups, you are, you're taking those selfies and then they're sharing it on social media.

15:35So yeah, I would say depending on the demographic is who and where that determines where the placement is. We do have other events coming up, like FIFA, the World Cup. That's going to be massive. And then, of course, we're looking to the Olympics, which brings them more of an international audience. So again, it may not be a great fit if you're not an international brand. And then some, you want to be very local to local festivals.

16:00Rachel Vigil:Okay, that makes sense. And so, I mean, along with that, like, what does a starting pilot look like for a brand who wants to test out this channel for the first time? What do you usually recommend for them? Yeah. So we do a hundred property trial and I really do like supporting emerging brands. So that's why I've created this so that you don't have to do a huge investment right off the bat. And we are a marketing agency. So yes, there is a cost up close because we maintain and manage the whole process with the hosts. We communicate with them. We make sure they're submitting photos. So it breaks down to about$50 of property for three months.

16:36So our Trial is 5 ,400 properties. And you're looking with that around 8 ,400 total adults on average that are coming through. Of course, some vary. Some will sleep 16 guests, but that's just the average. And then, of course, we have a food bevy. Get$500 off any campaign. So about$4 ,500 for the trial. And then with that, include the cost of the product and the shipping of the product, as well as the marketing, because we want you to own the marketing. You have full say. You get to create it and print it and ship it with the product because all of that, you have full control over the guest. We have full control over the host and their deliverables and the outcome.

17:17But we want you to own the relationship with the guest.

17:20Rachel Vigil:I love that. Yeah. And I think it's so important just to think about that as a as an entry point and a long term relationship building with that guest. because like you mentioned, if you can get them on an email list by filling out a survey, maybe you can give them a discount to get their second sample free either through your website or in store to build up those repetition trials. So then they're more likely to purchase over time if they actually love it. I think the other thing that's cool about your platform is the relationship that you build with the hosts as well. Talk with me a little bit about like hosts who end up liking products.

17:54Rachel Vigil:Maybe if they like it so much, they might buy it for their properties. and some of the opportunities you've seen there? Yeah, I'm guilty of that myself. So our place is in Big Bear and we have one in Hawaii. And so part of just being able to run this company, I also want to try it firsthand. So I'm always trying the products myself and seeing what the guests are saying. So let's see, I've done one like with drops. It was a laundry detergent. I loved it so much that I personally subscribed to it in my own home. and then as well for the property because it was an item I was already purchasing. I was already getting laundry pods.

18:32So I could then replace it because they gave me a discount and it was more natural. It was just something a little bit more elevated than what you'd pick up at say Costco in bulk. So yeah, there's definitely that opportunity that I've done firsthand and I've seen it with a bunch of the hosts. Some others are like sheets. We're always going through sheets as a host. I think every couple of months we have to restock sheets and towels and pillows and some of those basics. So that's another opportunity for just anything you would think that when you walk into vacation rental that's already there. And coffee.

19:10Coffee and tea is another great one.

19:11Rachel Vigil:I love that. I think that's such a good experience. But perfect, Rachel. This has been really great. And I love this opportunity. I actually did a test in vacation rentals with my previous brand, T-Squares, which is really exciting just to get the product into the hands of people and see all the great content and images that came out and people tagging them in all the different gift boxes, which was really cool of getting people to try it. So I personally have done it as well. But anything else that I missed that you want to make sure that we share? I think if you are interested, go to our website or find me on LinkedIn.

19:47Norm, I made a name down there. I'm Rachel Vigil, V-I-G-I-L. And then Up Close Marketing. If you go to our website, it is abbreviated. It's Up Close, M-K-T-G. And then we're on LinkedIn, Facebook, Instagram. So if there's ever questions, just reach out. Happy to chat. Hop on a call. Real easy. I just, I like talking and getting to know brands as well.

20:09Rachel Vigil:Yeah. One more thing. Sorry, I forgot. But if you are interested in Coachella and Stagecoach, we do have some categories still open, especially in the consumable with food and drink. So reach out to me because it is a great opportunity if you have the quantities. So, yeah. Perfect. Yep. And as Rachel mentioned earlier, we're doing a special discount for FoodBuddy listeners. You can get$500 off your first campaign. If you're not sure to see like, hey, will my product be a good fit? Rachel, she'll be able to tell you she's worked with tons of brands to see what works. So maybe those are a little bit more challenging and give you that advice on what actually will perform best and how to set up your campaigns.