I am afraid the answer is yes. They do make a difference and are the target of Retailers and Telco’s as well as other major industry sectors. There are 2.5 billion Millennials Worldwide demanding and exercising their right of choice and how they shop. Brands feature heavily in their core shopping habits and are part of their DNA.
New strategies are required to reach this unique technology savvy customer buying group. Marketers are relying heavily on omni channel environments and extensive use of targeted social media.
It is a whole new segment of the universe that from a retail perspective cannot be ignored. Embrace them, meet their demands and you will have their loyalty and wallets. Ignore them at your peril.
Views and comments welcome as usual.
The Beach Head
Traditionally Marketers formulating Enterprise Marketing Strategy used to be based on Growth Market Identification, Market Positioning & Gaining Market Share – Customers were traditionally identified by; Type, Segment and Clusters, Transactions & Buying behaviour via Channel – share of voice and sentiment analysis and empathy mapping came later.
The Market Tactics deployed were based on the the ability to successfully traverse The Chasm to the Main Street. Where the ‘choice pickings’ were perceived to be.
Whilst still a valid approach today for most Organisations and Enterprises today and a valid strategy to gain Market Entry & Share. Things have changed. There is a new challenger in The Main Street.
Digital Disruption & Digital Re-Invention.
Inside the Tornado
New Digital Disruptive companies are breaking all the business rules and models within the Tornado.
Companies such as Uber ( who doesn’t own a Taxi), Airbnb (doesn’t own any hotel real estate) and Amazon (doesn’t even own any inventory). Are changing the way consumers think and react and interface with brands, products and services.
Digital Disruption is changing the purchase propensity models daily, creating a unique relationship with the brand and the Enterprise – the business model is changing and is closely coupled with collaborative Cognitive Technology to devise Digital Strategies that work.
Digital Transformation and Digital Re-Invention coupled with a collaborative Ecosystem is the new DNA that Enterprises are seeking to embrace.
As far as the economics go – in a recent study with a High Street Retail Bank it was reported on average that for every $1 spent on Digital initiatives the bank returned a $10 ROI – far more rewarding than traditional bank marketing methods initiatives.
It is understandable with this kind of ROI and the need to differentiate the consumer proposition Enterprises are prepared to be Disruptive and embrace Digital Strategies and Transformation to change the business – to achieve commercial success.
We will see more Disruption in the future I am sure……
Credits to: Geoffrey Moore Inside the Tornado
70% of businesses have failed in Europe to meet their CRMs objectives according to D&B research.
Some of the key factors are;
- Failure to plan for change -transformational barriers and issues
- No clear defined objectives – not underpinned with rigour or metrics
- Failure to align with the business – lack of user buy in
- Poor Data and Information – lack of accurate, current data
- Over customisation – need for simplification of message and program structure
Take a look at some of the key factors behind the failings and the pointers to avoid being part of this statistic.
Comments welcome as usual please.
Airline Business Intelligence Trends
Business Intelligence and data analytics are becoming a buzzword in the Airline Industry board with the emphasis on Business Intelligence.
For us to understand the importance of this trend we need to be aware of the key trends driving the industry.
- 56% of airlines will make R&D investments in passenger services via social media
- 52% of airline companies will consider business intelligence as their major investment programmme in the next three years
- 57% of airlines believe social media provides the greatest value as a marketing channel
- 78% of airlines personalise service offers to their passengers though direct channels
But then we all understand this trending it is in every trade journal we read and every IT vendor collateral portfolio.
What is different though is the age old question of what do I do with all this data and how do I turn data into intelligence to enhance my business and in what BU areas will benefit most.
Here are a selected number of Business areas where BI and real-time analytics play a vital role within airlines;
- Ancillary sales
- Duty Free /On Board
Management of the seat factor and cabin shift
- Overbooking capacity to ensure maximum seat factors with minimal off-loads and downgrades
- Revenue mix/ Cabin mix via market segmentation
- Seat access and group acceptance
- Pricing optimization
- Partner code share/interline
- Managing traffic flows (O&D)
- Identify the different clusters of customers/travellers by type /propensity
- Target clusters with real time relevant messaging
- Targeted promotions to ensure repeat revenue and reduced churn
- Maximise Partner & Third Parties
- Cargo capacity / demand planning
- Cargo rate optimization
- Cargo load optimization pallet management
- Disruptive elements/Missed connections
- Lost or Misplaced baggage
- Premium Travellers upsell additional sell vacations/ancillary
- Corporate Channel/customers
- Up sell, cross sell during the booking process
- Self Service
- Ancillary sales
- Distribution Cost to Serve/Channel of Service
- IROPS Aircraft re-routing
- Gate management
- Baggage management
- MRO Parts management
- Flight Planning/Forecasting
- Flight catering management
- Ground handling services
- Rostering/Crewing Manpower planning
- Staffing levels /self certifcation
- Digital Channels
- Corpoarte Sales
- Web Channel LTB Ratio’s and Stickyness
- Brand buzz analysis
- Sentiment analysis
Net Promoter Score or traditional LTV models using predictive analysis are one of the ways to look at LTV.
As a practitioner I still prefer the traditional LTV model for customer acquisition to estimate retention (“LTV”) of a customer.
Roughly defined, LTV is the projected revenue that a customer will generate during their lifetime to determine true value and worth.
Below is an interesting example in an Infographic.
Managing Customer Experience is about knowing who your customers are and the value they represent to you.
Mobile is a great influencing factor in retailing trends and a key preference for consumers.
Mobile helps provide real data targeting opportunities 33% of smartphone owners have shared their location details with favoured Retailers to make themselves available to promotional messages and personalised communications.
Loyalty coupons are in growth mode with 18% of consumers having redeemed a mobile coupon within their chosen Retail outlet.
Watch this space.
What do you think-your comments welcome as always.
What does it mean to be “customer-centric” as an Airline or Business? Assuming that you start with a quality product and service, being customer-centric means understanding the customer’s point of view and respecting the customer’s interest. You fix problems, handle complaints, and remember individual customer preferences. Customer Loyalty programmes assist in this objective.
But customer centricity isn’t merely a matter of adding up these different components of quality, service, insight and responsiveness. You can introduce all these ideas into your business model, but if you don’t grapple with your company’s most basic strategic objective, then sooner or later your efforts will fail.
In the past I’ve found it helpful to explain the contrast between customer centricity and product centricity by understanding three criteria that actually help organisations to differentiate themselves from the competition. If you think about it, for a business to be competitively successful, it must meet three criteria:
- It must be able to satisfy a customer’s need
- It must identify a customer who wants that need satisfied
- Organisations must communicate in the media of preference and choice.
In this world of immediacy that we live in is the mobile wallet the way to go for customer loyalty in the future? What are your views