About airline companies & a new research space.
InSites Consulting @ Relationship Marketing congres (Stichting Marketing)
http://www.insites.be/
http://www.relationshipmarketing.be
http://www.stichtingmarketing.be
1. Customer experience research anno 2009
About airline companies & a new research space
Christophe Vergult, Managing Partner, InSites Consulting
Smartee workshop – Relationship Monitor 1
3. About the Relationship Monitor
Understand the drivers of the customer experience value chain in service
driven industries
Build a pan-European benchmark on customer experience
Validate customer experience research model
8 industries 8 countries 3 benchmarks
Financial Netherlands Countries
Automotive Belgium Industries
Telecom UK Companies
Airlines Germany
Tour operators France
Food retail Sweden
Furniture retail Spain
Clothing retail Romania
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4. About the Relationship Monitor
How to reduce bias in a
...or how to avoid source bias in a customer experience (benchmark)
study?
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5. About the Relationship Monitor
Company neutral sample frame : InSites research panel
More than 2.5
million panel
Brut sample representative for consumers 25-65 per country members in
Per industry respondents are screened on relevance as contact 25 countries
within their household
If a person is customer of different suppliers within one industry, one
supplier is randomly chosen
Results on an industry level are representative for all existing
relationships within that industry and country.
Consumers are interviewed on their relationship with 2 suppliers from different industries
17.000 respondents (34.000 observations) during Summer 2008
Identical research model/questionnaire over all countries and industries
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8. What they were looking for...
Risk reduction
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9. What they are looking for...
Experiences
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10. We believe in...
...meaningful
experiences
Relations are built through
experiences
A long term relationship can help
people to reduce risks. But more
and more people are looking for
personal development in a
relationship. Companies who
understand that and provide
meaningful experiences to their
customers win the race.
What are meaningful
Integrate experiences through
2009
external channels forthe model
experiences in your
customers?
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11. How to build profitable relationships through experiences
Product touch point
Value for Money
Sales contact touch point
Delivery touch point
Customer service touch point
Communication touch point
Rewarding touch point
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12. How to build profitable relationships through experiences
“It is not how a company performs, it is how I experience the brand.”
“I evaluate and I feel.”
+
Product touch point
Value for Money
Sales contact touch point
Delivery touch point
Customer service touch point
Communication touch point
Rewarding touch point
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13. Experiences matter to build customer equity
Strength of the model
Results for Belgium
PRODUCT
Banking R² = .57
VALUE FOR Automotive R² = .48
REWARDING
MONEY
Telecom R² = .55
Touroperators R² = .53
COMMUNI- Airlines R² = .48
SALES
CATION
CONTACT
CONTACT CUSTOMER
EQUITY Retail R² = .45
50% of customer
CUSTOMER DELIVERY relationships are built
SERVICE
through experiences
that are under
companies‟ control
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14. What can we learn from Harley Davidson?
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15. Customer experience management is about branding
“Retention is for wimps. We measure the percent of customers who have our
name tattoed on one of their body parts.” (Harley Davidson Annual report)
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16. We believe in...
...meaningful
... consistent brands
experiences
Relations are built through A brand needs to live its values
experiences
A long term relationship can help Companies need to attract
people to reduce risks. But more customers who can identify them
and more people are looking for self with their brand values.
personal development in a Investments in the relationship
relationship. Companies who pays off if companies act
understand that and provide consistently with these brand
meaningful experiences to their values through all touch points.
customers win the race.
2009
What are meaningful
Integrate experiences through How can you translate your
2009
external channels forthe model
experiences in your brand values into real
customers? customer experiences?
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17. Who do you want to be ? Who are you ?
Your brand positioning Your brand DNA
18.
19.
20. We believe in...
...meaningful ... the connected
... consistent brands
experiences customer
Relations are built through A brand needs to live its values
experiences
A long term relationship can help Companies need to attract
people to reduce risks. But more customers who can identify them
and more people are looking for self with their brand values.
personal development in a Investments in the relationship
relationship. Companies who pays off if companies act
understand that and provide consistently with these brand
meaningful experiences to their values through all touch points.
customers win the race.
2009
What are meaningful
Integrate experiences through How can you translate your
2009
external channels forthe model
experiences in your brand values into real
customers? customer experiences?
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21. Touch
Relation- Financial
point Behavior
experience
ship value
The customer experience value chain
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22. 2 customer experience value chains
Touch
Relation- Financial
point Behavior
experience
ship value
Individual value chain
Touch point Intention to buy again Buying behaviour Value on buying
satisfaction behaviour
DRIVERS > Which touch points drive conversations ?
PARTICIPANTS > Who participates in the conversations ?
CONTENT > What are the conversation about ?
IMPACT > How do these conversations drive value ?
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23. 2 customer experience value chains
Touch
Relation- Financial
point Behavior
experience
ship value
Individual value chain
Touch point Intention to buy again Buying behaviour Value on buying
satisfaction behaviour
Connected value chain
Acting on
Touch point Willingness to
Referral value
experience recommend recommendation
conversation (NPS)
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25. We believe in...
...meaningful ... the connected
... consistent brands
experiences customer
Relations are built through A brand needs to live its values The power of conversations
experiences
A long term relationship can help Companies need to attract Customers talk about their
people to reduce risks. But more customers who can identify them experiences. And that matters.
and more people are looking for self with their brand values. Positive recommendations
personal development in a Investments in the relationship generate new customers (referral
relationship. Companies who pays off if companies act value). And these promoters will
understand that and provide consistently with these brand buy more themselves.
meaningful experiences to their values through all touch points.
customers win the race.
2009 2009
What are meaningful
Integrate experiences through How can you translate your How do conversations
2009
external channels forthe model
experiences in your brand values into real contribute to the value of your
customers? customer experiences? company?
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26. Insights on the Belgian air travel industry
RELATIONSHIP MONITOR 2008
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27. Customer Equity – industry spread & results
GENERAL RECOM-
CUSTOMER CHOOSE PREMIUM BRAND
SATIS- MEN- BRAND
EQUITY AVG AGAIN PRICE CONSIS-
FACTION DATION EQUITY
TENCY
100
90
80
70
max
60 avg
min
50
40
30
20
10
0
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28. Not all touch points are „moments of truth‟
Important influence on
Customer Equity
(r² >0,35)
PRODUCT
Moderate influence on
Customer Equity
r²=0,33
(r²= 0,25-0,35)
VALUE FOR Minimal or non significant
REWARDING influence on Customer Equity
MONEY
(r²<0,25)
r²=0,18
r²=0,18
COMMUNI-
SALES
CATION
CONTACT
CONTACT
CUSTOMER r²=0,17
r²=0,20
EQUITY
There is a strong difference
(R²=0,48)
in the importance of
different touch points for
CUSTOMER DELIVERY airline companies.
SERVICE
r²=0,37
r²=0,35
The offering, the delivery
(the flight) and customer
service matter most.
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29. The customer journey – industry spread & results
PRODUCT VALUE FOR SALES DELIVERY CUSTOMER COMMUNI- REWARDING
MONEY CONTACT SERVICE CATION
r²= 0,33 r²= 0,18 r²=0,17 r²= 0,37 r²= 0,35 r²= 0,20 r²= 0,18
100
90
80
70
max
60 avg
min
50
40
30
20
10
0
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30. What can we learn about touch point
experiences via social media research?
38. Reversed research process
Traditional research Netnography
Ask question Get (a lot of) answers
Get answers Ask questions
Questionnaire development Framework development
before data-collection after data-collection
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40. Social media audit on tripadvisor.com
23200 posts
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41. Social media audit on tripadvisor.com
Touch point analysis
PRODUCT
r²=0,33
VALUE FOR
REWARDING
MONEY
r²=0,18
r²=0,18
COMMUNI-
SALES
CATION
CONTACT
CONTACT
CUSTOMER r²=0,17
r²=0,20
EQUITY
(R²=0,48)
CUSTOMER DELIVERY
SERVICE
r²=0,37
r²=0,35
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42. Social media audit on tripadvisor.com
Touch point analysis
PRODUCT
PRODUCT
r²=0,33
VALUE FOR
REWARDING VALUE FOR
MONEY
REWARDING MONEY
r²=0,18
r²=0,18
COMMUNI-
SALES COMMUNI-
CATION SALES
CONTACT CATION
CONTACT CONTACT
CONTACT
CUSTOMER r²=0,17
r²=0,20
EQUITY
(R²=0,48)
CUSTOMER DELIVERY DELIVERY
SERVICE CUSTOMER
r²=0,37 SERVICE 33%
r²=0,35
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43. Social media audit on tripadvisor.com
Delivery
FLIGHT
PRE
CHECK-IN LUGGAGE ID & VISA UPGRADE HAND SECURITY BOARDING
LUGGAGE
FLIGHT
DURATION DRINKS & ROOM TO SIT DIRECT PLACE ENTER
SAFETY CREW
OF FLIGHT FOODS FLIGHT SEAT TAINMENT
FLIGHT
POST
DO NOT ARRIVE ON
CUSTOMS IMMIGRATION TRANSIT
DESTINATION
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44. Social media audit on tripadvisor.com
Delivery
FLIGHT
PRE
CHECK-IN LUGGAGE ID & VISA UPGRADE HAND SECURITY BOARDING
409 1730 94 361 LUGGAGE 227 155
420
FLIGHT
DURATION DRINKS & ROOM TO SIT DIRECT PLACE ENTER
SAFETY CREW
OF FLIGHT FOODS 808 FLIGHT SEAT TAINMENT
258 828
1561 1150 156 499 484
FLIGHT
POST
DO NOT ARRIVE ON
CUSTOMS IMMIGRATION TRANSIT
DESTINATION
82 47 63
1988
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45. Social media audit on tripadvisor.com
Emotion quadrant
over night flight
2,50 CRITICAL SUBJECTS EMOTIONAL
NEGATIVE
2,00
delay flight attendants and staff
immigration flight time
priority boarding
1,50 legroom on time arrival
place on board service
checkin Customer service online drinks food safety
onboardentertainment
Average = 1,32 idcard &visa reliable
XL time departure
location distance
customs class
upgrade
1,00 arrival time luggagedirect transport transport indirect flight with change
experience
0,50 liquidform
NEUTRAL Average = 2,39
POSITIVE TOPICS
0,00
1,50 2,00 2,50 3,00 3,50 4,00
POSITIVE
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46. Social media audit on tripadvisor.com
Touch point analysis
PRODUCT
PRODUCT
r²=0,33
REWARDING
VALUE FOR VALUE
MONEY
REWARDING
FOR
r²=0,18 MONEY
r²=0,18
21%
COMMUNI-
SALES
CATION
CONTACT COMMUNI-
CONTACT SALES
CATION
CONTACT
CUSTOMER r²=0,17 CONTACT
r²=0,20
EQUITY
(R²=0,48)
CUSTOMER DELIVERY
SERVICE DELIVERY
CUSTOMER
r²=0,37
r²=0,35
SERVICE 33%
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47. Social media audit on tripadvisor.com
Value for money
CHEAP TICKETS TAXES
…with the low cost airlines like Easy Jet, it I have looked up several of the low cost
can be as low as £15, ea way, but the prices carriers, and they have such high taxes.
vary, mid week is cheaper than weekends, no For example, the round-trip ticket on BMI
2 days seem to be charged the same, was 34 pounds, but the taxes made it an
additional 52 pounds! How is this
possible?
FUEL PRICE
I aksed this same
question on the EARLY BOOKING
Tuscany forum a . If you can book in advance you can
couple weeks ago. It usually get a flight for about £40-£50,
seems that this is about $70-$80 I think
normal range for
airfare to Italy! It also
seems that with fuel
prices rising, the
prices are likely only
TRAVEL WITH CHILDREN
An infant is under 2 so you will have 45kg with
to increase.
a maximum of 15kg in each bag. Plus 10kg *
3 for carry-on.
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48. Social media audit on tripadvisor.com
Value for money
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49. Social media audit on tripadvisor.com
Touch point analysis
PRODUCT PRODUCT
r²=0,33 3%
VALUE FOR VALUE FOR
REWARDING REWARDING
MONEY MONEY
r²=0,18 2%
r²=0,18 21%
COMMUNI- COMMUNI-
SALES SALES
CATION CATION
CONTACT CONTACT
CONTACT CONTACT
CUSTOMER r²=0,17 3%
r²=0,20 7%
EQUITY
(R²=0,48)
CUSTOMER DELIVERY CUSTOMER DELIVERY
SERVICE SERVICE
r²=0,37 33%
r²=0,35 4%
Customer service?
Rewarding?
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50. Social media audit on tripadvisor.com
Buzz valence
SALES CONTACT 56% SALES CONTACT
76% SALES CONTACT 76%
REWARDING 60% REWARDING REWARDING
99% 99%
PRODUCT 58% PRODUCT
77% PRODUCT 77%
CUSTOMER SERVICE 84% CUSTOMER75%
SERVICE CUSTOMER SERVICE 75%
COMMUNICATION 58% COMMUNICATION
77% COMMUNICATION 77%
VALUE FOR MONEY 57% VALUE FOR MONEY
72% VALUE FOR MONEY 72%
DELIVERY 55% DELIVERY
73% DELIVERY 73%
Negative buzz Positive buzz
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51. Social media audit on tripadvisor.com
It is about brands
27% of
conversations
about brands
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53. Social media auditon tripadvisor.com
Brand experience profile
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54. in 3 nutshells
Little differentation in Clients are talking about Consumers talk about your
performance on the touch experiences, companies brand (experience). Don‟t
point that matters most focus on processes miss it.
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