Air France KLM Customer Insight: understanding our customers beyond the here-and-now
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1 Air France KLM Customer Insight: understanding our customers beyond the here-and-now MOA Education Day Motivaction, Amsterdam January 21 st, 2016 Hans Zijlstra, director Customer Insight AIR FRANCE KLM Customer Insight is about understanding consumers by means of a grounded investigation of the why behind the what. The outcome has to be relevant and valuable for AIR FRANCE and KLM.
2 2 Understanding me: role and background Hans ZIJLSTRA Business Economics Groningen University, Marketing Strategy & Marketing Research Research International Research Executive Qualitative KLM Customer Research Consultant Head of Customer Management KLM NL AIR FRANCE KLM Customer Insight Director 2
3 3 Understanding Customer Insight AIR FRANCE KLM Customer Insight is about understanding consumers by means of a grounded investigation of the why behind the what. The outcome has to be relevant and valuable for AIR FRANCE and KLM. 3
4 4 Understanding our scope & activities Being part of the Brands Strategy Department, under AF-KL Marketing, Digital & Communication, Customer Insight (MXBS.CI) contains 3 key areas of customer information and analysis: Research & Benchmarking, incl: Satisfaction & Conformity, incl: Datamining & Modeling, incl: Customer Needs Airs@t satisfaction benchmark Call center monitors Competitive Intelligence Weekly InTouch community ad-hoc projects FlyerBuzz Product & Service Complaints report Who are our Customers? AMS Note: only the key recurring reports and monitors are mentioned; this does not comprise all CI activities. See following slides for more information about CI tools and studies. Monitors and reports outside CI: esat & other digital research & feedback tools Social Media listening, challenges and polls Inflight Reports
5 Some context AIR FRANCE KLM and the airline industry 5
6 6 Understanding 1 group, 4 airlines, 3 businesses Top-10 airline in the world (EUR 25 billion turnover) ~ employees ~77 million passengers ~570 aircraft ~250 direct destinations in >100 countries 6
7 7 Understanding our challenges New business models: Until 80s: national landing rights The 90s: growing competition (Open Skies 92 en 08) The 00s: rise of low-cost airlines The 10s: rise of Gulf carriers Of all times, but increasingly relevant: High capital investment in aircraft Fuel and staff costs (Over-) capacity External influences (9/11, SARS, volcano, world economy, etc)
8 8 How Customer Insight helps understanding Our Mission: understanding consumers Derived and combined from multiple sources Available for strategic decision making and operational use Attractive to read (infographics) Easily accessible and continuously updated figures 8
9 9 Customer Insight is used for strategy STRATEGIC DIRECTION OVERARCHING NEEDS SPECIFIC NEEDS DEMAND SPACES AF & KL Emphasize: Customer needs in the market in general Specific aspects along the journey To cover the market demand A differentiating strategy.... to fulfill overarching and specific travel needs through concrete products, services and communication.... for different groups of customers on specific occasions.
10 10 But also for ongoing in-depth understanding Customer insights* from 550 high value In touch community FB members Quality Observers FB panel members from 9 countries 23 million Flying Blue members passengers via escore questionnaires passengers from 20 benchmark airlines complaints website visitors from 15 countries SkyTeam passengers Flying Blue Club members call center evaluations and various ad hoc research studies available in our CI Hub. * Annual figures
11 11 Our strategic in-depth community: In touch KLM In touch since January 2008 (!): To understand the customers values, aspirations, dreams and challenges and co-create relevant, differentiated offerings 550 selected community members, from 7 countries Online 24/7 50/50 solicited and unsolicited feedback
12 12 Just like in a relationship
13 13 A true relationship!
14 14 What can we do with In touch? FACILITATION TOOLS, including: Discussions Ask 2-3 open-ended questions about a single topic when you want the benefit of members sharing and building on one another s ideas. Also allows for follow-up questions from facilitators to guide conversation and probe deeper. Example: Tell us your best in-flight experience on AIR FRANCE. Live chats A virtual room where 8 to10 members engage with each other and the facilitation team in real-time, answering questions and follow-up probes around a specific research topic. Example: Discuss recent changes to the Flying Blue programme with Herbert Verschuren VP Customer Marketing, AIR FRANCE KLM Surveys A survey tool for when you need answers to a multitude of questions. Structured way to get in-depth member input. Example: evaluate these new long-haul catering concepts. Visual galleries Web browsing is captured, incl spoken explanations, or members post pictures or videos about their life or associations based on a specific topic adds texture and depth to any study. Example: Show us the best amenities kits you have received. Quick Polls A mini-survey (no more than 5 questions) to quickly take the pulse of member opinion. Example: Share with the CEO your thoughts on C02 emissions in the next 24 hours. Innovative tools, incl capturing web browsing Encourage interaction with image annotation, heat mapping, mind mapping, card sorting and digital collage. Example: Use whiteboarding to give us feedback on these recent adverts. Or: please show us the websites of (other) loyalty programs, and tell us what you (dis-) like about them and what we can learn from them. Brainstorms Free form ideation, great for simple, top-of-mind associations or generating lists of ideas or names. Example: Name this new class of travel. Or any combination of those. Example: in-depth understanding of satisfaction drivers Plus live qualitative sessions. Example: focus group about Pricing & Revenue management perceptions with Barry ter Voert, SVP Pricing & Revenue Management, AIR FRANCE KLM
15 15 What does it bring? A few examples:
16 16 No 7 years itch, but rather In touch brings us: More than the superficial detail & depth chats discussions feedback insights knowing understanding respondents committed members research results committed managers Plus cost efficiency and quick customer access
17 17 Thanks to 4 critical elements Careful selection of participants Size of the community Confidentiality Duration Critical for involvement and thus understanding
18 18 Using the crowd to understand the world Customer insights* from 550 high value In touch community FB members Quality Observers FB panel members from 9 countries 23 million Flying Blue members passengers via escore questionnaires passengers from 20 benchmark airlines complaints website visitors from 15 countries SkyTeam passengers Flying Blue Club members call center evaluations and various ad hoc research studies available in our CI Hub. * Annual figures
19 19 New: Quality Observer! Objective quality next to subjective quality Costly Mystery Shopper programme Use the crowd!
20 20 How does it work?
21 21 Real-time feedback via app Easy to use: 96% User-friendliness: 8.4
22 22 Online engagement: a community
23 23 An engaged crowd: world wide coverage Reach first full year: observers observations airports 2 3
24 24 What does it bring? A lounge example
25 25 But also: loyalty and a positive brand image, leveraged by an engaged community! The possibility to take part on an exclusive panel and to provide a reliable information to the companies in order to correct some errors or incidents that may occur during a flight (Silver member AF, Spain) Getting a bit involved makes flying more interesting. Anything that improves service levels is positive (Platinum member AF, UK) I am flying anyway and the extra work is relatively small. I think it would be fun to participate and observe more consciously the different process and quality aspects (Platinum member KL, Germany)
26 26 Any questions? Thank you!
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