CUSTOMER PROFILES AND REWARDS

Transcription

1 CUSTOMER PROFILES AND REWARDS

2 Motivation for Creating Customer Profiles The more we know, the better we serve Full customer profile means that you have an understanding of your customers preferences and behaviour, not knowing their exact personal details. The profile is a tool for you to serve your customers better. When you know little, you have to make assumptions. With more knowledge you can make better suggestions. Our hypothesis is that better served customers are more willing to spend money on your services. 2

3 Understanding Users Needs 1/2 Understand the users current need and you'll be able to predict their next action Labelling a person into one single segment does not take into account the differences in the users needs in different situations. One single person can make completely different decisions based on the reason of her travel. Creating an understanding of the users current need is far more effective tool in predicting the next best action. This approach echoes Ted Levitt s famous quote People don't want to buy a quarter-inch drill. They want a quarter-inch hole! which advocates a shift away from selling products to doing jobs that solve customers problems. 3

4 Understanding Users Needs 2/2 One person has different needs in different situations Business reasons I want to attend a monthly meeting in Stockholm Leisure reasons I want to go for a one week trip to France with my husband in the summer I'm going to a sales meeting in London in two weeks Key decision drivers Schedule driven Willing to pay extra for comfort Earning FFP points from necessary travel I want to visit my family in Moscow during the winter holiday Key decision drivers Flexibility in schedule Optimises price Get to destination with best alternative 4

5 Infrequent Flyers are the Mass This is the main target audience of the program Over 80% of your customers* make only 1 or 2 trips annually. The remaining 20% fly more frequent but it s safe to say that infrequent flyers are the mass. This is one of the target groups for the travel reward program, because airbaltic needs to be on their top of mind when choosing a flight. Our hypothesis is that converting a small percentage of the infrequent flyers to take one more flight per year, will have a big impact on the revenue. A free seat won t make them any more loyal, but knowing that you have a free seat just might be a good enough reason to choose airbaltic. Share of passengers / Number of trips taken per year with airbaltic * Based on flight data from provided by airbaltic 5

6 Engaging Customers Using the hook model in forming a habit Earning rewards is easy in the beginning but gets more challenging towards the end. Provides instant gratification by allowing the rewards to be used instantly. TRIGGER ACTION REWARD INVEST 6

7 Example Case JAN 16 User Actions Creates an account Earns first point airbaltic Triggers Welcome Account details completion reminder Basic info Contact customer, Target offers per country Detailed info / Travel preferences Offer similar destinations, Sort extras by preference Detailed info / Travel preferences Offer similar destinations, Sort extras by preference JAN 18 MAR 24 Fills in account details Earns second point Earns first reward (seat) Buys roundtrip HEL-RIX Uses previous reward Earns second reward (bag) Post flight survey reminder MAR 31 Completes post flight survey Earns a point APR 12 Buys roundtrip HEL - TAT Uses previous reward Earns reward ( voucher) JUN 7 Buys roundtrip HEL - MAD Uses previous reward Earns reward (% discount) Reward balance AUG 28 Buys roundtrip HEL - TXL Uses previous reward Basic travel behaviour Deeper knowledge on travel companions and trip types, Offers based on behaviour Basic customer profile Targeted offers based on behaviour, Sort extras by behaviour JAN 4 FEB 18 Subscribes to newsletter Buys roundtrip HEL - RIX Earns reward (flight voucher) Starts new card Stamp card about to expire , offer 3 month extension with newsletter subscription Send congratulation mail and offer to use the flight voucher

8 THANK YOU!