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 Fragmented Frequent Flyer Programmes Passengers have generally been served by the airlines’ frequent flyer plans (FFP). However, with the pressure on to reduce travel costs, travelers now choose to fly on a low-fare basis. Passengers fly as much as they used to, but now have fragmented travel patterns, and ssengers still are frequent travelers, but never achieve an airline’s top-tier FFP status and the benefits of being top-tier. A new class of traveler has evolved: the “fragmented, frequent flyer” (FFF). Airlines continue to have significant cost pressures as a result of increased fuel and insurance costs, transparent fares pricing and more low-cost competition. Some airlines are now restricting benefits to their top-tier groups. And as the pressure builds for more cost reductions, the lower-tier groups will be the casualty. Essentially, the loser in the current FFP is the “fragmented, frequent flyer”. But airports are well positioned to provide to the “fragmented frequent flyer”. The opportunity exists because airports normally provide the facilities for these services; e.g. lounges, fast-tracking and other facilities and services. This is an opportunity for airports to increase their ‘non-aeronautical’ revenue stream. Download the presentation: Airport Preferred Customer Service 22 Jun 05 (pdf format) Presented at the Oxford Loyalty Marketing Conference, University of Oxford, 22 June 2005 |
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Managing Customer Loyalty at Airports While the value of Frequent Flyer Programmes objectives may be clear to airlines, customer perceptions remain. “How do they help me? What’s in it for me? Who can help me?” Airline customers expect that they will get convenience and value in return for their active participation. Regis McKenna, an often quoted marketing expert, opined that “It’s about giving customers what they want, when, where and how they want it.” It is up to airlines to effectively use the customer’s stored preferences. So that when the customer next 'touches' the airline, the airline “remembers” how customers like it and present their product or service in that way. This provides for a positive customer brand experience, simplifying the process, adding convenience. Failure to do opens the way for airports to seize the initiative to deploy their own customer facing solutions. Download the presentation: The Disconnected Customer 22 Nov 05 (pdf format) Presented at the Oxford Retail Futures Group Conference, University of Oxford, 22 November 2005 |
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Increasing airport customer retail spend: winning through customer knowledge Airports need to innovate and clearly understand the rationale for knowing their customers, creating in essence, an “Airport PNR”. Airports need to identify/capture, segment and understand their frequent traveler/passenger and treat them as a “customer” throughout their journey in the airport. This customer knowledge is used to manage and create relevant retail offers and through a two-way dialogue with the customer, allow the redemption of accepted offers, with the objective to increase the customer’s retail spend. Essentially, we are moving from a CRM approach to a B2Me focus - the customer is at the centre of the relationship, not peripheral to it. The alternative will be third parties who will cut the airport out of the relationship and out of the revenue streams. Download the presentation: Passenger Terminal Expo 15 Apr 08 (pdf format) Presented at the Passenger Terminal Expo, Amsterdam, 15-17 April 2008 |
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Increasing airport customer retail spend: creating a single customer view As airports struggle to become competitive, they must focus their strategies on new airport revenues, proven technologies and customer needs. When airports expand to meet competition, there is a demand for increased revenues to be generated from the retail infrastructure. There are six key processes to exploit for customer insight and knowledge: attraction, segmentation analysis, creation and management of retail offers, dialogue, redemption, and retention through customer experience management. If harnessed effectively, customer insight can provide an unmatched ability to serve customers better. The payoff is increased airport customer retail spending. Download the presentation: Passenger Terminal Expo Middle East 17 Nov 08 (pdf format) Presented at the Passenger Terminal Expo Middle East, Abu Dhabi, 16-18 November 2008 |
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Transforming an Airport IT&T department into a P&L Business When the Toronto Airport Authority implemented its new Campus Area Network, it needed to transform its IT&T department and many outside contractors into a customer-centric, self-supporting business services group. This group had the responsibility to provide comprehensive IT&T business services to all constituencies of the airport authority, such as airlines, ground transportation, fire, police, security, government agencies and retailers. The new business services group mandate was to provide leadership for product development and management, marketing, sales and contract negotiation, help desk provisioning and billing for all the airport’s IT&T products and services. The presentation provides the methodology and processes that enabled the operational Business Services Group to be in place in a three-month period. Download the presentation: Passenger Terminal Expo Middle East 18 Nov 08 (pdf format) Presented at the Passenger Terminal Expo Middle East, Abu Dhabi, 16-18 November 2008 |
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Gaining Retail Share of a Customer's Wallet Airports are increasingly dependent on retail as one potential upside non-aeronautical revenue stream. As passengers have increased, the percent spent by them has remained constant. New retail methodologies have long been used to exploit customer knowledge gained through existing retail infrastructures ands methodologies. The result has been dramatic increases in revenues, based around three key customer process elements: Segmentation Analysis, Retail Offer Creation/Management and Customer Dialogue. If harnessed effectively, these new retail methodologies can provide unparalleled customer insight with the payoff of increased airport customer retail spending. Download the presentation: Passenger Terminal Expo London 25 March 09 (pdf format) Presented at the Passenger Terminal Expo, London, 24-26 March 2009 |
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1 to 1 Customer Strategies for Airport Revenue Growth As a sequel to Don Peppers’ perspective on 1 to 1 marketing, this presentation provides a two sided perspective on how, through innovative use of technology, airports can drive revenues by offering real benefits to customers. • Real, proven case studies of customer focussed marketing in airports • A step-by-step look at how the processes can be implemented • Analysis of the potential revenue growth and current “lost retail spend” by NOT implementing such procedures Download the presentation: TFWA Asia-Pacific GATE ONE2ONE 11 May 2009 (pdf format) View the presentation: WORKSHOP D – Revenue growth for airports through innovation and technology Presented at the TFWA Asia-Pacific + GATE ONE2ONE, Singapore, 11 May 2009 |