Keynote presentation about Airline Customer Experience Leadership, held by Rainer Uphoff at Worldticket's customer conference in Copenhagen in November 2010. Key idea: Think VALUE, not cost when designing your customer experience proposition. More on the subject: http://ourpax.com
21. Let’s talk about STRATEGY
Differentiate!
LISTEN, LISTEN, LISTEN
Manage expectations
(learn from Ryanair)
Offer VALUE, VALUE, VALUE
Deliver what you promised!
24. Differentiate!
I know, you are a regional carrier.
Is geographical differentiation
enough?
Anybody here wanting to be the
SIA, Jetblue, Ryanair of the
regionals?
26. LISTEN, LISTEN, LISTEN
Do you know what your
customers really want?
Do your surveys say what you
want to hear?
Even family businesses need to
LISTEN!
27. LISTEN, LISTEN, LISTEN
10 million views! You can’t hide…
(If you can’t see the video, search or click for “United breaks guitars” on Youtube).
33. Offer VALUE, VALUE, VALUE
Passengers…
-buy through the same booking
system (except WorldTicket’s!)
-are extorted to pay the same fees
-are “dispatched” by the same
handling agent
-fly on the same aircraft…
34. Offer VALUE, VALUE, VALUE
CFO-CEOs
(+consultants) are
the scientists of the
XXI century:
They discovered the
SERVICE ATOM =the
perfect COMMODITY
35. Offer VALUE, VALUE, VALUE
Service unbundling and cost
cutting has COMODITISED air
transportation.
Only COST LEADERS are
successful in the commodity
business.
But there is only ONE Ryanair.
36. Offer VALUE, VALUE, VALUE
Go back to the drawing board…
DESIGN services VALUED by
customers.
Find IT systems to support the
value creating processes.
Be INNOVATIVE.
37. Offer VALUE, VALUE, VALUE
Which meal do your prefer?
THIS
OR THIS?
PRICE:
9 €
VALUE:
!?!
Watch out for
AA’s practical
jokes on
napkins
38. Offer VALUE, VALUE, VALUE
Ancillary
revenues must
generate VALUE,
not be a TAX
39. Offer VALUE, VALUE, VALUE
You LOVE to
check-in your
baggage and
appreciate the
value when
being invited to
pay for this
beloved service,
don’t you?
40. Offer VALUE, VALUE, VALUE
Fortunately,
some airlines
have changed
their mindset
already from
thinking COST
to thinking
VALUE!
41. Offer VALUE, VALUE, VALUE
Repeat with me:
Don’t (only) think cost.
THINK VALUE!
42. Deliver what you promised!
Go back to the drawing board…
Deliver beyond your promises.
43. Deliver what you promised!
Let’s do it!
(The Customer Experience
Journey starts in the WEB!)
44. Deliver what you promised!
First, get the basics right!
Hey guys,we’re in
2010 !
Quirks –
WHAT?
C’mon – you
can’t afford to
do that!
45. Deliver what you promised!
Second, understand your
customer+his/her preferences!
That’s smart.
NG pax prefer
chat over phone
46. Deliver what you promised!
Third, get your organisation ready.
Make the customer your strategic
goal.
Gain support from the top.
Obtain buy-in from all
stakeholders.
47. Deliver what you promised!
Without an
adequate
strategic
alignment model,
you will lose
efficiency.
Environment
Strategy
Competencies
Organisation
Process
People
Structu
re
Culture
are executed by…
is supported by…
determines aligned…
48. Deliver what you promised!
Fourth: know your corporate silos.
Is maintenance as urgency
driven as the gate agent?
Is marketing making promises
that operations can’t keep?
Do you even analyse this?
49. Deliver what you promised!
Fifth: get the metrics right.
Do you know what to measure?
Do you use industry best practice
metrics, such as the NPS?
Do you measure perception gaps?
50. Deliver what you promised!
Sixth: align the organisation
Do you have clear customer
related targets?
Do you link these targets to the
corporate motivation system?
Do you hire the right people and
know how to find them?
51. Deliver what you promised!
Seventh, know and apply the tools
Voice of Customer
Customer Experience Journey
Mapping
Service Design
Audits
…
52. Customer Experience Mapping
Scenario 1
« We have seen promotions. We need a lowcost flight for a
weekend in Prague »
Scenario 2
« We have a business meeting in Lisbon on 02/11. »
53. Deliver what you promised!
Get Customer Experience Leadership
Are you using Customer Experience
Management as a STRATEGIC
alignment tool?
Is the president / CEO your
customer champion?
(BTW, he can be coached
into the role…)
55. Show me the money!
Customer Excellence to strengthen
the organization vs. the FIVE
COMPTETITIVE FORCES:
1. Customer negotiation power
2. Provider negotiation power
3. Threat of New Market Entrants
4. Threat of substitutive products
5. Rivalry among competitors
56. Show me the money!
Customer Experience Leadership
is not “nice to have”.
57. Show me the money!
1. Customer negotiation power
Give value: customers will WANT to buy from you
2. Provider negotiation power
Grow, be reliable: providers will WANT to work with you
3. Threat of New Market Entrants
Differentiate by value: give new entrants a HARD TIME
4. Threat of substitutive products
Innovate to solve customers’ real needs: they’ll stay
with you
5. Rivalry among competitors
If your business is built around “the customer”, you
have NOTHING TO FEAR
58. Show me the money!
Customer-ROI is KING!
Are you able to recognise toxic profits?
Are you computing CEM value creation?
What about customer equity, brand equity,
stockholder value?
Think long-term!
59. Show me the money!
Without CEM, brand credibility deteriorates
and customer equity declines.
This destroys long term value while short
term cash flow still remains positive.
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(#$%
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)% (% '% &%
*+,-./-%0-1.+%2/3+.045/%
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9:74,;%
Example: 5%
yearly decline in
brand credibility
translates into
slow cash flow
reduction, but
customer NPV
disaster.
60. Show me the money!
And remember:
Ancillary Revenues must come
from value you generated.
Otherwise you are charging a
TAX.
Who loves the taxman?