airline customer experience by rainer uphoff - 2010 world ticket keynote
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Sell-More-Seats
Customer ExperienceLeadership: The ultimate strategic
alignment tool
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My name is Rainer Uphoff and I am avi on line
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Lets go!
CustomerExperience
Leadership
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Customer Experience Leadership
What is so new about
Customer ExperienceLeadership?
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Customer is King is not new at all!
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Customer Experience Leadership
1980s Customer Centric Company
1990s CRM, Loyalty Management
2000s Customer Experience
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Customer Experience Leadership
RESULTS?
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Customer Experience Leadership
Surprise!
The customer is less loyal than ever.
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Customer Experience Leadership
2000: Customer ExperienceManagement (CEM) was born
In the airline industry, thiscoincided with something else
?
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Customer Experience Leadership
Lets look at aviation history
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Customer Experience Leadership
1930s 1970sRegulated Environment:
the pilot-CEO is King!
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Customer Experience Leadership
1970s 2010sDeregulation and Competition:
The CFO-CEO is King!
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Customer Experience Leadership
And then, something happened:
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Key words slide
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Customer Experience Leadership
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Customer Experience Leadership
Where is the limit?
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Customer Experience Leadership
What can we do whenshaving the skull
is no longer anoption
?
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Customer Experience Leadership
Thetime of the
customer-CEOhas come
!
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Customer Experience Leadership
Lets remember:1980s Customer Centric Company 1990s CRM, Loyalty Management
2000s
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Lets talk about STRATEGY
Differentiate!
LISTEN, LISTEN, LISTEN
Manage expectations(learn from Ryanair)
Offer VALUE, VALUE, VALUE
Deliver what you promised!
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Differentiate!
Michael Porter:either chose cost leadership or
differentiation strategy.
Some leaders are doing both.
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Differentiate!
Porter: either chose costleadership or differentiation
strategy.
Some are leaders for doing
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Differentiate!
I know, you are a regional carrier.
Is geographical differentiation
enough?
Anybody here wanting to be the
SIA, Jetblue, Ryanair of theregionals?
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Differentiate!
Strategic imperative: regional startup airlinereaches competitive relevance in YEAR 3
Competitionrecognises
opportunity
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LISTEN, LISTEN, LISTEN
Do you know what yourcustomers really want?
Do your surveys say what youwant to hear?
Even family businesses need toLISTEN!
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LISTEN, LISTEN, LISTEN
Social Mediaare EFFICIENT
and FREE
LISTENINGtools.
Are youusing them?
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Manage expectations
Go back to the drawing board!
Perceived service quality Expectation (created)= Value > Profit
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Manage expectations
Learn from Ryanair!
Expectations MUST be thoroughlymanaged.
Otherwise, you have NO CONTROL
over your value proposition.
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Manage expectations
Overpromise:long term problem
Brand equity declines
Underpromise:short term problem
unrealised yield potential
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Offer VALUE, VALUE, VALUE
Passengers-buy through the same bookingsystem (except WorldTickets!)
-are extorted to pay the same fees
-are dispatched by the same
handling agent-fly on the same aircraft
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Offer VALUE, VALUE, VALUE
CFO-CEOs(+consultants) arethe scientists of the
XXI century:They discovered theSERVICE ATOM =theperfect COMMODITY
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Offer VALUE, VALUE, VALUE
Service unbundling and costcutting has COMODITISED air
transportation.
Only COST LEADERS aresuccessful in the commodity
business.
But there is only ONE Ryanair.
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Offer VALUE, VALUE, VALUE
Go back to the drawing board
DESIGN services VALUED bycustomers.
Find IT systems to support thevalue creating processes.
Be INNOVATIVE.
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Offer VALUE, VALUE, VALUE
Which meal do your prefer?
THIS
OR THIS?PRICE:
9 VALUE:!?!
Watch out forAAs practical
jokes onnapkins
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Offer VALUE, VALUE, VALUE
Ancillaryrevenues must
generate VALUE,
not be a TAX
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Offer VALUE, VALUE, VALUE
You LOVE tocheck-in yourbaggage and
appreciate thevalue whenbeing invited topay for thisbeloved service,dont you?
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Offer VALUE, VALUE, VALUE
Fortunately,some airlineshave changed
their mindsetalready fromthinking COSTto thinkingVALUE!
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Offer VALUE, VALUE, VALUE
Repeat with me:
Dont (only) think cost.THINK VALUE!
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Deliver what you promised!
Go back to the drawing board
Deliver beyond your promises.
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Deliver what you promised!
Lets do it!
( The Customer Experience Journey starts in the WEB! )
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Deliver what you promised!
First, get the basics right!
H e y g u y s , w e r e i n 2 0 1 0 !
Q u i r k s W HAT ?
C m o n y o u c a n t a f f o r d t o d o t h a t !
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Deliver what you promised!
Second, understand yourcustomer+his/her preferences!
T h a t s s m a r t
.
N G p a x p r e f
e r
c h a t o v e r p h
o n e
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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.
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Deliver what you promised!
Without anadequatestrategic
alignment model,you will loseefficiency.
Environment
Strategy
Competencies
Organisation
Process
People
Structure
Culture
are executed by
is supported by
determines aligned
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Deliver what you promised!
Fourth: know your corporate silos.
Is maintenance as urgency
driven as the gate agent? Is marketing making promises
that operations cant keep?
Do you even analyse this?
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Deliver what you promised!
Fifth: get the metrics right.
Do you know what to measure?
Do you use industry best practicemetrics, such as the NPS?
Do you measure perception gaps?
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Deliver what you promised!
Sixth: align the organisationDo you have clear customer
related targets?
Do you link these targets to thecorporate motivation system?
Do you hire the right people and know how to find them?
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Deliver what you promised!
Seventh, know and apply the toolsVoice of Customer
Customer Experience Journey Mapping
Service Design
Audits
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Customer Experience Mapping
Scenario 1 We have seen promotions. We need a lowcost flight for aweekend in Prague
Scenario 2 We have a business meeting in Lisbon on 02/11.
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Customer Experience Leadership
Nice, but
SHOW METHE MONEY!
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Show me the money!
Customer Excellence to strengthenthe organization vs. the FIVECOMPTETITIVE FORCES:
1. Customer negotiation power2. Provider negotiation power3. Threat of New Market Entrants
4. Threat of substitutive products
5. Rivalry among competitors
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Show me the money!
Customer Experience Leadershipis not nice to have.
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Show me the money!
1. Customer negotiation powerGive value: customers will WANT to buy from you
2. Provider negotiation powerGrow, be reliable: providers will WANT to work with you
3. Threat of New Market EntrantsDifferentiate by value: give new entrants a HARD TIME
4. Threat of substitutive products Innovate to solve customers real needs: theyll stay with you
5. Rivalry among competitors If your business is built around the customer, youhave NOTHING TO FEAR
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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!
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Show me the money!
Without CEM, brand credibility deterioratesand customer equity declines.
This destroys long term value while shortterm cash flow still remains positive.
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*+,-./-%0-1.+%670,-8+.%9:74,;%
Example : 5%yearly decline inbrand credibilitytranslates intoslow cash flowreduction, butcustomer NPVdisaster.
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Show me the money!
And remember: Ancillary Revenues must come
from value you generated.
Otherwise you are charging aTAX.
Who loves the taxman?
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Visit ourpax.com (not theirpax.com)
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Customer Experience Leadership
Any questions? Thank you!
Email: rainer@uphoff.comSkype: ruphoff
Blog: www.ourpax.comTwitter: rainerup
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