how airports can use social media to drive retail

World leaders in helping airports go social

Airport Lost Revenues

1 2 3 4£0.00

£1.00

£2.00

£3.00

£4.00

£5.00

Revenue per PAX per Year 2001-2007

• FLAT Revenue growth

• No customer knowledge

Source: Blackstone Gates’ Study; Airports’ Annual Reports

0

10

20

30

2007 2008 2009 2010 2011 2012

US

$B

n

Source: IATA Airline Traffic Forecasts; Blackstone Gates’ analysis

• $28Bn+ Retail Spend Lost• No customer knowledge• Loss of share of wallet# PAX

Projected Retail Spend

Lost Retail Spend

Booking Rail Check-in Bag Drop

SecurityShoppingGateFlight

US$17.6 Billion

2.7 Billion Customers50%

Customers Not Engaged

8% 31% 75% 2009 2010 2011

Customers In Control

Airport Customer Strategy?

Courtesy: Blackstone Gates, Airport Customer Engagement Study

0 20,000,000 40,000,000 60,000,000 80,000,000 100,000,0000

1000

2000

3000

4000

5000

6000

7000

8000

9000

Airport Fans

0

20,000,000

40,000,000

60,000,000

80,000,000

100,000,0000

1000

2000

3000

4000

5000

6000

Airport Followers

Airports Using Social Media

200+

KLIA Social Media & Retailers

KLIA Customers on Social Media

About the KLIA customers on social media

Aviation Social Media

AirAsia & Social Media

• AirAsia needs no introduction

• Probably the first big Malaysian brand to adopt social media in a significant way

• Harnessed social media to build brand and global reach

• Perfect approach for a low cost carrier, with the low(er) cost of marketing through social media

Case Study #1: AirAsia

AirAsia

• Address customer’s biggest concern: how to get in touch if they have any problems• On their website: hidden, takes more than 5 steps to get there• On their Facebook page: prominently displayed• Conversations and interaction with customers: commenting on photos or status updates • Not just a marketing tool, but an effective one at that• Contests• Exclusive Deals for Fans

AirAsia

Manchester Airport

What’s in it for the passenger?• ‘Making the passenger journey easy’• Faster passenger transit time• More/better information for passengers

What’s in it for the airport?• Increase commercial yields• Leverage of existing infrastructure• Service performance improvement

Gallery Walk

Retail 1

Retail 2

Retail 3

“Proximity Marketing”

Courtesy: Dr. Martin Smith, Group Director of Technology & Innovation, Manchester Airports Group

Check-InHall

LandsideRetail

SecuritySearch

AirsideRetail

Flight Information Messages

London Gatwick Airport

“We achieved a redemption rate of

10.5%. We’re delighted with the results.”

Alan ChambersBusiness Development

ManagerTTT Moneycorp

• Joint effort: BAA + easyJet• Access opt-in passengers• Target passenger-provided profile• Hi-value passengers travelling outside EU• Business passengers travelling to France• All passengers on EZ5303 to Marrakech

• Maximise conversion rates• Capture data at POS• Analyse redemptions: ROI

Courtesy: Mike Atherton, Managing Director

“On-Airport Currency Project”

Attract

Dialogue

Offer

Retain Segment

Redeem

Powered by

Geneva Airport

The retail results

• High sales penetration impact • 70% used their card for the retail offer• 200% increase - sales ratio for business travelers • Opportunity to generate a F2F sale• Opportunity to better target the customer profile• Customer loyalty – target specific customer types

Nuance Tax + Duty FreeRetail A, B & C

Courtesy: Brij Sahi, Chief Commercial Officer

BBO041 B25 15:30 15MIN TO WALK FROM CHECK-IN TO GATE

BBO041 B25 15:30 1 CADEAU VOUS ATTEND AU TAX+DUTYFREE SHOP

BBO041 B25 15:30 FLORENCE WEATHER SUNNY 22C

BBO041 B25 15:30 PROCEED TO GATE LOUNGE BOARDING SOON

BBO041 B25 15:30 LAST CALL GO TO GATE ENJOY YOUR FLIGHT

BBO041 B25 15:30 FLIGHT DELAY TO 16:05

robert@simpliflying.comshashank@simpliflying.com

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The Customer Journey

Customer ‘reality’: all journeys have origin & destination