Ursula Silling - Worldtek Travel
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Selling Levis to Airline Customers 10 tips how to support the CEO agenda 08December2010, Ursula Silling
1 Wednesday 8 December 2010
Agenda Understanding your customer What to sell When to sell Technology is king?
US, 28/10/2010, www.xxlsolutions.us
Wednesday 8 December 2010
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1. Understanding your customer
Start with yourself and your peers When did you last buy something you had not intended? Or vice versa? The tie in addition to the suite because the shop assistant made a difference... The fruits on the market because they were displayed so invitingly The menu at McDonald’s because the offer was so good 3 for 2 at Boots The chocolates for your friend because the cashier at the cash desk asked The additional book because of the great Amazon proposal ... US, 08/12/2010, www.xxlsolutions.us
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1. Understanding your customer
Convenience
you commute during the week and do not want to lose much time to do your shopping you know the shops will be closed or you will be too tired to do the shopping when you return from your flight you want to benefit from the duty free prices but you don’t want to carry the perfume during all the journey you forgot your travel adaptor at home you can order via your mobile and get the items delivered at your prefered time for a small additional rate Amazon one click purchase US, 08/12/2010, www.xxlsolutions.us
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1. Understanding your customer
The key moment of truth bus / transfers to/from the airport or parking get a major concern the closer you get to departure or whether you could have a seat with more legroom ...as does the question about where to stay, where to eat and what to see or what the background of your destination is
you arrive early at the airport and would like to relax in the lounge ...or still use the hairdresser for whom you never find the time?
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1. Understanding your customer
The right offer and the right price BA offers a mobile phone with double sms / triband / working globally for any network in their on board shop - for only GBP69 Apple offer the support plan with their PC - ongoing free lessons and opportunities for one2ones for a very reasonable rate The iPad experience Tesco’s club card Meals for kids with a toy as an add on pre theatre prices or rush lunches US, 08/12/2010, www.xxlsolutions.us
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1. Understanding your customer
The right offer and the right price (2) bundling product families can add significant revenue but don’t let it just be fare families - bundle according to customer segmentation and associated value a simple understanding is crucial! attractive presentation of the benefits reasonable fare steps are critical for success
US, 08/12/2010, www.xxlsolutions.us
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1. Understanding your customer
The right offer and the right price (3)
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1. Understanding your customer
Alignment with CI and strategy a five star hotel charging extra for wifi and breakfast? 24 hour concierge service for a full frills airline passengers against a fee avoid the queues and book your museum entries in advance - for the “time is money” customers example MUC airport: pick up your coat at the airport on your return - you do not need it in the Caribbean convenience for your leisure customers is 17EUR per extra kg luggage credible for an airline trying to build trust with their customers? US, 08/12/2010, www.xxlsolutions.us
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1. Understanding your customer
CI - The customer service equation charge at every touch point value based - win*win
no frills at all
high customer service positioning
boarding pass print at the airport
hand in your cleaning
strict luggage rules by the kg
reserve your nanny; porter service for your luggage
payment fees
pick up your preferred newspaper before the flight
everything non self service
time is money
even base insurance for car rental the toilet on board?
comfort/concierge services
fast lane; pre-book taxi, museum and restaurant
the “WOW” hotel offer according to length of stay fancy luggage collection, ... voucher+self service choice for irregularities US, 08/12/2010, www.xxlsolutions.us
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1. Understanding your customer
Managing Expectations issue
understanding your customer
you want to introduce catering for sales but your customers are used to free food on board
•ensure your value proposition will be better than before •ensure fair prices •communicate - better too much than too little, using all touch points •ensure to get staff buy in
•if you position yourself as a customer service oriented
you introduced luggage fees but airline, then one way to solve this is to introduce customers feel cheated if they have internal and external luggage limits •but ensure you communicate it positively if you allow to pay for one kg above the limit one kg extra for free •include insurance in the booking stream you want to increase conversion for •align offer with your fare rules - no general one your insurance without cheating the •rather than having it clicked as a default (attention:
often even not legally allowed) as the question again if the customer is aware of risks
customer
you want to increase self servicing to improve your cost position but you do not want to force your customer by charging for non self services
•set targets internally about self service share to focus all departments on delivery •make self service attractive for the customer: • simple - easy to find; one click philosophy • choice - print, email, pdf, mobile ... • incentivise - cheaper luggage fees / upgrade etc. • attractive offers, personalised
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1. Understanding your customer
The key moment of truth Do not forget customer satisfaction
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Agenda dfdafdTitle Text
Agenda Understanding your customer What to sell When to sell Technology is king?
US, 28/10/2010, www.xxlsolutions.us
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What to sell Think through carefully what “home made” services to sell - it is easy to destroy client trust if not thought through strategically Hotels and car rental online bookings are expected to grow further
US, 08/12/2010, www.xxlsolutions.us
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What to sell Turning an add on into an oportunity in line with business strategy...
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What to sell Don’t miss any opportunity but rather turn problems into opportunities: security issues = opportunity to sell and even to create “Wow”
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The Hilton Opportunity...
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...Hilton creativity, creating a win win
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And what about the pillows...
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What to sell - Think out of the box
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What to sell - Think out of the box
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What to sell - Think out of the box Ensure you keep what you promise! There is an opportunity even for high quality, high price products - with the right customer proposition
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Keep your promise - customer care it is not enough to pretend you are customer oriented or to offer e.g. baggage drop off FULFILMENT is crucial!
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What to sell - Technology to differentiate
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What to sell - Brand Value by building on trends
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If it was easy to integrate
What to sell
– why not sell suitcases – other travel items such as travel adaptors – the cushion and the blanket on board as a comfort package – the “airport shop” and prefered toiletries on arrival – the flowers you want to hand over at arrival – the “rush” lunch... – fashion - but in line with your positioning – pharmacy items – google ebooks, gadgets – and more... creating win - win Amazon started with books and now sells a whole range of products Tchibo started with coffee and now earn a large share of revenue with sales of other products - even travel Apple - the combination of technology, design, entertainment and support US, 08/12/2010, www.xxlsolutions.us
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What/How NOT to sell the same to everybody if you have booked a dayreturn, you do not want to receive a hotel offer but you would appreciate airport transfer, lounge, fast track, food on board ... and your pair of Levis? if you booked a seat in the front rows last time, you would want it to be offered to you automatically next time avoid information overkill avoid several “unclicks” and frightening the customer
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Top revenue generators - top service +/cost- or neutral generators top revenue earners
top win - win
luggage service fees (booking fees, credit card fees)
advertising on online/mobile boarding pass - = cost saving + customer service + ancillary revenue advertising on other travel
documents and on homepage - as above
seat reservation, upgrades, upsell
extra products / information / service adding benefit
insurance, hotel and car rental
pick up of paper/journal before the flight; leave your coat...
dynamic packaging
the luggage collection and more US, 08/12/2010, www.xxlsolutions.us
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Agenda Understanding your customer What to sell When to sell Technology is king?
US, 08/12/2010, www.xxlsolutions.us
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When to sell and how to communicate All customer communication touch points are an opportunity – for product messages – for advertising of ancillary services and simple other ads
Timing - before,during and after the trip - and customer profile adjusted content are crucial Allow for choice of media Measure results and adjust US, 08/12/2010, www.xxlsolutions.us
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Your travel check list?
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Is your travel check list the same as your neighbour’s?
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Do not underestimate the power of recommendations and friends
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When to sell and how to communicate create the well being atmosphere modern and fresh, FMCG like get people into the shop with attractive offers but show them the upsell / additional sales opportunities do not overload your customers with messages - personalise and concentrate sales efforts include all the touch points be the first with specific products or create limited editions sell and piggybeck on other brands to support your CI and retail awareness, eg. selling the tailor made Levis jeans product, gadgets for Apple ... offer services at the right moment creating a WOW effect US, 08/12/2010, www.xxlsolutions.us
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When - how to optimize how much time do you spend to think about improvements? analysing clickstream reports and customer behaviour online - if any? looking at other sites and testing competitive products? listen in in the call centre? talk to customers at the airport? at other industries? rail services? trends? at the changing customer behaviour and what it means for you? watch the market - innovation roadmap, competitior watch! US, 08/12/2010, www.xxlsolutions.us
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Agenda Understanding your customer What to sell When to sell Technology is king? US, 28/10/2010, www.xxlsolutions.us
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...so it is all about can you introduce it easily We cannot add this information to the check in process, not possible
This is not possible, the GDS do not allow it
This will take at least 6 months and cost 0,5 Mio EUR Not possible to change within the IBE process, it is development
Not possible to charge for SSRs or to introduce a booking fee
US, 08/12/2010, www.xxlsolutions.us
Wednesday 8 December 2010
Personalised customer communication - we would need a completely new system
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Technology is becoming lifestyle and a critical commercial success factor internet = speed social media = fast and modern enabling close - real time - communication and engagement with your customers customers change and develop expectations - Apple, Google, Amazon & Co. setting standards iPad = modern, out of the box, positive technology is getting even more important for perception, solutions, sales and service
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Technology and commercial strategy commercial strategy – increasing customer (self) service? – increasing online booking share? – channel alignment or channel differentiation? – use of most cost efficient channel for the relevant revenue streams? – positioning as modern airline? innovative airline? service provider? - or follower, offer the basics, ignoring mobile and other developments – considering the whole customer experience from booking to landing? US, 08/12/2010, www.xxlsolutions.us
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Customer service - technology and the cost - ancillary revenues impact T e c h n o l o up to 3 g months y
up to 20 days
????? 18 months to change? High investment? benefits guaranteed?
3rd party integration new e-Commerce solution with retailing focus, personalised offers, fare high usability
personalised customer communication confirmation, mobile boarding pass, reminder services, with ads adapted to the offer Customer Service Additional revenue Cost saving US, 08/12/2010, www.xxlsolutions.us
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Technology is king? Do not accept can’t do Look for some quick wins within current IT environment with some solutions that deliver big differences with low investment / small time – modernizing and personalizing customer communication including ancillary revenues - 15-21 days – reviewing your whole e-Commerce solution - 3 months
Just offering some ancillary services half heartedly will not bring the revenue results In the worst case - there are solutions out there with which you can implement reliable and scaleable ...regardless of your current IT platform / PSS environment US, 08/12/2010, www.xxlsolutions.us
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Str So how to sell the jeans? The 10 Point Check List to increase ancillary revenues and customer satisfaction √ Start with the customer √ Do not forget your brand and CI √ Turn every customer touch point into a service and sales opportunity √ Communication and management of expectations is crucial √ Don’t underestimate the price √ Achieve staff buy in √ Measure and test, test, test √ Think out of the box √ Keep it simple and apply 80/20 √ Use smart technology providers and do not accept a no US, 08/12/2010, www.xxlsolutions.us
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So how to sell the jeans? Slice the elefant to eat it! Thank you!
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Profile
Ursula Silling Founder and CEO XXL Solutions - the Aviation Experts
Focus Areas
Key Projects
Professional Experience
Education
Sales and distribution channel strategy and optimisation for best revenue / cost value Tenders including PSS systems, CRM and loyalty systems, website and mobile development, catering suppliers Migration and IT projects covering the PSS and full commercial environment suite Commercial Assessments Business model strategy development 360 degree marketing and sales strategy, positioning, CI, (re-)branding, planning, implementation Ancillary revenue strategy and implementation E-commerce and mobile sales strategy, search engine optimisation, social media, website development, web analytics Revenue management and pricing best practice strategy, processes and tools Customer Experience Management incl. real time customer satisfaction measurement and product development Change management, business process re-engineering; people management, coaching, workshops and training Interim Management and Project Management for start ups, tender processes and migration projects Project management, system evaluation, sales and marketing strategy for airline start ups in Italy, Germany, Russia, Africa Workshops&Coaching: Alternative network evaluation methodology and marketing strategies, revenue management IT system development consultancy for future strategy for main aviation system suppliers and airlines Strategy and implementation incl. network and pricing strategy, rebranding and repositioning, ecommerce and mobile ancillary revenues, distribution for low cost, regional and hub carriers in various countries and regions, including mergers Outsourcing of benchmarking, marketing, purchasing, competitor watch activities Tenders for marketing agency selection, catering, PSS / Revenue Management / CRM / Business analytics / web development providers for a number of big and small airlines, low cost, hybrid and network business models Customer management strategy and quality management implementation for airlines and airports Commercial assessments and gap analysis for airlines, airports and IT system providers CCO Aerosvit Ukrainian Airlines, Kiev, Ukraine EVP Commercial Brussels Airlines (SN Brussels Airlines, Virgin Express), Brussels, Belgium CCO HLX (Low Cost Carrier, part of the TUI Group), Hannover, Germany Director Account Management Lufthansa Systems, Frankfurt, Germany Commercial Director Deutsche BA (British Airways subsidiary), Munich, Germany Lufthansa City Line (DLT) Network Planning and Controlling Tour operators Country Homes & Castles, London; Optimal Reisen, Mettingen, Germany BA (Hons) European Business Studies Fachhochschule Muenster, Germany / Humberside Polytechnic, UK; Spain, France Fluent German, English, French, Spanish; Good Italian, Russian, Dutch
http://www.xxlsolutions.us Wednesday 8 December 2010
Sales Marketing Revenue Generation
Thank you *** Dankeschoen
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It is the results that count. Co Thank inf ntac t o l. + @x us: 41 xls 79 olu 92 tion 74 0 3 s.us Te 0
you!
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