how airports can use social media to drive retail
TRANSCRIPT
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World leaders in helping airports go social
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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
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Booking Rail Check-in Bag Drop
SecurityShoppingGateFlight
US$17.6 Billion
2.7 Billion Customers50%
Customers Not Engaged
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8% 31% 75% 2009 2010 2011
Customers In Control
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Airport Customer Strategy?
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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+
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KLIA Social Media & Retailers
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KLIA Customers on Social Media
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About the KLIA customers on social media
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Aviation Social Media
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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
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Case Study #1: AirAsia
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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
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AirAsia
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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
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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
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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
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[email protected]@simpliflying.com
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Destination
The Customer Journey
Customer ‘reality’: all journeys have origin & destination
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