isentia airline industry - the 3 key questions for 2016

3 real questions:

• Will Asia Deliver Growth• Top Airlines vs Top Customer Airlines• Building Resilient Demand

CONSUMER LOYALTY LOVE PATH TO PURCHASE SEGMENTATION CONSUMER INSIGHTS BRAND TRUST MARKET POSITIONING COMPETITIVE BENCHMARK PRODUCT OFFERING ROI TRAVEL TRIGGERS ANALYTICS

14th February 2016

2

IS ASIA GOING TO DELIVERTHE GROWTH IT PROMISES?

1. DISPOSABLE INCOME GROWS IN ASIA

2. UNCERTAINTY BREWS, DESPITE LOW OIL PRICES

3. YOUNG ADULTS ARE YOUR BEST BET

4. PREMIUM AIRLINES NEED TO FIGHT

Despite a smaller wallet compared to UK and USA, Asian markets command an increasing trend of growing disposable income. Between 2013 and 2015, India’s disposable income grew +10.2%, along with Vietnam (+7.5%), Thailand (+3.5%) and Philippines (+4.4%).

Source: World Bank, Euromonitor 2015

With greater financial freedom and desire for regularly unique travels, young adults or tertiary students represent a key market segment, between age 18 – 29 years ago. 73% of this segment rely on Review Sites to make travel choices, and make digital purchases mainly through Metasearch providers.

Source: Amadeus; WTA 2015

23% of International Travelers are Young Adults. 270MTravelers

USD 3,000Average per Trip

• Unique Places• Local Experiences• CV Building• Personal Branding• Trendsetter

Low-cost Carriers moving into premium options continue to threaten more than profitability. It threatens entire demand growth for flagship carrier flights. While there is a small rebound from Premium Economy, the demand is too low to recuperate losses.

Low oil prices give premium airlines a much needed relief on profitability. It is a business imperative to use the financial flexibility to invest heavily in growing customer loyalty and remain as a choice for consideration.

Source: WTA 2015LCC Premium

60.0%

70.0%

80.0%

90.0%

Passenger Load Factor (%)

APAC 77.6%80.7%

71.5%

3

TOP AIRLINES VERSUSCUSTOMER CENTRIC AIRLINES

5. INDUSTRY AWARDS ARE NOT SO VALUABLE

6. CUSTOMER REVIEWS HAVE REAL IMPACTS

7. SOCIAL MEDIA IS A NORM, AND IT’S NOT FOR FREE

The coveted awards from various associations and recognition bodies, have distinct differences with the reality of a customer-driven business. Airlines with honours claiming to be the best, may not truly prevail in the customer’s eyes. Airline players are focusing on an aged and almost irrelevant metric. Using actual market data, it is clear not all brands are doing so well as Skytrax suggests.

1. Qatar Airways2. Singapore Airlines3. Cathay Pacific Airways4. Turkish Airlines5. Emirates6. Etihad Airways7. ANA All Nippon Airways

BUZZ INDEX

SENTIMENTPERCEPT

ENGAGEMENTINDEX

1. Singapore Airlines (9,279)2. ANA All Nippon Airways

(3,375)3. Emirates (3,355)4. Cathay Pacific Airways

(2,266)5. Etihad Airways (472)6. Qatar Airways (438)7. Turkish Airlines (175)

1. Qatar Airways (+41.6%)2. Cathay Pacific Airways

(+36.2%)3. Etihad (+31.8%)4. Singapore Airlines (+23.2%)5. Emirates (+21.1%)6. ANA All Nippon Airways

(+8.7%)7. Turkish Airlines (-8.0%)

1. Qatar Airways (24.9 EI)2. Etihad Airways (9.1 EI)3. Emirates (7.5 EI)4. ANA All Nippon Airways (7.0

EI)5. Singapore Airlines (4.1 EI)6. Cathay Pacific (2.0 EI)7. Turkish Airlines (0.9 EI)

Do You rely on online reviews to Trust a Brand?

Source: BrightLocal; TripAdvisor; Isentia

Brand Erosion

Brand Erosion

Brand Erosion

Airlines who do not invest in community management and social media as the key form of customer service, loses customer loyalty quickly through increased frustration.

Your customers rely on online reviews as a form of word-of-mouth to make decisions. The bigger the ticket cost, the more consideration. Programmatic variations of prices only matter assuming the entire sales process is kept in-site.

Source: SocialSprout; MyCustomer 2015

Which Platform Do You Turn to for Customer Service Queries?

65%believe Social Media is more effective than Call Centres and EXPECT a reply within 12 Minutes.

Glassdoor Indeed PayScale

010000200003000040000500006000070000

5161361000

45260

Social Media Manager Salary (Annual)

Source: Isentia

Source: Isentia

Source: IsentiaSource: Isentia

4

BUILDING A RESILIENT DEMAND

8. Capture as much Relevant Data

9. Integrate Primary and Digital Research

10. Use Dashboards Correctly

11. Hold Agencies Accountable

It’s not all about Twitter or Facebook. In order to map a necessarily complete customer relationship journey, Airlines need to look after their Blind Spots – which are platforms outside their control, usually Earned Media.

Airline Digital Data Sources Average Length per Post by Platform

New methodologies developed in 2015 exist to use primary research metrics, applied onto a scalable and unbiased digital data set.

Website Data

DigitalData

POS/SalesData

CRM/ Loyalty Data

• Consumer Insight• Path to Purchase• Customer Journey Tracking• Content Effectiveness• In-Flight Experience• Travel Triggers• Marketing ROI• Airline Perception

KLM Airlines Generate $25m in Annual Revenue from Social Media Marketing.

Top 5 Common Misuses Competitive Benchmarking Marketing ROI Target Segmentation Content Effectiveness Consumer Insights Strategy Planning

Only Uses of Dashboards

CustomerService

Crisis Alerts

Top Line Scanning

Basic Auto Reporting

A savvy business professional will always question the true effectiveness of any marketing campaign. High buzz does not equate to actual growth in target audience. Are you meeting your real objectives?

5 Key Questions for your Marketing Agency

a. How clean is the datab. How do these metrics roll up to Sales and Leadsc. What is the methodology to measure Brand Trustd. What is your sample size for researche. Where do my customers seek information of me

You might think this is great because buzz increased.

However, very few voices (or new entrants) were engaging in the community.

Source: IsentiaSource: Isentia

Source: Isentia

Source: Isentia

If you wish to improve your Strategy, Increase Revenue or find ways to get better Marketing ROI, please contact us.

Adamson Alagan

DID: +65 6593 9891Email: [email protected]

Josh Drasta


Gwen Tan
