How airports can use social media to drive retail
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Transcript of 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
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£5.00
Revenue per PAX per Year 2001-2007
• FLAT Revenue growth
• No customer knowledge
Source: Blackstone Gates’ Study; Airports’ Annual Reports
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2007 2008 2009 2010 2011 2012
US
$B
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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
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Airport Fans
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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
[email protected]@simpliflying.com
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The Customer Journey
Customer ‘reality’: all journeys have origin & destination