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9/30/2011




   From Volcano to Ash to
   Customer Satisfaction
• Tuesday, October 4th from 11:30 to 12:15.
• Session level: Advanced
• Track: Retention & Loyalty




                                       Picture Source: www.natural-calamity.info




   WELCOME




     The                 The                             The
  Facebook            Customer                          New
  Experience          Experience                      Dilemma




                                                                                          1
9/30/2011




           The facebook story




                           +10 Millions passengers
                           unable to travel over the
                           whole period
                           Source: European Commission




   The                The                      The
Facebook           Customer                   New
Experience         Experience               Dilemma




The facebook story
• HELP our customers that were
  stranded
• A team of 20 employees from
  different departments
• Worked from 5 AM to 2 PM each day
• Used Facebook, Twitter, flysas.com
  (homepage), SMS
• Instant messaging, Smart phones,
  access to the updated info and
  hotline to right people




                                                                2
9/30/2011




                     The results did open eyes
• 5,000 questions posted 99%
  answered within five minutes
• SAS message displayed more
  than 1 million times
• More than 17.000 new fans in
  one week (+270%)
• Tons of positive media-coverage
• Index 40 to 90 measuring
  “caring” in online conversations
• Awards internationally




                                                 Two pregnant women stuck d in
                                                 Spain were contacted via FB and
                                                  were put on the fist flight home




 Learning points and reflections

                     Customer Journeys   WoS Effect
   ORGANISATIOANAL




                                                                      CHANNEL




                     OMG →Yes!           Contact price


                     CEM
   CRM / MARKETING




                                         CUSTOMER
                                         SATISFACTION
                     New Agenda




                                                                                            3
9/30/2011




   The                                             The                                             The
Facebook                                        Customer                                          New
Experience                                      Experience                                      Dilemma




  How to commercialize from this
         A.                      B.                              C.                            D.            E.
      Awareness           Contractual stage             Managing the contract               Reviews   Contract renewal
A1.                 B1.             B2.           C1.              C2.           D1.            D2.   E1.




  • Lessons learned
  • The organsiation responded automatically
  • Customer journey mapping activities

  One focus:
                  To keep or increase Customer Satisfaction scores
                         through great customer experience




         Defining CEM

         CEM is a leadership discipline which purpose is to ensure
         that the company delivers extraordinary positive customer
         experiences.
          When delivering extraordinary experiences the company
          differentiates positively and stimulates profitable
          customer behavior
         Extraordinary experiences is very much about balancing the
         rational and emotional experience to give the customer .

                  CEM                         DIFFERENTIATION                          EFFECT ON RESULTS
                  +10%                              +9%                                       +5%

           Source: A study about The effects of CEM by Copenhagen Business School and SJP A/S




                                                                                                                                4
9/30/2011




      How we get CEM* started
 • Normally CEM is a top-down
   project                                                                                     Pre-analysis
 • Focus on business critical                                                                   and CJM**
   areas – corporate customers
   (BtB)
 • 3 phase model (see graphic)                                                                    Pilot show
                                                                                                     case
 • A setup with our agency
   Wunderman together with
   CEM* specialists from the
                                                                                             Implementing
   company SJP A/S.                                                                             CEM*

         Note: *Customer Experience Management **Customer Journey Mapping




      Customer Journey Maps
         A.                      B.                             C.                                       D.                 E.
      Awareness           Contractual stage            Managing the contract                          Reviews        Contract renewal
A1.                B1.              B2.         C1.               C2.           D1.                           D2.    E1.




      Critical touchpoints
          A.                      B.                             C.                                        D.                E.
       Awareness           Contractual stage            Managing the contract                           Reviews       Contract renewal
 A1.                B1.              B2.         C1.               C2.           D1.                           D2.    E1.




                                                                                 Flyer satisfactio n survey
                                                                                 where SAS is evaluated




                                                                                                                                                5
9/30/2011




Triggerbased dialogues and CJM

• CJM and CEM gave birth to several
  activities
• The activity Welcome Home
• Customer Service and Facebook
• Reporting takes the trigger dialogues
  from an operational to a more tactical
  and strategic level




Re-think product definition

                                  Earn

                         Feel              Burn




              Simplify                            Listen

                                 Make
                                 you fly

               Inspire                            Learn




                         Share             Play

                                 Connect




   The                         The                            The
Facebook                    Customer                         New
Experience                  Experience                     Dilemma




                                                                            6
9/30/2011




Everything is fine…or?

• Loyalty programmes including our FFP
  called EuroBonus
• Downward sloping tendency
• Even though we are as popular as ever
• Loyal customers do not order as we
  expect them to do

                                                                                                  Pe




Are we naive as marketers?

          “Loyalty, by definition and in practice, is a concept that suggests
          a kind of fidelity that transcends personal advantage.
          I am loyal to my country. If asked to defend it, I would put my
          Life at risk, as millions throughout history have done.
          I am loyal to my family. If they are threatened, I will protect them
          at any cost, as many do every day…
           But can I be similarly ‘loyal’ to a brand of toothpaste, soap,
          beer, airline service or office equipment?

          Not this side of a mental institution!”
                                                                                 Lester Wunderman




We are facing a new agenda

• Monologue to dialogue*
• Share experience from 10 to
  10,000**
• low-cost communications,
  data-processing, rapid
  innovation, and great
  increased consumer
  expectations***
• Fragmented markets due to
  increased choices and new
  options***
Sources: * The future of marketing: From monologue to dialogue, EIU 2006. **Forrester Research.
***Not for free by Saul J. Berman, Feb 2011




                                                                                                              7
9/30/2011




2001



2011                                         Impact on
                                           relationships
                                            and loyalty




What actions can we take?

                                     “Customer
Customers          Marketers         partnership is a
                                     shared journey to
                                     create a future for
                   Customer Driven
Mass exposure
                     Innovation      both parties that is
                                     better than either
                      Customer       could have
Customer power
                     Partnership     developed alone”
                     Customer        Source: Leading on the
Intelligence and
                     Experience
  ”real” values                      Edge of Chaos, Emmett C.
                    Management
                                     Murphy and Mark A.
                                     Murphy




                                                                       8
9/30/2011




 What actions can we take?

• Accept the facts of the new agenda                                            125
                                                                                         25    25
                                                                                                     25
• New marketing KPIs should focus on                                                     25    25

  Customer Flow, Conversion and
  Average cyclus/flow
                                                                                          10   0
• Re-design products, services and                                              500                  400
                                                                                          10   80
  solutions including loyalty programmes
• Innovation is seen as the ”saver” *                                                     10   60
• Combine Customer Insights with                                                125       10   20    25
  Business development **
                                                                               ©Jacob Bentzen 2011

Sources: *CMO Index Denmark 2011 ** Not for free by Saul J. Berman, Feb 2011




 Business not as usual
 • A perspective of what we can do
 • Nearly every industry is widely available low-cost
   disruptions originating from 5 market trends
 • Revenue innovation by maximizing profitability from
   existing revenue streams and indentify new ones
 • Solution is doing more with existing assets
        1. Segment after behaviour (existing and future behaviour)
        2. Grow revenue organically in the near term using framework
           from pricing, payer, and packaging innovation strategies
        3. Experiment
        4. Repeat


        Sources: Not for free by Saul J. Berman, Feb 2011




 Conclusions

 • The Facebook case learned us how to spread
   important messages with gains and almost cost free
 • Like after the volcano eruption – marketers today face
   a new agenda and is forced to re-think their strategy
 • Loyalty programmes looses its power of relationships
 • Marketing departments can well be needed to drag in
   other disciplines as business innovation to cope with
   the new agenda




                                                                                                                  9
9/30/2011




            What do you think…. ?




Tack!
Or thank you as you say in English.


 Jacob Bentzen
 Manager CRM Strategies

 SAS Scandinavian Airlines
 +45 3232 3551
 jb@sas.dk



 Visit us at flysas.com sas.no sas.se sas.dk

 www.facebook.com/sas
 www.twitter.com/sas
 www.flickr.com/sasgroup
 www.youtube.com/flysas

                                               30




                                                          10

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Notes Version: From Volcano Ash To Customer Satisfaction

  • 1. 9/30/2011 From Volcano to Ash to Customer Satisfaction • Tuesday, October 4th from 11:30 to 12:15. • Session level: Advanced • Track: Retention & Loyalty Picture Source: www.natural-calamity.info WELCOME The The The Facebook Customer New Experience Experience Dilemma 1
  • 2. 9/30/2011 The facebook story +10 Millions passengers unable to travel over the whole period Source: European Commission The The The Facebook Customer New Experience Experience Dilemma The facebook story • HELP our customers that were stranded • A team of 20 employees from different departments • Worked from 5 AM to 2 PM each day • Used Facebook, Twitter, flysas.com (homepage), SMS • Instant messaging, Smart phones, access to the updated info and hotline to right people 2
  • 3. 9/30/2011 The results did open eyes • 5,000 questions posted 99% answered within five minutes • SAS message displayed more than 1 million times • More than 17.000 new fans in one week (+270%) • Tons of positive media-coverage • Index 40 to 90 measuring “caring” in online conversations • Awards internationally Two pregnant women stuck d in Spain were contacted via FB and were put on the fist flight home Learning points and reflections Customer Journeys WoS Effect ORGANISATIOANAL CHANNEL OMG →Yes! Contact price CEM CRM / MARKETING CUSTOMER SATISFACTION New Agenda 3
  • 4. 9/30/2011 The The The Facebook Customer New Experience Experience Dilemma How to commercialize from this A. B. C. D. E. Awareness Contractual stage Managing the contract Reviews Contract renewal A1. B1. B2. C1. C2. D1. D2. E1. • Lessons learned • The organsiation responded automatically • Customer journey mapping activities One focus: To keep or increase Customer Satisfaction scores through great customer experience Defining CEM CEM is a leadership discipline which purpose is to ensure that the company delivers extraordinary positive customer experiences. When delivering extraordinary experiences the company differentiates positively and stimulates profitable customer behavior Extraordinary experiences is very much about balancing the rational and emotional experience to give the customer . CEM DIFFERENTIATION EFFECT ON RESULTS +10% +9% +5% Source: A study about The effects of CEM by Copenhagen Business School and SJP A/S 4
  • 5. 9/30/2011 How we get CEM* started • Normally CEM is a top-down project Pre-analysis • Focus on business critical and CJM** areas – corporate customers (BtB) • 3 phase model (see graphic) Pilot show case • A setup with our agency Wunderman together with CEM* specialists from the Implementing company SJP A/S. CEM* Note: *Customer Experience Management **Customer Journey Mapping Customer Journey Maps A. B. C. D. E. Awareness Contractual stage Managing the contract Reviews Contract renewal A1. B1. B2. C1. C2. D1. D2. E1. Critical touchpoints A. B. C. D. E. Awareness Contractual stage Managing the contract Reviews Contract renewal A1. B1. B2. C1. C2. D1. D2. E1. Flyer satisfactio n survey where SAS is evaluated 5
  • 6. 9/30/2011 Triggerbased dialogues and CJM • CJM and CEM gave birth to several activities • The activity Welcome Home • Customer Service and Facebook • Reporting takes the trigger dialogues from an operational to a more tactical and strategic level Re-think product definition Earn Feel Burn Simplify Listen Make you fly Inspire Learn Share Play Connect The The The Facebook Customer New Experience Experience Dilemma 6
  • 7. 9/30/2011 Everything is fine…or? • Loyalty programmes including our FFP called EuroBonus • Downward sloping tendency • Even though we are as popular as ever • Loyal customers do not order as we expect them to do Pe Are we naive as marketers? “Loyalty, by definition and in practice, is a concept that suggests a kind of fidelity that transcends personal advantage. I am loyal to my country. If asked to defend it, I would put my Life at risk, as millions throughout history have done. I am loyal to my family. If they are threatened, I will protect them at any cost, as many do every day… But can I be similarly ‘loyal’ to a brand of toothpaste, soap, beer, airline service or office equipment? Not this side of a mental institution!” Lester Wunderman We are facing a new agenda • Monologue to dialogue* • Share experience from 10 to 10,000** • low-cost communications, data-processing, rapid innovation, and great increased consumer expectations*** • Fragmented markets due to increased choices and new options*** Sources: * The future of marketing: From monologue to dialogue, EIU 2006. **Forrester Research. ***Not for free by Saul J. Berman, Feb 2011 7
  • 8. 9/30/2011 2001 2011 Impact on relationships and loyalty What actions can we take? “Customer Customers Marketers partnership is a shared journey to create a future for Customer Driven Mass exposure Innovation both parties that is better than either Customer could have Customer power Partnership developed alone” Customer Source: Leading on the Intelligence and Experience ”real” values Edge of Chaos, Emmett C. Management Murphy and Mark A. Murphy 8
  • 9. 9/30/2011 What actions can we take? • Accept the facts of the new agenda 125 25 25 25 • New marketing KPIs should focus on 25 25 Customer Flow, Conversion and Average cyclus/flow 10 0 • Re-design products, services and 500 400 10 80 solutions including loyalty programmes • Innovation is seen as the ”saver” * 10 60 • Combine Customer Insights with 125 10 20 25 Business development ** ©Jacob Bentzen 2011 Sources: *CMO Index Denmark 2011 ** Not for free by Saul J. Berman, Feb 2011 Business not as usual • A perspective of what we can do • Nearly every industry is widely available low-cost disruptions originating from 5 market trends • Revenue innovation by maximizing profitability from existing revenue streams and indentify new ones • Solution is doing more with existing assets 1. Segment after behaviour (existing and future behaviour) 2. Grow revenue organically in the near term using framework from pricing, payer, and packaging innovation strategies 3. Experiment 4. Repeat Sources: Not for free by Saul J. Berman, Feb 2011 Conclusions • The Facebook case learned us how to spread important messages with gains and almost cost free • Like after the volcano eruption – marketers today face a new agenda and is forced to re-think their strategy • Loyalty programmes looses its power of relationships • Marketing departments can well be needed to drag in other disciplines as business innovation to cope with the new agenda 9
  • 10. 9/30/2011 What do you think…. ? Tack! Or thank you as you say in English. Jacob Bentzen Manager CRM Strategies SAS Scandinavian Airlines +45 3232 3551 jb@sas.dk Visit us at flysas.com sas.no sas.se sas.dk www.facebook.com/sas www.twitter.com/sas www.flickr.com/sasgroup www.youtube.com/flysas 30 10