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 Facebook

Experience

TheCustomer

Experience

The New

Dilemma

The facebook story

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

The Facebook

Experience

TheCustomer

Experience

The New

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

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 reflectionsO

RG

AN

ISA

TIO

AN

AL

OMG →Yes!

Customer Journeys WoS Effect

Contact price

CH

AN

NE

L

CR

M /

MA

RK

ET

ING

New Agenda

CEMCUSTOMER SATISFACTION

The Facebook

Experience

TheCustomer

Experience

The New

Dilemma

How to commercialize from this

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

One focus:

A.Awareness

E.Contract renewal

A1. B1. B2. C1. C2. D1. D2. E1.

B.Contractual stage

C.Managing the contract

D.Reviews

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.

Extraordinary experiences is very much about balancing the rational and emotional experience to give the customer .

When delivering extraordinary experiences the company differentiates positively and stimulates profitable customer behavior

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

CEM +10%

DIFFERENTIATION +9%

EFFECT ON RESULTS +5%

How we get CEM* started

• Normally CEM is a top-down project

• Focus on business critical areas – corporate customers (BtB)

• 3 phase model (see graphic)• A setup with our agency

Wunderman together with CEM* specialists from the company SJP A/S.

Pre-analysis and CJM**

Pilot show case

Implementing CEM*

Note: *Customer Experience Management **Customer Journey Mapping

Customer Journey Maps

A.Awareness

E.Contract renewal

A1. B1. B2. C1. C2. D1. D2. E1.

B.Contractual stage

C.Managing the contract

D.Reviews

Critical touchpoints

A.Awareness

E.Contract renewal

A1. B1. B2. C1. C2. D1. D2. E1.

Flyer satisfaction survey where SAS is evaluated

B.Contractual stage

C.Managing the contract

D.Reviews

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

Make you fly

Earn

Burn

Listen

Learn

Play

Connect

Share

Inspire

Simplify

Feel

The Facebook

Experience

TheCustomer

Experience

The New

Dilemma

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

2001

2011 Impact on relationships and loyalty

What actions can we take?

Customers Marketers

Customer Experience

Management

Customer Partnership

Customer Driven Innovation

Intelligence and ”real” values

Customer power

Mass exposure

“Customer partnership is a shared journey to create a future for both parties that is better than either could have developed alone”

Source: Leading on the Edge of Chaos, Emmett C. Murphy and Mark A. Murphy

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

Customer Flow, Conversion and Average cyclus/flow

• Re-design products, services and solutions including loyalty programmes

• Innovation is seen as the ”saver” *• Combine Customer Insights with

Business development **

25 25

2525

10 60

10 20

10 0

10 80

125 25

500 400

125 25

What actions can we take?

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

©Jacob Bentzen 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

What do you think…. ?

?

30

Tack!Or thank you as you say in English.

Jacob BentzenManager CRM Strategies

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

Visit us at flysas.com sas.no sas.se sas.dk www.facebook.com/saswww.twitter.com/saswww.flickr.com/sasgroupwww.youtube.com/flysas