How to customize marketing efforts without violating personal data?

With all the news about the “close quarter” searching in the United States at airport security check points, one might be excused for thinking that airlines are getting a bit too close for comfort.  Technology that spies on you, airport security that rubs you up… and, last Friday, airports closed in certain places around Europe due to weather and flash controller strikes.  All the same, I found this recent article “Airlines Get Personal (pdf)“, written by Andrew Compart, Transport editor on Aviation News, of interest.  Airlines getting up close and personal?

Airlines Get Personal

Getting beyond eVIL 2.0

As the tension mounts about the incursions on privacy and potential mismanagement of personal data becomes headline material, there is a seeming de-emphasis on what is good about personalized service.  Personalization cannot happen without a degree of understanding and knowledge of the individual in question.  Customer Relationship Marketing, when well done, should be a time saver, a positive surprise and, ultimately, personally satisfying.  If it is not, you ought to have the chance to unsubscribe, opt out.  Somehow, paranoia is setting in as the press hankers on the negative side of Big Brother, what I like to term the eVIL 2.0.  We are moving into a phase of protection rather than positive projection, to use a phrase I picked up while listening to Jean-Marc Manach (author of a book whose title is roughly translated: “Private Life, a problem for Old Farts?” and the Bug Brother blog on LeMonde).

The real challenge for companies wanting to create a personalized marketing approach is threefold:  first, having a company culture that is galvanized around the customer; secondly, creating a voice and service level that is coherent with the brand and is shared, de facto, throughout the company; and, thirdly, finding or recruiting the expertise (aka talent).  On the one hand, there is a need for technical expertise.  As written by Compart in the article, “[j]ust because things can be done, does not mean they are easy.”  There is also a need to find talent able to listen to and engage with customers and one’s community in an online dialogue where the conversation is truly happening — in complement to any “CRM system” (Siebel, Salesforce, etc) that is installed.  In other words, getting personal means knowing how to communicate on a personal level.  Making a machine do this is, as yet, an imperfect science.  Having human beings do it is evermore expensive and, certainly, hard to scale with consistency.  Yet, if we, as a society choose to block off all access to personal data in a response to eVIL 2.0, the chances are that — for those hoping CRM means “Conversation, that is Relevant and Meaningful” — will have to wait a good deal longer.

What do you think of the raging debate on privacy protection and the opportunity for personalized customer service?  Do you know of any good examples of companies navigating the delicate path between privacy protection and a powerful & personalized CRM?

Looking up at this message board at CDG airport the other day, I could not help but notice the similarity in the logos of Copa Airlines and Continental Airlines. Dating back to a 1998 strategic alliance between these two companies (about which I previously knew nothing), it would seem that one of the cost-savings that they considered was merging the marketing departments? If Copa is well known in Panama, however, it remains a rather minuscule player versus Continental. The question that comes to mind is how on earth they came up with the idea to “mirror” each other’s brand logos? The logos are so similar, enough to provoke confusion, yet by being different they create massive duplication. Another missed opportunity is on their websites: they have not synergised their website platforms either… curious no?

Yes, the airline industry has other things to worry about (profitability, volume and customer satisfaction…), but it would seem the marketing department has been asleep in the cockpit here.

The battle of the travel space has moved to the social media space, at least in Europe. In November 2008, Air France/KLM launched its Bluenity social media site, joining the Thalyseo site for train travellers on continental Europe (between Marseille and Amsterdam).  Travellers on Air France/KLM can find out good addresses for their destination, connect with other flyers in their network, share cabs…  Its tagline is: Same place, same time.

In the same basic timeframe as Air France, British Airways beta launched  (Oct 2008) its Metrotwin site, Two Cities, One Place, an online community for people who fly BA’s most popular route between New York and London.  Whereas Bluenity is global in scope, Metrotwin is focused merely on London and New York.  It features recommendations of the best places to go in both cities; users can suggest a twin of each restaurant, attraction or neighbourhood in the other city.  The site also features the Metrotwin blog with a line-up of ten bloggers.

In a follow on act, BA launched another social site last month (February 17th) to promote the BA Great Britons programme, which offers 180 free flights each year to any person who wants to fly somewhere to develop their passion or talent. The public has the final say with an online vote.  The log-in authorisation to the site is through Facebook Connect in order to make registration easy.  If you want to apply, however, you had better hurry up as the application deadline ends in 6 days.

In any event, the Bluenity and Metrotwins sites have merits in their easy look & feel, but Metrotwin, with its design and home page, is substantially more inviting.  Unfortunately, with the cutbacks in travel, I don’t know just how successful these sites will be.  In any event, it is coincidental to see BA and AF launch their social media platforms: same idea, same time.  What do you think of these initiatives?  Quid the American airline companies?

Airline Ads — the good, the bad and the luxury 

In these trying economic times, one of the industries that will inevitably be hit hard (again), will be the airline industry. Whether for personal or business travel, there is likely to be a good amount of seat-belt tightening. Some wise folk would say that NOW is a good time for the companies [that can afford it], to invest in attracting new business. In this vein, I took a look at some of the print advertising messages by airline companies around the world. While I certainly can’t say that I did a definitive and comprehensive search of all the ad creatives, I did find that there were certain patterns. When I take the NORTH AMERICAN companies, for example, it seems to me that the companies are communicating less about the experience in the plane and more about the “dream” of travel and the number of destinations serviced. In the creatives here (which I believe may be a bit dated) American Airlines (left) puts forward that it flies six times a day from NYC to London “via cloud nine.” A second American Airlines ad (right) presents the benefits of staring out the window. Implicitly, they are asking you not to look at the quality of service inside the plane, no? 

 

More current, American’s billboard ad above is another curious statement. What are they selling? They are proposing planes that know how to land in water? Not going to rock my boat, if you see what I mean. The creative concept here is to show that you can have wifi internet access in flight. Dubious item to search if you are trying to encourage people to fly. To the right, you see Delta pushing its inflight entertainment (curiously promoting playing its Texas Hold’em game against fellow passengers). I would be remiss not to include Southwest, a true lovemark, which is proud of its advertising (historical creatives posted on its own site). But, even Southwest, in this output (left), is discussing the technology equipment (and while we haven’t heard the last about inflight telephone conversations), we are again not truly onboard.

And then Air Canada (left), is encouraging pedestrians to consider flying with its “People Working Above” humour. Again, not much content in the way of in-cabin service. Had they picked snow-packed scenery (there is a BIT) and miserably cold people, then the concept might have been to incite people to fly away to warmer climates? Bottom line, the North American companies seemed to be more prone to communicate about the concept of flying, rather than the experience itself.

EUROPEAN COMPANIES – THE “JE NE SAIS QUOI…” 

After the North American ads, I took a look at the European companies. Mainland companies were not as “out of the cabin” as the American companies. Air France’s creative (left) has been running for quite a while. It’s a nice image, but it leaves me wondering about the reality in the cabin. And their competition up north, Brussels Airlines (formerly Sabena), had decidedly the same creative air (below). Something about water as being part of the flying experience? The need to sit on a wooden board? I, for one, am absolutely horrible at sitting on the ground. Interestingly, both ad creatives use women. 

 

England‘s two primary airlines, Virgin Atlantic and British Airways, have somewhat different approaches. Virgin allows for cheeky claims as well as innovative service concepts. On the left, you have an ad (9 inches) targetted presumably toward the female customer yet again. On the right, Virgin is going at the pre-flight experience with the offer of the limousine and a fast track check-in into the Virgin lounge. “Fastly Superior” and a cut above in terms of service proposition. Whether it is 9 inches of pleasure or the limo-to-lounge service, there is little humanity in this offer.

Moving to Virgin’s compeition, British Airlines is communicating in this creative on the onboard experience. Again, the focus is on the “mechanical” or physical benefits on board. With a cute creative (using the windows as eyes), the ad speaks to the ability to get a real night’s sleep in the plane (all good when you are flying overnight or on very long haul flights). Of course, in this creative by BA, you have to understand that you did not fly BA in your last flight. I have snuck in an Aeroflot creative just to say that they are more in the North American category…not much to sell onboard, unless you like the idea of doing wheelies and 360s. European companies are in for tough times, just as much as in the US, with lots of short flights, expensive personnel and intense competition (and regulation). Recently, European legislators have decided to go after the European companies for improper pricing advertising. Read here for the June 2008 article from the BBC. 

 

ASIAN AIRLINE CLASS

AIRLINE COMPETITION & INFLIGHT ENTERTAINMENT

ARE YOU ON BOARD?

As the competition for airline passenger dollars is only going to get worse — between higher oil costs, personnel issues & union negotiations, terrorism threats, ecological considerations [not to mention economic crisis] — you wonder how most of the companies in the airline industry are going to get through this. In many regards, the question is whether the airline companies have kept a keen eye on customer satisfaction? For myself, there are five key criteria (in order):

• time/direct flight
• cost
• comfort
• food & amenities
• service

The first two criteria have the benefit of being quantitative. The last three are subjective and certainly vary within a company’s fleet, much less between the competitors. So, on what basis should airlines be competing?

Although the US market remains the most active in terms of volume (see here for the Worldmapper by number of flights by country), the margins are clearly under tremendous pressure and there seems to be little value creation by the US companies. The hub system, security hassles and unpredictable weather make travelling in the US already quite the burden. But, on top of that, the US airline companies seem to be in a negative spiral of cutting costs, eliminating frills and, as a consequence, taking the fun out of flying — particularly for domestic flights. It would seem that the US airlines are bent on competing on cutting of costs, which unfortunately means too many grumpy personnel and unhappy passengers.

Looking at Europe, you only have to think of the exits of SwissAir (now Swiss Intl Airlines) and Sabena (now Brussels Airlines and 45% owned by Lufthansa), the continuing tribulations at Alitalia and the massively splintered market (with each country having its own network of companies) to know that there is going to have to be a further shakeout. Moreover, the frills and pleasures of flying on European carriers isn’t particularly thrilling either. And, if the high speed train network becomes more commonplace, there will be evermore competition on the ground. But, for now, I am going to compare the experiences inflight.

To illustrate the difference in offer for two international flights with a similar duration (6 hours), I have made a few comparative snapshots of life in the cabin (economy class that is) for two different routes, with a focus on the inflight entertainment.

First [above], there is Air France (for which I am generally a big fan). On this route from Paris to Boston (26 Jun 2008), they offered a dingy inflight entertainment — with no personal screen (left – you get to see where it might be) on the flight (7 hours in broad day light). What you get is the ‘ole pathetically small and distant general screen (to the right). The good news? You are encouraged to read or rest…On the flight back from New York to Paris, the plane was equipped with a [very small} personal screen, but on the West-to-East flight, you are only interested in sleep.

Now taking look at another international flight of a similar distance, Paris to Dubai with Emirates Airline; the story is radically different. The personal screen (pictured to the right) comes with masses of choice. The touch screen is very user friendly (I blogged about this before — see here). And, even the booklet announcing the inflight entertainment is interesting to read. It comes with an informative music anthology (scanned below)…

What is even more startling is when you start to compare Emirates Economy Class and Air France Business Class. On the left, you see the Air France business class experience, Paris to New York. The screen is stationed on the back of the seat in front of you which, good news/bad news, is quite a distance. And, on the right above, you see the Emirates’ economy class entertainment system. The screen is touchscreen (better functionality), bigger and, as you can see with the seat number (28A), is entirely personalized. You might say it’s a small detail. First, details count. Secondly, I feel it is a huge difference because it is what I want in a long flight. Kudos for knowing your customer.

The truth is, however, the level of comfort, service and amenities absolutely depends on the route you are on. Some routes — for the very same airline — are better equipped than others. The problem with such “variation” is that, as a passenger, you no longer can trust the brand you are choosing. And, in terms of comparing one airline with another, unless you have the option of taking different airlines on the same route, you and I are systematically evaluating apples and oranges. So, there remains plenty of confusion out there and, to the extent that timing and cost remain top considerations, the “fluffy stuff” all too often takes a backseat.

All this to say, all things are not created equal in the airline industry. And, with the stiffening of competition, the economic crisis and inflexible cost structures, you have to imagine that the market forces will not be kindly for the airline companies that have taken the fun out of flying for both cabin staff and passengers. In another post to come, I am going to look at the advertising campaigns as a looking glass into the strategies employed by winning and losing airlines. Watch this space. In the meantime, please give me your feedback!

Boy, you’re going to carry that weight...

With the rising cost of fuel on the tips of all our tongues, the chase to reduce fuel costs is in full tilt. I am fascinated (if not confounded) by the work done by the airlines in this regard. It seems that every day there are new actions being taken to reduce fuel costs or pass them along to the passengers. In June, United and US Airways joined American in charging for the first suitcase (on leisure fares) — see here the Herald Tribune article from June 13, 2008.

A few interesting facts & figures:

- According to Northwest Airlines, every 25 pounds (c. 11 kilos) removed saves $440,000 annually.

- Delta has reduced its seats to the “slimline” designs that are each 5 pounds lighter…and I dare say a little less comfortable. Air France is putting a lighter chair in service for the end of 2009 which will lighten the plane load by 650 kilograms.

- Water weighs 8 pounds a gallon. So, airlines are reducing the amount of water held in the lavatory reservoirs.

- American Airlines is lightening the load of its drinks cart, enabling a saving of 2 million gallons of fuel a year, and therefore 16 million pounds or 8,000 short –ie. US– tons [or 7,143 UK tons] less fuel to transport.

Delta has asked the pilot and co-pilot to share the famously heavy manuals (the manly Jeppesen manuals, for example).

And then the gas guzzling McDonnell Douglas DC9s and MD80s are being grounded in favour of the more fuel efficient planes—hence the commercial success of the Boeing 787 which consumes 2.6 litres per passenger for 100km or the Airbus 380 (2.9l/pax).*

And now, to my main point, Air France has started to count the number of females in its passenger list in order to estimate better the passenger haul – the premise being that women are known to weigh less than men. So, the question seems around the corner: will women get to pay less? Or will the heavier passengers be charged a pound-for-pound price? I imagine the boxing terminology coming to bare: welterweight woman, featherweight fare, heavyweight human, super heavyweight savings…

Robert Mann, an airline consultant came to the same conclusion on an ABC World News webcast (Jun 11 2008), “passengers will in effect pay by the pound.”

This would be where sustainable development and travel economics marry up perfectly: the thinner you are [excluding anorexia, etc], the healthier you generally are (the less food you consume, the less hospital resources are needed…) and the less energy you use in transport (whether it is planes or cars…). Would that airlines also provided healthier foods on board!

Of course, I truly believe that travel is a wonderful aspect of progress, helping different cultures to learn from each other and, perhaps, more emphatically, to learn to work together and not to be scared of each other. The case for warming global relations and making durable global development (in sharp contrast to global warming).

Losing weight, if not losing wait…ing time?

But, sustainable development (OECD definition) should also include the performance of its passengers. It is one thing to encourage its passengers to lose weight, but what of losing the waiting time for passengers? We are getting charged for extra weight, suitcases and more. Will passengers get to charge back for late arrivals, lost productivity and other hassles on our end? The problem here is that airlines can just point the finger at another organization (the airport authority) to discharge themselves from the airport heartaches. In the end, it will likely mean that we should all be buying shares in video conference technologies and companies!

And, for nostalgia’s sake, here’s a couple of lines from an old song that could take on new meaning:

“Take a load off Fanny, take a load for free.

Take a load off Fanny, and you put the load right on me”

(Quote from the song The Weight from The Band)

——————————————————

* Source: Challenges No. 129 (19 June 2008).

The US has announced recently that citizens of the 27 visa waiver programme countries (most of Western Europe, Australia, Brunei, Japan, Singapore and New Zealand) will need to register (online) 72 hours in advance of their visit to the US. See here on the official VWP site. The new plan goes fully into effect at the beginning of 2009 (Jan 12 to be exact, after the last of the yea-end holidays are over). This is quite a new dimension to the US’ “security strengthening” policies. It means that any last minute travel to the US is ruled out entirely. Aside from giving a new meaning to lastminute.com (more like last4320minutes.com), this could have a serious impact on last minute deal-making. It will also put a crimp of rushed surgeries, funerals and marriages.

Along with the new surcharges for higher fuel prices and, now, for luggage, the nature of flying is shifting rather brutally. Is it possible that our children will travel much less frequently because of ticket pricing reminiscent of when airline travel was a novelty, security controls that make it necessary to arrive at the airport the day before and service that reminds one of the labor relations at the outset of the industrial revolution?

Overrun airports and flight paths, high fuel prices, global warming and carbon footprints are all rather dissuasive issues for airplane travel. For example, British Airways has announced a £60 fuel surcharge for long-haul flights. As the Daily Telegraph reports, “[t]hat will mean a family of four that is already paying £672 in surcharges on long-haul holiday flights must now find £872.” That equals 1,100 euros or US$1,700 at today’s exchange rate. Apparently, there are more surcharges ahead. Take a look at ClimateChangeConnection’s discussion on air travel (from whence cometh the picture above).

Surely, the new age of travel has dawned on us. Anyone care for a stroll?

It’s Good to Talk? An old British Telecom (BT) saying that’s not applicable for Eurostar … or any public transportation for that matter.

Having recently done a couple of round trips on the Eurostar I have made a few survey-of-one conclusions about the need for a standard of etiquette for cell phone usage on trains.

There is a severe need to reel in the mobile manners of travelers — and this before the airlines democratize cell phone usage on board. On these recent Eurostar trips between London and France, I started to make a mental note of the profiles of those who were prone to get up and be discrete with their telephone call and those who chose to make telephone calls while seated in the midst of their fellow passengers. Whilst my assessment obviously reflects the population on board, in terms of professional profiles, I detected a large number of lawyers [ironically] and other suits who tended not to mind talking openly. In terms of nationalities, I tended to hear more French. But, I am open for debate! [My recent experience at LAX has shown that the US traveller has equally little tact when it comes to his fellow partner.]

Typing on a computer, fiddling on the blackberry or listening to an Ipod hardly bother me. And if ever they do, hooking up a low volume Ipod is the perfect remedy. However, others speaking on the cell phone in such confined spaces do truly irritate me. Talking on your cell in the comfort of your [business class] seat demonstrates a total lack of courtesy to your fellow passengers. We have everything to learn from the etiquette of the Japanese who — admittedly reinforced with frequent public announcements — leave to find an isolated place to make an irritation-free telephone call. A culture of respect and cheap SMS are a good combination. Discretion oblige!

I know that many passengers in trains and buses around the world are also defying the most normal norms of politeness. Perhaps the transport companies will, themselves, have to intervene as they do in Japan? Otherwise, I fear the onset of liberalized mobile phone use on airplanes…

In the meantime, on line, you can find a myriad of sites giving their version of proper cell phone etiquette. Many of the ideas converge. Here are a few of them:

Infoworld – The Ten Commandments of Cell Phone Etiquette. Right on the money in terms of the major faux-pas (or ne faut pas) with a good sense of humour.
About.com – How To Respect The Rules Of Cell Phone Etiquette. A substantially dry but appropriate 7 rules…with nuances according to the person/people around you.
Wisegeek – What is Cell Phone Etiquette, with eight good points here, including the 10 foot personal space.
Digital Media Wire – 12 Unwritten Rules of Cell Phone Etiquette with some rules that should be or could be written and others that, as Scott Goldberg suggests, should remain unwritten.