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Social Media VOC Measurement for Airlines
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Social Media VOC Measurement for Airlines

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Here's some snippets from a recent econometrics piece for an airline operator. The operator has struggled for a number of reasons (internal and external). Now wanted to show more accountability for …

Here's some snippets from a recent econometrics piece for an airline operator. The operator has struggled for a number of reasons (internal and external). Now wanted to show more accountability for it's marketing spend.

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Transcript

  • 1. Bringing Voice of the Social Customer into Airline Econometrics
  • 2. Client Situation 1)Low cost airline has found it’s profitability squeezed in the last year. 2)Media spending has increased threefold – There is a need for accurate measurement and accountability. Up to now, everything has been based on “gut feel”. 3)Online customer experience reviews on SKYTRAX are becoming increasingly important – can we measure the impact they have on flight bookings? 4)Key question: how can we optimise media spending to ensure it is geared for bottom-line growth. 1)Undertake Econometric analysis to quantify the impact of key business growth drivers including media and marketing. 2)Measure the impact of social/online customer reviews on flight bookings. 3)Assess the relationship between media spending and business constraints such as seat availability (Passenger Load Factor) 4)Optimise spending such that we can reallocate media investments to drive future growth in flight bookings (not included in this deck) Our Approach
  • 3. Developing the airline brand Semantic Engagement Index SEITM SKYTRAX is an online airline quality review site Stance-Shift AnalysisTM algorithm applied to social media brand commentary for the last 3 years. Mine social media conversations and online reviews Apply our Linguistics approach to textual corpus Develop a trended SEI metric for the airline brand
  • 4. 37% of bookings driven by: Macro-factors Flight Prices Seasonality JetFuel Prices Exchange Rates Ashcloud Olympics Display Network (5 %) Display Premium (2 %) Display Retargeting (6 %) Branded Paid Search (14 %) Generic Paid Search (0 %) SEO Google Trends (7 %) Video on Demand (3 %) TV (6 %) Social Media Engagement (SEITM) (9 %) Bringing in the customer experience via SKYTRAX online reviews, Facebook and Twitter. Media Contributions: Bringing the Social Customer Experience into Measurement New destinations add 8% to flight sales. Digital Media is the dominant driver of this airlines’s business, although it previously didn’t know how important it really was.
  • 5. 5 Flight Bookings Flight Bookings Flight Bookings +31% Lift +51% Lift +65% Lift +38% Lift Driving Growth via Integrated Media Measurement The marketing mix is like a symphony generating more than the sum of its parts
  • 6. Seat Availability measured by Airline Passenger Load Factor (PLF) As Seat Availability Drops, the Demand-Price Relationship Upends Like most capacity constrained service operators (for e.g. trains and hotels) airlines are able to charge higher prices as the supply of remaining seats falls.
  • 7. Marketing ROI per Pound
  • 8. Digital Media ROI vs Seat Availability As seat availability reduces, flight booking momentum and marketing ROI are stronger. Less marketing spend is therefore required. Seat Availability measured by Airline Passenger Load Factor (PLF)
  • 9. Marketing Spend Optimisation Spending optimisation finds +4% more revenue by reallocating the current 50MM budget towards more branded paid search and improving customer Satisfaction ratings through SKYTRAX
  • 10. Michael Wolfe CEO Bottom-Line Analytics Global E: mjw@bottomlineanalytics.com M: 770.485.0270 www.bottomlineanalytics.com Masood Akhtar Managing Partner, Analytics (EMEA) Bottom-Line Analytics Global E: ma@bottomlineanalytics.com M: +44 7970 789 663 www.bottomlineanalytics.com Get in touch to learn more