SimpliFlying Featured - 'Social' Security
 

SimpliFlying Featured - 'Social' Security

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Low Cost & Regional Airline Business, Dec 2012 - Airlines today are finding an increasing need to speak to travellers in the same language and using the same mediums that they use in their daily ...

Low Cost & Regional Airline Business, Dec 2012 - Airlines today are finding an increasing need to speak to travellers in the same language and using the same mediums that they use in their daily lives. Social platforms have proven to be an effective tool for the modern traveller when gathering information, sharing reviews, planning trips, gaining advice and, most importantly, making the decision to travel to a particular destination with a particular airline. The age of the connected traveller has arrived.

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SimpliFlying Featured - 'Social' Security SimpliFlying Featured - 'Social' Security Document Transcript

  • Survey: social media Social security Consultancy firm SimpliFlying has studied the social media habits of 29 airlines worldwide to see how they use these platforms. Here, its findings are revealedA irlines today are finding an increasing need to speak to travellers in the same language and using the same mediums that they use in their daily lives. Social platforms have proven to be an effective tool for the modern traveller when gathering information, sharing reviews, planning trips, gaining advice and, most importantly, making the decision to travel to a particular destinationwith a particular airline. The age of the connected traveller has arrived.Which department? BudgetAbout 75% of the 29 airlines surveyed adopt a cross-functional model, with customer service Over 85% of the airlines surveyeddepartments emerging as the most common users of social media, compared to a year ago have specifically allocated part of theirwhen corporate communications roles were ranked first. It appears that while social media is marketing budgets to social media. Theused as an outlet for corporate and marketing messages, airlines are also increasingly using majority of them (over 70%) said that upit to perform customer-related services. AirAsia, most tellingly, has decided to move all its to 10% of their marketing budget goescustomer service efforts online and has shut down its call centre operations in Singapore, towards social media. Taking into accountcreating a key virtual hub for the low-cost carrier. the different sizes of marketing budgets, this means that airlines’ social media What social media metrics are used for budgets are spanning from a few thousand100 dollars to over a million dollars. 86.2% 86.2% As most social media activities take place 80 72.4%100 65.5% on the airlines’ own online assets, lower 86.2% 86.2% costs are incurred as compared with paying 60 48.3% 80 72.4% 65.5% for advertising space on external mediums. 40 60 48.3% This helps to explain why the allocation of 20 the marketing budget dedicated to social 40 media is relatively small – the campaigns 0 20 Customer insights, Customer Performance Budgeting or New product simply cost less to run than other, more segmentation, service or management planning strategies traditional marketing methods. 0 or targeting support (internally) Customer insights, Customer Performance Budgeting or New product However, resources for social media do segmentation, service or management planning strategies not only come from marketing. According 60 or targeting support 55.2%(internally) Cross-functional roles performed by social media staff to 62% of the airlines surveyed, other 50 44.8% departments contribute to the social media 60 55.2% 37.9% 40 budget as well. 50 44.8% 30 24.1% Corporate communications and customer 40 37.9% 20 13.8% 13.8% service departments are the most common 30 10 24.1% contributors to social media budget, aside 20 13.8% 13.8% from the marketing department. In fact, 0 10 Social media Marketing Customer Corporate e-commerce Other 83.3% of the airlines within the group only service communications surveyed receive budget from the corporate 0 support Social media Marketing Customer Corporate e-commerce Other communications department, while 61%100 only service communications see budget contribution from the customer 83.3% support service department. 80100 61.1% 83.3% 60 80 44.4% 64 Low Cost & Regional Airline Business www.lowcostandregional.com − December 2012 40 61.1% 60 44.4% 16.7% 20 11.1%
  • dollars $ 26-50% $ Survey: social media 3.4% Resources Fewer than 10 Over 75% of airlines invest more than man hours are 90 man hours per month on social media, spent per month 75.8% with the majority having up to six staff 6.9% 10 to 50 man hours OVER 90 working on it. As mentioned, the budgets for social media span a very wide range, spent per month man hours from a few thousand dollars to over a spent per month 13.7% million dollars. While some airlines are 50 to 90 man hours spent per month only starting to take off in social media, it is apparent that others have recognised the impact that social media has on their businesses, pouring large investments into their activities. Staff numbers Top % goals driven by social media 3 of marketing budget that 1-3 goes into social media 37.9%ollars 4-6 17.2% 10-25% 7-9 100% 86.2% 20.6% 72.4% None 10+ 24.1% Less than 10% 26-50% $ Brand engagement Customer service Revenue Clearly, social media is a tool that is relevant not only for airline marketing. 100 % of marketing budget that 86.2% 86.2% As budget seeps in from other departments 10.3% 3.4% 6.9% goes into social media 80 72.4% such as e-commerce, loyalty and sales, 31.3% 48.2% 65.5% 10-25% 60 airline organisations are recognising the fact 48.3% None that social media has now inched closer to not Less More Have5.8% 40 Less than than than broken having a direct impact on the bottom line. 1 year 2 years 2 years even Unsure Less than 10% 26-50%R 90 20ours 0 Customer insights, Customer Performance Budgeting or New producter month segmentation, service or management planning strategies or targeting support (internally) Social marketing budgets ranges 60 55.2% 1-3 Over five 50 44.8% million dollars 4-6 17.2% 40 37.9% 7-9 20.6% A few thousand 10+ 24.1% 30dollars 24.1% 20 13.8% 13.8% 10$ $ 0 Social media Marketing Customer Corporate e-commerce Other only service communications Contribution to social media budget from other departments ranges 3.4% support Social marketing budgets Fewer than 10 1-3 100 hours are man Over five 83.3% spent per month 75.8% million dollars 4-6 17.2% 80 6.9% 7-9 10 to 50 man hours 61.1% OVERthousand A few 90 dollars 10+ 60 spent per month man hours 44.4% spent per month 13.7% 40 50 to 90 man hours $ $ spent per month 16.7% 20 11.1% 0 Corporate Customer Sales e-commerce Other 3.4% communications service Fewer than 10 man hours are Top 3 goals driven by social media spent per month 75.8% Other 6.9% 13.8% December 2012 − www.lowcostandregional.com 100% 86.2% Lack 72.4% of budget 10 to 50 man hours 37.9% OVER 90 Cost & Regional Airline Business Low 65 spent per month man hours Insufficient allocation of resources 51.7% spent per month 13.7%
  • 50 to 90 man hours 80 72.4% 65.5% 75.8% spent per month 6.9% 60 48.3% 10 to 50 man hours OVER 90 Survey: social media 40 spent per month man hours spent per month 20 13.7% 50 to 90 man hours 0 spent per month Customer insights, Customer Performance Budgeting or New product Top 3 goals driven by social media segmentation, service or management planning strategies 100 or targeting support (internally) Return on investment 86.2% 86.2% 86.2%80 72.4% While almost half of the airlines are unsure about the return on their 65.5% 60 55.2% 100% 72.4% 86.2% have mapped the 65.5% of social social media investment, many 60 72.4% value 50 44.8% 48.3% media performance to business goals. The top three business goals 48.3% 40 40 37.9% Top 3 goals driven by social media that airlines are driving through social media are brand engagement, 20 30 24.1% customer service and revenue. Brand Customer 20 13.8% Revenue 13.8% 0 engagement service 100% 86.2% 72.4% Customer insights, 10 Customer Performance Budgeting or New producthts, Time Customer to break even service or or management segmentation, Performance Budgeting New product planning strategies service or or management targeting 0 support planning (internally) strategies support 10.3% (internally) 3.4% Social media 6.9% Marketing Customer Corporate e-commerce Other only service communications 6031.3% 55.2% 48.2% support Brand Customer 55.2% engagement service Revenue 50 100 44.8% 44.8% Less More Have not 83.3% 40 37.9% Less than than than broken 80 37.9% 30 year 1 2 years 2 years even Unsure 61.1% 24.1% 10.3% 3.4% 6.9% 60 24.1% 20 13.8% 13.8%44.4% 31.3% 48.2% 10 40 13.8% Less 16.7% More Have not 0 20 11.1% Social media Marketing Customer Corporate e-commerce Less than Other than than broken MarketingChallenges Customeronly 0 Corporate service e-commerce communications Other 1 year 2 years 2 years even Unsure The biggest challenge faced by airlines support service communications Corporate is expand their social media teams. e-commerce Customer Sales Other support communications service the insufficient allocation of resources to 100 Regarding the expected impact of 83.3% social media. social media on the airline’s operating 80 Over 70% of airlines surveyed plan 61.1% income in the next three years, half of Other 13.8% 60 to increase their social media budget all theof budgetrespondents are unsure. 61.1% Lack airline 44.4% 37.9% in the next year. This is almost a two-fold allocationspite of this, more airlines than 40 44.4% Insufficient In of resources 51.7% increase compared with a year ago,Low tolerance for risk orplanning to increase13.8% 16.7% 20 when not are failure 11.1% resource Conclusion 16.7% only 40% of airlines surveyedsenior management interest or supportsocial media. 13.8% 11.1% Lack of planned to allocation for It is apparent that social media is only 0 Difficulty in finding functional talent 17.2% going to become a bigger part of the Corporate Customer Sales e-commerce Other Customer communications Sales service e-commerce technologyOther Lack of infrastructure 31.0% business agenda for airlines. Theyns Challenges faced by airlines using social media service Organisational structure are recognising the ability of social 48.3% media to impact business goals and the Other 13.8% 0 10 20 30 40 50 60 bottom line, and that social media is Other 13.8% Lack of budget 37.9% becoming more integral across more Lack of budget 37.9% Insufficient allocation of resources 51.7% business functions. allocation of resources 51.7% 13.8% Low tolerance for risk or failure 13.8% As the social media space becomes rance for risk or failure 13.8% Lack of senior management interest or support 13.8% more crowded and competitive, airlinesment interest or support 13.8% Difficulty in finding functional talent 17.2% need to bear in mind their long-term 6.9%finding functional talent 17.2% Lack of technology infrastructure 31.0% business goals. chnology infrastructure 31.0% Organisational structure 48.3% The need for, and the effectivenessOrganisational structure 48.3% 6.9% 0 10 20 30 40 50 60 of, successful social media interaction 62.1% 0 10 20 30 40 50 60 6.9% initiatives are hinged on two crucial factors: the rise of today’s modern Plans to increase budget for social media next year traveller who constantly stays engaged 13.8% 3.4% 13.8% in his social networks; and the ability to correctly identify the best platforms to 6.9% Likely to increase but reach this audience and cultivate social 6.9% amount unknown advocates. To achieve this, airlines Likely to increase budget need to have a firm back-end support 6.9% by less than 25% 6.9% 62.1% structure in place. Likely to increase budget 6.9% 62.1% by 25-50% 6.9% No increase Likely to decrease 3.4% Source: Unsure 3.4% All charts: Airline Social Media Outlook 2012 by SimpliFlying Likely to increase but Likely to increase but amount unknown amount unknown Likely to increase budget 66 Low Cost & Regional Airline Business www.lowcostandregional.com − December 2012 Likely to increase budget by less than 25% by less than 25% Likely to increase budget Likely to increase budget by 25-50% View slide