A Multi-Faceted Approach to CRM at United


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A Multi-Faceted Approach to CRM at United

  1. 1. A Multi-Faceted Approach to CRM at United Joint Efforts Between United Airlines and Acxiom
  2. 2. United’s Approach to CRM• Creates the world’s most comprehensive global network, serving 370 destinations worldwide• Continued commitment to award-winning customer service and industry-leading on-time performance• Award-winning international premium products• Industry-leading loyalty program with over 85 millions total members 2
  3. 3. Created the World’s Largest Airline 3
  4. 4. Which Created the World’s Largest FFP• 90 million accounts• 30 years of transactional history• Consolidate into one industry- leading program• Plus millions and millions of unidentified customers 4
  5. 5. Data Challenges Presented Opportunities• Two different database providers and structures• Varying levels of data quality• Different policies of customer data collection• Out of date records and accounts• Little visibility into customer overlap Created an opportunity to launch an enterprise-wide customer data initiative 5
  6. 6. Transformational Times• Role of the mobile device• Increased reliance on self-service• Email an over-used channel• GPS and location based systems• Social media“The number of mobile devices hassurpassed the number of toothbrushesin the world.” Gartner CRM Summit 2011 6
  7. 7. Defining What CRM Means Evaluate All Possible Definitions Create a differentiated customer experience? Aggressive evolution of data-driven marketing? Focus on call centers and sales force Something else? 7
  8. 8. Ensure Senior-Level Support through Executive Engagement• Chief Executive Officer• Chief Financial Officer• Chief Information Officer• Chief Revenue Officer• Chief Operating Officer• Chief of Loyalty Business Unit• Marketing Leadership (several layers deep)• Operations Leadership (several layers deep)• And more… 8
  9. 9. Getting StartedThe Need• ~$50 MillionThe Ask• $1Million 9
  10. 10. Getting Started• We required four things to get started:1 $1 million in funding for first year2 Limited internal staffing to start3 Ability to pick the right external partners4 Agreement on definition 10
  11. 11. Our Challenge: Ensure Supportand Funding over the Long Run• United took two parallel paths:Execute quick wins, develop proof of conceptprojects and build on what we already hadSet up strategic roadmap and plan for amore significant investment over time 11
  12. 12. At the End of Year One• We accomplished everything we agreed to do – Data • Successfully merge, de-dupe and operationalize a consolidated database • Prototype a database of non-frequent flyer members – Customer experience • Pilot a customer recognition program in the airport experience – Marketing • Create a new member segmentation scheme and other predictive analytics • Launch event driven marketing to support merchandising efforts 12
  13. 13. But It Wasn’t Enough 13
  14. 14. Year Two A More Aggressive Strategy Needed• Kicking off year two, now with even more clear direction Don’t just define CRM and CRM success, define CRM success this year Build on successful pilots through foundational changes, requiring significant IT budget and resources Balance CRM projects between best financial returns and most noticeable changes to the customer experience Pick the right external partners and move forward aggressively 14
  15. 15. Picking the Right Projects• Projects must drive financial results• Projects must improve the customer experience• Projects must be doable, both operationally and within IT constraints• Finalize on the projects that will make executives ‘believe’ 15
  16. 16. The Projects United Chose for Year TwoBuild full non- Customer Improve day Data-driven member recognition of departure marketing database 16
  17. 17. Project 1: Non-Member Database Overview• Significant need for non-member database: – Over 50% of onboard passengers not program members – Growing need to do prospect marketing and ancillary sales to this customer group – Additional need to communicate with non-members for operational needs – Non-members may be high value consumers to a competitor 17
  18. 18. Project 1: Non-Member Database ChallengesHistory Data Incomplete Other Issues Structures Data • Network carriers • United and • Non-member • Bundled rely on FFP Continental data capture, not data, groups, age data for stored data stored ncy bookings marketing differently 18
  19. 19. Project 1: Non-Member Database SolutionSteps to Clean the Data Acxiom Solution• Reverse append • Multiple• Address hygiene name, address, phone, email• Match to previous non- variations members • Acxiom AbiliTec® knowledge• Identify suppression records base• Append InfoBase® • Various match levels demographic data • Recognition of previous non- members built over time 19
  20. 20. Project 1: Non-Member Database Benefits Demand generation for travel Ability to market ancillary projects Create aggressive acquisition programs Better analytics 20
  21. 21. Project 2: Customer Recognition Overview• Bring humanity back to travel experience: – Massive amounts of customer data – Desire to recognize customer milestones – Create positive interactions for employees – Solve for complex operating environment 21
  22. 22. Project 2: Customer Recognition ChallengesHistory Data Delivery Employee Challenging Adoption Environment • Customer data • No ‘pipes’ • No practical way • Difficult to add in airports existed between to manage tasks to an limited to marketing data thousands of already customer and the airport airport challenging reservation systems employees operating environment 22
  23. 23. Project 2: Customer Recognition SolutionCustomer data in the airports limited to customer Data processing withinreservation marketing systemsNo ‘pipes’ existed between marketing data and the Use auto-generated emailsairport systems to send dataNo practical way to manage thousands of airport Make it enjoyable for theemployees employeesDifficult to add tasks to an already challenging Program participation notoperating environment mandatory 23
  24. 24. Project 2: Customer Recognition Benefits Satisfied Customers Happier Employees Differentiating Program Foundation for Further Development 24
  25. 25. Project 3: Day of Departure Overview• Accurate, timely information is the highest driver of customer satisfaction during irregular operations 25
  26. 26. Project 3: Day of Departure Challenges 26
  27. 27. Project 4: Data-Driven Marketing Overview and Challenges Dynamic Dynamic Dynamic Dynamic 27
  28. 28. Project 4: Customer Recognition Solution and Benefits Member Acquisition Relevance of Communications Response Rates Incremental Revenue 28
  29. 29. At the End of Year Two CRM success as defined by executivesMade significant investment, returned significant dollars Changes in the customer experience Solid partnership to solidify future opportunity 29
  30. 30. Promotional Video for Internal and External Audiences 30
  31. 31. Thank You. Questions? Mark Krolick Managing Director, MileagePlus mark.krolick@united.com Nada Stirratt Chief Revenue Officer and EVP, Acxiom nada.stirratt@acxiom.com Discover more at: www.acxiom.com/dma12