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From Volcano Ash to Customer Satisfaction

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  • http://www.google.dk/imgres?imgurl=http://www.natural-calamity.info/wp-content/uploads/2010/05/Icelandic-Volcano-Activity-Eyjafjallajokull-eruption.jpg&imgrefurl=http://www.natural-calamity.info/the-volcano-under-eyjafjallajokull-glacier-eruption-again/&usg=__VrjiyGCb2IwcZWiV-Dv_DhMk9gk=&h=367&w=560&sz=19&hl=da&start=35&zoom=1&itbs=1&tbnid=QmNI6WgfG254-M:&tbnh=87&tbnw=133&prev=/search%3Fq%3Dvolcano%2Beyjafjallajokull%26start%3D20%26hl%3Dda%26sa%3DN%26biw%3D1003%26bih%3D587%26ndsp%3D20%26tbm%3Disch%26prmd%3Divns&ei=dP4RTtSrL8POswaD__zcDg
  • A NEGATIVE THING CAN BE TURNED IN TO A POSITIVE CUSTOMER EXPERIENCEFacebook as a strongchannel for brand experience
  • STOP FLYINGFRUSTRATION OR ACTIONWE ACTED REPEATLYWE DID LISTEN 24-7AND WE DID ACTAND WE DID LEARN A LESSONOR TWO
  • A NEGATIVE THING CAN BE TURNED IN TO A POSITIVE CUSTOMER EXPERIENCEFacebook as a strongchannel for brand experience
  • INTERESTING IS HOW WE DID SO FAST AND WHAT DECISION TOOLS WAS GIVEN“For us the most important thing was to help all our customers that were stranded, which meant we had to be proactive and approach them in a non-traditional way,” says Christina Ericsson, SAS’ director, online strategy and communications. “Facebook created the opportunity to have a dialogue with thousands of customers and keep them continuously update through this crisis.”Adds Ericsson: “We immediately created a Facebook team that worked almost around the clock to reply to all customer queries and managed to answer almost every posting within five minutes. We also added over a thousand new fans each day.”April 16th, all flights in Northern Europe are cancelledDisruptionresponseorgansiation, ”DRO” is establishedChairman: Chief Commercial Officer & represantatives from all parts of SAS e.g. Operations, Customer Relations & Communication.
  • More than $ 1.7 Billion + 400 millions Euros for accomodation and other assistance to strandedpassagnger (AEA)4.3 millions barrels of jet kerosenesaved per dayConcerning ashcloud we got an award from Airline Business in London October 2010 for Best use of Social Media in a Crisis Situation. From HSMAI Norway in February 2011 we got an award for Best use of Social Media in the Norwegian Travel IndustrySAS won the award for “Best use of social media in a crisis communications category” in the SimpliFlying Awards of Excellence in Social Media in october 2010Severecustomersatisfaction live onfacebook in terms of number of posts, likes and new friends/followersNumber of prizes and respect in marketing branch – an example of using the new media in a profitable wayThe jury deciding the awards said that SAS had specifically impressed them with its speed in setting up an internal Facebook team, which used volunteers from various departments, to respond to its customers and keep them updated during the crisis.“For SAS it also highlighted the need for a different approach to communicate with customers during irregularities and crisis, and we have since managed to develop this even further and can now offer a superior customer service with near-instant feedback through Facebook,” says Ericsson. “It is important for SAS to be present where are customers are present, such as Facebook and Twitter.”En islandsk askesky lammede sidste år flytrafikken over Europa. Forbrugerklagenævnet har afgjort fem sager, nævnet modtog efter askeskyen. Afgørelserne fastslår ny praksis på området fra Forbrugerklagenævnet. De senere år har naturkatastrofer og politiske uroligheder skabt nye udfordringer for rejsebranchen. Senest lammede askesky i Chile flytrafikken over Sydamerika, og politiske uroligheder i Mellemøsten trak turisterne hjem fra Egypten. Sidste år satte en islandsk askesky stop for flytrafikken over Europa. Det medførte omkring 100.000 aflyste flyafgange, viser tal fra den europæiske organisation for flyvekontrol, Eurocontrol.  Forbrugerklagenævnet har afgjort fem sager, nævnet modtog efter vulkanudbruddet sidste år. Sagerne fastslår ny praksis på området, idet nævnet aldrig tidligere har behandlet sager med lignende problematik.   ”Afgørelserne i Forbrugerklagenævnet viser, at trods force majeure-situationer, skal flyselskabet eller rejsebureauet gøre, hvad de kan, for at hjælpe og sørge for, at du hurtigst muligt kommer hjem. Ellers kan de være forpligtigede til at yde erstatning for udgifter som følge af forsinkelsen,” siger konsulent i Konkurrence- og Forbrugerstyrelsen, Henrik L. Sedenmark. Han slår dog fast, at forbrugerne har pligter i en lignende situation. For det første skal de hurtigst muligt kontakte flyselskabet eller rejsebureauet og give dem mulighed for at hjælpe med hjemtransporten.  Det er første gang, at Forbrugerklagenævnet behandler sager, hvor forbrugere er strandet i udlandet som følge af askesky. Sagerne, nævnet har behandlet, er meget forskellige. I fire sager gav Forbrugerklagenævnet forbrugerne medhold. Størrelsen af forbrugernes erstatning afhænger af de konkrete omstændigheder.
  • What’s going on? Are all flights cancelled?When are you back in the air?How do I get home? Are there buses?Will SAS pay for my hotel?Which flights are operating now? When’s my flight leaving?How do I get on a flight?Are you putting in extra flights?My flight was cancelled, how do I get my money back?Who do I contact about getting my expenses covered?Where’s my money?
  • Internal enthusiasm despite the crisisA proven formula for dealing with new disruptionsA new understanding in top-management and in general for the power of Social Media (viral effects – network logic)Benefit from Customer Experience ManagementThe use of Social Media as a Customer Service ChannelShift in power balance in customer relationshipsOurlearnings:A believe in turningcrisis in to goodcustomerexperiencesInternally to work more withcustomerjourneyscrossfunctionalcustomer service, crm, marketing, communication, productdevelopment etc.The Word of Social effect – how fast youcancommunicatewithyourcustomers – and theirfriends and friends etc.CEM – since a wellmanagedexperience handling canresult in extraordinaryresultsor is it only a brand experiencewithout a direct sales/profit effectCustomer Service in a new channel as substitution for inboundcall centers to a lowercontactprice (since the message is read by more people). But will it be a longer conversation in the end? than by taking the phone. The online conversations is free of charge for customerswhile a phonecall has a relative cost and thenthere is a risk for more ”lessimportant/valueaddingconversations and a highcustomer service cost.Shift in power balance in customerrelationshipswhich for marketing and crmmeans a brand new agendaStarbucksusing for marketing and communicationJet Blue for Customer service and relations and marketing and communication
  • CUSTOMER JOURNEYS AND CUSTOMERVEXPERIENCE MANAGEMENT
  • Lessonslearned from the volcanolessononFacebookStarted a very positive workthroughoutourorgansiation (ongoing)Series of customerjourneysweremapped in to travelchains for different segments and marketsWith the onegoal to create relevant and effectivecommunication and solutions to gain from the same kind of experience as with the volcano case – a greatcustomerexperience.Commercialize from thisWenowusefacebook logo in most platforms and usefacebook as platform for managingextraordinarycrisisor events togetherwithour websiteGave birth to severalotherideas….Facebookideas and other.
  • So it not onlyaboutcustomersatisfaction
  • to ensurebuy-ininternallyDue to timing and ressources we did anothersetupBut werealised So westarted a CustomerExperience Management project to make the organisation focus more onthis and test ifwecouldbenefit from this of courseBut ifthis perception of both a goodfunctional and an emotionalexperience is not met in all touchpointsor a leastcriticaltouchpointsthenwhat..?
  • Now initiatives should be decided and Customer Journey Maps should be used as a platform for improving customer experience – thus strengthening differentiationShow invitation email and triggerrules + loyaltyprogramme sign upFlow withcustomer relations bothoneway and backUsereporting to adress and connect to corporatecustomers, alert reports and effect of customer relations
  • Triggerson the arrival and is a minisurvey to the customer…weneeded to make sure thatthis perception through the dialoguewasachievedwhen the customer relation departmentcontacted the not so happycustomersWelcome Home a goodway to triggerboth emotions and factsMake sure thateverything is ok in a crucialtouchpointWecatch an almost live status of the experience just after the use of the product and our services and that give us an opportunity to acton a relevant situation instead of using ”older” historical data to build the communicationA building platform to do more….(travelchain/journeymap – betweentravels)So relevancy in terms of timing is fulfilled and an emotionel experience of ”wecare” is perceived by ourcustomersBut…Service dialoguewithsurveys for SME customersVelkomstdialogTilfredshedsmålingIn-aktive kunder
  • From A to B to engagemeMeet higher expectationsCustomer centricExtra emotional layer to the productCore product is not dead (basics) Sum up = CustomerSatisfaction is high and we have ongoingactivitiestrying to createextraordinaryactivities, diffentiateus from otherplayers in the market – alsoadding an extralayer to the product to maybechange the wholeproduct definition (myopia). All in all in order
  • RE-THINK THE WAY WE SEE AND BUILD RELATIONS
  • So everything is fine….or?Revenuetends to be 3x (times) bigger for loyal customers – not anymore ROMI i goingdown (Diagram romi contra tid – faldende kurve)Will see a tendency to thateventhoughourproduct, services, concepts, customersatisfaction scores, click rates etcare as popular as ever for a long time wecannotmakeour loyal customers to pay the priceororder the volumethatwewantorexpectedthem to doSo eventhoughyoumaysaywe have a strongrelationship and an opportunity to drive a nice profit from our loyal customer – wecan’tSAS Credits since ’08BtBcustomersIncreasingmembers but >50% inactiveEuroBonus (FFP) since ’92BtCcustomersGrundlagt i 19925 partnere. Nu ny partner strategi med mere end 55 partnere~3 mio. medlemmer45 år, højt uddannet, høj indkomst og bor i en af de nordiske landeFaldi share of wallet tegnpåfaldendeloyalitetRedemption displays a decreasing trend, which is devaluating the value of EuroBonus-pointsThis results in a decrease in effectiveness of EuroBonus to build loyalty among membersAn indicator of this is the closing of the gap between non-EB and EB in Share of WalletAt the current pace, the difference in SOW between non-EB and EBB will be completely gone in 9 years10% of members account for 76% of EuroBonus-revenue to SAS
  • Maybethis is part of the problem but againcustomers have been loyal for years
  • Shift in expectations “In the old days, someone might have a bad customer experience and tell 10 people. But now, with the rise of blogs, MySpace and Facebook, that person might be able to tell 10,000 people. This totally changes the dynamic, and importance, of customer experience.”Bruce Temkin, vp/principal analyst at Forrester ResearchThe market situation – acknowledge the shift in communication (customer talks/listen to customers) and - weare in a highcompetitive situation (close to genericproduct-value perception).The future of marketing: From monologue to dialogueAn Economist Intelligence Unit white paper sponsored by GoogleSeptember, 2006Until a few years ago, marketing was a monologue. Marketers invested time, talent and money to broadcast messages designed to correspond with each stage of a theoretical buying cycle: awareness, research, consideration, testing, negotiation and transaction. The past two years have witnessed the first examples of true two-way marketing "conversations" between customers and some of the world's leading consumer brands. Driven by a confluence of innovation, competition and big shifts in consumer behaviour, the dialogue between brands and their customers is replacing the traditional marketing monologue.
  • The loyalty latter – moving up the customerthrough the latter
  • Disruptions – beforecustomer did not have the knowledge as of today. So youpicked the brand youknew (safe haven). Todayyou have the opportunity to makeyour decision on a broaderknowledge and thatcausedisruptionsbecause the customercan find information out of yourcontrol and match with the preferred brand on the day and still besafe. Due to a new app I can find the dailybestloyaltyprogramme for meMondayoneloyaltyprogrammeTuesday anotherAnd Wed a thirdAlso I think the speed of a relationshipor the CLC curvewillbe relative shorter due to the new facts. So relationship models by Pierre
  • New agenda = pull and shift in relationshift power balance and expectiations – tailoring and coachingarenowbasics solutionsCanweexpect loyal customersparticipating in loyaltyprogrammes in the future or do we have to face the factalwaysbeingweighted/valued from buy to nextbuyDo weface the factthatwemove from ”Join the conversation” to build a setupwhichcan ”Act/navigatedirecton the conversation” or more pro-active ”invite to the conversation” (co-developingwithcustomer) orwill the new agenda force us to look in otherdirection and maybere-think marketing by joiningwithotherdisciplines as Innovation is seen as the ”saver” out of the darkCombinecustomerinsightwith business developmentBut what do we do from here…
  • LikabilityorCustomerSatisfaction is not a goal in itselfsKundestrøm, Konvertering, Gennemsnitsløbinstead of onlyfocusingon KENDSKAB, Customersatisfactionwhich is only MIDLER til at nå måleneDifferent models and focus dependent onindustry and market situation for what is bestNew agenda = pull and shift in relationshift power balance and expectiations – tailoring and coachingarenowbasics solutionsCanweexpect loyal customersparticipating in loyaltyprogrammes in the future or do we have to face the factalwaysbeingweighted/valued from buy to nextbuyDo weface the factthatwemove from ”Join the conversation” to build a setupwhichcan ”Act/navigatedirecton the conversation” or more pro-active ”invite to the conversation” (co-developingwithcustomer) orwill the new agenda force us to look in otherdirection and maybere-think marketing by joiningwithotherdisciplines as Innovation is seen as the ”saver” out of the darkCombinecustomerinsightwith business developmentBut what do we do from here…
  • A perspective of whatwecan do is described by Saul J. Berman in ”Not for free”Thiscouldbeoneexample of what to do…What do you do whenyourproductsare as popular as ever but consumers do not want to pay for themanymore?Wecannot stop the strong forces thatmarket trends create but wecanminimizetheir negative impact and maximize the revenueopportunitiestheycreateLow-cost communications 2. Data-processing 3. Rapid innovation 4. Great increased consumer expectationswidely available low-cost disruptions originating from Wecannotexpectvolcanos to blow, And wecannot trust that CEM will do the job alonebut wecanensure the coreproduct and services, develop an extraemotionallayer, but willthatbeenough to differentiate in a highlycompetitivemarket and with a new marketing agenda?The case is thatwearefacing a new situation as marketersboth from digitalization, lowcostcommunication, lowbandwith, social media effect in good and bad….
  • And in some organisations the CMO is replaced by a Customer Experience or Customer Service Officer.
  • So wearegood at the classiccrm and direct marketing solutions but we have a lot of customersthatwe do not touch and wecouldbebetter in buildingloyaltyI will show yousome of the brand new things and somethingswearegoing to look in to for the nextyears
  • Jacob Bentzen is a 38 years old Dane with over 10 years of experience from Direct Marketing (BtB and BtC), Touchpoint Strategy, Email and Mobile Channel Optimization, Social Marketing and CRM. Specialties are CRM-strategy, Campaign and Content management,  Customer Interaction. Graduate Diploma in Business Administration from Copenhagen Business School and educated as Innovation Driver. Since May 2008 worked as CRM responsible for Scandinavian Airlines and former for companies in the financial industry. Have won 2 ECHO awards since 2007 and have been an ECHO judge since 2010. He also won the overall Danish Direct Marketing Award in 2010.
  • Transcript

    • 1.
    • 2. From Volcano to Ash to CustomerSatisfaction
      Tuesday, October 4th from 11:30 to 12:15.
      Session level: Advanced
      Track: Retention & Loyalty
      Picture Source: www.natural-calamity.info
    • 3. WELCOME
      The
      New Dilemma
      The
      CustomerExperience
      The FacebookExperience
    • 4. The facebook story
      +10 Millions passengersunable to travel over the wholeperiod
      Source: European Commission
    • 5. The
      New Dilemma
      The
      CustomerExperience
      The FacebookExperience
    • 6. The facebook story
      HELP ourcustomersthatwerestranded
      A team of 20 employees from differentdepartments
      Worked from 5 AM to 2 PM eachday
      UsedFacebook, Twitter, flysas.com (homepage), SMS
      Instantmessaging, Smart phones, access to the updated info and hotline to right people
    • 7. The results did openeyes
      5,000 questionsposted 99% answeredwithinfiveminutes
      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
    • 8. Two pregnant women stuck d in Spain were contacted via FB and were put on the fist flight home
    • 9. Learning points and reflections
      CustomerJourneys
      WoSEffect
      ORGANISATIOANAL
      CHANNEL
      OMG ->Yes!
      Contactprice
      CUSTOMER SATISFACTION
      CEM
      CRM / MARKETING
      New Agenda
    • 10. The
      New Dilemma
      The
      CustomerExperience
      The FacebookExperience
    • 11. How to commercialize from this
      Lessonslearned
      The organsiationrespondedautomatically
      Customerjourneymappingactivities
      One focus:
      To keeporincreaseCustomerSatisfaction scores
      throughgreatcustomerexperience
    • 12. 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 studyabout The effects of CEM by Copenhagen Business School and SJP A/S
      CEM +10%
      DIFFERENTIATION
      +9%
      EFFECT ON RESULTS +5%
    • 13. Howweget CEM* started
      Normally CEM is a top-downproject
      Focusonbusiness criticalareas – corporatecustomers (BtB)
      3 phase model (seegraphic)
      A setupwithouragencyWundermantogetherwith CEM* specialists from the company SJP A/S.
      Note: *CustomerExperience Management **CustomerJourneyMapping
    • 14. CustomerJourneyMaps
    • 15. Criticaltouchpoints
    • 16. Triggerbaseddialogues and CJM
      CJM and CEM gave birth to severalactivities
      The activityWelcome Home
      Customer Service and Facebook
      Reportingtakesthe triggerdialogues from an operational to a more tactical and strategiclevel
    • 17. Re-thinkproduct definition
    • 18. The
      New Dilemma
      The
      CustomerExperience
      The FacebookExperience
    • 19. Everything is fine…or?
      Loyaltyprogrammesincludingour FFP calledEuroBonus
      Downwardslopingtendency
      Eventhoughweare as popular as ever
      Loyal customers do not order as weexpectthem to do
      Pe
    • 20. Arewe 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
    • 21. We are facing a new agenda
      Monologue to dialogue*
      Shareexperience from 10 to 10,000**
      low-cost communications, data-processing, rapid innovation, and great increased consumer expectations***
      Fragmentedmarkets due to increasedchoices 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
    • 22. 2001
    • 23. 2011
      Impactonrelationships and loyalty
    • 24. What actions canwetake?
      “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
    • 25. What actions canwetake?
      Accept the facts of the new agenda
      New marketing KPIsshouldfocusonCustomer Flow, Conversion and Averagecyclus/flow
      Re-designproducts, services and solutions includingloyaltyprogrammes
      Innovation is seen as the ”saver” *
      CombineCustomerInsightswith Business development **
      25
      25
      25
      125
      25
      25
      10
      0
      500
      400
      10
      80
      10
      60
      125
      25
      10
      20
      ©Jacob Bentzen 2011
      Sources: *CMO Index Denmark 2011 ** Not for free by Saul J. Berman, Feb 2011
    • 26. Business not as usual
      A perspective of whatwecan do
      Nearly every industry is widely available low-cost disruptions originating from 5 market trends
      Revenue innovation by maximizingprofitability from existingrevenuestreams and indentify new ones
      Solution is doing more withexisting assets
      Segment afterbehaviour (existing and future behaviour)
      Grow revenue organically in the near term using framework from pricing, payer, and packaging innovation strategies
      Experiment
      Repeat
      Sources: Not for free by Saul J. Berman, Feb 2011
    • 27. 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
    • 28. What do youthink…. ?
    • 29. ?
    • 30. Tack!
      Or thank you as you say in English.
      Jacob Bentzen
      Manager CRM Strategies
       
      SAS Scandinavian Airlines
      +45 3232 3551
      jb@sas.dk
      Visit us atflysas.comsas.nosas.sesas.dk
      www.facebook.com/sas
      www.twitter.com/sas
      www.flickr.com/sasgroup
      www.youtube.com/flysas
      30