Hamburg Aviation Conference v2 0 - Beyond Analysis
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Hamburg Aviation Conference v2 0 - Beyond Analysis
- 3. ©CopyrightBeyondAnalysis2013 3 About Us 2007 2008 2009 2010 2011 2012 Brief History Of Beyond Analysis: • Beyond Analysis founded in UK • Acquired business in Australia • Unique Financial Services Proposition Developed • Commenced trading in Singapore, Visa Europe buys a minority stake in Beyond Analysis • Opened office in Boulder, Colorado • Partnership with UCS in South Africa Established Products Employees
- 4. ©CopyrightBeyondAnalysis2013 4 Retail / Consumer Financial Services / Co- Brand Travel
- 5. ©CopyrightBeyondAnalysis2013 5 What we do Explore Help me explore the opportunities from my data & what value it can deliver for my business Understand Give me the tools & solutions to help my business better understand & unlock the value of our customers Engage Design & run world class data driven customer campaigns & engagement programmes that deliver excellent ROI Loyalty Marketing Products & Services Insight Products & Services Strategic Consulting Services
- 7. ©CopyrightBeyondAnalysis2013 7 Delivering a unique customer view Visa’s View 419m million Visa cards across Europe 280 million Visa Debit cards in Europe >70% Spend and transactions on Visa Debit cards Spendographics
- 8. ©CopyrightBeyondAnalysis2013 8 • The segments have been given a name, tagline and pen portrait to help understand their spend behaviour and how to engage with them. • Each of the 10 segments represents a group of spenders with similar characteristics and behaviours who can be communicated with in a consistent and targeted manner. Spendographics™ is a segmentation of the UK card base Urban Spenders “Work hard, play harder” Young Family Spenders “Exciting new life chapter” Town & Country Spenders “Settled & Content” Sensible Spenders “Value for money, small treats” Online Savvy Spenders “Considered purchases online” Affluent Stay at Home Spenders “High Street Mums” Premium Family Spenders “Only the best for the family” Special Purchase Spenders “Catalogues, Household Bills, Insurance” Business Spenders “On the company” Blue Collar Spenders “Bet on a better life” • Spendographics™ segments capture the “spender mode” that an individual is in. This reflects the fact that individuals have multiple cards which they use for different purposes.
- 9. ©CopyrightBeyondAnalysis2013 9 Indicators are a proxy for lifestyle and give a flavour for what spenders in each cluster are like. Segment Tagline Average annual spend per card within this segment Average value of transactions made by these spenders % of cards in this segment associated with a business Point of sale e.g. at the till, online or over the phone These spenders are more likely to spend in these areas than the average spender This segment over-indexes on spend in these stores
- 10. ©CopyrightBeyondAnalysis2013 10 We are developing a suite of data products for Visa As an example, these reports can show, • Key metrics • Headroom available for customer segments • Metrics by customer segment and location
- 12. ©CopyrightBeyondAnalysis2013 12 To improve operational efficiencies and increase the ROI of marketing communications activities
- 13. ©CopyrightBeyondAnalysis2013 13 The approach Large-scale data collection, analysis and segmentation undertaken to fully understand the Flight Centre customer base and put their needs at the heart of communications going forward 1 Incremental Bookings Vs. Direct Mail Volumes Indexed to September 2007 The campaign reporting is delivered to Flight Centre via our self serve Customer Office™ solution and fed back to inform future campaigns 3
- 14. ©CopyrightBeyondAnalysis2013 14 The result: increased business efficiencies Efficiency = 52 Stores Or = 280 Additional Staff Each consultant = +3.5 bookings per month
- 16. ©CopyrightBeyondAnalysis2013 Critical to airline profitability are three things
- 17. ©CopyrightBeyondAnalysis2013 17 1. Load Factor Source: IATA, Boeing
- 20. ©CopyrightBeyondAnalysis2013 20 is Accurate Forecasting Critical to optimising Load Factors1 2 Yield 3 Utilization How do we make profit from these?
- 22. ©CopyrightBeyondAnalysis2013 22 BCG: “Understanding the Demand for Air Travel: How to compete more effectively”
- 23. ©CopyrightBeyondAnalysis2013 23 Underlying demand correlates with GDP, but is synchronous: What is needed is a lead indicator Source: IATA
- 24. ©CopyrightBeyondAnalysis2013 24 “Business confidence” is a good lead indicator but could be enhanced by tools that identify “false flags” Source: IATA, JP Morgan/Markit
- 25. ©CopyrightBeyondAnalysis2013 25 Forecast demand for every aspect You need to forecast demand not just for the whole market but for each and every route you fly, or could fly
- 26. ©CopyrightBeyondAnalysis2013 26 Getting this wrong leads to price-cutting BCG: “Understanding the Demand for Air Travel: How to compete more effectively”
- 27. ©CopyrightBeyondAnalysis2013 27 Price Elasticity Source: “Air Travel Demand Elasticities: Concepts, Issues and Measurement” by D Gillen, W.G. Morrison and C. Stewart 2002 via Aero Strategy Consulting Having better intelligence on the price elasticity of each route’s travellers can significantly improve margin management
- 28. ©CopyrightBeyondAnalysis2013 28 Getting this wrong leads to price-cutting BCG: “Understanding the Demand for Air Travel: How to compete more effectively”
- 29. ©CopyrightBeyondAnalysis2013 29 Getting this wrong leads to price-cutting BCG: “Understanding the Demand for Air Travel: How to compete more effectively”
- 30. ©CopyrightBeyondAnalysis2013 30 Profitability revolves around: A. Accuracy of forecasting B. Ability to manage the relationship between your own capacity & the capacity of the market. Otherwise you get: A. Over-capacity B. Discounting C. Reduced margins D. “False” growth Remedies are: A. Loyalty programmes that tip the balance in favour of your airline vs. saving a few €’s B. Sharing our knowledge with competitors (publicly) to avoid unwitting over- capacity & discounting by competitors C. Managing capacity mix (what types of planes on which route, at what time(s). Doing this requires A. Identifying un(der)served routes B. Intelligence on the type of traveller (corporate / small biz / leisure) C. Intelligence on the price sensitivity of people travelling Areas where Beyond Analysis & Visa data can uniquely add value
Editor's Notes
- What type of people they are Where, when and how they spend How much they spend How many of them there are Improved customer understanding drives increased relevance A common language for Visa, merchants & members
- Three things are critical to airline profitability – very familiar to everyone in this room – they are Aircraft utilisation (click) yield (click) and load factor (click). And we can see here how airlines in aggregate managed those KPI’s to work their way out of the “Great Recession”. If the airline industry had been able to anticipate the depth of the financial crisis and its impact on demand it could have weathered the storm far far better. (click)
- Three things are critical to airline profitability – very familiar to everyone in this room – they are Aircraft utilisation (click) yield (click) and load factor (click). And we can see here how airlines in aggregate managed those KPI’s to work their way out of the “Great Recession”. If the airline industry had been able to anticipate the depth of the financial crisis and its impact on demand it could have weathered the storm far far better. (click)
- Three things are critical to airline profitability – very familiar to everyone in this room – they are Aircraft utilisation (click) yield (click) and load factor (click). And we can see here how airlines in aggregate managed those KPI’s to work their way out of the “Great Recession”. If the airline industry had been able to anticipate the depth of the financial crisis and its impact on demand it could have weathered the storm far far better. (click)
- And that really highlights the fact that there’s one thing that is really key to good performance across all of these vital KPI’s, and that is accurate forecasting
- Whether this makes good economic sense depends upon the price elasticity. This chart shows the general levels but each route is different.