From Janitor to Host

From Janitor to Host Copenhagen Airport, Denmark

Karen Bender Søren Pedersen

Jonas Sylvest

Up in the air…

FILM

Agenda

Challenge Insight & analysis

Development Results & learnings

KAREN BENDER E-commerce & Marketing Director Copenhagen Airport

SØREN PEDERSEN Business Development Director & Partner Wilke Research & Consultancy

JONAS SYLVEST Dialogue Director & partner Hjaltelin Stahl Cross Media Agency





SØREN PEDERSEN Business Development Director & Partner Wilke Analysis Agency



Part of an ambitious journey

Background

• In the beginning of 2013, CPH started an ambitious journey. The goal was to become the worlds most attentive airport. An airport that through new products and services would be the best part of the journey .

The challenge

• To increase the preference for CPH and to increase the attrativeness of online shopping - and parking offers, by communication as early as possible in the travel value chain.

Part of an ambitious journey Strategy

• CPH Advantage is a club concept, that drives revenue across products/services and channels, while it also creates loyalty at the most valuable airport customers.

Target group

• The target group is frequent flyers, Danes as well as foreigners, that travel more than 4 times a year.

Part of an ambitious journey

• Advantage is one of drivers behind CPH´s target of moving from being a Janitor to become a host – Transition from caretaker to engaging host

– Customer centric

– One size fits all Individualized value chain

– General upstream Commercialising of the travel value chain

The Challenge

19%

20% 9%

84.500 1,7 mio.

450.000 1,8 mio.

41%

71% 3,6 mio. 3,6 mio.

18% 20% 900.000 1,8 mio.

12+ times a year

4-12 times a year

2-4 times a year

Less than 2

times a year

• 9,6 million LDP

• 11% of the individuals accounts for 39% of all travelling

- 2% of the individuals accounts for 19% of all travelling – but hardly spend any money

• 60 % of our largest segment believe we could do better!

• 40% of our passengers do not spend any money in the airport!

• And we do not know anything about our most frequent passengers

Total 5,1 M Total 8,9M.

Individuals PAX

Individuals vs. PAX 2009

2%

The Challenge: How to turn “heavy users” in to “heavy consumers”

Challenge

– In CPH We frequently have contact with a small part of the passengers. But we don’t know who they are, and we don’t know anything about them - or anything about their behaviour and needs.

We treat all our passengers the same way

– regardless of their travel frequency and purchase behaviour

With the CPH Advantage programme we would be able to identify the most valuable passengers and increase their spend in significantly

Where did we come from – and where did we want to be?

Offer 1

CPH offer! Parking

We tell all our customers and passengers

Traditional dialogue = One size fits all

I´m an individual – I have a unique behaviour...

We choose the offer that target the individual passenger

Offer 1 Offer 2 Offer 3

Tailor made dialogue = e.g. directed at a comfortable experience traveller

The better customer insight and qualified data we have - the richer opportunity we have to affect our passengers

behaviour and meet their needs

F&B, Tax-free, Specialty,

Wi-Fi

Airlines, Parking

The targets

• Increased spend per head at existing spenders

• Convert non-spenders to spenders

• Increase passenger satisfaction

• Increase dwell time in the airport

• Increase Airline and Concessionary satisfaction







Service level to who?

Ideation

• Idea generation across segments

Rating Score

• The journey from all the great ideas to the right ones

– Scoring 60+ ideas

– Business case evaluation

The business Issue

How do we compose a loyalty programme for CPH?

• Importance of attributes?

• Sensitivity?

The Situation The challenge The Questions

Key issue: How do we add value to both travellers and the CPH business?

CPH want to: • Add value to the travellers

• Strengthen traveller relation

and loyalty

• Add value to the business

Which attributes should go into the programme and at which levels:: • Killer application?

• Which other attributes:

Rebates Service Experiences Advantages

The solution - Concept Architect

Wilke ConceptArchitect - Conjoint analysis: • Decomposes the travellers decisions into the

importance of each of the decision parameters.

• Reveals the travellers sensitivity to changes in each of the decision parameters..

• Simulation of ”What if” scenarios before launch: Traveller behavior Business result

Specific guidelines for the design of the loyalty programme: • What should we include? (what reprensents

value to the travellers?)

• What should we leave out?

• How do we define the individual elements from a business perspective?

The solution: The output:

Concept Architect

• Ideas and attributes

Wifi

CPH fast Track

through Security

CPH Lounge Discount Parking

Carwash Bonuspoints

inTaxfree-shops

Bonuspoints in Café,

restaurant & bar

Bonuspoints in special-

shops

Discount and

advantages at airport partners

Discount at Hotel Hilton

Effect on potential interest:

Free WiFi Bonus points in Tax Free shops

Bonus points in CPH Lounge

Partnership discounts and

offers

To be included in the future?

Driver Primary driver

Bonus points in outlets

Bonus points in F&B

Benefit Apps

Fast Track

Bonus points on Parking

Concept Architect Estimated potential of 62% of target group, i.e. 435.000 members or 5,7 mio IDP

8%

13%

41%

38%

Potential members

Basic Plus Premium None

3 membership levels: • Basic • Plus • Premium







Brand Journey

• Most attentive airport

Dygtig, høflig og reaktiv vicevært

Dygtig, imødekommende og pro-aktiv vært

Logic & magic

Empathy & status Inspiration

Trust

Material motivation

Basic Qualifier

Immaterial motivation Emotional

Differentiator

Benefits & discounts Rewards & competitions

+

Strategic position

From janitor to host:

If you want more

Creative Development Udvikling af

retninger for kommunikations-konceptet

Valg af retninger og udvikling af identitet

Anbefaling af identitet og look ‘n feel

Udrulning og produktion

360 marketing system

• Closed loop

• Triggers based on big data

• Cross media

• Contextual communication

Go to market • Contextual communication

• Individualised one2one

• Behavioral triggers

If you want more







Overall results

• 400.000 members (August 2013)

• Members spend in general 43% than non- members

• Open rate continues to be around 33%

• ROMI 7 year 1

Examples of Advantage email campaigns – tax-free

31

DKK 250.000 DKK 300.000 DKK 125.000 DKK 92.000 DKK 225.000

Tax-free.dk turnover directly from emails

10.000 extra bonuspoints



Results on the online shop

• 55% of turnover in the online shops is made by Advantage members

• ATV from advantage members is index 120 compared to non-members

• Open rate on newsletter is stable around 33%

Examples of Advantage email campaigns – Parking • Media

Single message e-mail

• Target group 110.000 Danish CPH Advantage

members

• Message – Order Parking before July 4. and get double up on Advantage bonuspoints – Special Summer offer: DKK 649/week – P.S. We have weekly parking from DKK 400/week

Results on Parking

Open rate:

36,7%

Click rate

4,1%

Turnover

3 times higher than when we communicate to non-members

ATV 29 % higher than non-members

The original targets

• Increased spend per head at existing spenders

• Convert non-spenders to spenders

• Increase passenger satisfaction

• Increase dwell time in the airport

• Increase Airline and Concessionary satisfaction

Learnings

• The development of the programme is much faster than expected.

• However it takes time to build relationships with the members and create real loyal members.

• It is complicated to have 3. party partners who’s engagement and commitment, you are dependent on.

• It is important to have a programmes that offers a broad, but travel relevant range of good offers and services as well as information – otherwisw you risk becoming a ”parking offer club”.

• Stick to relevance - do not get tempted by potential strategic partners, that are not travel relavant.

Advantage 2.0

• What are the next steps?

– What is the Killer app beyond 2013?

– More IN airport focus

– Earn & burn offline on Parking and in the physical shoppingcenter incl. Tha Tax-free shop

– Further development of VIP feeling, recognition

– Minus strategic partnerships