Rainer Uphoff (CEO avionline ) - Customer Experience Mananagement for Airlines. Keynote at the Worldticket User Conference 2010, Copenhague

8/7/2019 Rainer Uphoff (CEO avionline ) - Customer Experience Mananagement for Airlines. Keynote at the Worldticket User Conference 2010, Copenhague

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Sell-More-Seats®

Customer Experience

Leadership:

The ultimate strategicalignment tool



My name is Rainer Uphoff and I am avionline



Let·s go!

CustomerExperience

Leadership





Customer Experience Leadership

What is so new about

Customer ExperienceLeadership?






1980s ± Customer Centric Company

1990s ±

CRM, Loyalty Management

2000s ± Customer Experience




RESULTS?




Surprise!

The customer is less loyal than ever.




2000: Customer ExperienceManagement (CEM) was born

In the airline industry, thiscoincided with something else

?




Let¶s look at aviation history




1930s ± 1970sRegulated Environment:

the pilot-CEO is King!




1970s ± 2010sDeregulation and Competition:

The CFO-CEO is King!




And then, something happened

:



Key words slide







Where is the limit?




What can we do when

shaving the sku

llis no longer anoption

?




Thetime of the

customer-CEOhas come

!




Let¶s remember:

1980s ± Customer Centric Company

1990s ±

CRM, Loyalty Management

2000s ±



Let·s talk about STRATEGY

Differentiate!

LISTEN, LISTEN, LISTEN

Manage expectations(learn from Ryanair)

Offer VALUE, VALUE, VALUE

Deliver what you promised!



Differentiate!

Michael Porter:

either chose cost leadership ordifferentiation strategy.

Some leaders are doing both.



Differentiate!

Porter: either chose cost

leadership or differentiationstrategy.

Some are leaders for doing



Differentiate!

I know, you are a regional carrier.

Is geographical differentiation

enough?

A

nybody here wanting to be theSIA, Jetblue, Ryanair of theregionals?



Differentiate!

Strategic imperative: regional startup airlinereaches competitive relevance in YEAR 3

Competition

recognisesopportunity




Do you know what yourcustomers really want?

Do your surveys say what you want to hear?

Even family businesses need toLISTEN!




10 million views! You can¶t hide«

(If you can¶t see the video, search or click f or ³United breaks guitars´ on Youtube).




Social Mediaare

EFFICIENTand FREE

LISTENINGtools.

Are you

using them?



Manage expectations

Go back to the drawing board!

Perceived service quality± Expectation (created)

= Value ±> Profit



Manage expectations

Learn from Ryanair!

Expectations MUST be thoroughlymanaged.

Otherwise, you have NO CONTROLover your value proposition.





Manage expectations

Overpromise: long term problem

Brand equity declines

Underpromise:

short term problem unrealised yield potential






CFO-CEOs(+consultants) arethe scientists of the

XXI century:

They discovered the

SERVICE ATOM=the perfectCOMMODITY




Service unbundling and costcutting has COMODITISED air

transportation.

Only COST LEADERS aresuccessf ul in the commodity

business.

But there is only ONE Ryanair.




Go back to the drawing board«

DESIGN services VALUED by

customers.

Find IT systems to support thevalue creating processes.

Be INNOVATIVE.




Which meal do your prefer?

THIS

OR THIS?

PRICE:9 ¼VALUE:!?!

Watch out forAA¶s practical

jokes onnapkins




Ancillary

revenues mustgenerate VALUE,

not be a TAX




You LOVE tocheck-in yourbaggage and

appreciate thevalue whenbeing invited to

pay for thisbeloved service,don¶t you?




Fortunately,some airlineshave changed

their mindsetalready fromthinking COST

to thinkingVALUE!




Repeat with me:

Don¶t (only) think cost.

THINK VA

LUE!




Go back to the drawing board«

Deliver beyond your promises.




Let¶s do it!

(The Customer Experienc e

Jour ney star ts i n t he WEB! )




First, get the basics right!




Second, understand yourcustomer+his/her preferences!




Third, get your organisation ready.

M ak e t he customer your st r at egi c

goal.

Gai n suppor t f r om t he top.

Obtai n buy-i n f r om all stak ehold er s.




Without anadequatestrategic

alignment model,you will loseefficiency.

EnvironmentEnvironment

StrategyStrategy

CompetenciesCompetencies

OrganisationOrganisation

ProcessProcess

PeoplePeople

Structure

Structure

CultureCulture

are executed by«

is supported by«

determines aligned«




Without anadequatestrategic

alignment model,you will loseefficiency.

ENTORNOENTORNO

ESTRATEGIAESTRATEGIA

COMPETENCIASCOMPETENCIAS

Organización

Organización

ProcesoProceso

GenteGente

Estructura

Estructura

CulturaCultura

Ejecutadas por«

basada en«

determina«




Fourth: know your corporate silos.

I s mai nt enanc e as urgency

d riven as t he gat e a gent?

I s mar k et i n g mak i n g pr omi se s

t hat oper at i ons can¶t k ee p?

Do you even analyse t hi s?




Fifth: get the metrics right.

Do you know w hat to measure? Do you use i ndust r y be st pr act i c e

met ri cs, suc h as t he NPS?

Do you measure per c e pt i on gaps?




Sixth: align the organisation

Do you have cl ear customer relat ed targets?

Do you l i nk t he se targets to t he cor por at e mot iv at i on syst em?

Do you hire t he right peopl e and know how to f i nd t hem?




Seventh, know and apply the tools

V oi c e of Customer

Customer Experienc e Jour ney M appi n g

S ervi c e De sign Aud i ts

«



Customer Experience Mapping

Escenario 1«H emos vi sto publ i c i dad. Queremos vi ajar en pare ja a xyz»

Escenario2

«Tenemos una reunión d e negoc i os mañana en zyx»




Get Customer Experience Leadership

Are you usi n g Customer Experienc e M ana gement as a S TR AT EG I C

al ignment tool?

I s t he pre si d ent / CEO your

customer c hampi on? (BT W, he can be coac hed

i nto t he r ol e«)




Nice, but

SHOW METHE MONEY!



Show me the money!

Customer Excellence to strengthenthe organization vs. the FIVE

COMPTETITIVE FOR CES:

1.Customer negotiation power

2. Provider negotiation power

3. Threat of New Market Entrants

4.Threat of substitutive products

5. Rivalry among competitors



Show me the money!

Customer Experience Leadershipis not ³nice to have´.



Show me the money!

1. Customer negotiation powerG ive v alue: customer s w i ll WAN T to buy f r om you

2. Provider negotiation powerG r ow, be rel i abl e: pr ovi d er s w i ll WAN T to wor k w i t h you

3

. Threat of New Market EntrantsDi ff erent i at e by v alue: give new ent r ants a H ARD T IM E

4. Threat of substitutive products I nnov at e to sol ve customer s¶ real needs: t hey¶ll stay w i t h you

5. Rivalry among competitors I f your busi ne ss i s bui lt ar ound ³t he customer´ , youhave NOT HI NG T O FEAR



Show me the money!

Customer-ROI is KING! Are you abl e to reco gni se tox i c pr of i ts?

Are you comput i n g CE M v alue c reat i on?

W hat about customer equi ty, br and equi ty, stock hold er v alue?

Think long-term!



Show me the money!

Without CEM, brand credibility deterioratesand customer equity declines.

This destroys long term value while shortterm cash flow still remains positive.

-50%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

1 2 3 4RetornosobreInversión

RetornosobreCustomer

Equity

Example: 5%yearly decline in brand credibilitytranslates intoslow cash f lowreduction, butcustomer NPV

disaster.



Show me the money!

And remember:

Anc i llar y Revenue s must come f r om v alue you gener at ed.

Ot her w i se you are c hargi n g aT AX.

W ho love s t he taxman?





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Rainer Uphoff (CEO avionline ) - Customer Experience Mananagement for Airlines. Keynote at the Worldticket User Conference 2010, Copenhague