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Isentia airline industry - the 3 key questions for 2016
1. 3 real questions:
• Will Asia Deliver Growth
• Top Airlines vs Top Customer Airlines
• Building Resilient Demand
14th February 2016
2. 2
IS ASIA GOING TO DELIVER
THE GROWTH IT PROMISES?
1. DISPOSABLE INCOME GROWS IN ASIA
2. UNCERTAINTY BREWS, DESPITE LOW OIL
3. YOUNG ADULTS ARE YOUR BEST BET
4. PREMIUM AIRLINES NEED TO FIG
Despite a smaller wallet compared to UK and
USA, Asian markets command an increasing
trend of growing disposable income. Between
2013 and 2015, India’s disposable income
grew +10.2%, along with Vietnam (+7.5%),
Thailand (+3.5%) and Philippines (+4.4%).
Source: World Bank, Euromonitor 2015
With greater financial freedom and desire
for regularly unique travels, young adults
or tertiary students represent a key
market segment, between age 18 – 29
years ago. 73% of this segment rely on
Review Sites to make travel choices, and
make digital purchases mainly through
Metasearch providers.
Source: Amadeus; WTA 2015
23% of International
Travelers are Young
Adults.
270M
Travelers
USD 3,000
Average
per Trip
• Unique Places
• Local Experiences
• CV Building
• Personal Branding
• Trendsetter
Low-cost Carriers moving into premium options continue to threaten
more than profitability. It threatens entire demand growth for flagship
carrier flights. While there is a small rebound from Premium Economy,
the demand is too low to recuperate losses.
Low oil prices give premium airlines a much needed relief on profitability.
It is a business imperative to use the financial flexibility to invest heavily
in growing customer loyalty and remain as a choice for consideration.
Source: WTA 2015
60.0%
70.0%
80.0%
90.0%
LCC Premium
Passenger Load Factor (%)
APAC 77.6%
80.7%
71.5%
3. 3
TOP AIRLINES VERSUS
CUSTOMER CENTRIC AIRLINES
5. INDUSTRY AWARDS ARE NOT SO VALUABLE
6. CUSTOMER REVIEWS HAVE REAL IMPA
7. SOCIAL MEDIA IS A NORM, AND IT’S NOT FOR FREE
The coveted awards from various associations and recognition bodies, have distinct differences with the reality of a customer-driven
business. Airlines with honours claiming to be the best, may not truly prevail in the customer’s eyes. Airline players are focusing on
an aged and almost irrelevant metric. Using actual market data, it is clear not all brands are doing so well as Skytrax suggests.
1. Qatar Airways
2. Singapore Airlines
3. Cathay Pacific Airways
4. Turkish Airlines
5. Emirates
6. Etihad Airways
7. ANA All Nippon Airways
BUZZ
INDEX
SENTIMENT
PERCEPT
ENGAGEMENT
INDEX
1. Singapore Airlines (9,279)
2. ANA All Nippon Airways (3,375)
3. Emirates (3,355)
4. Cathay Pacific Airways (2,266)
5. Etihad Airways (472)
6. Qatar Airways (438)
7. Turkish Airlines (175)
1. Qatar Airways (+41.6%)
2. Cathay Pacific Airways (+36.2%)
3. Etihad (+31.8%)
4. Singapore Airlines (+23.2%)
5. Emirates (+21.1%)
6. ANA All Nippon Airways (+8.7%)
7. Turkish Airlines (-8.0%)
1. Qatar Airways (24.9 EI)
2. Etihad Airways (9.1 EI)
3. Emirates (7.5 EI)
4. ANA All Nippon Airways (7.0 EI)
5. Singapore Airlines (4.1 EI)
6. Cathay Pacific (2.0 EI)
7. Turkish Airlines (0.9 EI)
Do You rely on online reviews to Trust a Brand?
Source: BrightLocal; TripAdvisor; Isentia
Brand
Erosion
Brand
Erosion
Brand
Erosion
Airlines who do not invest in community management and social media as the key form of customer service, loses customer loyalty
quickly through increased frustration.
Your customers rely on online reviews as a form of
word-of-mouth to make decisions. The bigger the
ticket cost, the more consideration. Programmatic
variations of prices only matter assuming the entire
sales process is kept in-site.
Source: SocialSprout; MyCustomer 2015
Which Platform Do You
Turn to for Customer
Service Queries?
65%believe Social Media is more
effective than Call Centres and
EXPECT a reply within 12 Minutes.
51613
61000
45260
0
20000
40000
60000
80000
Glassdoor Indeed PayScale
Social Media Manager Salary (Annual)
Source: Isentia
Source: Isentia
Source: IsentiaSource: Isentia
4. 4
BUILDING A
RESILIENT DEMAND
8. Capture as much Relevant Data
9. Integrate Primary and Digital Researc
10. Use Dashboards Correctly
11. Hold Agencies Accountable
It’s not all about
Twitter or Facebook.
In order to map a
necessarily
complete customer
relationship journey,
Airlines need to look
after their Blind
Spots – which are
platforms outside
their control, usually
Earned Media.
Airline Digital Data Sources Average Length per Post by Platform
New methodologies developed in 2015 exist to use primary research
metrics, applied onto a scalable and unbiased digital data set.
Website
Data
Digital
Data
POS/Sales
Data
CRM/
Loyalty Data
• Consumer Insight
• Path to Purchase
• Customer Journey Tracking
• Content Effectiveness
• In-Flight Experience
• Travel Triggers
• Marketing ROI
• Airline Perception
KLM Airlines
Generate $25m in
Annual Revenue
from Social Media
Marketing.
Top 5 Common Misuses
Competitive Benchmarking
Marketing ROI
Target Segmentation
Content Effectiveness
Consumer Insights
Strategy Planning
Only Uses
of
Dashboards
Customer
Service
Crisis Alerts
Top Line
Scanning
Basic Auto
Reporting
A savvy business professional will always question the true effectiveness of any marketing campaign. High buzz does not equate to
actual growth in target audience. Are you meeting your real objectives?
5 Key Questions for your Marketing Agency
a. How clean is the data
b. How do these metrics roll up to Sales and Leads
c. What is the methodology to measure Brand Trust
d. What is your sample size for research
e. Where do my customers seek information of me
You might think this is great because
buzz increased.
However, very few voices (or new
entrants) were engaging in the
community.
Source: IsentiaSource: Isentia
Source: Isentia
Source: Isentia