In the dynamic world of aviation, meeting and exceeding customer expectations is key to success.
As we unravel the intricate details of modern traveller preferences, a blizzard of data emerges, hiding the answer to the golden question – what do your passengers really want?
Airlines find themselves at the intersection of evolving technology, global standards set by stakeholders, and the continuous changing demands of the tech-savvy traveller.
Understanding the Significant Value of your Data with ClarityIFR
First of all, in today’s digital era, harnessing the potential of data demands that airlines embrace a modern data strategy, paving the way for a more data-driven industry. These opportunities bring challenges and unfortunately if you are not meeting these challenges you are not just standing still, you are going backwards in comparison to your competitors, slowing airlines down precisely when they need to accelerate. There are tiresome data management systems heavily dependent on IT, which not only incur significant costs and effort for configuration changes but also lead to missed retail opportunities.
At our core, Data Clarity specialises in supporting industries grappling with data complexities, operational errors, and excessive wastage, all of which contribute to increased spending and reduced profits. Tailored to meet the intricate demands of customer service, our efficient tools and services are dedicated to boosting revenues and maximising savings for airlines. We empower businesses to leverage their data effectively, providing a streamlined path to navigate the challenges of the digital landscape.
The Three Pillars of Customer Expectations
The runway of customer expectations stands on three fundamental pillars:
1. Personalisation
In the previous pandemic era, customers found limited opportunities to express loyalty due to reduced travel, but still today, airlines grapple with challenges like heavy sales trolleys laden with unsold items and a waning interest in duty-free and inflight shopping, hindering their development. Acknowledging that passengers are not just a collective group but unique individuals, airlines strive to provide a connected, digital experience.
Abandoned baskets, a more prevalent issue in the airline industry than others, underscore the need for an integrated retailing approach. As airlines delve into retail-based ventures, the goal is to stay connected with customers, offering relevant products and services. To achieve this, airlines need a single source of truth – a unified identity view – to shape the customer journey.
The newly led focus on Hyperpersonalisation goes beyond grouping individuals into clusters; it aims to cater to the distinct needs of every passenger throughout their journeys. By leveraging a combination of data, analytics, and AI to comprehend behaviours, hyperpersonalisation serves as two primary purposes: cost reduction and efficiency improvement. This approach involves streamlining inventory, ensuring each onboard item serves as a purpose, and ultimately boosting ancillary revenue.
Did you know our technology already proves its effectiveness? Upon implementation of hyperpersonalisation, we piloted this approach with a prominent airline, predicting a significant annual increase of £22 million in inflight sales. The key lies in introducing the right product at the right time, thereby enhancing the overall customer journey.
In the post-pandemic landscape, airlines face a surge in passengers, each with diverse needs. Understanding customers becomes pivotal for continuous innovation and success. The deeper the understanding of customers, the more avenues open for innovation, reinforcing the interconnected relationship between customer knowledge and groundbreaking ideas within the airline industry.
2. Responsible Data Use
In the era of digitisation, there are both opportunities and challenges for airlines to harness the power of customer data responsibly. Compliance with GDPR is non-negotiable, and the task at hand involves encouraging passengers to willingly share data by building trust through transparent practices. The primary objective is to gain actionable insights without compromising privacy. Significantly, it all boils down to convenience – there is no risk associated with this approach. Convenience extends beyond just observing customers; it’s about proactively engaging with them.
The more comprehensive the data on customer purchasing or non-purchasing behaviour, the greater the potential for optimising specific offers per flight. Airlines already possess a wealth of data enriched with behavioural insights from each passenger. By prioritising data collection and analysis, airlines can dynamically adapt to market conditions and consumer shopping patterns, constructing relevant and target-specific offers in real-time. This approach unlocks several benefits:
- Enhanced Offers: Continuous insights from customer searches, purchasing history, and pricing algorithms lead to more relevant offers, significantly improving customer engagement and satisfaction.
- Tailored Customer Benefits: Customers stand to benefit from attractive, personalised offers, enhancing conversion rates for airlines.
- Optimised Choice: Improving customer choice based on demand forecasting optimises sell-through rates, reduces costs and increases supply chain efficiency.
The advantages extend to making smarter and faster decisions by accessing real-time sales, inventory, and passenger data for swift decision making. Analysing purchasing patterns and historical data aids in predicting trends, minimising the risks of overstock or stockouts. Efficient resource utilisation becomes possible as flights can be scheduled based on expected sales.
Moreover, this responsible data use strategy contributes to revenue acceleration and an enhanced passenger experience. By leveraging pre-order applications and the convenience of in-seat buy-on-board options, airlines can secure what their passengers desire, creating a seamless and satisfying journey.
3. Cultural Shift toward Customer Centricity
Beyond structures and processes, the pivotal transformation involves nurturing a customer-focused culture within the industry. This journey toward a more customer-centric approach requires the effective alignment of digital, commercial and customer experience realms. The focal point is a shared objective: understanding and addressing the diverse needs of passengers.
In the current landscape, there are more passengers, each with unique requirements, resulting in heightened demand. With varied behaviours emerging, the question arises: how will airlines evolve to meet those evolving needs? The understanding of customers becomes paramount, recognising the power of personalisation is linked to the notion of trust.
A universal shift toward-customer centricity is essential. The challenges confronting airlines in 2024 prompt reflection on the need for organisational restructuring to enhance customer focus.
As previously mentioned, airlines must adapt like retailers, recognising the importance of understanding customer centricity. It surpasses a mere declaration of affection for customers, it involves cultivating a profound connection between customers and brands. This shift is not merely structural or organisational; it embodies a cultural transformation, where every individual within the airline industry is immersed in a shared passion for prioritising and enhancing the customer experience.
Like existing leading retailers worldwide, ClarityIFR’s vision is to put the customer at the centre; to provide airlines with a flexible offer and order solution that intelligently enables airlines to retail and distribute a broad choice of tailored offers to passengers. Orders can be fulfilled and delivered with ease on an integrated platform, resulting in value creation for each step of the process.
By choosing ClarityIFR, airlines can elevate their operations, enhance the customer experience, and thrive in the competitive aviation industry. Contact us to learn more.