How Airlines interact with their customers through Digital Marketing.

In order to satisfy consumer needs and improve interactions with customers, digital marketing has become highly important for the airline industry. Digital marketing is applied from, the moment the customer is searching for places to go on holidays, booking on a mobile phone or computer, to the moment they are boarding using the app of the company as boarding pass on their mobile or even Google Glass.

There are several digital marketing strategies applied by the airlines. One very frequently used is email marketing. Ryan and Jones (2009) highlighted the importance of customer relationships management when using email marketing strategies. According to them, by using CRM technologies, companies can segment target lists, allowing them to focus highly targeted campaigns to the customers most likely to respond. The company can fine-tune its email offerings and align it with its customers purchase history. In the case of the airlines industry, for example, American Airlines uses triggered-email strategy to remind consumers that had add a booking to the cart but haven’t purchased the ticket yet. In this email American Airlines provides the lower prices and the best offers compared to the option abandoned in the cart.

Experian has searched some interesting facts about email marketing in the airlines, for example, the winter email campaigns generates the most clicks due that the people want to spend holidays in warmer destinations. Another fact is that Airline loyalty mailings have high customer engagement with a 72 percent lift in unique click rates for loyalty mailings compared to non-loyalty mailings.

Nowadays the presence of any company in the social media is an essential channel to deliver promotion, information and to interact with consumer. In the airlines industry there is a new trend called “Social Seating” . Airlines are increasingly allowing passengers who opt-in to share their social media profiles and use others’ to pick their seatmates.
A company launching a successful digital campaign that had over 1m YouTube hits was  British Airways with its cross-channel campaign, Magic of Flying, that connected with consumers through an interactive billboard campaign. The key to the campaign’s success was its call to action – the hashtag – which encouraged people to go to its #lookup branded site.

Another way in which airlines enrich interaction with consumers is through online booking and check-in. This not only improve the customer experience but its also provide the company with wide customer data that can be use for future marketing campaigns such as mailing.

However, many companies have been criticized because of use of passengers data. For example, Delta Airlines mentioned this subject and received negative responses. When customers found that their personal information was programmed onto Delta’s website, they were less than pleased.

The goal for airlines, however, is to deliver  a better experience. Imagine the flight attendants with tablet computers researching the people on the flight. Some is beneficial- allergies, preferences, and nationality may affect the food they serve to each flier.

Some high cost airlines are offering new technologies to interact with their customers. Virgin Atlantic for example, was the first airline offering air travellers to experience the benefits Google Glass technology as they arrive at London Heathrow airport, in an innovative pilot scheme that started in 2016. Concierge staff in the airline’s Upper Class Wing will be using Google Glass and other wearable technology to deliver the industry’s most high tech and personalised customer service yet.
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American Airlines has also implemented WIFI on board in order to keep interacting with their customers when they are on board and also keep satisfying passenger needs. For only $19, American Airlines passengers can enjoy of this service all flight length.
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References:

Experian, (2014). Email Marketing Trends. [online] Available at: https://www.experian.com/assets/marketing-services/white-papers/ccm-travel-industry-email-marketing-trends.pdf [Accessed 1 Feb. 2016].

OnSpot Social, (2014). Airlines Turn Digital Marketing into Data Collection. [online] Available at: http://onspotsocial.com/digital-marketing-turns-data-collection-major-airlines/ [Accessed 1 Feb. 2016].

Ryan, D. and Jones, C. (2009). Understanding digital marketing. London: Kogan Page.

Smart Insights, (2015). Digital Marketing in the Airline industry. [online] Available at: http://www.smartinsights.com/b2b-digital-marketing/b2b-strategy/digital-marketing-in-the-airline-industry/ [Accessed 1 Feb. 2016].

the Guardian, (2014). Five brands leading the way in omni-channel marketing. [online] Available at: http://www.theguardian.com/media-network/2014/nov/28/omni-channel-marketing-john-lewis-british-airways [Accessed 1 Feb. 2016].

Forever 21: Permission-based e-mail

Nowadays, permission-based e-mails is an increasing and important medium of marketing communications that enables companies to establish and build closer relationships with customers. E-mail marketing campaigns include benefits for the company such as low cost distribution of promotional messages, targeted distribution of promotions (discounts, coupons, events invitations and so on). Furthermore, e-mail marketing is a affordable form of marketing used by small and medium-sized businesses. According to Pavlov, Melville, and Plice (2008), e-mail marketing campaigns produce approximately twice the return on investment of the other main forms of online marketing such as Web banners and online directory adverts. Another advantage is that e-mail marketing is highly targeted and focused. Marketers can customise and personalise each email message.

Beside all these benefits for the company, on the other hand, there have been widespread consumer complaints about unsolicited e-mails (known as “spam”). Now, in most cases, the recipient provides explicit consent to receive direct e-mails and, in some countries, this is a legal requirement (Worthy and Graham, 2002). The most significant encouragement for users to “opt in” to a firm’s e- mailing list is the opportunity to receive information that matches their interests as receivers are more likely to open and read such messages. (Grunert, 1996; Gengler and Thomas, 1995).

There are different types of emails marketing that a company should consider such as Conversion / life cycle, E-newsletter, House-list campaign and Event triggered. A critical examination of one of these type of email is detailed next.

As an example I took the emails that Forever 21 sends me periodically. These emails can be classified as part of a House-in campaign, where Forever 21 have obtained my email address and is sending me promotional campaigns of launch of products or special offers. However in the case of this particular email (#HolidaysReady) it can be said that is a Event Trigger strategy.

Personally I would not open any of Forever 21 emails because I do not find them relevant, I might open it if I feel in the mood to do it, but there is something that i find annoying and is the frequency of which I am receiving these emails and this is one of the reasons of why I lost interested in opening them, it is just too invasive. However, I did not cancel the subscription, I just ignore them. Besides my personal case, the design of the illustrations are very attractive, the brand logo position is prominent, hyperlinks are well identified and message content is aligned with its subject and headline. No personalisation has been identified. The calls-to-action is also attractive, obvious and easy to find to access the landing page. The use of images reflects the purpose of the campaign by showing some clothing outfits included in the promotion.

It can be said that Forever 21 campaigns can work for people who is loyal to this brand or is looking for some seasonal offers, but I don not think they work for general customers, especially because of the frequency of the emails which I found them very invasive an as result unattractive. The subject of the email could also be more precise, direct and engaging.

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The Landing page looks like a extended version of the messagel but offering more features, discounts, and options. Also the theme used (Christmas) is more related to the promotional seasonal campaign.

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To conclude,in my opinion, Forever 21 should implement a deeper tracking of customers response to their campaigns in order to check who are responding positively and who are not and reduce the frequency of emails.