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  Airline 2.0   Airline 2.0  Shashank Nigam  
         
 
Airline 2.0 Strong headwinds and crosswinds ahead

Even though oil prices have receded to historic low levels, dramatic price fluctuations have claimed airlines in their wake in 2008. And with the global economic troubles bringing stronger headwinds to airlines, more casualties are expected. EasyJet's CEO predicts that up to 50 airlines may go bust in 2009.

To ensure survival, airlines have tried innovative ways to cut costs and increase revenues, often at the expense of the customer. Since carrying extra weight burns more fuel, conveniences previously taken for granted are now charged for, including pillows and headphones.

And it’s not just the struggling start-up airlines. Well-respected brands like Singapore Airlines have fallen into the trap, charging for “premium” emergency exit seats. Flying “free” by redeeming frequent flyer miles is no longer “free.” All of these measures have resulted in a tremendous loss of brand trust. And this negatively affects brand loyalty over time—something airlines can ill afford in these trying times.

 
Time to tighten the seat belts, hold on to the customer

A McKinsey study recently claimed that companies that emerged successfully out of recessions did so by cultivating loyal customers through tough times.

In order to rebuild and reinforce brand equity, there is a need for airlines to get closer to the customer. Airlines need to build a personality for the brand to create a more “human” connection with the patrons. They also need to discover unique insights from the changing customer mentality and then cater to them. There is an urgent need to interact with customers in a seamless way, without interrupting them, and even try to involve them in co-creating the brand. But this is difficult to accomplish using traditional branding strategies.

Bring the social web to the rescue

Now that technology has become pervasive, airlines can leverage it to build their brands and empower loyal customers. Specifically, they must tap into the social web. Very simply, social web, or Web 2.0 as it’s commonly known, consists of a community of people with a shared interest collaborating to co-create and discuss content with one another.

Web 2.0 offers an industry with very traditional business models—such as airlines—an opportunity to leapfrog the competition by engaging the customer without interruptions, involving the customer in brand creation and building a personality for the brand without dramatically increasing marketing spending.

Interaction without interruption

Traditional marketing has sought to interrupt a target customer to seek his attention through, for example, an advertisement during a TV show. But new technologies allow companies to interact with their customers without interrupting their lifestyle.

As Allen Adamson, managing director of Landor, states in his book BrandDigital, “it’s important to identify where people are hanging out and what they’re doing.” The key is to engage the target market while they’re doing something they love doing. A great example of this is Virgin Atlantic’s Facebook page, which has more than 8500 “fans” and allows the airline to interact with its potential customers in a way they are comfortable with, through the popular online community. And Virgin’s probably done it with a shoestring budget.

Similarly, social networks like AirFrance-KLM’s Bluenity and Lufthansa’s GenFly Lounge are designed to engage the frequent fliers and the student communities respectively. As opposed to Virgin’s community within a community, both of these are communities for specific target groups. All probably accomplish the task of interacting with the customer without interruption equally well. But on Web 2.0, a brand needs to go beyond interaction to involve customers—it needs to give them a stake in the brand too.

Co-creation: involving the customer in creating the brand

Recently, Delta Airlines’ SVP of marketing, Tim Mapes, was asked to speak at an industry conference about the changing role of the chief marketing officer (CMO). He shared the story about one of Delta’s passengers who “used his video cell phone to capture the onboard hullabaloo that arose during a flight delay, which he posted in real time on YouTube. At that moment, this passenger was the CMO. He had more power to communicate something about the brand experience than anyone of us in our corporate offices.” And that’s exactly why it is important to embrace customers in brand creation rather than isolate them—they are often the best influencers.

One of the basic tenets of Web 2.0 is co-creation. This is when all participants in a community collaborate to contribute to the evolving brand. And this is not virgin territory for airlines either. Azul Airlines, the new airline in Brazil established by the former CEO of JetBlue Airways, David Neeleman, had an online naming competition where anyone could suggest a name for the airline and the most voted names would be considered by the airline’s board. That’s how “Azul” was chosen. There was then a logo-design competition and a flight attendant uniform design competition as well. In a country where democracy is a cherished right, co-creation of an airline brand was always welcome.

Giving the community a stake in the brand doesn’t mean letting go of veto powers, which firmly remain with the airline’s management. But letting travelers have a say in the brand gives them a sense of ownership and ultimately results in greater brand loyalty. These loyal customers often become virtual mouthpieces of the brand. But to make these loyalists effective, an airline needs to inspire them with its personality too.

 
Add a personality to the brand

Rohit Bhargava, an SVP at Ogilvy 360 and the author of Personality Not Included, defines a company’s personality as “the unique, talkable soul of the brand that people can get passionate about.” Simply put, the personality of an airline is what it stands for and how this is communicated. And this is often done by adding a “face” to the brand—something very easily accomplished through blogs.

Malaysia Airlines recently started a blog titled Malaysian Hospitality, which is run by its staff. They not only share their personal stories of working with the airline, but also customer letters—both positive and negative—discussing their thoughts on the issues raised. This gives the airline’s customers a glimpse of the people behind the airline, and they learn of the actual constraints faced by the airline. Adding a face to the company through a blog serves to make all interactions more personal. Moreover, it’s a medium for employees to bond with one another.

Airlines need not be scared of blogs as a vagabond medium. They should tap into technology to instill loyalty among customers and employees by adding a face and a personality to the brand.

Have a holistic technology branding strategy

The technology branding strategies discussed above are not mutually exclusive. In fact, their combined impact can do wonders for brand loyalty. And one airline has done this exceedingly well—JetBlue Airways.

JetBlue became one of the pioneers in the airline industry to add a “personality” to the company when then-CEO Neeleman started his personal blog on JetBlue’s website in 2006. The blog became an important medium for Neeleman to interact directly with the customers and seek their feedback. It probably reached its epitome in February 2007, when he posted an apology for the massive delays due to severe weather in New York.

Blogging is just one of the tools JetBlue has adopted successfully. Already famous for “following” passengers on the micro-blogging platform Twitter and for having an exclusive eBay store, JetBlue has been setting standards for interacting with the customer without interrupting them, and in a way they are comfortable with.

In tough times like these, it’s important that airlines make the best use of technology to get closer to customers so they can retain them. Customer loyalty in tough times pays off many times over in good times. Mapes sums it up well: “There is no excuse for not using digital technology to improve the brand experience.”     

[2-Feb-2009]

 
  
  

Shashank Nigam is a leading airline brand strategist who authors an award-winning blog on airline branding at SimpliFlying.com. He is a well-respected speaker and columnist on the topic.

     
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Airlines 2.0: Online Technologies Take Off in a Recession
 
 Brilliant article! Great examples too.Airlines have been laggards in adopting the internet fully, and it's high time they wake up and smell the coffee. They can start by applying some of the successful examples from Shashank's article. 
Franklin Craig, Airline professional - February 1, 2009
 
 As the airlines continue to struggle, they need fresh ideas like these to continue to fill the seats with paying customers. Shashank is a great resource for the industry and I'm delighted to have the chance to host him for upcoming events. 
Jeff Ogden, CEO, Hospitality Integrated Marketing, Inc. - February 1, 2009
 
 Shashank, excellent article, but airlines are still hesitant to embrace Web 2.0 and social networks fully, to the extent that the hospitality industry has. While social networks certainly demonstrate customer brand loyalty, I think more analysis needs to be done on demonstrating solid examples of a cause and effect ROI. 
Ron Callari, Founder, iOptimize Marketing, INc. - February 1, 2009
 
 An airline company can embrace web 2.0 till they are blue in the face, but until consumers feel confident that they can show up at an airport, and have a pleasurable experience as a whole... and that includes taking a flight that actually departs and arrives on time. Airlines will never over come the negative perceptions people have towards them. Great marketing isn't just messaging, its delivering on a promise. 
TC, Marketing Manager - February 2, 2009
 
 Shashank, it's a well written and documented article. The ideas you are recommending especially during economic meltdown can not only help in building a character for the airline or any other category brand but it also offers Value For Money proposition. 
Pradeep Narasimha - February 3, 2009
 
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