As Ardi Kolah of Vocus states, we are more demanding than ever. "100 years ago, a car buyer would be more than happy to buy a Ford Model T, a model that hardly changed in decades, in â€˜any colour as long as it is black'." What does this mean? We did not have much purchasing power! (I am very thankful that is not the case anymore.) Consumers today are especially picky because there are so many options. We try to find what gives us the best value, or perhaps the best bang for the buck.
For many industries including the aviation sector, focusing on customer needs is the pillar of successful marketing. Marketing has changed dramatically over time with the domination of social media and the global economy. We base our purchasing decisions heavily on external sources, such as online reviews and personal recommendations. These factors, among others, has greatly shaped the way companies communicate to consumers.
According to Kolah's article, the airline industry has become a leader in the use of predictive modeling tactics to identify desired customer segments:
- Response modelingâ€”gathering customer data to better market to them.
- Analyzing frequent flyersâ€”far less expensive to retain a loyal customer than find a new one!
- Forecasting customer behaviors and buying patterns
- Marketing ROI optimization
- Predicting the impact of marketing on customer behaviorâ€”helps to reduce wasted resources.
I believe that of these tactics, focusing on frequent flyers is the most important. By doing so, airlines can determine why these customers keep coming back. This information can help carriers pull customers from lower segments into frequent flyers. The importance of loyalty!
Kolah also claims that other business sectors should compare their marketing strategies to that of the airlines'â€”it is "more enlightened and focused". Do you agree? Let us know!
Involved in the airlines business? You should join us for World Low Cost Airlines Americas in Miami this May.