Customer Knowledge And Performing Business Strategy

Knowledge of client's profiles, segments, characteristics and expectations has become essential in an increasingly competitive business world where, due to strengthening competition, airlines must adapt their policies day after day and be innovative and reactive.

In air transport worldwide, the most competitive airlines put the client at the core of their strategic concerns whatever their size, business model or location. To know their customers better, they have implemented suitable tools which are considered as strategic investments.

Air transport in Africa has been developing at an unprecedented level in the last few years. However, there is no global or national reliable customer survey about airlines' customers. If African air carriers want to improve their performance, their efficiency and their profitability, their only option is to carry out their own surveys.Frederic Lamarche, Managng Director, ASC Airlines Services Consulting

All Clients Are Different

Many airlines frequently believe that they can avoid developing an in-depth knowledge of their customer segments and typologies, and remain convinced that a perception based on field experience is basically all they need. By the way, multiple factors, either cultural or sociological and economical, do allow for efficient client segmentations, far from common beliefs and other clichés. It would be totally wrong to consider that all customers are in a way similar and have the same expectations. Even if main segments of clientele can be found everywhere in the world, their respective share varies considerably and depends on the airline's geographical location, customers' composition and business model.

For a long time, and given the lack of competition and of consumerist culture in the field of air transport, African customers have been poorly considered by airlines, the latter viewing them as one single type of customer with very few expectations. Most African airlines have defined their product and service based on international standards, without any adaptation to their customer's real expectations. Today, thanks to efficient new tools which provide a deep knowledge of their clients, they can improve and adapt their offer. They have understood that African customers are split in various segments based on a wide range of sociological and cultural factors. A businessman from Central Africa will definitely have different behavior and expectations than a trader from West Africa or a tourist from Southern Africa. With the development of air transport, all of them are seated in the same cabin, together with various non-African customers. Consequently, the only valid solution for a competitive airline is to deliver a product which can satisfy both collective and individual expectations, coming from various customer typologies.

Customer Knowledge Leading To Increased Benefits And Revenues

By improving its knowledge of its customers, an airline can take advantage of many strategic benefits which have a positive impact on its development and profitability. Therefore, product offer is much more valued and company positioning towards competition is enhanced. The carrier has the needed tools and information in order to define and implement innovative products and services, satisfying most of its passenger's expectations. Specific products can also be developed for niche customers with high revenue potential.

With this valuable knowledge about customers, priorities can be efficiently defined in terms of commercial and marketing orientations. Commercial attractiveness is strengthened, revenues are increased and communication is better targeted. Marketing, product and communication budgets are spent efficiently with a guaranteed return on investment. In addition, customer knowledge helps to implement efficient staff training without merely copying non-adapted international models.

The ultimate benefit of implementing the customer knowledge process is customer satisfaction enhancement and loyalty development.African airlines should fashion their products to reflect real customer's expectations


Wide Choice Of Customer Knowledge-Oriented Tools

Depending on an airline's specific needs, available resources and characteristics, a wide array of adapted efficient tools and methodologies can be implemented, from wide-scale quantitative to segmented qualitative surveys. Once collected and analyzed, the information is valuable whatever the panel surveyed, be it either international or local, crossing all customer typologies or just one single targeted segment. It enriches many commercial, marketing, product and communication projects conducted by the airline. Surveys are fully complementary with other key tools like a permanent customer satisfaction measurement process or a quality of service follow-up system.

As competition continues to increase, African airlines, whatever their size or business model, will have to include in their development and performance strategy a better knowledge of their customers that stretches beyond clichés and foreign model inspiration.  www.asconsulting.aero

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