Consumer-centric or Brand-Centric

What is the most effective way to retain customers?

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. October 14, 2008

NOVEMBER 27, 2006. In today's crowded marketplace an optimized CRM strategy can really separate your travel company from the rest of the pack. Online travel sales are still expanding, but at a diminished level.

With fewer customers left to migrate online, competition for the online travel customer is fierce. 71% of Americans are currently online, by 2011 it will be 81% (Forrester Research) In order to be successful companies must retain their customers by building loyalty and consistently providing an experience in line with their brand promise. Fundamentally, companies that put CRM at the core of their vision, like JetBlue and Southwest, remain a firm favorite with customers.

Despite stiff competition and rising costs JetBlue has managed to rank highest in customer satisfaction levels among low-cost carriers (JD Power and Associates 2006 North America Airline Satisfaction Study) During a presentation earlier on this year Vicky Stennes, VP Inflight Experience, JetBlue said 'we built JetBlue as a customer service company - not just an airline. We desire to be compared to other best-in-class service companies, such as retail organizations like Neiman Marcus, and 'experience' companies like Walt Disney'.

Southwest is arguably the most successful airline of all time and they rank a close second behind JetBlue in customer satisfaction levels. For 20 years there loyalty program has proved profitable for them, with the credit card alone generating $50M of fees. Their enviable loyalty scheme has been recognized by the industry and wins first place awards, year on year. 'We are excited the flying public recognizes the value and simplicity of the Rapid Rewards program," said Debra Benton, Southwest's Director of Loyalty and Partnership Marketing. "We strive to make the program Customer friendly and easy to use. Our program gives frequent flyers what they want -- outstanding Customer Service and a simple way to earn and redeem free travel."

Hotel brands such as Fairmont and Choice Hotels have gone for a brand-centric structure in order to drive growth and financial performance. Choice Hotels have categorized brands in order to build brand loyalty. Joseph M. Squeri, president of Choice Hotels said "Our brand centric approach fully integrates our brands and our business strategies and allows our brand teams to place singular focus on understanding, anticipating and meeting the unique needs of key customer segments across all touch points' And Fairmont Hotels are also concentrating on identifying and anticipating new services and products which will provide their guests with a more personal stay. By consistently delivering on the brand experience Fairmont hope to raising the bar for every customer interaction.

If you would like to hear about consumer-centric invocations in online travel and loyalty programs, both Vicky Stennes from JetBlue and Debra Benton will be speaking at EyeforTravel's CRM in Travel 2007 conference. Plus Jon Mamela, Director of Relationship Marketing from Fairmont Hotels will be giving tips on consistently delivering the brand promise. The event will also feature sessions on website optimization, implementing a personalized approach and integrating CRM and Revenue Management to appeal to price sensitive customers.

See http://www.eyefortravel.com/crm2007/17 for further information about the event including a full agenda and list of speakers.