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April 06, 2004
High Flyers
Posted by Britton
Houston-based Continental Airlines is making some interesting moves to win loyalty. In fact, flight attendants are now handed in-flight reports prior to take-off that flag the airlines most valuable customers - recognizing any delays or inconveniences they may have experienced en route so they can be treated with special care. Such treatment is paying off. The airline has earned an extra $200 in revenue on 400,000 of its top customers, and another $800 in revenue on 35,000 customers in its most profitable tier, according to a recent article in CIO Magazine.
That wouldnt be possible without a system to analyze customer data, and the operating processes necessary to leverage it at the gates or in the skies. Relying on insight from its enterprise data warehouse, the company identifies valued customers that have experienced delays, and then sends them a letter of apology and provides some kind of compensation (such as a free cocktail or frequent flier miles). Research suggests that passengers are far more likely to simply forget the incident as a result of such actions.
Continental has even determined how to automate the rebooking process should a connecting flight be missed. The airlines most valuable customers may even find themselves on a competitors plane all an effort to recognize that individuals long-term value and keep it. Before the data warehouse, the person who yelled the loudest got the best service, says Alicia Acebo, Continental's data warehousing director. Now our most valuable customers get the best service.
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1. jtdrake on April 8, 2004 08:52 AM writes...
In the course of satifying their regular customers, they have managed to PO at least one ocassional customer...me (acutaly, me and the other four members of my family). We traveled on them during Christmas, making reservations early,etc., and still got lousy seats in the last row with no windows and put on the plane nearly last. It was obvious from the online seating charts at the time we made our reservation that there were still many mid-plane seats open, but they were all reserved for the potential that some of their regular customers would want them later. We have two under ten kids, and desired to stay together as a group, but they could not accomidate us except on the back row due to their semi-reserveded mid-plane seats. I for one, will not be flying again Continental if I can help it.
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