Successful List Management: Fixing the Leaky Bucket

Transcription

1 Successful List Management: Fixing the Leaky Bucket Andrew Chang Manager, Marketing Strategy AirTran Airways Thursday, January 21, 2010

2 What is AirTran Airways rank, in terms of size by capacity?

3 What is AirTran Airways rank, in terms of size by capacity? 8th

4 How many passengers were enplaned in 2009?

5 How many passengers were enplaned in 2009? 24.8 MM

6 8 th largest domestic airline Serves 64 destinations 24.6 MM enplanements in Top-ranked low-cost carrier by Airline Quality Rating Youngest all-boeing fleet in America First major carrier to offer Gogo Inflight Internet & XM Satellite Radio on every flight

7 AirTran Program Overview Net Escapes Primary campaign promoting weekly sale alerts A-Savers Promotional and partner offers A+ Rewards AirTran has been collecting data on its A+ Rewards members since the program s inception Customer profiles include more than 30 data points

8 The AirTran communications strategy was meeting the marketing objectives, but AirTran wanted to focus on list growth and retention despite an overall reduction in capacity. Acquisition (Fill the bucket) Enroll prospects into programs with easiest barrier of entry NetEscapes and A-Savers Only address is required for sign-up Voucher Programs Cross-promote A+ Rewards program throughout message streams Retention (Stop the leaks) Focus on most valuable customers A+ Rewards Many data points available to design sophisticated programs around Leveraged profile data in 2009 to develop sophisticated lifecycle Increased message relevance promotes long-term engagement

9 ACQUISITION

10 NetEscapes/A-Savers Voucher Acquisitions Customer offered voucher and URL Complete landing page enrollment process Automated voucher distributed Customers added to NetEscapes and A-Savers

11 Promotions Danica Patrick Racing Experience Be a backseat driver at Indy Raceway Sports Illustrated Swimsuit Fly Away Win a flight to the Super Bowl with SI models Sweepstakes Sign-ups A+ Rewards membership and required Includes travel and accommodations

12 RETENTION

13 A+ Rewards Retention Successful list management starts with a relevant communication stream to retain current subscribers Every 1% of retention = $5MM in revenue *2010 Marketing Benchmark Report; MarketingSherpa

14 Enhancing Communication Lifecycle Opportunity existed to fill A+ lifecycle gaps Prioritized and launched 5 new campaigns in 2009 to supplement communication stream Enhanced welcome communication Customer satisfaction survey Elite upgrade notification Elite status renewal A+ credit expiration

15 Enhanced Welcome Leveraged proven A+ newsletter design and applied to welcome messaging Quicker to Market Reduced message delay from 1-2 days to near-real time communication Featuring New personal A+ number and printable card A+ program details Special partner offers Contact information

16 Customer Satisfaction Survey Utilized formal letter style messaging no incentive Delivered shortly after conclusion of flight Full circle customer feedback loop Monitored on daily basis to allow for prompt follow-up

17 Elite Upgrade Timely notification alerting customers of change in member status Pertinent account summary info Member number Status expiration dates Available A+ credits A+ Elite program benefits

18 Elite Status Renewal Informing customers Elite status is about to expire Remind of A+ Elite benefits Provide expiration dates and # of A+ credits required to renew

19 Credit Expiration Alerting members A+ credits that are about to expire Details of A+ credits expiring custom published into Includes various ways and quick links for customers to take action

20 Results of 2009 Efforts Open Rate Doubled opens! Unique Click Rate 7x increase in unique clicks Unsubs Promotional unsubscribe decreased Conversions 10x increase in conversions *as % of net delivered Overall, AirTran has experienced ~13% overall opt-in list growth since December 2008 despite a 2% drop in capacity

21 Next Steps for 2010 Further build out communication lifecycle Automate more than 20 new relevant triggers Reactivation messaging Web behavior data integration Flight status notifications etc Sophisticated preference center Unsubscribe survey

22 Credits/Thank You Andrew Chang Manager, Marketing Strategy AirTran Airways Call or me at: