Loyalty & Relationship Management
Case Study | Largest airline of the Middle East
The client wanted to enhance their existing frequent flyer program (FFP) in order to drive loyalty and increase customer satisfaction. They wanted a marketing instrument that would support their existing FFP and cater to the requirements of their demanding customers.
The client’s existing FFP statistics showed that the customers were not burning enough miles; there were a lot of customers whose miles expired or remained unused. Moreover, customers had very little choice in regards to using their miles - they could either buy tickets from the same airlines or upgrade their tickets using their miles if they were travelling with the same airlines.
The client was also struggling to find a better way to deal with questions of liability from the sale of miles.
arvato, in collaboration with the client, developed a reward shop called ‘SkyShop’ as an enhancement to their existing FFP. Skyshop, run by the airlines, is an extension to the FFP and offers its customers products to order from different categories (e.g. home, electronic & travel) or book certain events (e.g. holiday trips, concerts, meet your star) using their miles.
The customer can order either via a physical catalogue or a web shop. A website to this effect was launched in December 2007. The web shop offers around 400 world-class products with a unique worldwide delivery service, which allows the customer to purchase products from the catalogue or web shop using their miles, cash or using a combination of miles & cash.
Drawing from arvato’s experience in the airline industry, loyalty schemes, customer service and its expertise in logistics and financial services, arvato manages the SkyShop program out of two locations, Gütersloh (Germany) and Gurgaon (India). arvato covers all services along the SkyShop value chain from sourcing & procurement, warehousing & logistics to management of online shop, financial services & customer service. Sourcing, procurement, online shop maintenance and financial services are taken care by our team in Germany. Customer service is taken care by our Gurgaon site team.
arvato India was chosen as the only contact center for this FFP. The role of arvato India is to respond to customer queries relating to order placements, tracking and delivery status, and assisting the customers to order products via phone or e-mail. They also cater to seasonal promotions run by the client to drive sales.
Pre-order: We provide solutions to our client’s customers pertaining to miles availability in account, account updates, product availability & information, delivery of item to the desired location, login-related questions, payment enquiries and promotions.
Post-order: We provide customer solutions related to timely delivery of order, return & refunds, cancellation of order and post payment queries.
Outbound e-mail: We proactively reach out to customers via e-mail to update them on their order status in case of delays or if the item ordered is out of stock, etc. We also intimate customers on their orders being delivered at the collection center for them to either collect it on their own or get it collected by the authorized consignee.
Outbound call: We respond to customers’ queries received via e-mail in regard to redemption issues, payment errors, website errors, and address issues. In these cases, we call the customers proactively and help them resolving the difficulties they are facing. We assist the customers in placing the orders.
- Relationship of seven years & growing
- Support via e-mail & phone
- Support language: Worldwide English from India
- Product sales increased to an average of 600 per month
- Managing over 5,000 inbound calls & over 3,700 e-mails per month
- Escalation down to zero level
The SkyShop has enabled the top tier members defined as the ones who spend a considerable amount of their time in airplanes & hotels or use rental cars; therefore, they are not interested in classical rewards to use their miles. It has also enabled base members who do not have enough miles to receive rewards to use their miles, especially through the miles+cash payment method. This, in turn, has increased attractiveness of the program and customer loyalty towards the airline.
The SkyShop has created additional revenue streams for our client - cash orders, miles+cash orders, marketing of advertising space in physical catalogue, marketing of advertising space on online shop (banner, etc.) and special promotions with selected redemption partners.