FOCUS ON ANCILLARY REVENUE
starting point of both technology innovation and expertise.
Kobie Marketing at AMC
Before the AMC conference, on the afternoon of Monday November 26, Kobie Marketing is presenting a Workshop. We asked Bram
Hechtkopf, vp business development & marketing, to tell us about Kobie Marketing.
OBH: What exactly does Kobie offer? BH: Kobie Marketing is a global leader in loyalty marketing, delivering end-to-end strategy, technology and programme management solutions. For nearly 25 years, Kobie has provided innovative loyalty experiences to the world's most successful brands, helping clients receive incremental revenue, product and household penetration, and brand advocacy. Kobie drives results and ROI through Alchemy™, a best-in-class loyalty marketing technology platform.
What is Alchemy? Is it future-proofed? Alchemy is a convergence of technology services (web-based or hardened integrations) designed to enable any potential customer experience associated with a loyalty programme. We try to make Alchemy ‘future proofed’ by basing our technology on open standards and to flexibly interact with any current or future consumer engagement channel.
How does Kobie compare to the competition? In 2012, Forrester Research named us a leading loyalty marketing service provider, ranking highest for technology, customer satisfaction and programme management services. Which airlines is Kobie working with? Kobie Marketing is currently working with Hawaiian Airlines. We are also in the process of securing a couple of new clients in the travel industry.
How effective has this partnering been? The Hawaiian Airlines programme has been very effective with hundreds of merchants having joined the programme. Participating merchants can use special promotions to
significantly increase traffic, consumer spend per transaction, and total revenue. This has allowed Hawaiian Airlines to increase ancillary revenue because merchants are purchasing more miles from the airline. In fact, based upon an analysis provided by Kobie and Hawaiian Airlines, a national restaurant partner of the Hawaiian Airlines XtraMiles programme realised double digit increases. With over 175 locations throughout the United States, the major restaurant chain instituted a $70 minimum transaction amount for the earning of miles. The chain experienced a 26.3% increase in traffic over three months. In addition, the average ticket amount across all transactions increased by 13.7% with the percent of tickets meeting the $70 minimum increasing by 8.7%. Total sales in the period following their inclusion in XtraMiles increased 43.6% over the prior period. Go to http://
www.kobie.com/clients/travel-and-hospitality/ hawaiian-airlines/ to read our case study.
What benefits can Kobie bring to an airline seeking to maximise ancillary revenue? Kobie can help airlines maximise ancillary revenue and provide several conduits to offset liability. One way we do this is by developing and facilitating merchant-funded programmes where merchants buy miles or points from the respective carrier thus generating ancillary revenue. We can also help airlines better reward their customers for a lot of things that they already do. We can also leverage competitive benchmarking and look to see where they’re leaving money on the table to help them to recognise some potential new revenue streams.
How does Kobie help airlines to collect information about their passengers? We do a lot of work in loyalty, by helping airlines create a more complete view of their customer. We do this by acquiring customer information throughout their entire customer life cycle, compiling data on their preferences, behaviours and even third-party data as well. We help them reach their customers across all channels – omnichannel loyalty in practice. For example, mobile information can be sent to passengers in real time, providing travellers with updates like whether there are delays, or if they have earned additional miles from their last flight. This gives us an ability to push them more relevant offers, before, during and even after their flight. One of Kobie’s differentiators is the ability to collect consumer data in multiple conduits. Another differentiator is that Kobie can provide very granular data. Where airlines fail, frankly, is in the utilisation of the data, because it can be overwhelming. But if an airline can leverage granular data, they can use it effectively. They can also use a loyalty programme to gain a clearer customer picture and ultimately, change the experience of their loyal customers.
Does omnichannel loyalty have relevance for railways and ferries too?
Omnichannel loyalty has application for any vertical segment and sub-vertical. Ideally, travellers are able to leverage their earned status and apply it across the travel experience. Though airlines, railways and ferries differ in terms of their willingness or capability to fund incentives or rewards to their customers, they all share a common interest in wanting to attract valuable travellers to give their service a try.
www.kobie.com www.affinnity.com
CONTACT US
OnBoard Hospitality's AR Focus is a regular feature. If you have a new product, new technology, a relevant report, or a new partnership to announce, email
richard@appinpublishing.co.uk (text only, please). Please send any picture files, marked AR in the subject line, direct to
jo.austin@
onboardhospitality.com.
www.onboardhospitality.com 59
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