Jonathan Miller explores how to identify the right degree of personalisation at each step of the journey
Automatically Generated Transcript (may not be 100% accurate)
Let everyone think huge victory for having me here a few words offer of introduction. And so I'm director of pricing performance blaming the global revenue management and pricing. Function with and they import them pointedly I joined the company only four months ago walk. So it's a relatively early to be talking and after our strategy unit has been built over the past four months in years I still feel quite at home here. And really deserve everything for that. And before that I was worker Simon content partners for eight years if lenders might lost customer was before I went to record sales. Yours differ felt working for any took else. For quite some time feel like I've told a disagreed with and where they went into two to record tenth. And then before we before being personal look in the digital world late in the first and order in the physical world fitness. As a quite simple question to toward a new. Do feel comfortable do fewer welcome in our Nortel announced of them should I get. Come up happening. Thanks very important for us absurd now officially one of our biggest objectives with customer satisfaction tough acid better but the are big boss Lee says in the press that at some point. So keep bonding satisfied. Perhaps it would be good form to growth and the serious Lucent through years and baptists who. Know any questions or need zen I coating in the spring to ninety days. Another bail in the fight and help just has come out coming and thinking out doing the bridge. Do so powerfully biased towards revenue management in bias towards pricing. Apple can understand the fifth and I'd like to talk to you build its own the mega trends that we consider important for us. As a good idea if many things that cash to fund a so a written said that. And our talk about a few key concepts that are important for us to drive our strategy to defeat saw no regional trends. Our industry did Q fed actually to. Efforts that we have ongoing at the core end market. For the three mega trends that Dodd besides live and then to understand the way customers are interacting with was our brand or your Rome. Other following obviously be transparency. Customers compared sort of movie you six mid movie was much much better than mine once lighters to say that our customers compare and they know that they can optimise and their purchases by comparing. That's true both for need to see. Only to new customers. And increasingly. And imagine so for the hope delta pulling in in the room. And you know that your need to the year corporate customers they're often the book for public growth. When you look at the need to see and we are facing imminent some of them are computers off or facing. And the receive a pick fights you raids to need to see web site like I'm Amanda com so. Basically we can't hide our rates from our customers it's not possible only if the surge the share among themselves. So we've gone time we bring must not try to hike that's one the first term. First earnings per month. The second trend is not to be depletion. Modification or what many things again though the movie from from fifth and will vary. And industry deal that the multiplication of accommodation options from luxury hotels to low cost hotels to private rentals. And multiplication of residents from the early booking deals to last minute deals. All sorts of flexibility options from being prepaid to to fully refundable. And a another big get off channels obviously we connect fair. Tokyo is in website saying different channels are databases at that point there we have. Countless channels. And of course modification of devices so all the offers all the offer in the hall and all the channels they are accessible. And through your preferred device or at your fingertips. But the second big trend in the third and big trend also mentioned earlier today with his own dynamics forwards begun. So if we've been doing seasons are these things quite a long time but the complex it work they've said that the level of of Diana is not a pricing and revenue management. Is increasing every day so routes adds to complexity. And that we that we that we are facing a custom map of live everyday. Now for us what's important. And and Wimbledon thing from a pricing perspective everything that our customers. Mostly had understood the prices rise over time. But we still need to constantly reassure them out of bed a dead are confident when when they look at though the third. And mega trend better. But we we consider it important for there are others obviously those are what I wanted to focus and today now how to respond. Face respond leverage greater reality what what what we do to. Who. To thrive and to become profitable no evermore profitable manner in that environment if I like to go from Europe for different topics. And linked to the topic of of the presentation in the best an elevator had to be a longer hold journey no hold customer burner for now we need to be strong on mobile. We need to ensure that if our revenue management views. Since customer centric. And they need to establish a so your pricing mission to our shared. Some elements that then that I important for us that a per call what we've been doing. In terms of of personalisation. And on the whole doing film you may have seen this turn there's top management board with version is this recently that's fine as a as a bit panache and a Indy returns. Circle at the end of fathers under the key seven steps of the customer driven. Between between you reconsider. Dreams electable. Prepares day. Shares in return. We need to identify the right level the right Digg Reel personalisation. Package fed and longer term. But for example a look and add the walking. Veins they're pricing is particularly important. We need to identify. Basically you that point given looking to ensure that that that the booking is converted to a for example be denied earned the maximum things about a a customer ends in. Fourth one added benefit for example want to control about thirty converter not dozens and dozens of options. For example also being this stage six year into key strategically for a year fees fassel so if a Ford lost a question on what we. What we want to do in three years to turn it revolves around what we are able to do during this day of the customer also with how we need to do to to know. Exactly what labour law of personalisation. We're in the customer wants during his stay here and have specific extensions that are not intrusive in really 22 point four. There's up to two examples. And a two to make that happen we need to into the future employee who was in Dutch and with customers at each of those phases. As the right information to deliver the best the best personal experience. Though the bill that the customer journeyed. With in terms of mobile a total of Maryland big pillar of having their fantastic up a key point that we think that is only room for three. And travel apps on the Smartphone. Your favourite airline. And no today. In your favourite. And country through onto the among those so we have not on the perhaps brand specific apps. Service specific apps want to have everything in one so we already have with a very bottom occurred we improvement is that over time. Point and it works also during this stage and into mutual media at. Key thing then turned the customer you wind up in the hotel will can see no reason to communicate with that. That. Another oil long term quick word Alamo by the three big features that we. We stressed on par on our mobile strategy. Fears there of course to have a to have. Elements on the brand the track in the middle helps the branding elements on the loyalty yen we bought the company recently just call we put your. Which is term and growing successful guy integrating them strongly fifth third to travel companion which consolidates a review information. Which are useful when you when you victory. And we have got summer seeing a term. Chicken online ticket in fast checkout. In hotel services sitting guidance and facilitated payment for the one it. Sustainability year initiatives. Music initiatives into trip took into. The strong on normal buying in the last element. Because we nine revenue management and pricing fair game. The question of mobile offer a mobile ray film. Not in question. Our different elements which a which need to be taken into account a different options. And forbid me you promote Illinois this down session in the year an added value. What's really dialogue that a third of the officer to push funnier on a more direct mobile channel. Oh dear last minute dawn of time paid booking what kind of restrictions and what kind of hope Dell's growth. But there are various options redone as a very relative who bemoaned by Walker's par. Then as summons for this morning. And they are not so many today but they're growing very very fast fearful triple digit growth on a number on my travels. And there so we are testing basically different things it's the typical example of a of the deepest being indifferent to a different configuration in the me if you would see things being rolled out over the coming. Months based on the results of bills of that of course we pre term. Added value. We refer also will. I would very for the classes that we. We differentiate obviously from the mobile O two days and then we also respect to our sending price stretch. Men bond to a third term as fed chief concept I wanted to distressed. And we are moving we started the move when we think it's very important too difficult but it's very important. RM and is traditionally busy on transactions. We onto movie is to customer centric for optimising. Looking at the whole customer not transaction by transaction that's also worth will need to be ended and T customers mightily for. Out of what blew me in the means that your strategy has to become customer centric spoke or over the one publicly function of revenue management. And we are now not talking about risk far. And so much. Welcome him out the door mid breath of total risk buyers looking affordable things. At a customer I have walked in met with by taking into account the different level off costs of commissions depending on the channel. And this has to become more customer centric. And the daily optimisation obviously the bread and butter of revenue management. For pulls. Quite a challenge. May assume our traditional revenue management system is another falls. Tainted out of this philosophy. But this possible possible. The culture the people. And the communication. Has through the communication Bob Wright is on the availability. Or to become offer more customer centric. And if further I would do to summarise whom. Most important features of customer centric. And revenue management is that need to develop your understanding off of your customers. And that I would focus on three. Aspect what are your customer preferences. What is being wining this debate ended sensitivity to right fifth in the third point Allen have another sign on that. Is near if overall lifetime value for Theo and spends a customer lifetime value. Particular measure. A fifth year concept opinion do used to could be done customer centric. Well long run on driven management now well on pricing on my mind but topic fair isle conviction. The magistrate reserve is. The bosses yeah Phil customers purse live. Trims. Judge and remember. The value that you offer and the value that can deliver in large part for your pricing. Father preferred if not the preferred means politically. Correct in your breath is something we meaning ticketing July 5 and so. Got a bit on the trains that Diane Irvine told the powerful figure out earlier. Simply an attractive. Prices aren't enough anymore. We think their customers need to believe that your pricing if they had done their offer many customer service that we we conduct. Especially when we focus on our loyal customers as a very important in very strong. Expectation in terms of fairness perception offered. If so. What does that mean that is that. The services a little bit controversial. Compared to things that are sometimes. Considered trend living in the industry Fitch ever spectrum from from the mine roof bar room. Mifflin from from on one side 12 men so very simple report. And pricing. Fair as her as a structure that done transparent stable predictable that's on one side. Is. Close to what we have been in the past if we were doing a perfectly with a yum extremely have more one to one pricing. More sophisticated. Person in the ninth really customer specific pricing film. It seems to look possibility with the new big data. Two more zen men and availability of problems of computing power. But we preferred. Middle way we think the minnow. Given what we know about our customer I think of the middle weight is best not only because it simpler. Because we think at its best compared to customers we think we have to segmented offers segmented. Pricing which reflects both the value of our customers on one side. And the value of our offer the offer we deliver on the other. And vivid reflects both of those. Aspect. Customers and what we offer. We can ensure that no way we do our pricing where we do our. Whereas if we go to 121 so of course that's what it's also true for one to many it's going to be very transparent very symbolic. Month. And would leave too much money on the table we think phone one to one pricing we think there's a risk. In the long term system. May young sons' statements. We could go a little bit further towards number for you. But broaden is leading. After our pricing philosophy has rather want to few because quite conceptual open. It said it's clear well what they're saying they're targeted to share. Questions. So peaked. If you with no wonder the futures in the benefits of one to few pricing food prices may still need optimised when they are conceived nine backed off but to redeem a degree of simplicity. It's this we reserve profitable fast and predictable flow of customer they're sending pricing strategy is very important for us. Editor in entities are our reputation are priced in Mindanao price reputation. Is so one to fuel pricing and under being the by far is a really underpin that we are building with. And by clearly customer off burn bright signal inflation. Rules that ensure that the office in this area with. And very important point that it enables us to reward. Our best customers are loyal customers the region does. The word of the fall. Think concept and wanted to to go through now I have to move practical example of what we have been doing and garden are the doing. Two to put Booth element into practice and also. Tutu. To showcase elements off personalisation. First first one with an automated then in targeting targeted. And promotion mechanism with Phil. So statistical term. Where you're working have. Small question when you afterwards. And the second one would be customer lifetime value measurement. Further a question term. Smartphone or an analyst sitting in the room help Clinton with a modern woman would try and answer. Yet to digest what's the prior to that the sum of two dines is. Three. You don't have. Torrid. 181056. Bit of Phil you have to have either one into a two month it's too often go for the third sixth options correct. Goes that's. Very interesting picture not so much what went with their second question. And if you know that the first so you know something. The first dice is worth one. Very interesting what's then the probability they were 6% 25 point 555%. And what that then. It's easier prevention chucked. So it's much higher than the logic behind that is that if you know some things. Better customers. And you can greatly increased noting the predictions that have a bell what would interest them. So if you know better one bias is one question of what a customer likes a bill to. Madrid in the like two big gold field probably like to go to the nature prediction because of the luxury fantastic come down. In Madrid fifty pushes its yeah for more 17% chance of bin 6% Johnston. Volume 56. That's one example with. And the second heard the second illustration of what we do with customer lifetime value rhino that as a session this afternoon Taiwan go into too much ado about. We've done big projects. When. Tutu to map dep to measure that turned their depth customer lifetime value and in this. Quite did understand was known example we're copper hovered at a customer. So at the beginning than we ever mostly acquisition costs. Then you have the volume at a and then Nancy buyers only buys more and more volumes of his customers. And lifetime value increases over time you can serve him probably with as a list cost over time you can get him to recommend the your desktop or job down. And around the around this friends and yourself have a price premium over time. Mean you're you're loyal customers the idea that to you you can be upset you can upset them do requires minimal discounts for them to come. Visit lots and lots of benefits from. From retaining your custom. For him summarise. Us and to leverage personalisation. Feel free. Big steps that were definitely recommend that we are we're updating F we recommend to improve the customer value. First one not fairly simple all right it's not simple but all of its improve your set of offers so we are quite a big company with. Very different brands unfortunately on the last line of very different countries so far offered us. Quite a mess I knew the company so I can still say things like that but. We I'm working we are working with the countries with the marketing with lots of our stakeholders in the company. Improve lost a job offers us the basis of the segment your offer so that you can. And give into your correctly figment of customers. In particular the benefit constraint relationship is very important point. Figure one is optimise. And the price if you bought from profitable for both on the customer preferences and remember the first term floating huge job customer centric open amendment. And done a standard. And endeavour segmentation to want a few behind fifth sandwiches as more so including elements of our offer elasticity. For pricing its essential. And the third point is focused on your high Sierra V customers. And improve especially for them. Near their customer and doing the fix things to get segment Pacific office. Free video recognition. And are actively. Conclude with my favourite quote we've probably many of you know for the right now I'm managed by Paul with men into committed to. Want to try to make it relevant to the presentations. So Warren Buffett snow richest guy on earth for a most. You said the single most important decision and in the very thing business is pricing power. But we aren't Eminem's we found not irrelevant but I think it is. Big goals bids from. Personalisation and fed to increase the loyalty of our customers filling have bird loyal customer base you have prices fell. During much.