Kevin Krone, CMO,�Southwest Airlines shares how to maximise marketing ROI
Automatically Generated Transcript (may not be 100% accurate)
I'm Kevin -- and chief marketing officer -- sterile and there was south where some might Wallace OK Europe it's a fantastic career and having great. -- staff were sent in -- feel very very fortunate. I have -- while the Dow starts I think in the world. -- -- industry industry so. Very -- to do today. I'm going to. Tie up with few. Now. Worth desire for a -- older users stays are very get a marketing and they -- now. While the material will serve as they come back for travel and hear speakers -- about thinning out through these questions. So go -- like and I can't track with you rather needed here to these questions worry that us there's a -- the worst in today's brochure that you reality check here. At least that there's there's one. Right. -- -- one there was worst of their. Sold I think our -- dental story -- violence. If you think about southwest's. Self worse are always does things just a little bit differently when you thick -- Lewis -- us where -- as saying that way so. As -- actually do today with the how are trying to be fatal to hear about -- wire time the world about our solid history of south -- -- about our distribution varsity. Power for a -- travel experience for the traveller. And then how will that about our principles of visual axles. Which will -- back. Of -- that insistently questions. So tourist dollars as general quake -- -- about distribution. Software says it has very much. And historically. Where a direct distribution for -- of the since our inception and many many years ago. Here and we -- Sanders has 1971. And it was very for an Versa we had -- direct distribution. Now that has changed over time will initially have -- star then so this was our high tech distribution back in 1971. There's maybe currency here but that's a cash register. Four. Down -- relentless pressure reservoirs -- others from criminals all full kind of deal would much within an of the spin out of date. She is here in the near recede -- the customer. Their customer just might have taken here and is I think -- hours away to. Looks like Houston. So that was. In hours ahead now -- fabulously Forrester that save while money was very efficient. Times change here and -- industry changing needs change sir we've had a Boston's assemble the sort of a mile. And lord take you through on -- -- -- depreciating only -- -- in the fora that deal signed in July distribution was heavily downward valid by -- -- Are so -- computer reservation systems. Here are donating any forum. Those systems on Vioxx compared terrorist. Breakout -- -- -- waiver of at the same time except Hawaiian said southwest can no longer industry median. The distribution system and that's with a very very expense of veto them. We -- -- -- live -- of the time it would wind down our current -- profits of -- year end of that town about 60% of -- business. Was flowing through these systems. So it was a execute Erisa south where sold. While forty Bristow was commuters -- -- was by far the worries -- amount of direct distribution in the industry. It was really -- wake up -- grass to to really invest in viral distribution channel so 1996 we -- -- there's Perseus in the south were -- calm. Then Swire mayors are probably looking at all. We in doubt get in out of travel Marcelino TA there we were to -- -- and and then hurricane Canada's. Again Ambac together in just wanna come because Lawrence. We want just -- now we will fight over their all the way there will -- then we've enough just been in -- -- In -- -- -- that literally how we established for a long independence. And enjoy for a -- ended Cyrus might have with partnering with people. I join for an -- and 2009 and the most. Rather new -- As we alliance barrel direct booking. -- connect -- -- selfless gateway services. In -- and they want to or distribution of our platform that looks like they're so we go out with gadget devious distribution. So are interracial travel agency trade distribution. Then made -- a down the world allows us connect up are these corporate booking tools which has again. A very important piece of our business. In Southwest Airlines as -- as domestic curious a lot of passengers scariest let me as -- -- our ability drought worries of course. And so we want to make sure we have tools. They're always remember connected south worst official way. Another travelers' market and in our direct distribution was of really up in the Latin quarter years are selfless Icahn. While there's. Vacations and so forth and a reservation service. And their upper lower -- four. As Roy about 85% of our revenue has come into us directly. So there is a big amount of of revenue flowing. Through viral owned and -- channels. Brussels later as -- -- -- what I hold an about ended their first ever distribution. -- that relationship with the customer then allow due to start to think about how your Bristol-Myers and end structure of the -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- I'd focus on loss for years -- -- to sixteen and a Forrester and Fallon for here proud. Inlet in the last several years we've done after -- 103 East -- -- boards and almost 700 aircraft so as the next -- of growth. On the last few years Taurus while they -- -- acquisition of AirTran Airways which has now going to be completed this year. But their economic growth and -- of passengers an airports and aircraft there's something unprecedented for a south worst. -- -- the same time industry. Is terms of -- as the Israelis were stagnating so thin that -- as -- -- become much more complex for a us. In so to respond of that complexity. We're trying to find ways to be filed for the end adapted -- in an arsenal provide things for customers. There'll be -- for and allow us to attract more customers optimal. Searle. -- roller started after as the various sample business -- Three cities. -- three main cities forum for a so we -- do -- Houston that's whether it's for a 43 cities. 3 airplanes. Has now ruling involved until now they've. -- complexity of that of that now -- showed German previous slide is now contain often -- in the palm way here and figure out. As of that requires us to be very far for a very considerable work customers -- need to make sure they were being responsive to their. So really bristles nation boils down -- -- really three main things no mean analyst -- only in interact with me. Here and and so -- years. Customers now expect us to remember and act on information we we gather from halved their interactions they have with us whether they Byron. Seoul has -- an average there will pile on top of that hearing Lennon about how I recognised. The customers whites in the -- -- -- Remember details of where you're looking for last what you baht last time how we performed last time. Analyst day in the way you hear about. Here and what's important EU and how. Palin would be Heros. You exhibit resale value to a minor tell you. -- -- -- shaky -- but every time you -- and south where some join the someplace that's most of the tiger infrared -- means something about it. And then how I gonna act with is very very credible. Deters you don't want too much you don't want to level -- -- to be just right in Searle. When -- -- -- market -- few. When should outweigh freedom dinner initiate versus -- and indeed testing -- vigorous Asian. Here and in how anyway why -- days that is very important. Sell their ads. How we interact with the customer. But there no point -- allows us Larson later that would tailoring in building the right prior tax for a customer. Our Serbian a lot of -- satisfied. As -- mean is as we clearly. With there and what rewards of the weather. And -- -- while working on our south -- season just a few along -- that will work environment has wire -- to execute their previous slide. Previous fibre pretty simple what does a wire two. Searle powers while I think as a win you do there will we see -- things happen back to their interaction of these false engine email oral communication with -- -- There based -- behavioural activity. We want to make sure -- we reconnect with do you have for a you you have a trip whether soren interaction -- first when it whether it's again financial. Interaction. Or just eight some sort of other connection with us. We are something Israel for an there we -- Europe how you're only communicated with. In inward channels we want to see used -- We want to make sure -- -- were -- back -- -- that's why there whether -- -- only the customer tells very specifically what we why. Were they what's that we are there for them. A lot of those things Deutschland as well off. Making -- our communication flows seamlessly between devices and channels. Again sustaining -- been rather -- in the detecting patterns -- -- self wireless the -- so it's pretty simple. -- July from five to the year of -- -- again very important we think our future. So old billionaire distribution relationship allows as the fertiliser. And then tailor products for the customer. So now how do we knew there emerges a moron. You know media -- -- give you a quick 33 quick piece as to how we think about. Four hours are. -- have to be very -- for the customer a customer does not want to have their way for a screen every screen or go to France several prior -- and well here so and so for as the price of save the very -- -- travel -- so we -- under their films. We make it easier for customers they don't need shuffle are frozen Oliver L -- up were -- -- there's only one place to go shaft and look for what we have available. Well they're worried about Cicero so again very easy for a customer -- figure out fat to paper they need. And then we also make it simple mantra is how we view as a so we don't have a wireless tricks. And passes a procedure is. -- maker customers safe staff and have to think about what they -- virus worm. So that that allows them to be very facet of Fisher -- -- -- customer. -- -- this and we are also just a quarter over south worse as we don't want to charge people. Well we think there they should be -- for a free so -- we don't take things away like bear -- And in charge -- give back here. We are toymaker dizzy speed in about zero -- -- -- a trip amid Geller a full trial have what are they need for a journey. So we -- become quite a sudden my personal when he trailer wanderers -- while complexity we after the -- for travel. A drug -- in -- downs regularly fed funds lost Marines in the -- -- here and in you can -- -- steel which bill me Canadian. With their previous senator been fat so -- an easy. -- really critical for us. And then lastly here is customer focused. Fathers -- an industry along -- sounds like last summer's European industry. And we are now majority in general. And around some scary story of their industry. So I customer doesn't want to know 1000007 are in our means and dreams of fairer basis curve so we -- expired -- -- -- So we are maybe -- of parker then why was like there for the customer as a so we wire two. Sit here in trying to do area weekend. Has to trends -- -- -- be into customer of language so in this case a customer research for a -- scared all our service from douse oil fields and now Sabah Palmer's. End. This first time June 12 an American -- -- -- The if you put -- in Europe legacy reservation system they would just come back worth some cult like. In a -- through something like their -- -- now -- more scared off. As a meaning if we just. We just took them through their back to the customer will make any sense a week we actually know when that's a resident star so we put it in just made it real simple for the customers. So again may get a fair us and making it easy and now putting in line was of the customer under -- stay and makes it very easy for them to do business whether song -- and so. That that's the recipe. That allows -- of how we've been able to drive nearly 5% of our revenue through our digital channels. Is -- file -- ten straight here. We've had these zero cents historic. Suffer stuck Carmen bucking the -- priceless many many years ago which was again 1996. So now -- are contract. Are run daily drop with traders so very feels I figured the money's worth and done as a silly so. Anyway the one I think actually as -- years in the three fragmented media where Steve -- -- -- -- Korean. Stay hands -- now performance compared areas. In the that that's a very complex theatre. In wireless asset yield to this -- company so no words. European here is on one piece of -- -- -- actually have to have a great engine behind the market in the maker -- -- effective. In sale. In the work again -- very fortunate -- Dan -- and -- company that has a great engine a great personality Avery company. There has not -- things there are again likely make it a step now by itself. -- -- issues that the that channels the media channels to accentuate their and try to bring that person hourly there exist under half. Offline world into the -- -- a traditional advertising. -- A lot of -- for those in the making that happen. During the presenter of budget -- -- more what I think wobbles if you don't -- -- I think it's gonna continue roll ads onto a surer thing your hero. A nominal -- very excited about. -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- And output at the moment I think mark minus serving medium. American motive behind it it's just. If you think about. Brands like AT&T Verizon. Out for who were relieved Warren place an analyst with more more more more services. It's been awhile money offline. -- there's been a while traditional media. So distinctive it did -- Gaza say that we have long path for a better area before that really begun the marketing channel. It's certainly as a as a great. Average daily Forrester. Personalised retiree I think he should do -- usually do know in various moral way in I think it's -- ripe -- -- -- way that. Were able to continue to build their direct. There's a -- about. What does for a break and a narrative Harris of ranks very high in -- -- in our online European power is. How we're making money off the social our social does make money for a south course Verizon again observe. And in some cases and in a provocation of the above what we're doing are flying. For a -- -- they are also is able to drive direct sales for a senate does make a substantial -- money for a self. Fellow -- That are sold there and Volvo I think together -- far more -- Is. Very powerful. And then. As you -- recent speaking Arnold thinks 9% of versus doctor -- out today. And then lastly just do -- providing a piece of message across devices and channels -- very current. Days while therefore they yen you have to have that largely customer know that they just put something under normal divides. Another Iran and the Euro Euro website under -- lap I think era when have you. And -- a member of -- so straight down flags but again I think itself and their customers can expect more and more. -- pure reminders gonna be -- European varsity.