Topics>>Case Study: How Ryanair have transformed the customer experience

Case Study: How Ryanair have transformed the customer experience

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Tue, 14 Oct 2014|

Kenny Jacobs, CMO of Ryanair, shares an insight into how Ryanair have developed a consumer-centric digital strategy.

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Automatically Generated Transcript (may not be 100% accurate)

S and imitated some chief marketing officer part. Ryanair I've been in that job for a around 10 months now I am not an aviation person -- -- retailer. Spent more time working in metro group a German retailer and Tesco and money super market. And this as a new -- that I'm doing it in Ryanair leading what's the big big change across Europe. OK here -- -- up. So -- ruptured Atlantic free at adding what that that was about isn't theorist from 1999 euros which is what Ryanair. Is all about we've got the cheapest airfares across. Europe and that's one thing that will change but right now but. Everything else at Ryanair is open to change a lot has changed. In the in the past debt ten months. So we're here -- I'm going to tell you quite interesting make quite interesting comparison between Berlin and a small town cold knock witches in the West Coast of violent. Later on the deck can back to that. So right -- we -- the biggest airline in Europe the issue we will carry more than 87. Million passengers. Around Europe ensure -- travel. We've got 69 basis. We've always taken a very very straightforward approach cost -- -- we got the best punctuality we got the best record of at least lost bags it's been a very very straightforward. Service. -- -- We've now launched a new problem which we call you're always getting better program which is going to be series of changes that we're reducing to improve the customer experience. For people who -- was -- And businesses greater the moment so we -- that by -- below factors that we have a flight to fight take the month of August. We carry just under nine gonna have million passengers in the month of August. And we had lot of factors of 93%. That's 93%. Of 800 -- ninety aircraft. -- -- Have we got 304 aircraft with Honda meeting new aircraft on the win the next five years five years after that we've got 200 more aircraft. So in five years' time -- Caribbean airline would about a 115218. Million passengers. In ten years' time Ryanair would be -- -- about a 15260. Million passengers the biggest airline in the world today is delta would Honda twenty. Million air passengers if we keep growing the way -- growing the next ten years Ryanair would be the biggest airline M globally. M. We've got and we got the best coverage across Europe's of those 69 basis in the 1600 -- we operate we -- with a map of Europe. More than any other airline and where you work were based in Dublin but Dublin is about 5% of work of -- revenues we are the biggest airline in. Spain in Portugal. In Italy in the republic violent in Poland. Where the second biggest yet biggest airline in the UK with the fourth biggest airline. Here in Germany. And these kind of market positions O'Connor referred to wear what will happen in the next five years as we will grow significantly in UK with a grow significantly in Germany will grow significantly. In in Scandinavia. Do receive huge amount of head -- to to -- with the biggest in Europe but we only 13% market share. If you contrast that with the United States Southwest Airlines have 25% market -- of short haul travel in Europe so rider can double inside -- Without having to leave Europe or we will look at transatlantic and we will look at flying outside of the EU and that's our traffic -- -- -- previously said. -- -- the 1999 -- currently advertising across Europe this is the average fears of some airlines that we've selected latitude sold this is simply just taking. The total revenues of any airline divided by the number passengers on average -- last year renewal was 46 euros. The average -- of a bargain for example -- 121. The average fear of Lufthansa is 235. So the difference -- on average for a 46 euros and the average fear of any airline Europe which is on -- 63. Is really really significant and that's the Centre of gravity in the business that will be changing because European customers do want to -- for the least amount of money. Ever -- view here today have travelled on business you're not ideally -- target customer what a lot of view I guess about have review of com on low cost airlines. To -- for this event. M if you take on average number passengers in the savings that we make the issue -- we will help people who choose Reiner received over ten billion euros compared what they would have paid. By choosing other airlines that's the difference -- 4663. Euros that would get you. How many people here in the -- from Berlin. Great to us what three people -- -- get -- I'm going to say next that would give dude that's the that's twice the cost of the new. Terminal that's been built M -- have felt and that ten billion euros and but -- is changing there was a time when we were quite abrasive. There was a time when we where it winds that are -- for a take -- -- -- -- but we're changing I think we're well we're now doing is we're listening to customers to sit right. We've grown to become the biggest airline in Europe we cover most of the European -- what would you like us to do differently on what would you like us to do next. M and I think that's been a really interesting one because of -- people said Ryanair will never change -- will always be. Low cost. And a straightforward service but I think we've demonstrated in the past ten months that no one. Listened as much as we have -- knowledge changed as much as we have in terms of improving that customer experience. From the EM. What's happening with -- -- similar to what happened with brands like gallantly. Brands like HM and brands like a -- outside of a category -- perfectly relevant examples take. -- Which is the fastest growing super market in a country like Great Britain growing at 30% of -- market that's growing at two percentage because they've done a great job of hanging -- price. What improving their brand position on quality improving their brand position on range on what we're doing a Ryanair is really saying yes. That the -- -- brand permit is always going to be low cost because that's what customers want you don't get to be number one in the market without giving customers what they want and what they want. Is the -- Price for air travel. What we're doing is improving the choice that our customers get we've introduced a bespoke family extra product we've introduced -- -- business plus product give customers -- flexible ticket. And -- -- constantly working on improving the service we give the inflight service. Very much the digital experience that customers get we had a website that was famous for being difficult. We now have moved from seventeen to five clicks and we're really really working quite hard I think we piled up on. Digital -- category but we've got big plans to move ahead -- actually become the digital leader in the category. And we're moving firebrand -- -- from just low fares to look -- great service and the best fruits and relentless focus on improving their customer experience the result there is a reroute. Relentless lists in Ryanair that -- to now has been really just focused on really driving driving down costs. That will stay but would be broadening the focus of a -- -- to say either we constantly improve the customer experience. M the plan they have to cover just outlined the marketing strategy on the pages really. He said of aid activities -- major by these -- here on the left hand side so. A brand that is more open and listens to customers across Europe. That's something we've doing that we have done in the past. And still stand for logs look fairer but this time -- much better service improves that travelling experience our customers get. -- used digital data to drive conversion and retention broaden the appeal of after rhino brand that means more primary airports that means putting the Ryanair fears. Available for distribution through the GDS networks like Galileo like -- band like Amadeus. Where -- developing the product without losing cost English that we have air interface on mobile with -- on Google like search with content -- partnerships. Add new capacity and new basis the rest were just work for a -- my job was to increased demand for people wanting to fly. With Ryanair the new aircraft that we have arriving in the next five and ten years will -- the rest. A measure this is bookings in the -- factors that we have ever visiting devotion to our website at -- out our ad -- percentage margin retail customers on -- share -- retention rates and a brand. Reception. Brand perception businesses really really good demand with a fantastic summer we've had a fantastic by August and looking the visibility we have. Customers are talking with their bums on a -- say actually I reading like this new Ryanair experienced you still have the best fears in Europe. But the experience has gotten much much better and in terms of the the problem that we've -- we've larger problem within the business and we communicated to the media to investors this is the obvious getting better program this despite keep. -- -- Firstly fix things or Christmas don't like improve the travel experience improve the digital experience develop the Ryanair offer. And improve our mark. On each of these on improving the customer experience we've changed a lot of the policies that we have a customers didn't like. We've introduced a 24 hour grace period for Christmas to change bookings. Quite a -- in the mornings and evenings a free second carry on bag onto the aircraft has made a huge difference to customers. A new groups and corporate travel department within the business allocated ceding so customers can pick -- -- Not have that traditional Ryanair's Gromit the gate -- Christmas saying well. Under after Russia aren't trying get my bags into your read into trying get -- -- that I want you can now bring two bags you can now pick receipt. And PayPal partnership just make it easier for customers to pay is a good example here in Germany were about 20% of Germans were paid by PayPal which we didn't allow in the past which -- now do. And a new website and new mobile -- and the website has massively improved in every week there are things going live on that website. My Ryanair we've got three have -- million customers signed up to a customer registration. And we've introduced new -- coffee finder M. The -- are now available -- -- yes new mobile apps for Smartphones have to be -- install -- to have million customers. A new business plus a risk. And continue this particular ninety improvement. A charms of data from becoming as a retailer really come from business like Tesco who has -- club -- to drive its marketing airlines aren't that good with data and an -- that good at using data. Two to drive their marketing so we are building up currently data platform on YouTube. That we will -- to gonna drive the website drive the -- drive much more personalised experience for customers that's for the taking transaction data. Demographic data -- big leveraged intense. Euro patient -- -- -- timing so auction group all these things that retailers have been doing for years drums -- they used data strike marketing. We're now building up -- platform and that will be that would be -- -- to us from what the middle of next year. And talked about this already have topped by the business service there already we've launched business plus. This is the new flexible ticket that we've reduced the fast track to airports extended baggage allowance. More and more primary airports and so when the next five years about half of the growth that we have would be to and from primary reports. Today the only three airports that we think we won't fly into Frankfurt am main. Chants of -- and London Heathrow what every other airport is a possibility. So we've introduced new bases in places like Portugal -- cyclist and sorry absence. Along bond. Could dance. Warsaw. Brussels main airport in -- him and more that will happen -- forward. Business plus five coverage and better brand I've played a 102 TV -- of the -- at. We change other brand looks and feels India reports were -- -- -- advertising which we have done before. And that's kind of whistle stops -- -- what is the oil was getting better programs of these five pillars -- -- what is a big big. Change programme within the business and it's working customers are getting a better experience they still get the lowest -- A -- factories have have never been better. M. We made a big big aircraft orders with 180 new 73 sevens on the way in the next five years after that. We revenue aircraft which is called -- 737 Macs which is a very very different Democrat with a different interior. M that comes -- in total 380 new aircraft that we have coming on stream. In the next five years. We're really small in Germany we've only -- 4% market share in Germany. And we would see yourselves doubling or trebling in size in Germany in the next five years. Which small here because we've which -- a lot of what capacity because the German government have introduced airport travel duty so every. Flight with in Germany and to Germany has about seven Euro fifty travel tax that Obama as a similar attacks and Great Britain. So were working with other airlines on the German government -- the UK government to reduce this travel tax because there is -- across Europe in those economies where it's been removed fed does lead to a significant increase in tourism. Which more than pays for the lost tax dollars. On the tax. And we've just announced the -- story this morning oil at some stage out of Berlin -- we're gonna grow by 45%. In Berlin. Next year. But that's quite small because we are best deal. Where on wipe that -- look at the start. Berlin with 800000. Ryanair customers next year. Will be have the same number of customers as the small town dimension distract knock. Which is that I -- population of 1600 people which has a tiny airport for some bizarre reason body has the same number passengers. In and out as brain does. Every Europe and so. You're still at a comparable right here at the lowest fares would continue but we will add more and more primary airports we will listen to customers more than we ever have done before. We would be relentless in improving the experience online the experience in flight for customers -- that they get the best fares but they get a much much. -- cerberus. M and that would be guided by our was getting better prime. So that was it very very quickly for me up about five minutes for questions -- more than happy to counter --

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