Description
cruise liner ship Carnival and the strategies adopted like CRM cusomer relationships, industry scenario, consumer point of contact, database, personalisation, loyalty program, SWOT, customer acquisition etc
CRUISE LINES
Consumer Relationship Management
Cruise Industry Evolution
“ Fastest growing category of the North American leisure travel industry “ Target: North American market in 4 segments (contemporary, premium, destination and luxury)
“ Challenge: Convert land vacationers to cruisers
“ Post 1960s- Pleasure Cruising
“ Array of activities on cruise (music, sports, spas, bars, internet café, fitness etc.)
“Major players: Carnival Corporation, Royal Caribbean, Star Cruises
Cruise Industry Evolution (Post 1990)
“ Boom in demand and supply “ 130 new cruise ships
“ Probable Voyager class ships by Royal Caribbean
“ Strategies: Shorter cruises, less price, improved quality of service and experience ) “ 9/11 effect: fear of flying, but still mood for vacation… made cruising industry lucrative
About Carnival
“ ‘Fun Ships’ “A unit of Carnival Corporation & plc “ The largest and most popular cruise line in the world “ 12 cruise lines, 75 ships “ Internal competition: Independent functioning of the sister concerns “ 60000 passengers per week “ Highest reach: Largest feeder to all other cruise lines
Carnival: Consumers
INDUSTRY “ Average age: 50 years “ CARNIVAL Average age: 46 years
“
“
Affluent
Household income: $99,000 pa Typically married
“
“
Middle to affluent
Household income: $65,000 pa Families, singles, honeymooners, multigenerational families
“
“
Carnival: Consumer’s point of contact
“ Main channels
” Travel agents (85% of bookings) ” Direct
“ Travel agents
”Vital ” Expensive
“ Direct
” Inbound ( toll free number and website: Carnival.com)
“Consumer initiated
” Outbound (telemarketers) ” Limitation: inability to skip the travel agents
Carnival: Consumer database
“ Travel agents had the customer information details “ Undeveloped e-commerce applications for consumer data
“Non ownership of consumer data for a long time
Carnival: Loyalty Programs
“ Experimental stage “ Recognition card
” Gold, Platinum ” Cue to crew to provide differentiated service
“ Carnival Vacation Club
” Redeemable points ” Locks in future purchase
Carnival: Success drivers/ Strengths
“ Clear vision: providing FUN, entertainment architecture,
“ De- glam look and design
“ Product Design: Software (services) and Hardware (vessel)
“ Flexibility with changing consumer interests “ Wide range of activities and options
” Product and service variety ” Experience tailoring options ” Themed sailings
Carnival: Problems/ Weaknesses
“Low direct customer contact “Low consumer loyalty to the brand(only 1/3 customers are repeat purchasers )
” decrease in repeat customers ” less emphasis being laid currently on repeat customers
“ Importance to new customers than on the repeaters
” High cost incurred on first timers ” More time spent by call centre executives on first timers
“ Complacency: ‚Past guests just come to us automatically? “ Excess emphasis on travel agents “ Less consumer friendly booking procedure through internet “ Underdeveloped outbound direct channel
Recommendations
“ Increase the direct consumer contact points “ Developing the loyalty programs without comparing with industry needs “ Special and adequate follow up by all centre executives for the past guests
“ Building up the IT infrastructure to improve and own consumer database
Recommendations
“ Developing a process to record the feedback of consumers and working upon it “ Concentrate on developing repeat customers by building a stateof-the-art customer relationship management (CRM) system and by offering its current customers incentives to refer friends and family members “ Enriching the website “ Building relationships with consumers
” greetings on occasions (birthdays, anniversaries etc) ” special rebates for new offerings
Management Philosophy?
“ Under promise and Over delivery: ‘exceed the expectation of our guests- that is
the recipe of success’ “ Channel harmony: Emphasizing the importance of travel agents even in promotions; ‚No one owns the guest, frankly?; ‚We are not in competition with travel agents, we need them.? “ Frugality and efficiency in purchases-Being disciplined in buying new hardware.
“ Healthy internal competition amongst the sister brands, which would define a
unique value proposition. “ Clear vision in delivering entertainment to the passengers; ‚We own the psychographic of fun? , ‚ We are unabashedly Orlando and Vegas? “ Not just targeting the premium segment but for ‚Everyman, with a capital E?
Customer Acquisition Process?
PROCESS
Interest and Information • Travel Agents • Direct Marketing (website, telemarketing)
E-commerce applications
DATA CAPTURE POINT
Agents, Online Registration, Fun Pass
DATA TO BE CAPTURED
Demographic Profile, Food, Beverage Preferences, first time travel or repeat, Reason for vacation (honeymoon etc)
Preference for shore excursions, spa appointments, info would better help revenue management Picture taken, Need for any customized treatment, care for baby etc Point of Sale Data, Food, dining choices, entertainment preferences, add on services opted for
Pre-cruise online signup
Embarkation
Check-In Point
On-Board the Cruise
Sail and Sign Card
Debarkation
Billing Receipts, Voyage Reports, Check out
Customer Feedback, Intimation for any future possible travel etc
CRM Activities and Gaps?
Dimension
Customer Retention
Strategy
• Loyalty Programs • Recognition Cards • Personal Vacation Planners • Customer Response System
Gaps
• Determining Customer Lifetime Value • No profitability analysis
Customer Satisfaction
• Only recently such acts are logged and analyzed
Pricing
• Revenue Management
• Inadequate Customer Information
Is Personalization a good strategy?
“ For Personalization two things are needed- accumulated knowledge of repeat customers over a considerable horizon and wide variety of options to customize. “ Carnival had a wide variety of options to customize, however, there were only
2-3 times of maximum repeat purchases over 12-25 months and after that repeat
purchase rate dropped significantly. “ Hence cumulative understanding of customers was not possible. “ Therefore, though repeaters spend 15% more (which directly went to the bottom-line), Personalization will not be a good strategy. “ Instead, CRM Strategies should be devised for better segmentation, for identifying profitable customers, both for acquisition and retention and thereby not just merely casting the net wide, but casting the net on quality customers.
THANK YOU
doc_287319495.ppt
cruise liner ship Carnival and the strategies adopted like CRM cusomer relationships, industry scenario, consumer point of contact, database, personalisation, loyalty program, SWOT, customer acquisition etc
CRUISE LINES
Consumer Relationship Management
Cruise Industry Evolution
“ Fastest growing category of the North American leisure travel industry “ Target: North American market in 4 segments (contemporary, premium, destination and luxury)
“ Challenge: Convert land vacationers to cruisers
“ Post 1960s- Pleasure Cruising
“ Array of activities on cruise (music, sports, spas, bars, internet café, fitness etc.)
“Major players: Carnival Corporation, Royal Caribbean, Star Cruises
Cruise Industry Evolution (Post 1990)
“ Boom in demand and supply “ 130 new cruise ships
“ Probable Voyager class ships by Royal Caribbean
“ Strategies: Shorter cruises, less price, improved quality of service and experience ) “ 9/11 effect: fear of flying, but still mood for vacation… made cruising industry lucrative
About Carnival
“ ‘Fun Ships’ “A unit of Carnival Corporation & plc “ The largest and most popular cruise line in the world “ 12 cruise lines, 75 ships “ Internal competition: Independent functioning of the sister concerns “ 60000 passengers per week “ Highest reach: Largest feeder to all other cruise lines
Carnival: Consumers
INDUSTRY “ Average age: 50 years “ CARNIVAL Average age: 46 years
“
“
Affluent
Household income: $99,000 pa Typically married
“
“
Middle to affluent
Household income: $65,000 pa Families, singles, honeymooners, multigenerational families
“
“
Carnival: Consumer’s point of contact
“ Main channels
” Travel agents (85% of bookings) ” Direct
“ Travel agents
”Vital ” Expensive
“ Direct
” Inbound ( toll free number and website: Carnival.com)
“Consumer initiated
” Outbound (telemarketers) ” Limitation: inability to skip the travel agents
Carnival: Consumer database
“ Travel agents had the customer information details “ Undeveloped e-commerce applications for consumer data
“Non ownership of consumer data for a long time
Carnival: Loyalty Programs
“ Experimental stage “ Recognition card
” Gold, Platinum ” Cue to crew to provide differentiated service
“ Carnival Vacation Club
” Redeemable points ” Locks in future purchase
Carnival: Success drivers/ Strengths
“ Clear vision: providing FUN, entertainment architecture,
“ De- glam look and design
“ Product Design: Software (services) and Hardware (vessel)
“ Flexibility with changing consumer interests “ Wide range of activities and options
” Product and service variety ” Experience tailoring options ” Themed sailings
Carnival: Problems/ Weaknesses
“Low direct customer contact “Low consumer loyalty to the brand(only 1/3 customers are repeat purchasers )
” decrease in repeat customers ” less emphasis being laid currently on repeat customers
“ Importance to new customers than on the repeaters
” High cost incurred on first timers ” More time spent by call centre executives on first timers
“ Complacency: ‚Past guests just come to us automatically? “ Excess emphasis on travel agents “ Less consumer friendly booking procedure through internet “ Underdeveloped outbound direct channel
Recommendations
“ Increase the direct consumer contact points “ Developing the loyalty programs without comparing with industry needs “ Special and adequate follow up by all centre executives for the past guests
“ Building up the IT infrastructure to improve and own consumer database
Recommendations
“ Developing a process to record the feedback of consumers and working upon it “ Concentrate on developing repeat customers by building a stateof-the-art customer relationship management (CRM) system and by offering its current customers incentives to refer friends and family members “ Enriching the website “ Building relationships with consumers
” greetings on occasions (birthdays, anniversaries etc) ” special rebates for new offerings
Management Philosophy?
“ Under promise and Over delivery: ‘exceed the expectation of our guests- that is
the recipe of success’ “ Channel harmony: Emphasizing the importance of travel agents even in promotions; ‚No one owns the guest, frankly?; ‚We are not in competition with travel agents, we need them.? “ Frugality and efficiency in purchases-Being disciplined in buying new hardware.
“ Healthy internal competition amongst the sister brands, which would define a
unique value proposition. “ Clear vision in delivering entertainment to the passengers; ‚We own the psychographic of fun? , ‚ We are unabashedly Orlando and Vegas? “ Not just targeting the premium segment but for ‚Everyman, with a capital E?
Customer Acquisition Process?
PROCESS
Interest and Information • Travel Agents • Direct Marketing (website, telemarketing)
E-commerce applications
DATA CAPTURE POINT
Agents, Online Registration, Fun Pass
DATA TO BE CAPTURED
Demographic Profile, Food, Beverage Preferences, first time travel or repeat, Reason for vacation (honeymoon etc)
Preference for shore excursions, spa appointments, info would better help revenue management Picture taken, Need for any customized treatment, care for baby etc Point of Sale Data, Food, dining choices, entertainment preferences, add on services opted for
Pre-cruise online signup
Embarkation
Check-In Point
On-Board the Cruise
Sail and Sign Card
Debarkation
Billing Receipts, Voyage Reports, Check out
Customer Feedback, Intimation for any future possible travel etc
CRM Activities and Gaps?
Dimension
Customer Retention
Strategy
• Loyalty Programs • Recognition Cards • Personal Vacation Planners • Customer Response System
Gaps
• Determining Customer Lifetime Value • No profitability analysis
Customer Satisfaction
• Only recently such acts are logged and analyzed
Pricing
• Revenue Management
• Inadequate Customer Information
Is Personalization a good strategy?
“ For Personalization two things are needed- accumulated knowledge of repeat customers over a considerable horizon and wide variety of options to customize. “ Carnival had a wide variety of options to customize, however, there were only
2-3 times of maximum repeat purchases over 12-25 months and after that repeat
purchase rate dropped significantly. “ Hence cumulative understanding of customers was not possible. “ Therefore, though repeaters spend 15% more (which directly went to the bottom-line), Personalization will not be a good strategy. “ Instead, CRM Strategies should be devised for better segmentation, for identifying profitable customers, both for acquisition and retention and thereby not just merely casting the net wide, but casting the net on quality customers.
THANK YOU
doc_287319495.ppt