The benefits of crowdsourcing, and its effectiveness for problem solving, are well-known. The power of the social web is being harnessed by airlines more than ever (in fact, a cargo-carrier has recently got into the game as well). Crowdsourcing initiatives are now being used not  just to engage customers but also to find ways to improve their product and services, as well as at the same time building their brands. Hence, “crowdbranding”.

With today’s Top 10 case-pack we would like to highlight some of the best examples of airline crowdsourcing. At the same time, we also invite our readers to have a look beyond the surface and into the deeper strategic goals that drive each of these strategies. In some cases it will be clear that the end game was indeed solving a problem or finding an innovative way of addressing existing issues, but in others it will also be clear that the stated goal of the crowdsourcing campaign wasn’t the only goal.

Most of the airline examples included in this Top 10 used crowdsourcing to solve problems related to visible parts of their product such as in-flight meals or routes, and did so in very “socially active” ways, using their social media pages and often creating dedicated websites where participants could interact.

Looking deeper into the reasons that drove these airlines to choose crowdsourcing, we found that the most common goals were:

1. Solving a particular problem
2. Reducing costs
3. Associating their brands with a specific concept (for example: quality or low prices)
4. Obtaining first hand-data from their community of users
5. Promoting a new feature/product/route

With this teaser, we’ll leave you to discover how some of the best airlines in the world harnessed the power of the web in the most tantalizing and innovative ways possible.

• Loyalty 2.0 | The Top 10 Social Loyalty Initiatives by Airlines
• The Top 10 Twitter Initiatives by Airlines
• The Top 10 Viral Videos by Airlines (plus bonus videos)
• Top 10 Travel Distribution Initiatives by Airlines: Reinventing the booking cycle to drive revenue (from #eftamerica)
• Mobile 2.0 – The Top 10 Mobile Apps by Airlines

Votes, as we mentioned in the previous slide-deck on the Best Airlines Driving Revenue through Social Media, have come from around 2500 cities across the world. We promised recently that we’d regularly post case-packs illustrating the fabulous campaigns that have led the final nominees to be shortlisted. And we’re back this time with another 5 great case-studies on how 5 of the best airlines in the world have used social media to drive Customer Service and Crisis Management.

This would be a good time to remind you that voting is still ongoing so you can vote for your favorite airline until 15th September. Do vote if you care about the airline you love! Meanwhile, you can check out the latest result for the current category below.

Before you jump in to the presentation, however, we’d like to elucidate a few key takeaways that have emerged from these case-studies. If you’re looking to build a great social presence, you’ll find these points handy for developing your strategy:

1. Customers love an airline that talks to them and responds to them. For example, Delta’s Twitter account dedicated to purely customer-service continues to delight passengers.
2. Customers hate slow responses. They really really hate calling in to the Call Centers and keep waiting to talk to someone. If they know that they can get a quick response online, they’ll not only show their appreciation but tell their friends too. SAS Scandinavian’s efforts to provide customer service through Facebook is a stellar example of this.
3. Public, social platforms provide airlines the opportunity to be transparent in their communications and allow their message to be spread to a vast audience that is actively engaged on a particular platform. This is especially important during managing crises.
4. During crises, the rate at which fear and panic spread is inversely proportional to the amount of information that customers have. Using Facebook and Twitter ensures that information is timely spread (in comparison to traditional media) and can reach the maximum number of people.
5. Don’t expect people to look for information. Go where the customers are! They should know where they’ll get answers or information. For example, AirAsia’s new customer service portal AskAirAsia ensures that customers are never far away from immediate answers or assistance.
6. After a significant event/crisis/service disruption, when you get good reviews from customers about your efforts, make sure you leverage the great PR opportunity handed to you and make a name for yourself.

With that said, here’s the case-pack. We hope you enjoy going through it!

• SimpliFlying-Airline Business Awards for Social Media Excellence for Airlines – Vote now!
• The Best Airlines in Social Media: the Top 7 nominees for the SimpliFlying Awards for Social Media Excellence 2011
• Simpliflying Hero, May 2010: Aurelie Valtat from Eurocontrol
• How airlines used social media innovatively to battle the ashcloud crisis [from Mashable]
• [LIVE!] How airlines and EuroControl are conquering Icelandinc volcanic ash through social media #ashtag

In late February, I spoke at the Loyalty11 conference, where a majority of the leading airline loyalty executives gather annually. This year, it was held in Dallas, and I managed to round up some key experts in airline loyalty business – from the stalwart AAdvantage program, to the soon-to-be started AirAsia’s loyalty program. And asked them just one question – what will have an impact on the future of airline loyalty. Here’s what they had to say:

Click here to view the embedded video.

What does the future of airline loyalty programs hold?

Looking through my notes from the conference, here are five indications towards the future (including some quotable quotes from the conference):

1. “Loyalty is no longer defined by the repeat customer” – Tom Klein – President, Sabre
2. There are three customer segments: the satisfied customer, the dis-satisfied customer and the loyalty customer. It’s the first airlines should try to convert to the last
3. Airlines will only get a share of wallet if they have a share of heart
4. The feedback airline loyalty programs get from social media channels than traditional feedback forms – Ryan Green, Southwest Airlines
5. It will be interesting to sort loyalty members by their Klout scores (twitter influence) – Gabi Kool, Voila Rewards

• [Infographic] The future of loyalty programs will be powered by social media
• Five lessons from the most innovative loyalty programs in the world – Inspired from Loyalty 2010
• Three keys to making loyalty programs work for the airline brand of the future
• Is social loyalty the next phase of development for frequent flyer programs?
• The future of airline loyalty – here is what it looks like

As I boarded my flight, I got an email that had a Xmas wish that got me all cracking up! It was a prose style composition by my friend Christian Kamhaug, also the Head of Social Media at SAS Scandinavian Airlines. And Christian was kind enough to allow me to publish his original piece here on SimpliFlying.

Hope it brings a smile to your faces as well, and you get to spend the holiday season with your loved ones. I’m halfway there, with a last flight to Vancouver to catch tomorrow. Merry Christmas everyone!

’Twas a week before Christmas at London-Heathrow
The skies darkened over and it started to snow

And just as they say that it pours when it rains
The snow kept on falling, grounding all planes

Pretty soon all terminals were flowing over
With passengers wanting to go home to their lover

For two long days, not a plane left the ground
And we brought the old Facebook-team around

From early morning, to late at night
We were on Facebook, setting things right

With the help of our friends, all over SAS
We did what we could to help with some class

Rebookings and care, refunds and trains
The questions came back – “Where are the planes?”

Our colleagues all over this great air line
Pulled all the stops, to make it all fine

When it all seemed hopeless, and spirits started to fall
Someone wrote “SAS – you rock!” on our wall

All spirits were lifted and we had another go
Helping out or passengers, stranded by snow

And just as we said: “Enough with this trouble”
“We’re going to London – bring your own shovel!”

The good news came, from that snowed-in aerodrome
“Both runways are open – we’re flying home”

And the news started flowing, on Facebook and Twitter
We’re back in business – we’re leaving this sh***er!”

And as planes rose into that wintery sky
With cheers from every SAS-gal and –guy:

“Let’s fill those airplanes, and don’t groan!”
“We’re finally, finally binging’em home”

With only a few hours until Christimas-dinner,
We’ve proven once again – social media’s a winner!

With lightening speed, and in a folksy tone
We reach out to people’s PC and smart-phone

So next time you find yourself in a mess,
Type in facebook dot com slash S-A-S

So Santa, as you fly with your raindeer
Don’t you worry – we will be here!

We have what we want, but just so you know:
Santa, please give another snow-plow to Heathrow!

• Five airlines (and an airport) that surprised passengers this Christmas with Wow campaigns
• [Video] The best holiday greetings from airlines this season
• True account of a Qatar Airways passenger stranded in Sudan
• Virgin America takes in-flight experience to a new level
• KLM Surprises and Spanair delights! Can surprises be used as a sustainable brand strategy for airlines?

These presentations were made at the SimpliFlying-Airline Business ‘Social media for the aviation industry‘ conference held in London on Oct 1, 2010. You can view all the Live activity from the conference here.

Categories and winners

• Best Social Media Campaign - Lufthansa’s “innovative” MySkyStatus
• Best Use of Social Media for Crisis Management - SAS Scandinavian Airlines - for communication during the #ashcloud chaos
• Best Use of Social Media to drive Revenue - Malaysia Airlines’ 72 Hours Merdeka promotion
• Simplyflying Hero of the Year - Aurelie Valtat, Eurocontrol’s online communications manager for her social media management of the ashcloud chaos to the aviation industry

View more presentations from Shashank Nigam

Moments from the conference

Congratulations once again to all the winners, and thanks to the attendees and organizers for their participation. If you weren’t able to join us this year, there’s surely the next time!

Special thanks to John Norris for contributing some of the photos above

• Exclusive Interview: How Eurocontrol battled the ashcloud crisis through social media
• Simpliflying Hero, May 2010: Aurelie Valtat from Eurocontrol
• Presentation on airlines and social media from FTMA & Freddies 2009, now available
• Crises Management for airlines and airports in the age of social media- Presentation from ACI Europe
• SimpliFlying and Airline Business launch social media conference for airlines and airports [Plus: how you can win two passes]

SAS = LGBT-friendly airline?

Now, SAS Scandinavian has targeted the LGBT community – a small, but often rich community, to showcase how friendly the airline is towards this specific group. The airline has launched a competition on a microsite where gay couples can share their love stories and win a chance to be the couple to get married on-board a flight from Stockhom to New York! Not only that, the couple will win a complete honeymoon package as well, which will also bring them to the US West Coast and put them up in luxury hotels. Now, that’s original!

Why I think this is a good niche market to go after?

Simply because not too many airlines are daring enough to enter this market so boldly. Few, like Air New Zealand have specific sections on their website dedicated to the LGBT sector.

Through this wedding and contest submissions, SAS is bound to generate a significant amount of awareness of their product and open-ness to diversity for the specific market. After all, once a gay couple has submitted a video, who do you think they will ask to vote? Probably more friends who swing the other way. And that should ultimately lead to more bookings for SAS from this market.

Niche marketing gives airlines a competitive advantage, which can quickly add up over time for sustainable brand leadership.

So, what’s your niche market that your airline has been successful in targeting? Do you think this is a smart move by SAS? Let’s discuss in the comments or over on Twitter (@simpliFlying)

• Presentation – How airlines can segment customers and target niche markets through social media
• Will online communities by airlines help their brands take-off?
• Can Jet Airways survive the recession (and what does the Kingfisher alliance mean)?
• Kulula.com lures South Africans with authentic advertising
• Kulula Airlines – the most “fun” airline brand in the world?

Also part of the event was the Loyalty 2010 Awards for the Most Innovative Loyalty program. The judges had shortlisted the Top 3, and the audience voted for the best. Air Berlin came out tops, though I think each program was very unique. And I share with you here, what makes them so good!

1. Air Berlin’s MyRoute customers earn double miles on their frequently flown routes

Try to solve this problem. You need to get price sensitive customers to fly you on their most-flown routes, which are also the most competitive due to many airlines offering an undifferentiated product on those routes. You know you got to think out of the box when solving this one. And Air Berlin’s Johannes Ganser and Sophie Wennekers, along with their Loyalty Marketing team, did just that.

In April 2009, the airline launched MyRoute where members select their favorite or most frequently traveled route within Europe. On this route, they earn double miles. Simple. And gets the job done.

Not only did this offering help Air Berlin clearly differentiate itself in the market place, which has other credible carriers like Lufthansa, it also increased loyalty for business travellers and commuters – traditionally a Lufthansa stronghold. Not to say, it minimized churn rate too. The side effects have been that Air Berlin can now forecast high-density routes better and there are more return journeys performed. Very innovative indeed.

2. SAS Scandinavian – visualizing rewards to boost redemption

How many times have you logged in to your Frequent Flier Program (FFP) and didn’t know what to do with your points? Frankly, I’ve had that situation many times. SAS solved this for their loyal customers by visualizing the rewards they can get. And it was all personalized too, with each roll-over showing you how many points you needed to redeem an award.

The results? As Thomas Bruhn, EuroBonus Manager shared, 18,000 redemptions were generated from 80,000 visits – that’s a much higher conversion rate than the industry standard. Personalization matters indeed.

3. Swedish Rail – loyalty program from scratch, for a train service

Imagine you’re a senior executive at a government-owned monopoly that runs trains and this is your situation:

• The industry is deregulated and new competition grabs your customers
• Even though you’re the incumbent, you have no customer date, because no efforts were ever required
• There’s no concept of loyalty in the industry, which was more of a public utility previously

How do you deal with this? Frankly, I was very impressed with what Claes Lindholtz of Swedish Rail shared with me, on how he and his team built a loyalty program from the ground up in a very short period of time. It included totally revamping the customer experience, with on-board wifi and iPhone apps that you can point to a landmark outside the train to retrieve its info from Wikipedia (!!). Swedish Rail is now also the top corporate Twitter account in Sweden!

4. Milan Airport – building loyalty at an airport city

Milan Airport’s Vittorino Capobianco opened my eyes to a new category of loyalty programs – those at an airport! At Italy’s largest airport, you earn points for parking, for eating at restaurants, for buying from Duty Free shops and even by using the speed-check-in service!

And you can redeem these for lounges, phone check-in and even free wireless internet. The best part is that you can earn and burn points at both the airports run by SEA in Italy. Certainly something I’d sign up for when I start shuttling to Lake Como once a month =p

5. Payback – the most personalized loyalty program in the world?

Everyone at the conference was stunned by the presentation made by the folks from Payback – the European retail loyalty program. Yes, the basics are earn and burn, but it was the personalization that everyone was impressed by. Not only offers that were sent out highly customized to each individual’s purchase history, the trending data for each individual is also used for market research and developing more products.

Though airlines are still far from such in-depth business intelligence and personlization, I think it’s important to see what’s being done at the cutting edge and how they can adapt that to drive loyalty for their brands as well.

Air Berlin and SAS are setting the standards for airline loyalty program. I must say that I really liked Etihad Airways’ as well, in which I can redeem even my first 3000 miles, for items like USB drives and iPods! Swedish Rail offers lessons to any government owned legacy airline on how to beat the competition. Airports around the world can learn from Milan Airport’s efforts. An Payback seems a decade ahead of its equivalents in airlines. Maybe Aeroplan or The Mileage Company can acquire Payback and we’ll all have a happy life

What do you think about this programs? Is there an airline FFP that you’re very impressed by? Share your thoughts with us here in comments, or over on Twitter (@simpliFlying)

• Three keys to making loyalty programs work for the airline brand of the future
• [Infographic] The future of loyalty programs will be powered by social media
• Top 10 branding insights from the best airline loyalty programs at the Freddies 2008
• Is social loyalty the next phase of development for frequent flyer programs?
• American Airlines’ AAdvantage Facebook Fans grow 84 fold in 54 hours. The most successful campaign ever by an airline?

For the unaware, here’s a a gist of what happened. Just a few weeks ago, Ryanair said it would offer SAS executives and board members “free tickets on any of Ryanair’s 100 Nordic routes”, then surprisingly rescinded the offer. Nevertheless, SAS’ Director of Communication and EVP, Claus Sonberg, made his first flight with Ryanair from Oslo to London, which could be followed via both Facebook and Twitter.

What was meant to be just an update about the flight experience turned out to be an online “shouting match” with Claus pointing out how RyanAir was more expensive and a “Fletcher Reede” constantly brought out RyanAir’s perspectives. So now, what are some lessons airlines can take away from this?

1. Integrate new media and old media

Something I feel SAS did quite well in this matter was to make good use of both old and new media. There were press releases, interviews in newspapers, even as the action took place on Twitter and Facebook. No segment of the audience was left out.

Many of the times, organizations get too excited about new mediums like Twitter and Facebook, and end up isolating the traditional mediums – which might have a greater in some market segments. The best way is to learn from example – like how Ford’s Scott Monty does Social Media Press Releases.

2. Don’t just talk. Listen, then respond

Crises handling changes drastically in social media, as compared to traditional media. For the simple reason that people an airlines is communicating with can actually respond, in real-time too. Which means that they will ignore anything that’s not relevant to their concerns, at that very moment. So then, how can an airline conquer this situation?

Monitoring Twitter, Facebook and even blog mentions, in addition to press releases is a must. Such monitoring would bring up the current issues people are talking about. Then the airline should try to address these in their responses. So for example in SAS’ case, none of the posts on Twitter were “@” replies addressing people’s concerns. They were merely 140char versions of press-releases: one-way announcements. Not something that can sustain interest.

3. Add insight from analytics for targeted responses

You must be thinking that it’s not possible to respond to every single person who replies on Twitter or leaves a comment on Facebook. That’s absolutely right. This is when the airline needs to use basic analytic tools for observing trends and addressing concerns shared by a number of people.

For example, on Twitter, there are a number of valuable analytic tools that help bring out trends.  One such tool is the Twitter StreamGraph, which shows you the latest things people are talking about a particular brand, SAS in this case. And as you see in the screenshot below, lots of people have been confusing SAS’ tweets as promotion of RyanAir’s in-flight product. That’s certainly something that needed addressing.

4. Give power to the listener

The one obvious-yet-often-ignored rule of interactions on social media is that brands must involve the people they’re talking to in the conversations. In SAS’ interactions on Facebook and Twitter, that wasn’t the case very often.

Posts on social media by the brands should aim to instigate discussion among the fans or followers. The brand should act as a facilitator of discussion, as opposed to initiating every discussion. Brands need to listen more than talk. Once the people feel they’re being heard, their affinity increases towards a brand. Mind you, concrete action is seldom needed, but listening is key.

5. Don’t just let the traditional PR team handle it

This is probably the toughest to achieve in these five steps. Traditional PR and corporate communications teams are good with old media, but not necessarily new media. If a crises is being handled on social media, then it’s essential that the team is complemented with someone who’s a practitioner of social media. The key word there is practitioner – because if the person(s) hasn’t personally been active on social media, it might actually be detrimental to the brand.

The best option for airline that do not yet have a social media department is to let the Corp. Comms. team lead crises handling, but complement it with at least one or two people who know social media deep within. IF there are none, then hire a consultant. But I’d advise against doing it in-house, and without much prior experience.

Coming back to SAS, I think they did a decent job at managing the process on social media. However, there’s certainly scope for improvement.

What do you think? Did SAS do a good job? If you were in their shoes, how would you have done it differently? Let’s discuss in the comments or over on Twitter (@simpliflying)

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