The One-to-OnePass
(Direct) The latest version of Continental Airlines' One-Pass newsletter reflects a deep customer file, a mandate to save money — and ultimately a desire to offer passengers more pertinent communications.
“Continental has an extremely robust database. The routes you fly are relevant in terms of the message,” says Dan Knudsen, managing partner at The Lacek Group, the Minneapolis loyalty marketing agency that redesigned the direct mail piece.
“Our experience with statements and newsletters is that many times [a reader] goes right to the statement and the newsletter never gets opened,” he adds, referring to the mailer's new format, which combines the two.
The piece — similar more to a brochure than a typical bank notice — does more than reflect customer preferences and activity. It also fulfills the order Continental gave Lacek: Save money without sacrificing customer communication. And it has done so in spades. In fact, the new package represents a cost savings of hundreds of thousands of dollars, according to Knudsen.
It's more engaging, too. It's a booklet with a fair amount of customized editorial content. Knudsen estimates about 75% of each mailing is tailored to the recipient. Editorial content changes based on the routes members fly; the price they pay for tickets and membership level influences the highlighted topics too.
Basic demographics have a role. A customer who lives in the Newark, NJ area, for instance, is more likely to have a new route originating from that city's airport touted in the piece than a passenger from Seligman, AZ.
Continental's database also captures transactions between One-Pass members and organizations linked with the airline. “We have a lot of partner activity that creates some interesting dimensions” in Continental's analysis, Knudsen says. These include relevant offers, such as vehicle rental deals or purchase opportunities that might aid the traveler in racking up points (the airline's designation for frequent-flier miles).
In an odd twist, more-involved members will see fewer messages that aren't specific to their transaction. A traveler whose statement reflects only six flights taken will receive more editorial than one who's taken 15 flights and engaged 30 times with partners. Continental has created messages of varying length to fill available space. “There's not a lot of white space,” says Knudsen.
Not all the editorial additions trip off transactional data. Continental has added a “Did You Know?” section to its newsletter, which features tidbits about air travel that are not specific to the frequent-flier program. “What's attractive [to members] are interesting but not critical operational [facts such as] information about painting an airplane,” he notes.
While the airline isn't using third-party data beyond what it gains from working with partners like vehicle rental firms, it began using surveys in June to provide additional insights. But there's a drawback: The polls don't provide information tailored to an individual. While every customer has transaction information, because of the relatively low response to the surveys thus far, Continental has to project findings from respondents onto similar customers in its file. Survey completion rates aren't quite in double-digit percentages yet, but “we're happy with what we've got,” says Knudsen.
Next year Continental will ramp up use of these polls, according to Knudsen. Plans call for them to go out quarterly, each consisting of three or four questions. Eventually, it's hoped they'll help the airline design more relevant copy for its customer communications.
The changes to the newsletter/statement are not enterprisewide. Currently, e-mails and Web sites don't reflect the new look. “They are evolving together,” says Knudsen. He adds that while branding is common to all channels, a lot of other elements aren't reflected yet.
While customization may not be at the one-to-one level for the 1 million statements mailed out each month, Knudsen estimates that every mailing has between 80 and 100 variations, “and we are still in infancy, in terms of evolving it.”
