Air France Internet Marketing Case Study Analysis

Founded in 1919 to serve the Netherlands, KLM is the world’s oldest airline.Part of the Air France KLM Group since 2004, it is a European airline industry leader known for its reliable, pragmatic and innovative service.

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But KLM also knew that people are not allowed to share sensitive travel information on its Facebook Page.

So KLM added the “Send Message” button to its Page, allowing people to quickly, seamlessly and privately communicate with its agents.

This simple action resulted in an instant 40% increase in Facebook messages from customers, so KLM collaborated with Digital Genius to implement artificial intelligence (AI) for its social media channels—including Messenger—to respond to the growing number of messages.

When agents receive a question from a customer, they are given a proposed answer through AI (which is trained to answer more than 60,000 questions).

Also the red lines(which divide the region into four quadrants) represent the overall probability of booking ie .0096% and overall average cost per click ie 1.47 More Marketing Dollars The publishers with low average cost per click and high take rates are clearly working (bottom right of above matrix).

For these publishers, we should consider increasing marketing spending.Which search engines produce the best marketing campaign results?In order to find which search engine produces the best marketing campaign result for Air-France, we have to calculate ROA(return on advertising) corresponding to every publisher.The high‐CPC, low‐take‐rate publishers are not working.We can consider killing funding for these publishers by doing deep analysis of which keywords etc are not working.However, if Media Contacts wants to maximize its ROI, it would be much wiser to tailor each publisher’s strategy to their individual expertise and unique strength.Overall, the latter would be more effective and economical, besides providing useful data in tweaking further website design and offerings.On a scale of 1-10, how likely are you to recommend KLM to a friend?” The preliminary survey results revealed that KLM’s Messenger services received the highest satisfaction scores (Net Promoter Score, or NPS), compared to other social channels.But these ROA’s are being calculated in absence of market share knowledge of these publishers. Which search engines should receive more marketing dollars? But to find this, we need to plot 2 X 2 matrix between Average cost per click and probability of booking (take rate) among different publishers.Detailed analysis of comparison between different publishers is summarized in table below: Using Take rate and Average cost per click, below matrix is plotted.


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