The customer is king
The LSG Group is always committed to achieving customer satisfaction. But this is easier said than done, given that we have to make both our customers and their customers happy.
The LSG Group aims to satisfy two very different kinds of customers – our direct customers, the airlines, and their customers, the passengers. There is nothing trivial about trying to keep both happy through innovative concepts and the best possible product and service quality while balancing their interests – especially in light of increasingly established onboard retail concepts, which are bringing us even closer to passengers.
Transformation: an industry in flux
“Onboard retail in particular is an integral aspect of the rapid transformation within the industry”, says Sunbul Dubuni (Director Market, Customer & Consumer Insights, LSG Group). “While more and more airlines are taking the route carved out by the early pioneers within some regions and following suit with onboard retail concepts tailored to specific brands, we are experiencing a renaissance in free onboard services in other regions.” However, Dubuni does not feel that this simply heralds a return to the same old approach. “Fresh ideas are also called for here. These airlines want to use new and innovative onboard concepts to stand out from the crowd and set standards in terms of service quality.” These two kinds of airlines are both on the right track! Ultimately, both face passengers that are more demanding and critical than ever. “Not only do they expect the best possible quality, but also a broad selection of appropriate products. This is a global trend that can be seen across all classes and onboard concepts”, adds Stefan Opel (Director Innovation & Concept, LSG Group).
However, the transformation within the industry is also becoming apparent in other areas, such as partners’ aspirations for global coverage. Indeed, what were previously only national or regional airlines are now taking the plunge and adding intercontinental flights to their schedule. We are also working with our customers to digitise more and more processes – from production through to onboard service. The issues of choice and the passenger experience are also playing a key role within the transformation. Meanwhile, passenger numbers continue to rise. This puts us in the enormously challenging position of always having to serve two “kings” (or customers).
“But we are only too pleased to face the challenges associated with the different interests of both parties”, says Dubuni. While passengers want a service experience that is as personalised as possible, airlines are keen to save costs, explore additional revenue streams and receive advice on how to structure and implement new concepts. “We can help with all of this thanks to our structured approach and LTCC development process.”
Using LTCC to generate the best possible concepts
The four letters stand for “Look, Think, Connect and Create”. The LTCC process begins with the ongoing task of getting to grips with our customers’ market environment, the relevant actors, customer behaviour, current trends and so on. The more we know about our customers’ customers, the better. This research phase is called “Look”. “Think” stands for the strategic phase in which we channel our knowledge to form deductions which precisely meet the specific challenge facing our customers. In the next step, “Connect”, we bring together all kinds of different expertise from our global network. Depending on the task at hand, we also hold co-creation workshops with our customers and their specialists to come up with tailored service concepts together. The “Connect” phase is at the heart of the process and reflects the globally networked activities of the LSG Group. The last stage, the “Create” phase, involves implementing the service concepts along the travel chain, where our customers and their passengers, our two “kings”, can experience and enjoy them.