CSA Taps Carlson Marketing China
Apr. 17, 2006
China Southern Airlines with the largest and most technically advanced aircraft fleet in The People's Republic of China has awarded Carlson Marketing China a consulting assignment to renovate their existing frequent flyer program, The Sky Pearl Club. The agency was appointed for its innovative approach in customer loyalty programs and cross channel expertise.
The Sky Pearl Club is China's largest and fastest growing FFP program with more than 3.1 Million members and growing at a pace of more than 800 new members daily. China Southern Airlines has partnership agreements with major International airlines including Northwest Airlines and China Airlines, in which Sky Pearl Club members can earn and redeem mileage for free flights. In addition, China Southern is pleased to partner with Marriott Rewards, Shangri-la Resorts and Hotels, InterContinental Hotels Group, Hertz Rent A Car, Best Western and Ctrip.com where FFP members can earn special bonus mileage and special upgrades available only to Sky Pearl Club members.
Carlson Marketing's task will be to elevate China Southern's Sky Pearl Club into the best frequent flyer program in China. The Carlson Marketing team will combine local knowledge with an in-depth understanding of global "best practices" gained from the company's extensive experience of developing and managing frequent flyer programmes for major airlines around the world. The result will be a brand new frequent flyer program which will help to drive the airline's business to the next level.
"Our decision to appoint Carlson Marketing was due to their ability to raise the bar on the best practices used for creating customer engagement across multiple channels in frequent flyer programmes," said Mr. Han Wen Sheng, General Manager, Marketing and Sales, China Southern Airlines.
As part of its approach to the China Southern Airlines program, the Carlson Marketing team, based in the company's new office in Shanghai, is seeking to achieve a paradigm shift from a product centric approach to a customer driven one. Gabi Kool, Carlson Marketing Executive Vice President, Asia Pacific and Managing Director China, said: "At the moment, most frequent flyer programs -- and loyalty programs in general -- are still product driven, stipulating onerous rules and conditions customers must comply with. Our work will not simply be about program design but will also involve mapping out the current customer experience at every touch point with the airline and identifying opportunities for improvement, while providing the change management expertise necessary to create a switch in mentality across all business processes."
The consultancy assignment will last for six months, during which Carlson Marketing will be scanning the entire frequent flyer program, working across everything from program design to systems, data and operations. Carlson will also provide consultative support during the implementation phase of the projects.
"Being the first major client for Carlson Marketing China, we believe it is a great opportunity for China Southern Airlines to improve our service standards; this is also a great starting point for Carlson in the Chinese market. Combining Carlson's expertise in the airline market and China Southern's execution ability in China, we will be presenting a brand new Sky Pearl club to Chinese travelers," said Mr. He Zong Kai, Vice President and Senior Economist at China Southern Airlines Group.
Mr. Kool added: "As the largest airline in China, China Southern Airlines needs to focus on developing relationships with its consumers in the same way it uses innovation in new products and services to keep it ranking first among all Chinese airlines. We are thrilled to be working with China Southern Airlines. This new relationship is a continued demonstration of our ability to innovate in the airline space. Our China team will have the benefit of Carlson Marketing's global resources and years of experience to build the best possible frequent flyer programme for China Southern Airlines, setting new standards in Asia."