These days through advancements in technology and extensive use of Internet, more data is available to be harnessed by Airlines to deliver a more tailored offering that spans the Airline traveller’s entire journey. Loyal customers are truly the backbone of any successful business, given the high percentage of revenue derived from them. It costs significantly more to acquire a new customer than to retain an existing one. For this reason Airlines are shifting to Customer-centric business models for focusing on Individual customer needs.
Airlines have discovered that understanding and predicting Customer behavior is critical to building and maintaining true customer loyalty. Predictive Analytics uses techniques like data mining, statistical modeling, machine learning in predicting Customer behavior patterns to shape business decisions. Predictive analytics help answer the question “ What’s next?” and “What should we do about it?”
Predictive Analytics can provide Customer Insights into where Airlines are or are not meeting Customer expectations. The world is changing and the Customer is in charge. Availability of choice, perceived benefits and personalized value are relevant factors and if Airlines don’t learn about, understand and invest in their customers, they will be left behind. Airlines can benefit from increased sales and market share as well as an increase in customer retention by investing in Predictive analytics. There is no doubt about the escalating significance of Predictive analytics to the Airline Industry.