In the current customer-centric economy it is important that you, as a cruise organisation, know your customers and subsequently know how you profile these customers. This makes it possible to create a valuable and long-term relationship with them. A database with relevant customer knowledge helps to identify these customers. Examples of basic but also relevant relationship data are the customers’ name, address, sex, date of birth, nationality, phone number, et cetera. These data helps to eventually identify a customer. (Beltman & Peelen, 2013)
When a cruise organization saves relevant customer information within a database they can segment these customers into homogeneous groups. In according to Bonoma and Shapiro (1983) there are five segmentation criteria: demographic factors, operating variables, purchasing approaches, situational factors and personal characteristics. With all the customer knowledge a cruise organization can create personalized offers per segment or even per individual customer. In this way Norwegian keeps up to the customers’ trend of demanding increasingly personalized customer experiences. These ‘’one-of-a-kind vacations’’ helps Norwegian to engage their customer with their brand. (Beltman & Peelen, 2013)
Norwegian Cruise Line is a good best practice in applying customer data management. The business objective of Norwegian Cruise Line was among other goals to increase the guest satisfaction. Norwegian started with a fast-moving journey by implementing a business intelligence (BI) system. With this system Norwegian created an insight into the behaviour and in particular the satisfaction of business users. To turn this rough data into real customer knowledge they had to analyse the large volumes of data form different sources.
With the BI system, Norwegian could obtain a so called “360-degree view” of their guests. The information of the guests was sourced from the reservations system, the property management system, the casino system and the overall satisfaction of the guests. The BI system combines all the data from the different sources to achieve the company’s goal to improve the customer experience. The biggest real-time impact for guests of introducing the BI system has been the creation of on-board food and entertainment packages based on common spending patterns. This makes the overall customer experience more convenient and helps the customer to gain savings.
At this moment, Norwegian uses analytics to segment its guests to understand them better. Norwegian can use the BI system to predict which of the guests and prospects are most likely to go on a cruise in the near future. They will spend most of the time on the guests who will presumably go on a cruise in the near future and are profitable. This is important due to the cruise industry’s fixed amount of customers.
Norwegian wants to attract the most valuable guests, so segmentation is very important. Guests who are spending the most money during a cruise will likely be passengers who the company would encourage to book another trip. The system will help Norwegian by this process, it will help to develop personalized offers. This is a huge advantage in the cruise industry because it is a very complex product with many customers and a lot of competition. (Gibbons Paul, 2014)
Beltman, R., & Peelen, E. (2013). Customer Relationship Management. (2nd ed.). Edinburgh, United Kingdom: Pearson Education Limited.
Bonoma, T.V., & Shapiro, B.P. (1983). Segmenting the Industrial Market. Lexington, MA: Lexington Books.
Gibbons-Paul, L. (2014). Norwegian Cruise Line Sets Its Course for Real-Time Insights. Retrieved from http://www.sap.com/bin/sapcom/en_us/downloadasset.2014-10-oct-17-19.norwegian-cruise-line-sets-its-course-for-real-time-insights-pdf.bypassReg.html