Vietjet Air

Personalized communication strategy based on multi-market data wins big at MMA Smarties 2023.

Solution

Successful Story

PMAX, along with Vietjet Air, surpassed many outstanding projects worldwide to successfully win 7 prestigious MMA Smarties awards from national to APAC and global levels.

To achieve both marketing and business objectives, Vietjet Air – together with PMAX – developed an integrated communication and creative strategy to reach consumers at multiple touchpoints. This marketing campaign marked Vietjet Air’s pioneering application of CDP in the Vietnamese aviation industry. The airline has proven the effectiveness of maximizing marketing efficiency, encouraging other businesses in the industry to consider wise investments in CDP or data in general. Additionally, the campaign doubled the travel demand of customers by 2.7 times (according to Google Search Trend), contributing to the recovery and growth of the entire tourism industry in Vietnam and APAC post-Covid-19.

Vietjet Air and PMAX assert their position in the marketing field: from understanding customers, building brands, to creating marketing campaigns that impact effective business growth, not just limited to the domestic market but extending to various international markets.

This success story is not just about creating impressive advertising campaigns, but also demonstrates the ability to apply technology to multi-platform marketing processes, from strategy to execution that PMAX has been bringing to its projects.

Project Context

Overcoming the challenges of the post-Covid-19 aviation industry.

In 2022, along with the general impact on airlines, Vietjet Air still faced several major challenges including:

  1. Macro factors: The international market continues to be affected by global economic fluctuations and political instability. Particularly in the Asia-Pacific region, a key international market for Vietjet Air, people are facing layoffs due to the post-Covid-19 macroeconomic factors, directly impacting consumer spending power.
  2. Changes in consumer behavior: Although entering the “new normal” state from 2022, there are still many concerns related to traveling abroad, such as proving vaccinations, the risk of travel disruptions, quarantine, and other factors. This has encouraged Vietnamese people to prefer short trips or domestic travel over international travel.
  3. Global standardization and local marketing: Vietjet Air must ensure that they can adapt to global standards while simultaneously conducting marketing campaigns suitable for each local market. This requires a deep understanding of the travel preferences and psyche of consumers in each foreign market.

Facing these challenges, Vietjet Air has aimed to apply innovative performance marketing solutions. The brand wants to increase sales with optimized costs through an integrated campaign from creating travel demand to converting actual customers, developing multi-channel communications, and creating content that is appropriate for each foreign market. This requires flexibility and a deep understanding of local factors.

Project Goals

  • International market recovery rate: Achieve at least 85% of pre-pandemic seating capacity – 2019 (according to forecasts by the Civil Aviation Authority of Vietnam);
  • International market share: Increase seat capacity share compared to pre-pandemic levels;
  • International market revenue & CiR: Increase by at least 300% for both indices for annual international flights;
  • Brand recognition & international demand: Enhance awareness of the Vietjet brand in the Asia-Pacific region and generate international travel demand with Vietjet;
  • Digital transformation: Utilize an internal customer data platform (CDP) and mobile app to enhance business impact;
  • Marketing innovation: Create business/marketing impact using new technologies.

Target Customers

1. Current Customers

  • Vietjet Air aims to retain current customers and attract new ones for both domestic and international markets. The primary customers of Vietjet Air are individuals aged 22 – 45 who enjoy traveling and are tech-savvy.
  • Maintain and retain all current customers from the customer data platform with over 300 different segments.

2. New Customers

  • Tourists to Vietnam: targeting residents of the Asia-Pacific region, including local citizens, foreigners, and Vietnamese living abroad;
  • For travelers (departing from Vietnam and flying to other countries): targeting residents of Vietnam’s 5 key cities (Hanoi, Ho Chi Minh City, Da Nang, Nha Trang, Hai Phong), foreigners with roots in Vietnam; one of the APAC countries, and international tourists currently staying in Vietnam.

Idea Campaign

The campaign is implemented in multiple languages, tailored to different flight routes with unique preferences, and is suitable for customers from over 300 specialized customer segments with different demographic profiles and spending behaviors (Skyboss, Deluxe, Eco).

Travel signals obtained from the CDP (Customer Data Platform) are used to predict potential travel demand. Furthermore, to maximize conversions while avoiding overexposure of consumers to repetitive advertisements, the content and frequency of the campaign are developed and adjusted based on user flows and purchase intentions.

The overall strategy includes traditional channels (PR), social media and social outreach (Influencers & communities), and digital media channels (shoppertainment experience, Push Notification, Ads, etc.).

Creative Message

The message ‘Happiness is to Enjoy Flying’ is a positive and consumer-friendly message. It portrays the image of an airline that is joyful, attentive, and delivers a happy experience. This message also aligns with the ‘Healing Travel’ trend—a trend many wish to experience post-COVID-19.

Innovation in Campaigns.

This campaign demonstrates the innovation and experimentation of VietJet Air and PMAX:

  • For the first time, Vietjet Air has implemented a fully integrated campaign across both online and offline channels with optimal investment;
  • For the first time, a Customer Data Platform (CDP) is used in a marketing campaign, analyzing and predicting consumer behavior with over 150 million customer data points.

This campaign is considered an accelerator for the airline, not only to meet the increasing travel demand but also to create new travel demand in an uncertain market recovery context.

Implementation Direction

Initially, PMAX conducted in-depth customer research across more than 10 markets and analyzed customer data through the CDP to understand each customer segment’s media usage, search intent, and motivations for flying with Vietjet Air. This has increased the accuracy of targeted outreach across channels.

  • CDP Activation Phase: Consolidated all first-party and third-party data from customer service systems (including the airline’s reservation system, inventory system, and departure control system) and other channels (website, app, email, calls, media channels…) to build and update customer profiles in real time;
  • Identifying Insights: Analyzed over 150 million customer data points reflecting that post-COVID-19, the buyer’s journey for international travel is now three times longer than before, resulting in decreased flight frequencies and over 80% more recent site visits;
  • Multi-Channel Customer Segmentation: Developed over 300 in-depth customer segments from four main sources:
    • Targeting based on demographics and geography from media channels;
    • CDP purchase history audience: ticket purchase history, travel intentions, route choices, trip duration, flight class, etc.
    • Lookalike audiences created by combining customer profiles from CDP and digital channels: Search, Social, Display, etc.
    • Predictive segment targeting from real-time events on the Website, App, etc., powered by an AI-supported customer experience system.
  • Multi-Channel Personalization: Launched multiple campaigns across over 25 channels to target potential segments in more than 10 markets with relevant content, offers, etc., addressing customer concerns about traveling abroad.
  • Creating International Travel Demand: Hundreds of fun and informative creative contents have been contextually served across channels to transform fears into dreams of traveling abroad to enjoy a joyful and positive post-COVID-19 world.
  • Capturing the Right Demand with Suitable Offers: Relevant content and tailored flight offers spread across search platforms using trending keywords supported by AI.
  • Instant Offer Release: Sent personalized retargeting emails, messages, and ads to deliver instant promotions in real-time, increasing conversion rates.

Key Results

With the solutions and deployment strategies mentioned above, the “Happiness is Flying” marketing campaign by Vietjet Air and PMAX has achieved impressive figures, including:

1. Phase of increasing recognition and demand:

  • Media coverage over 80%, with a unique reach of over 125 million people in the APAC region.
  • 1 billion impressions, 60 million interactions, 110 million video views, and the highest Share of Voice on all search platforms.

2. Phase of inspiring and increasing engagement:

  • Successfully reached 850,000 potential customers with an Earned Media Value (EMV) of 3 billion VND through collaboration with 8 KOLs/influencers, 6 FanPages, and 10 Travel Communities;
  • Reached about 6,000 potential customers through offline channels including the Hanoi Tourism Festival, other organized events, and excursions.
  • With Augmented Reality (AR) advertising:
    • 10,000 vouchers distributed, of which:
    • Over 2,000 vouchers were used in the first week;
    • The remaining vouchers were used up within four weeks;
  • Mini-games attracted:
    • 2.5 million views;
    • 60,000 social media interactions;
    • 10,000 bookings at low-demand destinations.
    • Additionally, Vietjet Air became the first airline in Vietnam to sell:
    • 1,400 tickets via two social media livestream sessions;
    • Reached a peak of 10,000 viewers during the livestream;
    • Achieved 1 million viewers with over 8,000 responses and 1,800 comments.

3. Conversion phase:

  • Sales doubled compared to typical campaigns, reaching 1.7 million flight bookings, and nearly $115 million in revenue over 12 weeks with an improvement in CiR from 8.93% to 1.32% YoY.
  • Sales increased sixfold compared to the same period in 2022.
  • App purchases increased by over 82%, returning user numbers increased by 2.5 times, leading to a 75% increase in Monthly Active Users (MAU) compared to the same period in 2022.

Solution & Services

Solution

  • Lead Generation
  • Branding

Services

  • Media
  • Strategy
  • Content production
  • Data report

Results

  • Successfully reached 150 million customers;
  • Vietjet Air’s international market recovered faster than the overall industry forecast. (Vietjet Air estimated to achieve 128% of its 2019 revenue, while the global aviation industry is projected to reach 83.5% of 2019);
  • Generated 1.7 million ticket sales for the international market, contributing to an increase in revenue and optimizing ROAS, which improved sixfold compared to the same period in 2022;
  • Boosted international travel demand by 2.7 times compared to the same period in 2021 (according to Google Trends);
  • Contributed to making Vietjet Air the fastest recovering airline in Southeast Asia post-Covid-19 (according to the Asian Development Bank);
  • Contributed to a 918.3% growth in international passenger numbers in the first six months of 2023 compared to the same period in 2021 (according to the Civil Aviation Authority of Vietnam).
% Revenue Growth Compared to 2019
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