Industry executives and experts share their predictions for 2023. Read them in this 15th annual VMblog.com series exclusive.
Predictions for the future of crowdsourced data in the airline industry for 2023
By Dwight Harris, Jr., CEO of DataScalp
Consumers today
desire a platform where they can express their discontent with air travel, as
they often feel that their complaints go unaddressed. With the emergence of
technology and crowdsourced data, individuals can now report their experiences,
see visual representation of similar consumer experiences, and make more
informed choices about which airline to select before booking their
flights. Consumers can use this data to
best avoid air travel issues, or at least decrease the likelihood of an air
travel issue. This data also provides airlines with valuable insights into
customer satisfaction and demands.
Crowdsourcing
isn't new in 2023, in fact, thousands of people contribute and rely upon their
data on a daily basis through transportation apps like Waze and Nexar. These tools help us navigate our routes and
protect us when the unexpected occurs. What we haven't seen to date is a
platform that captures and utilizes crowdsourced data, leverages inferential
statistics into a simple to understand dashboard that ranks corporations with
current data. This well-conceived idea begs the question: why haven't airlines
such as Southwest or JetBlu previously adopted a similar concept to the skies?
I predict that
2023 will be the year that consumer fliers finally put their foot down and
demand both transparency, accountability and change the industry has warranted
for decades. The key will be capturing
consumer experiences, and reporting what is important to the air traveler.
Empowering the Voice-of-the-Customer
There is a
significant gap between what airlines believe their customers desire and what
customers actually want. For example, airlines report the % of on time
performance. However, that fails in
capturing the degree of lateness, which is what consumers actually feel. Although sentiment analysis and ratings offer
some insight into preferences, there is insufficient ‘Voice of the Customer'
data on understanding what's important to customers as it relates to air travel,
on-time, number of cancellations, lost luggage and more.
Capturing the voice of the customer
should be the top priority for airlines that want to maximize profits and
minimize expenses. However, average customer survey response rates range from
5% to 30%, leaving a significant portion of the customer base unrepresented. To
address this issue, machine learning and statistical theory can be employed to
analyze consumer complaints as a way to understand consumer behavior.
Leveraging the Power of Crowdsourced Data
As consumer
technology continues to advance, crowdsourced data is expected to play a larger
role in the way consumers both research and review services. With the
proliferation of review websites and apps, it has become easier for travelers
to share their experiences with others, though these outlets lack the ability
to collect, normalize and visualize large sets of data, leaving consumers
without clear insights based on that data to help them make purchasing
decisions.
Consumers will be
the first ones to rally behind this new technology, once they recognize the
level of empowerment this technology will enable, finally giving them a voice
backed by hard data, and not just tweets on a Twitter thread or poor Google
reviews.
The Rise of Performance Dashboards
A key trend we
will likely see emerge in 2023 is the rise of performance-monitoring dashboards
in consumer, corporate and even governmental capacities. Real-time reporting is
becoming ever more possible with advances in cloud technology, artificial
intelligence and robotic process automation, allowing data to be collected,
analyzed and presented in a timely, ordered fashion that consumers, companies
and government agencies will use to make better decisions.
I predict that at
least one of the major airlines will endorse a performance dashboard by the end
of 2023, which would indicate that ignoring the voice-of-the-customer is
begrudgingly going away.
As we move into
2023, effective methods of gathering and analyzing voice-of-the-customer data
are necessary for the airline industry, as low response rates for customer
surveys and a lack of information on customer behavior and preferences
currently hinder the industry's ability to effectively serve its customers. The
use of crowdsourced data and performance-monitoring dashboards in the airline
industry will enable the real-time collection and visualization of large
amounts of customer data, empower consumers to do pre-purchase research and
ultimately be able to influence airline prices for the first time.
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ABOUT THE AUTHOR
Dwight Harris Jr. is the founder and CEO of DataScalp, the first online
platform that captures consumer experiences and uses consumer data to rank
companies in a performance dashboard. Over the past twenty years, Dwight has
masterminded dozens of organizational change initiatives, and is recognized as
one of the nation's most innovative experts in operational transformation and
execution. He has resurrected organizations ranging from international
conglomerates to public institutions to private companies across a broad
spectrum of functions and industries. Dwight earned his undergraduate business
degree from University of California at Berkeley and his Masters of Business
Administration from Cornell University. More
about Dwight can be found here.