American Airlines stupid email marketing practices

UPDATE: About an hour after I tweeted this post, American Airlines - @AAirwaves - tweeted a reply. Good for them for monitoring and responding. They also contacted me privately and want to engage with me on this. I'll report what happens.
+++++++++++++++++++++++++++++

ORIGINAL POST: This morning I received an email from American Airlines titled Family Size Your Mileage Balance.

The email annoyed the hell out of me because it is so inappropriate to be downright insulting. Let me explain.

I have been a loyal elite-level customer of American Airlines for more than a decade. I am currently Executive Platinum level in the AAdvantage program, American’s highest, earned for more than 100,000 miles flown in a year. In 2009 I blew past the requirement, generating 157,988 miles in the American AAdvantage program.

Note that 100,000 air miles at 500 miles per hour is 200 hours -- more than one entire week in an American Airlines aluminum tube in a year! (Apologies to my wife and daughter for not shoveling snow during the last storm – I was on an American plane).

So far this year, I have flown with American (and AA partner British Airways) to Tokyo, Amsterdam, and Mumbai (paying business class for most of it) so I am sitting with 28,000 miles just two months into 2010.

Yup – I fly a lot. And most of it is on American.

My total available point balance as I write this is over a half million points (one point is equal to one mile).

So here's where I get annoyed.

The email insults me by suggesting I purchase points so I can take my family on a vacation. But I've already got enough points to take my family anywhere in the world American flies and I can do it in first class.

The email has my American AAdvantage number on it, so they certainly know who I am and how many points I have!

Offer Extended: Buy the Miles You Need for a Fun-Filled Family Vacation And Earn Bonus Miles!

Redeem your American Airlines AAdvantage miles for your next family vacation. Don’t quite have enough? You can purchase the miles you need for everyone in your family to reach an award — plus, when you purchase miles through March 31, 2010, you’ll earn up to 15,000 bonus miles!

Email marketers need to wake up and realize that their best customers need to be taken care of, not insulted.

Why not create an email list for Executive Platinum members only? Why not offer me an amazing vacation that I can spend my half million points on?

We've moved beyond the era of bulk broadcast email marketing to huge lists.

Email systems need to be sophisticated enough to segment people in real-time based on what they are doing as a customer and then send appropriate offers.

Don't get me wrong -- there are some great things about American Airlines.

I have met many amazing people who care about passengers and enjoy their job. For example, Lisa, who flies the Boston LAX route, greets me by name and we talk about music and books. Lisa wouldn't send me an email encouraging me to purchase points because she knows I fly on American planes nearly as much as she does.

What can we do about this? Thoughts?

Comments

[Toni Anicic]

Really nice ideas there David.

I've never seen an e-mail newsletter system capable of segmenting people into different lists by the imput from some sort of external database that would contain information such as - in this case - the number of miles you've traveled.

You might have just uncovered a great idea for the next generation e-mail newsletter technology startup.

[Todd G]

David,
Great points. With the amount of customer data available, it amazes me how little effort they put into crafting 1:1 email campaigns. Unfortunately, AA is only one of many not creating content based on data.
Todd

[Jen Horton]

I too am an Executive Platinum member on American Airlines (although you have me beat by about 20,000 miles) and completely agree. I would be curious to learn about the incentive metrics for their email marketing team. I often find that email marketers that do not segment are incented by volume numbers (say number of email opt-ins and number of emails delivered) versus looking at true levels engagement with offers.

I also find it troubling that American has different email channels based on products (AAdvantage, AAirmail, Net SAAver, and AA Vacations). Why not consolidate this into a single channel and ask me for my preferences on information I want to receive and send communications that are segmented by elite status, personal interests, and upcoming trips! Turn the email into my virtual travel concierge. And with the amount we fly - we need it! Help me make the most of my travel. Create meaningful experiences rather than pushing disjointed offers.

In working with my clients, segmentation is what really drives quality engagement. Relevance is the key – especially in a channel such as email where your audience has a pretty short attention span. Lack of relevance can do more harm than no communication at all in many cases.

[David Meerman Scott]

Toni - I think such email systems exist. I hope that someone representing one comments here.

Todd - absolutely agree!

Jen - You've paid much more attention to the emails than I have. Wow - I hadn't realized that they are product based. Makes sense. Probably a half dozen different marketers who don't speak to one another have access to the email lists. Ugh. No wonder it is a fail.

David

[Dave Morse]

I agree - AA is being lazy!

It reminds me of the amazing open letter about/critique of the AA website by Dustin Curtis (see "The Incompetence of American Airlines" http://dustincurtis.com/incompetence.html). A MUST READ!

This seems to indicate that, just like their website, the email marketing "teams" are probably operating in individual silos, with regard only for their OWN narrow agenda (instead of the holistic experience addressing the CUSTOMER wants/needs ... what a concept! *gasp*)

Next time you go to AMS, please stuff me in your suitcase. :)

[Therese]

I completely agree that the e-mails that a company sends should apply to that specific buyer, are they a current customer, are they a customer that stopped purchasing, are they just someone that reads your newsletter, but has never purchased your product.

If AA has a database of all of their customers and has the e-mail addresses of these customers, then they should have a way to export them into specific lists for their e-mail marketing.

It may get harder when you are talking about customers that may buy a product in store and then may sign up for a newsletter later, and you don't know that they are a current customer. However, I think it is important to know the status of your customers at any company, and that a survey sent to your list to make sure they are in the right place would not hurt.

Therese

[Jen Horton]

David - I bet that is exactly what is going on. I have seen it many times before. And, I simply pay attention to their email strategies because I am a bit of a geek. I work with my clients to leverage marketing automation systems (specifically http://www.eloqua.com - for full disclosure) to do the hard data integration and segmentation required to create compelling experiences for their email subscribers.

[Personal Development]

Niche and knowledge.

Understand your clients needs and be of service to them.

David...What do you think the best email program is?

I use mailchimp and they're pretty good so far.

Ian

[David Meerman Scott]

Thanks Jen. Yup Eloqua does some good stuff here. Thanks for jumping in again.

Disclosure - I spoke at the last Eloqua user conference and I am on the Eloqua board of advisors.

David

[Mark Copeman]

David - boy this stuff makes me mad... and I had a similar experience... This post explains my rant - and it appeared to actually work...http://bit.ly/cnZfPg

Re next gen email systems - we launched this in January, because people asked if they could buy the makeshift system we'd cobbled together to approach our targets.

Personalised marketing is the way forward... this does it very
nicely.

It is of course a blatant plug - however it does respond to the points made above.

http://www.targetstoprospects.com

(We can now do this in bulk as well as one to one...)

Best wishes,
Mark

[Michelle Tripp (@michelletripp)]

Great post, David! This is just another example of the "broadcast vs. engagement" mentality. It's the quick and easy way and doesn't require truly connecting with customers or being committed to the relationship. Sad. Just further evidence that many marketing departments out there still don't understand we're operating in a new era. Fortunately, social media gives customers the opportunity to call them out on it and influence future marketing activities for the better.

[Linda VandeVrede]

I get bombarded with promo offers for business cards from Southwest, when I already own one, and calls from the Arizona Republic to subscribe, when I already do...you would think in this economy that companies would figure out how best to target their outreach instead of sending and calling everyone haphazardly.

[Dragan Mestrovic]

You are right with that.

They could segment customers. And yes, there are email systems out there which are able to personalize a campaign down to the size of your shoes.

I think they simply did not care that there are differences in email marketing. And to do it right, they have to have a deeper understanding what email marketing is and how to use it.

It looks like they need help and consulting on how to approach customers the right way online...

I am looking forward to read from their next attempt and I hope you will post it as well.

I am curious if they monitor social media and blogs and if the next email campaign reflect this blog post.

[David Meerman Scott]

I tweeted the post and someone from @AAirwaves tweeted back within about an hour. So good twitter response.

[Ellen Weiss]

David,
I am trying to get the attention of someone at DELTA and wondered how the AA people noticed. Is there a particular setting you used? Thanks....

[Graham]

Yup! Similar frustrations, my pet peeve is the bargain flights that include non from (or even close to) the city I live in. AA KNOW I fly from SFO and could easily craft a relevant email (or non at all!), but choose not to.

[Joey Curtis]

You can segment your customers almost anyway you want in almost every marketing automation system available. And I'm guessing they are using one that can do this very easily.

To me, this is simply "pilot" error. Their marketing team should know better.

[David Meerman Scott]

Ellen - After I wrote the blog post I tweeted a link to the post and included the AA twitter handle @AAirwaves in the tweet so they would see it.

Joey and Graham -- YES and YES

[CivilThoughtful]

've been Executive Platinum for 9 years and I'm now Platinum for life.

I am a huge fan of American - they have great people and mostly run a great operation. I say mostly because while they're terrific around the flying experience, they are "not smart" about their data bases and e-mail marketing.

I get e-mail for both my account and for the accounts of both of my daughters. I'm Platinum and they are not. American does recognize that I'm Platinum since I get a slightly different e-mail from the one sent to my daughters and mine arrives a few minutes before the ones to my daughters.

Here's the slight difference - my e-mails mention my AA status - but that's it! The news, the content, and the offers are the same in the e-mails to my daughters and to me. So - even though it's clear they know I do have significantly different status - they pay zero attention to that.

And yes, I agree, it's clear they have four different product groups sending different e-mails. At least they've managed to get the branding consistent!

Lots of room for improvement!

[Adam]

Great article David. As Marketing Director of a community college we use Email marketing regularly to promote classes and upcoming events at the school. We have a wide range of offerings at the school so it is absolutely necessary to use different email lists. We also have automated class start date reminders and class material confirmation emails that go out to the students who have an upcoming start date. We use Exact Target which gives us great flexibility to achieve the results we are looking for. I know lists can be generated or created because we do it!

[Paul Anthony Kelly]

The great thin about the days we live in is the ability to respond in real time to issues just like this one. That AA can get into the fray and deal with this issue is there. Now let's hope they rectify the situation. Now I am not AAA Platinum lever super star Concierge service - but I aspire to be someday. So when I get there I damn expect AA to treat me right!

[CivilThoughtful]

One other big member of the "Clueless on Marketing" club is Citibank.

I've had credit cards there for 20 years - they have a remarkable amount of data about me. You'd think they would be able to figure out that since I already have both a Visa and a Mastercard with them I'm unlikely to need another card from them. You'd also think that since I have never ever run a balance I'm an unlikely candidate for one of their "balance transfer" offers. I've asked them to please stop sending me direct mail and e-mail about new cards and "balance transfers' but I can not get them to stop.

This was annoying enough when I was viewing this from the perspective of a customer - it's even more annoying now that we're all stockholders!

Any suggestions on how to get them to stop are welcome.

Thanks!

[Martha Skinner]

I personally think you are over-reacting. A general marketing email doesn't offend me in the least. There are too many other things going on in this world today to be upset over a mass maketing email. I get them all the time. If it refers to me, I utilize whatever, if it doesn't I simply delete it.

[Ralph Leon]

I don't fly much, maybe once a year, so I probably would not have reacted the same way. Though I completely agree with you since you have obviously proved to be a loyal customer. You are the kind of customers companies want and should make an effort to keep. I really think this is just sloppiness on the marketing department. If I was flying as much as you and giving them just as much business I would be just as annoyed. Personally I think the company is just cutting corners. They should really have a special list that is more personalized and that does not get mixed up with the other groups. Luckily with the expansion of social media one comment or call can really go along way. You shouldn't have to do that, but sometimes its the only way things will change. Since I am in the marketing department this really just ticks me off personally.

[Kristin Hambelton]

It’s been interesting reading through all these responses. Brings to mind one of our customers in the hospitality industry that used greater list segmentation to support their transition from a “product oriented” business, to one hyper focused on improving the customer experience. The hotel chain went from a “send all to all” email strategy using limited personalization (seemingly similar to this AA case), to being able to create detailed profiles of customers that allow the chain to customize offers based on customers’ travel preferences including preferred properties (family oriented or luxury), activities (golf, water sports, etc.) and time of year (for vacation planning). The travel industry seems ripe for these sorts of marketing automation-driven strategies where executing campaigns that are highly relevant, targeted and sent at meaningful intervals will naturally help conversion rates take flight…pun intended! Full disclosure, I am responsible for marketing for Neolane that provides marketing software that addresses these customer experience challenges.