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Customer Service in Social Media An Empirical Study of the Airline Industry Matthias Carnein , Leschek Homann, Heike Trautmann, Gottfried Vossen 6th March 2017

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Page 1: Customer Service in Social Media - An Empirical Study of ... · AnEmpirical Study of the Airline Industry Matthias Carnein, Leschek Homann, Heike Trautmann, Gottfried Vossen 6th March

Customer Service in Social Media

An Empirical Study of the Airline Industry

Matthias Carnein, Leschek Homann, Heike Trautmann, Gottfried Vossen 6th March 2017

Page 2: Customer Service in Social Media - An Empirical Study of ... · AnEmpirical Study of the Airline Industry Matthias Carnein, Leschek Homann, Heike Trautmann, Gottfried Vossen 6th March

Outline

1. Introduction

2. Customer Service Performance

3. Data Collection

4. Evaluation

5. Conclusion

Customer Service in Social MediaMatthias Carnein, Leschek Homann, Heike Trautmann, Gottfried Vossen

26th March 2017

Introduction Customer Service Performance Data Collection Evaluation Conclusion

Page 3: Customer Service in Social Media - An Empirical Study of ... · AnEmpirical Study of the Airline Industry Matthias Carnein, Leschek Homann, Heike Trautmann, Gottfried Vossen 6th March

Outline

1. Introduction

2. Customer Service Performance

3. Data Collection

4. Evaluation

5. Conclusion

Customer Service in Social MediaMatthias Carnein, Leschek Homann, Heike Trautmann, Gottfried Vossen

26th March 2017

Introduction Customer Service Performance Data Collection Evaluation Conclusion

Page 4: Customer Service in Social Media - An Empirical Study of ... · AnEmpirical Study of the Airline Industry Matthias Carnein, Leschek Homann, Heike Trautmann, Gottfried Vossen 6th March

Introduction

Customer Service handles questions or problems regarding productsor services

Traditionally offered by email or phone (e.g., call center)Recently, more companies explore social media as an additionalchannel

popularity of mobile deviceseasy and widespread usagepublic pressure

Need to measure and monitor performanceof customer service in social media

Customer Service in Social MediaMatthias Carnein, Leschek Homann, Heike Trautmann, Gottfried Vossen

36th March 2017

Introduction Customer Service Performance Data Collection Evaluation Conclusion

Page 5: Customer Service in Social Media - An Empirical Study of ... · AnEmpirical Study of the Airline Industry Matthias Carnein, Leschek Homann, Heike Trautmann, Gottfried Vossen 6th March

Outline

1. Introduction

2. Customer Service Performance

3. Data Collection

4. Evaluation

5. Conclusion

Customer Service in Social MediaMatthias Carnein, Leschek Homann, Heike Trautmann, Gottfried Vossen

46th March 2017

Introduction Customer Service Performance Data Collection Evaluation Conclusion

Page 6: Customer Service in Social Media - An Empirical Study of ... · AnEmpirical Study of the Airline Industry Matthias Carnein, Leschek Homann, Heike Trautmann, Gottfried Vossen 6th March

Performance Measures

Traditional service level measures areAverage Handling Time (AHT)Average Queue Time (AQT)

Social media measures are much harder to defineno queue of waiting customersunstructured nature of conversations

Customer Service in Social MediaMatthias Carnein, Leschek Homann, Heike Trautmann, Gottfried Vossen

56th March 2017

Introduction Customer Service Performance Data Collection Evaluation Conclusion

Page 7: Customer Service in Social Media - An Empirical Study of ... · AnEmpirical Study of the Airline Industry Matthias Carnein, Leschek Homann, Heike Trautmann, Gottfried Vossen 6th March

Average Response Time

How fast does an inquiry ireceive a response r?

∆(i) = tr − ti

Average response time over allinquiries for company C:

ar(C) =

∑i∈IC ∆(i)

|IC|

tr : time of responseti : time of inquiryIC : all inquiries to company C

Customer Service in Social MediaMatthias Carnein, Leschek Homann, Heike Trautmann, Gottfried Vossen

66th March 2017

Introduction Customer Service Performance Data Collection Evaluation Conclusion

Page 8: Customer Service in Social Media - An Empirical Study of ... · AnEmpirical Study of the Airline Industry Matthias Carnein, Leschek Homann, Heike Trautmann, Gottfried Vossen 6th March

Reponse Rate

How many inquiries receive acompany response?

rr(C) =

∑i∈IC r(i)

|IC|

with r(i) =

{1, if ∆(i) exists

0, otherwise

Customer Service in Social MediaMatthias Carnein, Leschek Homann, Heike Trautmann, Gottfried Vossen

76th March 2017

Introduction Customer Service Performance Data Collection Evaluation Conclusion

Page 9: Customer Service in Social Media - An Empirical Study of ... · AnEmpirical Study of the Airline Industry Matthias Carnein, Leschek Homann, Heike Trautmann, Gottfried Vossen 6th March

Outline

1. Introduction

2. Customer Service Performance

3. Data Collection

4. Evaluation

5. Conclusion

Customer Service in Social MediaMatthias Carnein, Leschek Homann, Heike Trautmann, Gottfried Vossen

86th March 2017

Introduction Customer Service Performance Data Collection Evaluation Conclusion

Page 10: Customer Service in Social Media - An Empirical Study of ... · AnEmpirical Study of the Airline Industry Matthias Carnein, Leschek Homann, Heike Trautmann, Gottfried Vossen 6th March

Data Sources

Focused on Twitter and Facebook due to popularity

Selected 48 Airlines based on largest passenger volume, fleet sizeand revenue

Identified 66 Twitter and 58 Facebook accounts targeting the Englishand German markets

Classified airlines into 4 segments based on service level and numberof flight routes

Customer Service in Social MediaMatthias Carnein, Leschek Homann, Heike Trautmann, Gottfried Vossen

96th March 2017

Introduction Customer Service Performance Data Collection Evaluation Conclusion

Page 11: Customer Service in Social Media - An Empirical Study of ... · AnEmpirical Study of the Airline Industry Matthias Carnein, Leschek Homann, Heike Trautmann, Gottfried Vossen 6th March

Airline Segments

Lufthansa

United

KLM

Air France British Airways

Turkish Airlines

China Southern Airlines

China Eastern Airlines

Air Canada

Emirates Etihad Airways

Aeroflot

Air China

Alaska Airlines

Finnair Qantas AirwaysQatar Airways

NETWORK CARRIER

Vuelling

RyanaireasyJet

SouthWest Airlines

Delta

Iberia

Service level

Flight routes

AerLingus

Air Europa

Air New Zealand

Austrian Airways

EgyptAir

Spirit Airlines

Condor

TUIfly

Air Berlin

Thomas Cook Airlines

Germanwings / EurowingsAlitalia

Brussels Airlines

SAS Scandinavian Airlines

SWISS TAP Portugal

Virgin America

Virgin Atlantic

LEISURE CARRIER

Lufthansa Cityline

City Jet

Flybe

Aegean Airlines

REGIONAL CARRIER

JetBlue

Pegasus Airlines

WestJet

Wizz Air

LOW COST CARRIER

Customer Service in Social MediaMatthias Carnein, Leschek Homann, Heike Trautmann, Gottfried Vossen

106th March 2017

Introduction Customer Service Performance Data Collection Evaluation Conclusion

Page 12: Customer Service in Social Media - An Empirical Study of ... · AnEmpirical Study of the Airline Industry Matthias Carnein, Leschek Homann, Heike Trautmann, Gottfried Vossen 6th March

Data Collection

Accessed public Facebook and Twitter APIs throughout the year 2016

Collected all posts directed at the airlines’ Twitter and Facebook pages

Stored 6,187,835 inquiries and 1,777,234 responses in DocumentStore

Customer Service in Social MediaMatthias Carnein, Leschek Homann, Heike Trautmann, Gottfried Vossen

116th March 2017

Introduction Customer Service Performance Data Collection Evaluation Conclusion

Page 13: Customer Service in Social Media - An Empirical Study of ... · AnEmpirical Study of the Airline Industry Matthias Carnein, Leschek Homann, Heike Trautmann, Gottfried Vossen 6th March

Set up

Document Store

RDBMS

crawl posts

store posts store KPIs

analyze posts

get KPIs

Host System

Crawler Process

AnalyzerProcess

{REST}

Customer Service in Social MediaMatthias Carnein, Leschek Homann, Heike Trautmann, Gottfried Vossen

126th March 2017

Introduction Customer Service Performance Data Collection Evaluation Conclusion

Page 14: Customer Service in Social Media - An Empirical Study of ... · AnEmpirical Study of the Airline Industry Matthias Carnein, Leschek Homann, Heike Trautmann, Gottfried Vossen 6th March

Visualization

http://servicemonitor.uni-muenster.de/

Page 15: Customer Service in Social Media - An Empirical Study of ... · AnEmpirical Study of the Airline Industry Matthias Carnein, Leschek Homann, Heike Trautmann, Gottfried Vossen 6th March

Outline

1. Introduction

2. Customer Service Performance

3. Data Collection

4. Evaluation

5. Conclusion

Customer Service in Social MediaMatthias Carnein, Leschek Homann, Heike Trautmann, Gottfried Vossen

146th March 2017

Introduction Customer Service Performance Data Collection Evaluation Conclusion

Page 16: Customer Service in Social Media - An Empirical Study of ... · AnEmpirical Study of the Airline Industry Matthias Carnein, Leschek Homann, Heike Trautmann, Gottfried Vossen 6th March

Selection by Number of Posts

Airline Number of posts Passengers per year

KLM 404,964 27,740,000Iberia 229,677 14,000,000Etihad Airways 175,609 17,400,000Air France 166,225 79,016,000WestJet 139,560 18,500,000Lufthansa 155,643 107,000,000easyjet 117,301 70,000,000Air Berlin 83,696 27,274,777Thomas Cook Airlines 75,288 6,700,000Air Canada 73,731 41,000,000

Customer Service in Social MediaMatthias Carnein, Leschek Homann, Heike Trautmann, Gottfried Vossen

156th March 2017

Introduction Customer Service Performance Data Collection Evaluation Conclusion

Page 17: Customer Service in Social Media - An Empirical Study of ... · AnEmpirical Study of the Airline Industry Matthias Carnein, Leschek Homann, Heike Trautmann, Gottfried Vossen 6th March

Response Time

Dec 2016

Nov 2016

Oct 2016

Sep 2016

Aug 2016

Jul 2016

Jun 2016

May 2016

Apr 2016

Mar 2016

Feb 2016

Jan 2016

100

101

102

103

Avg

.Res

pons

eTi

me

(min

)

KLM Iberia Etihad Airways Air FranceLufthansa WestJet easyJet Air BerlinThomas Cook Airlines Air Canada

Page 18: Customer Service in Social Media - An Empirical Study of ... · AnEmpirical Study of the Airline Industry Matthias Carnein, Leschek Homann, Heike Trautmann, Gottfried Vossen 6th March

Response Rate

Dec 2016

Nov 2016

Oct 2016

Sep 2016

Aug 2016

Jul 2016

Jun 2016

May 2016

Apr 2016

Mar 2016

Feb 2016

Jan 2016

0 %

20 %

40 %

60 %

Resp

onse

Rate

KLM Iberia Etihad Airways Air FranceLufthansa WestJet easyJet Air BerlinThomas Cook Airlines Air Canada

Page 19: Customer Service in Social Media - An Empirical Study of ... · AnEmpirical Study of the Airline Industry Matthias Carnein, Leschek Homann, Heike Trautmann, Gottfried Vossen 6th March

Outline

1. Introduction

2. Customer Service Performance

3. Data Collection

4. Evaluation

5. Conclusion

Customer Service in Social MediaMatthias Carnein, Leschek Homann, Heike Trautmann, Gottfried Vossen

186th March 2017

Introduction Customer Service Performance Data Collection Evaluation Conclusion

Page 20: Customer Service in Social Media - An Empirical Study of ... · AnEmpirical Study of the Airline Industry Matthias Carnein, Leschek Homann, Heike Trautmann, Gottfried Vossen 6th March

Summary / Outlook

Analyzed millions of customer service requests in social media

Defined several performance measures to automatically evaluatecustomer service performance

Customer service in social media is dominated by full-service networkcarriers which have the capacity and financial means

Future work should apply text classification and topic modelling toanalyze the content of a message and also focus on other industries

http://servicemonitor.uni-muenster.de/

Customer Service in Social MediaMatthias Carnein, Leschek Homann, Heike Trautmann, Gottfried Vossen

196th March 2017

Introduction Customer Service Performance Data Collection Evaluation Conclusion

Page 21: Customer Service in Social Media - An Empirical Study of ... · AnEmpirical Study of the Airline Industry Matthias Carnein, Leschek Homann, Heike Trautmann, Gottfried Vossen 6th March

Questions?

?????Customer Service in Social MediaMatthias Carnein, Leschek Homann, Heike Trautmann, Gottfried Vossen

206th March 2017

Introduction Customer Service Performance Data Collection Evaluation Conclusion