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Letter from SAS - generated new permissions worth approximately 2 million DKK Situation spring 2009: Recession hits SAS

Spring 2009 EuroBonus campaign: ”Think when you fly and get more out of flying SAS”

Specific problem: Many members without e-mail permission

In spring 2009 recession was at it’s highest and an airline company like SAS strongly experience a change in the travel frequency and behaviour of the business travellers.

In spring 2009, SAS and our agency launched a campaign with 2 overall goals:

An important target group in the campaign were EuroBonus members with no e-mail permission. I.e. SAS customers, who are not as frequently as other members exposed to SAS-messages or promotion offers and therefore possibly less loyal and less prone to choose SAS. This target group therefore had to be reached wit a postal communication effort.

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Encourage booking of SAS flights through an individual promotion offer for EuroBonus points Get permission to e-mail communication from non-permission members in order to reduce future communication cost and increase sales to this group through e.g. the regular weekly EuroBonus newsletters.

Competition from low cast carriers is strong.

The market – and travel managers in the companies focus on costs – in many companies travels are brought down to a minimum and the lowest possible purchase price is prioritized.

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This strongly effect SAS and especially the sale of the flexible and more expensive ticket types Economy Extra and Business.

On top of this the communication effort had to show that SAS is aware of the recession and acknowledge that ”Business is not as usual” through “education” on SAS USPs.

Target group for direct mail: 31.533

Quantitative goals for the direct mail campaign was a response of at least 10 %. I.e. at least 10 % of the recipients should log in to the campaign website. And of these 10 % we wanted permission from at least 25 %

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Communicating a complex offer

- and a brand-building message on an individual level Our strategy had to fulfil following targets: •

Communicate a personal and complex offer on how the member can earn extra EuroBonus points by flying SAS the next 3 months

Make recipients of direct mail switch media and gain permission for e-communication through sign up at campaign site

Flyv med omtanke og få mest muligt ud af SAS Kære <Navn Navnesen>

Create traffic to campaign site where we actively involve the visitor and demonstrate that SAS is able to advice and offer business travels with more value even during a recession – by communication the advantages of focusing on total travel costs rather than the purchase price of the ticket.

It was important that the target group experienced the communication and the point offer as targeted and individual and based on our knowledge of their previous travel behaviour.

April 2009

Få noget ekstra, når du rejser: Fra den 23. april og frem til den 31. juli 2009 kan du få en ekstra belønning, når du flyver med SAS, Blue1 og Widerøe. Brug vedlagte kort til at se, hvad du får, eller se din personlige belønning her: Flyver du inden for de nordiske lande, får du: • 4.000 EuroBonus Ekstrapoint ved 2 enkeltrejser på Economy Extra eller Business • Dobbelt op på EuroBonus-point, når du flyver - uanset billettype Flyver du i Europa (undtagen Norden), får du: • 16.000 EuroBonus Ekstrapoint ved 4 enkeltrejser på Economy Extra eller Business • Dobbelt op på EuroBonus-point, når du flyver - uanset billettype Flyver du oversøisk, får du: • 16.000 EuroBonus Ekstrapoint ved 2 enkeltrejser på Economy Extra eller Business • Dobbelt op på EuroBonus-point, når du flyver på Economy Check om du kan få mere ud af SAS Verden er i forandring. Det er der intet nyt i. Det nye er, at mange oplever, at forandringerne påvirker hverdagen, i job- og i privatliv. Hvad betyder en ændret økonomisk situation for dig f.eks. for dine forretningsrejser? Kan du få mere ud af situationen, end du gør i dag? Gå ind på www.flyv-med-omtanke.dk og se, hvordan du udnytter SAS bedst muligt, alt efter dit rejsemønster. Vi har allerede trukket 20 vindere. Måske er du én af dem? 20 heldige vindere får enten flybilletter eller en lækker præmie. Du skal logge ind for at få din præmie på www.flyv-med-omtanke.dk. Vinderne er allerede fundet, så skynd dig ind og se, om du er én af dem. Venlig hilsen Scandinavian Airlines

Verden forandrer sig. Gør dine rejsevaner også? 1. Gå ind på www.flyv-med-omtanke.dk 2. Log ind med dit EuroBonus-nummer:

<EBB12 3 45 678 9> 3. Svar og se, hvordan du får mest ud af SAS, og om du har vundet

Få mere ud af SAS på www.flyv-med-omtanke.dk

Per Møller Jensen Vice President Marketing & Sales Denmark

Complex matrix behind tailormade point offer The personal letter promises extra reward by flying SAS in the campaign period. • The points-offer matrix was complex and merged from 3 parameters • 3 destination areas – Scandinavia, Europe and Intercontinental • 3 ticket types – Economy, Economy Extra and Business • Number of bonus points to be earned related to number of flights in given destination areas and on given ticket type. The text also explains that SAS can advise on and offer business travels of value even during a recession and the recipient is encouraged to get this statement broadened with basis in his own situation at www.flyvmedomtanke.dk (thinkwhen-you-fly) Further more visit at campaign site is motivated by an instant win competition.

Campaign envelope sets the tone We use the well-known bulletin board as the graphic eyecatching elements. And tease with the promise of extra points on the next SAS flights. format Information - In

ion

G TIL DI YVER L F DER TANKE MED OM

We needed a creative gimmick to enhance understanding To enhance understanding og stress the tailormade aspect of the point offer we saw the need for an extra mail-element or creative gimmick. An element which creates understanding, involvement and underlines that it is all about flying. See the our solution on next page.

onus-point Få ekstra EuroBflyrejser på dine næste . r mindre end før is du flyve SAS — selv hv Få mere ud af vi mener. ad hv se og n Åb

9:33 06/04/09 14:1

SAS Buyup dd 1

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Translation Personal letter

Learn how you who think before you fly can get the most out of flying SAS <Text:> Dear <Name Surname> Get something extra when travelling: From April 23 to July 31, 2009 you can get an extra reward when flying SAS, Blue ! and Widerøe. See your personal reward offer on the enclosed slider card or here: Fly in Scandinavia and get: • 4,000 EuroBonus Extra point when flying 2 legs in Economy or Business • Double EuroBonus points when flying – no matter which ticket type Fly in Europe (not Scandinavia) and get: • 16,000 EuroBonus Extra point when flying 4 legs in Economy or Business • Double EuroBonus points when flying – no matter which ticket type Fly to intercontinental destinations and get: • 16,000 EuroBonus Extra point when flying 4 legs in Economy or Business • Double EuroBonus points when flying Economy Check out if you can get more out of flying SAS The world is changing. Nothing new in that. What’s new is that many now experience changes in their everyday lives – jobwise or at home. How does the changed economy affect your business travels? Can you handle the situation different or better than today? Visit www.flyvmedomtanke.dk and learn, how you use SAS the best according to your current situation. We have already found 20 winners. Maybe you are one of them? 20 winners of flight tickets or other attractive prizes have already been drawn. Check into www.flyvmedomtanke.dk to see if you are one of them. Best regards SAS EuroBonus <Right margin:> The world is changing. Is your travel behaviour changing too? 1. Go to www.flyvmedomtanke.dk 2. Log in with your EuroBonus number: 123456789 3. Answer and learn how you can get more out of SAS and see if you are a winner of a prize

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Letter combined with strong creative gimmick - involves the direct mail recipients with double effect The point offer was tailor-made to the individual EB-member in such a way that we: •

keep low frequency Economy travellers on their existing (or higher) level of flight frequency

motivate the good, high frequency travellers to keep on choosing SAS and preferably on the flexible ticket types Economy Extra and Business

strengthen the loyalty of the entire target group

1/ Creative focus on individual value of flying SAS The design of the point offer releases a huge amount of text variants. To increase understanding of the premises of the point offer AND to make sure that the recipient understands and appreciates that the offer is actually tailor made to him/her we developed the slider.

2/ Draw to read your personal point offer – transforming complex offer to a fun and easy-to-understand message The recipient is actively involved, as he has to draw to paper to read all of his personal point offers for the 3 different destination areas. A SAS plane glides over the card as you pull and see the different pot offers.

3/ Copy connects slider card and letter Fully drawn out you see a text on the right hand side of the paper with a sum up of the campaign message plus renewed call-to-action to visit campaign site. The copy is personalized with recipient’s name to stress the personalized offer.

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Translation Slider card – cover

Earn extra EuroBonus points until August 1, 2009 when flying SAS, Blue 1 and Widerøe. Drag the white slip on the right hand side of the card to see your personal campaing offer. FLY < example of text in top window > 1st level: In Scandinavia 2nd level: In Europe 3rd level: Intercontinental

AND EARN <example of text in middle window> 1st level: 4,000 EuroBonus Extra points for flying 2 legs in Economy Extra or Business 2nd level: Double EuroBonus points on all ticket types 3rd level: 32,000 EuroBonus Extra points for flying 4 legs in Economy Extra or Business

AND < example of text in bottom window> 1st level: Double EuroBonus points on all ticket types 2nd level: Double EuroBonus points on all ticket types 3rd level: Double EuroBonus points on Economy tickets

Slider card – letter text Dear <Name> Now you can get even more out of flying SAS This is a special, personal offer giving you the opportunity to boost your EuroBonus account when flying SAS from April 23 and August 31, 2009. Visit www.flyvmedomtanke.dk (Think when you fly) We have already found 20 winners of flight tickets or other attractive prizes. Visit the site before April 18 to see if you are one of them. And see how you can get the most out of flying SAS with your specific travel behaviour. We welcome you onboard on your travels this spring. And we not use your current EuroBonus points on one of these bargains: <board with offers>

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The campaign website

- actively involves the respondent in the overall brand-messages and permission becomes a natural part of the online session No less than 23 % of the recipients of the direct responded and actually took the big step from off-line to on-line

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Two questions actively involve the respondents in the campaign message about thinking when you fly. The respondent answers two questions on his expected travel behaviour in 2009 and the

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answers generate a segmented text. Here we give good advice on how to utilize the SAS USPs based on the respondentsâ&#x20AC;&#x2122; answers.

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45 % of the respondentents from the direct mail gave permission Before the winners of the instant win incentive competition are disclosed with ask for permission to communicate via e-mail in future. An exceptionally large number of respondents, 45 % in total, gave permission. Our goal was 25 %.

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Translation 1/ Campaign website – landing page

Learn how you who think before you fly can get the most out of flying SAS Log in, tell us about your situation and learn what we can do to give you the best possible conditions on your business travels. And see if you have won one of the 20 atteractive prizes.

2/ Campaign website – question page 1 <Top banner:> Fly with FLEXIBILITY <Text:> The world is changing. Is your travel behaviour changing too? Which of these statements fits best with your and your company’s situation at the moment? Use the slider to choose. Click Next to learn how you can get the most out of flying SAS – and to see if you’ve won. How many business trips do you expect in 2009 compared with 2008? <Slider:> MORE SAME FEWER <Bulletin board:> CONCLUSION: FLEXIBILITY PAYS OFF

4/ Campaign website – conclusion page <Top banner:> Fly with EFFICIENCY <Text:> When your travel frequency increases you need to make withdrawals from your time account Travelling more means a need to minimize the time spent on unnecessary waiting. We can help you reduce that time and make your travel more efficient. Giving you time for all that, which is important. Flexibility is good thinking – also in an economical sense The services you get from flying Economy Extra and Business gives you the most flexible, timesaving and comfortable travel. You save time during security and check in, you can adapt your flight to your plans along the way and sit back and enjoy food on board. <Right hand side box:> The fast track from office to plane • Save time and check in online from home or your cell phone and skip the queues in the airport • Use FastTrack through security. No waiting time • SAS is the most punctual airline in Europe – minimizing your risk of missing meeting or appointments. • Flying Economy Extra and Business you can change your ticket if your plans change. No waiting time, no missed planes or non-refundable tickets

3/ Campaign website – question page 2 <Top banner:> Fly with FLEXIBILITY <Text:> Why is your travel behaviour changing in 2009?

Comfort on board • Free newspapers on board • Choose your favourite seat and enjoy a free meal if you fly Economy Extra and Business See if you have won >>

q New activities or areas of business in the company 5/ Campaign website – permission page

q The changed economy demands a closer contact between company and

market, business partners or customers

q Organizational changes within the company q I have a new position or function demanding higher travel frequency q Other:______________

Thank you for answering If you wish to receive news and offers from SAS directly in your mail box, please fill in below before you go to next page to see if you have won. <Bulletin board:> CHECK IN: SEE YOU ON BOARD

<Bulletin board:> ANSWER: YOU TRAVEL MORE OFTEN See if you have won >>

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2 million DKK WORTH OF permissions – results surpassed all expectations 31,533 recipients Direct mail was sent to 31.533 recipients in April 2009.

7,213 = 22,87% responded 22,87 % responded and shifted from the offline letter to online, i.e. logged into campaign site, answered a mini-survey, got segmented advice on how to think before you fly. Compared to earlier direct mails with similar point offers, this direct mail with the slider card gimmick doubled the response.

3,239 = 44,91 % gave permission worth 2 million DKK The value of these permissions is an estimated 2 million DKK – based on general measurements of the sales effect pr, member generated through reception and response on e.g. weekly newsletters and other member offers.

Conclusion: A personal letter with a tailor-made offer, combined with a strong creative – and personal gimmick makes our direct mail stand out. And a fun, involving and different direct mail makesthetransition from off line to online easier.

The direct mail was analysed in an Effectiveness Analysis by Bring Citymail. This showed that: •

The offer is understandable and transparent

The message comes through clearly

The direct mail was fun, different and

The personification of letter and slider card is appreciated

Instant win helps dragging to www

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