crm in aviation industry by jithendra

Group presenters:Jithandera HundiaAbhishek AggarwalMayank TrividiM. Saleem Mir.Kapil SharmaSaumitra SilakariSudarshan SarangapaniJai Singh Rathore

CRM in Aviation industry

A comprehensive customer loyalty management (or CRM) strategy and solution manages all customers interactions in a consistent and value oriented manner

CRM Defined

Cont…• The Gartner Group states that “CRM is a business

strategy designed to optimize profitability, revenue and customer satisfaction”.

• To achieve this the integration of people, processes and technologies is required in a collective effort to:

– Acquire new customers through effective marketing campaigns and marketing analysis

– Grow existing customer base through expanded service offerings that target untapped travel opportunities

– Retain most valuable customers by understanding and proactively addressing individual values and preferences.

CRM focuses on• Customer acquisition –

– Who are the profitable customers ?– How do we attract them?

• Customer development – – How do we deliver what the customer wants?– How they want it?– When they want it to optimize profits and revenue?

• Customer retention –– How do we build and sustain customer loyalty?

CRM need to be

There are many means of achieving these goals, including:• Understanding customer value and lifecycle to prioritize

marketing and service resources• Using customer information to target promotional offers

and cross-selling activities effectively• Using customer information in the design and

development of products and services• Recognizing customers as individuals at all customer-

contact points • Offering personalized or mass-customized service• Utilizing multiple alternate channels for marketing, sales

and service transactions in order to improve service and reduce cost

• Increasing the “share of customer” through greater penetration of travel related products.

Why & How

• Customer relationships are the key to airline business growth.

• Airlines must take absolute responsibility for a customer's satisfaction throughout the "want-it-buy-it-and-use-it" experience.

• This requires learning and tracking customers' needs, behaviors, and lifestyles and using this information to create a specific value proposition.

• This strategy is the path to consumer loyalty

CRM in passenger airlines extends beyond traditional sales, service, marketing and loyalty to include all of the touch points in a passenger’s travel experience.

Travel Customer Management Continuum

Effective CRM

steps involved in establishing effective customer relationship management using the Web:

• Capture customer information, • Build a customer database and • Create personalized communication

Forces behind CRM

There are three primary reasons why CRM has taken hold as rapidly as it has:

1. Competition is fierce;2. The economics of customer retention are unequivocal;3. Technology allows airlines to do this more effectively and profitably today.

Benefits to the Airlines :

• Implementing CRM applications may lower the cost of design, implementation, installation, training, ownership and administration.

• Consistent and dynamic processes are built up-front for the customer.

• Real-time access to historical customer information allows support staff to know who your customer etc.

Benefits for the Customers:

The E-mail was responded to immediately, with personalized, valuable information.

Web self-service allowed customer to take immediate action to resolve issue.

The "callback" option was easy to use, enabling the customer to quickly request live support.

The intelligent interaction routing engine immediately connected the customer to the right CSR etc.

What they are doing…..• Focus on cost reduction to reach more efficient

operation.• However many of them are turning to CRM

BUT UNFORTUNATELY!!

Methods of CRM• Customer segmentation• CRM initiative development• Organizational design and management

• Decreasing cost of serving customers• Moving away from expensive, custom built systems to cheaper pre-packaged

apps.• Cost-effectively integrating multiple systems and improving cross-channel

Service.• Customer knowledge

• Identifying the most and least valuable customers. • Differentiating the product

• Using service to differentiate their product and, thus, justify a higher price.• Raising customers’ switching costs

• Create a unique offering that competitors cannot easily duplicate.

Airline’s face several key challenges in the context of using CRM to carry out their strategic priorities:

Airline’s CRM Challenges

E- CRM• Today, more and more airlines are using the Internet

to implement e-business applications and CRM strategy.

• e-CRM involves far more than automating processes in sales, marketing, and service

E-CRM

• Also increase the efficiency of these processes

• It involves conducting interactions with customers on a more informed basis and individually tailoring them to customers' needs.

E-CRM

• What differentiates airlines in today's hyper-competitive market is their ability to address their customer’s

»Preferences »Priorities

• Establishing and strengthening long-term relationships with airline's customers is the key to success.

THANK YOU