CRM Strategy of Singapore & American Airline

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05/02/2023

CRM STRATEGY OF SINGAPORE & AMERICAN AIRLINES

BY- VIKHYAT KHANNAROLL NO. 131

SEC-M4

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INDEX• INTRODUCTION• CRM PROCESS• BENEFITS OF CRM TO CUSTOMERS• SOFTWARE USED• PROCESS FOR DATA MINING & CRUNCHING• CURRENT TRENDS• DETAILS OF 7P’S• MANAGING DEMAND & SUPPLY• SERVICE GUARANTEE • REFERENCES

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INTRODUCTION

• Singapore airlines limited is the flag carrier of singapore which operates from its hub at changi airport and has a strong presence in southeast asia, east asia, south asia, and oceania.

• American airlines, inc. (Aa) is a major united states-based airline, operating an extensive international and domestic network, and is the world's largest airline by fleet size and revenue, and the second-most by number of destinations, only after united airlines. It operates from its main hub at dallas/fort worth

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INTRODUCTION (CONT…)Founded 1928 (as American Airways)Commenced operations 1934Frequent-flyer program AAdvantageAirport lounge Admirals ClubAlliance OneworldFleet size 945 (including US Airways; excluding their

subsidiaries)Destinations 344Company slogan Going for great.Parent company American Airlines GroupHeadquarters Fort Worth, Texas, USAKey people Doug Parker, Chairman & CEO[4]

Scott Kirby, President[5]

Revenue  US$ 42.650 billion (2015)[6]

Operating income  US$ 4.249 billion (2015)[6]

Net income  US$ 2.882 billion (2015)[6]

Total assets  US$ 43.771 billion (2015)[6]

Total equity  US$ 2.019 billion (2015)[6]

Employees 113,300 (2015)[6]

Website aa.com 14/10/2015

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INTRODUCTION (CONTD…)Founded 1 May 1947; 68 years ago (as Malayan Airways)

Commenced operations 1 October 1972; 43 years agoHubs Singapore Changi AirportFrequent-flyer program •KrisFlyer

•PPS ClubAirport lounge SilverKris Lounge, The Private Room, KrisFlyer Gold

Lounge, First Class Reception Lounge

Alliance Star AllianceFleet size 109Destinations 64Company slogan 'A Great Way to Fly'(English)

Parent company Temasek Holdings (56%)Headquarters Airline House, 25 Airline Road

Singapore 819829Key people Goh Choon Phong (CEO)Revenue  S$15.565 billion(FY 2014/15)Operating income  S$442.9 million (FY 2014/15)Net income  S$367.9 million (FY 2014/15)Employees 23,963 (FY 2014/15)

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CRM PROCESS

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CRM PROCESS

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BENEFITS OF CRM TO CUSTOMER

• Efficiency

• Collaboration

• Increased accountability

• Improved customer experience

• Moreover, CRM keeps customers informed about the information they think is important for them at the same time understanding their needs & expectation & delivering a service in accordance.

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SOFTWARE USED FOR CRM

• Infusionsoft

• Team support

• Salesforce pardot

• Microsoft dynamic CRM

• Help desk

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• Act on

• Zen desk

• Fresh desk

• Spice works

• Sugar CRM

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DATA MINING & CRUNCHING

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Step 1

• Acquaintance (unaware)

Step 2

• Understanding Likes & Dislike• Understanding Behavior

Step 3

• Compatible likes, Dislike & Common interest, initiate a relation

• Relationship is carried forward by considering Behavior, preferences.

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DATA MINING & CRUNCHING

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• A typical CRM initiative will therefore involve: collection and refinement of customer

related information and gathering actionable insights along with their subsequent

application

• Ranking of customers based on tendency to buy, order frequency, and purchasing behavior.

Techniques

K-means clustering- the oracle tool called oracle data miner (odm). The first step in the

clustering process is to choose the basic run parameters for the k-means algorithm

Association

Clustering

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DATA MINING & CRUNCHING

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DATA MINING & CRUNCHING

• Which customers are the most valuable? What activities contribute to their value?

• Are the most valuable customers receiving an appropriate allocation of services to retain them?

• Which customers are most promising for a defined campaign?• What can be done to transform low profit customers to a

position of improved profitability?• What is the predicted lifetime value by customer segment?

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CURRENT TRENDS OF INDUSTRY

• The global airline industry continues to grow rapidly, but consistent and robust profitability is elusive. Measured by revenue, the industry has doubled over the past decade, from US$369 billion in 2004 to a $746 billion in 2014, according to the international air transport association (IATA).• Increasing consumer expectations• Growing pressure to reduce costs and improve

operational efficiency• Shifting airline landscape

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7 P’S14/10/2015

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PRODUCT

PRICE PLACE PROMOTION

PEOPLE

PROCESS

PHYSICAL

EVIDENCE

RAINBOW OF SERVICE MARKETING MIX

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Giving a Feel For The “Product” Inside a Service Wrapper .

•Consumers are demanding not products, or features of products but the benefits they will be offered. •The airline product includes of two types of services:

1. On the Ground Services.2. In-Flight Services.

PRODUCT MIX

Airlines service products

CABIN SERVICE. CATERING SERVICE RAMP SERVICE. OTHER SERVICE. 14/10/2015

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PRICE MIX

Premium

Pricing

Value For Money Pricing

Cheap Value

Pricing

APEX Fares

Low-Cost

Pricing

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• ONLINE 24-HOUR RESERVATION SYSTEMS.

• CONSOLIDATION.

• TOUR OPERATOR/ TRAVEL AGENT.

• AFFILIATED WITH COMPANIES.

PLACE MIX

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PROMOTION MIX

Advertising

Publicity

Sales promotion

Word of mouth

Airlines Advertisement Needs to Keep in Mind the Image of Country, The Scenic Beauty, Tourist Attractions, Rich Cultural Heritages or Which Would Attract Number of Tourists.

Advertisi

ng 14/10/2015

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PROMOTION MIX

Advertising

Publicity

Sales promotion

Word of mouth

The PRO, Receptionist, Travel Agents, Media People Are Very Important People in Publicizing The Business.

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PROMOTION MIX

Advertising

Publicity

Sales promotion

Word of mouth

The Travel Agents, Tour Operators, Frontline Staffs Contribute a Lot to The Promotion of Airlines Business.

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PROMOTION MIX

Advertising

Publicity

Sales promotion

Word of mouth ‘Customer Loyalty Ladder’ .

Word of Mouth

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COMPETENCE.

RELIABILITY.

CARING ATTITUDE.

RESPONSIVENESS.

INITIATIVE.

PROBLEM SOLVING ABILITY.

GOODWILL.

PEOPLE MIX

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• RESERVATION.

• FLIGHT INFORMATION.

• FACILITIES AT THE AIRPORT.

• BAGGAGE HANDLING.

• MEAL SERVICE.

• FLIGHT ENTERTAINMENT.

• DELIVER QUALITY SERVICE.

PROCESS MIX

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ON THE GROUND:

• Booking offices or ticket counters.

• Paperwork.

• Brand logo.

• Tickets.

PHYSICAL EVIDENCE

IN-FLIGHT

•Aircraft.•Seating Configuration.

•Good Inner-exteriors.

•Cleanliness.

•Uniforms.

•Ambience.

•Baggage.

•Labels or Tag.14/10/2015

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MANAGING DEMAND & SUPPLY

• “The wall street journal reports that airline companies have gotten more aggressive in

using operational response”

• To better manage the seasonal miniboom and minibust cycle, they’re scheduling more

aircraft for maintenance and cabin renovations during the slower winter months.

• They’re also offering workers voluntary leaves, flying their planes fewer hours a day and

trimming the number of daily flights to many destinations.

• Overbooking a flight enables airlines to ensure that they fly with as much capacity as

possible – given that 8-10% of passengers do not show up for a flight, you want to make

sure that there are not too many empty seats on the plane. 14/10/2015

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MANAGING DEMAND & SUPPLY

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SERVICE GUARANTEE

• 1. Singapore airlines will always disclose on our website, at our ticket counters, and on our phone reservation line, that the lowest fare offered may be located elsewhere.

• 2. Singapore airlines shall deliver baggage on time, make every reasonable attempt to return mishandled baggage within 24 hours, compensate passengers for reasonable expenses associated with delayed delivery as required by applicable international agreements, and reimburse customers for lost baggage.

• 3. Singapore airlines will provide prompt refunds after receiving a complete refund application, where ticket refunds are due - within seven business days for credit card purchases and within 20 business days for purchases made by cash or check.

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SERVICE GUARANTEE

4. Singapore airlines shall accommodate customers with disabilities as required by 14 cfr part 382 and other special needs customers, including during lengthy tarmac delays. This will include:

• A) provision of wheelchair assistance for transportation to, from, and between gates;b) boarding assistance;c) assistance with visual, auditory, cognitive, or mobility impairments while in the airport and on the plane; andd) accommodation for certain medical requirements such as medical portable electronic devices.

• 5. Singapore airlines shall meet the needs of customers during lengthy tarmac delays, as provided in singapore airlines’ tarmac delay contingency plan.

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SERVICE GUARANTEE

• 6. SINGAPORE AIRLINES WILL INFORM YOU, UPON YOUR REQUEST, IF THE FLIGHT ON WHICH YOU ARE TICKETED IS OVERBOOKED. WE ALSO WILL PROVIDE INFORMATION AT ALL US AIRPORTS ABOUT OUR POLICIES AND PROCEDURES FOR HANDLING SITUATIONS WHEN ALL TICKETED CUSTOMERS CANNOT BE ACCOMMODATED ON A FLIGHT.

• 7. SINGAPORE AIRLINES’ CANCELLATION POLICIES, FREQUENT FLYER RULES, AIRCRAFT SEATING CONFIGURATION AND LAVATORY AVAILABILITY ARE AVAILABLE ON OUR WEBSITE AND, UPON REQUEST, FROM THE OUR TELEPHONE RESERVATION SYSTEM.

• 8. SINGAPORE AIRLINES SHALL NOTIFY CONSUMERS IN A TIMELY MANNER OF CHANGES TO THEIR TRAVEL ITINERARIES.   

9. SINGAPORE AIRLINES SHALL ENSURE RESPONSIVENESS TO CONSUMER COMPLAINTS. WE SHALL ACKNOWLEDGE A COMPLAINT WITHIN 30 DAYS AND PROVIDE A SUBSTANTIVE RESPONSE WITHIN 60 DAYS OF RECEIVING IT.

• 10. IN THE EVENT THAT SINGAPORE AIRLINES CANCELS, DIVERTS OR DELAYS A FLIGHT, SINGAPORE AIRLINES WILL, TO THE BEST OF OUR ABILITY, PROVIDE MEALS, ACCOMMODATION, ASSISTANCE IN REBOOKING AND TRANSPORTATION TO THE ACCOMMODATION TO MITIGATE INCONVENIENCES EXPERIENCED BY PASSENGERS RESULTING FROM SUCH FLIGHT CANCELLATIONS, DELAYS AND MISCONNECTIONS. SINGAPORE AIRLINES WILL NOT BE LIABLE TO CARRY OUT THESE MITIGATING EFFORTS IN CASES WHERE THE FLIGHT CANCELLATIONS, DELAYS AND MISCONNECTIONS ARISE DUE TO FACTORS BEYOND THE AIRLINE’S CONTROL, FOR EXAMPLE, ACTS OF GOD, ACTS OF WAR, TERRORISM ETC, BUT WILL DO SO ON A BEST EFFORT BASIS.

11. SINGAPORE AIRLINES WILL NOTIFY CONSUMERS THROUGH OUR WEB SITE, TELEPHONE RESERVATION SYSTEM, AND OUR BOARDING GATES AT U.S. AIRPORTS, WITHIN 30 MINUTES OF US LEARNING OF A DELAY, CANCELLATION OR DIVERSION.

12. SINGAPORE AIRLINES WILL ALLOW CONSUMERS TO CANCEL A RESERVATION MADE USING THE SINGAPORE AIRLINES WEB SITE WITHOUT PENALTY FOR 24 HOURS AFTER THE RESERVATION IS MADE, AS LONG AS THAT RESERVATION IS MADE ONE WEEK OR MORE PRIOR TO A FLIGHT’S SCHEDULED DEPARTURE. CONSUMERS WILL NEED TO CALL OUR CONTACT CENTRE TO CANCEL SUCH ONLINE BOOKINGS.

13. SINGAPORE AIRLINES WILL ALLOW CONSUMERS TO HOLD A RESERVATION MADE AT SINGAPORE AIRLINES RESERVATION OFFICE FOR 24 HOURS AFTER THE RESERVATION IS MADE WITHOUT PAYMENT, AS LONG AS THAT RESERVATION IS MADE ONE WEEK OR MORE PRIOR TO A FLIGHT’S SCHEDULED DEPARTURE.

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SERVICE GUARANTEE• CUSTOMER SERVICE PLAN• CUSTOMER SERVICE PLAN• LOWEST FARE AVAILABILITY• DELAYS, CANCELLATIONS AND DIVERSION EVENTS• BAGGAGE DELIVERY• BAGGAGE LIABILITY• GUARANTEED FARES AND 24-HOUR HOLD POLICY• REFUNDS• ACCOMMODATION OF CUSTOMERS WITH SPECIAL NEEDS• FLIGHTS WITH OVERSALES• CHECK-IN REQUIREMENTS AND BAGGAGE ACCEPTANCE CUTOFF TIMES• CUSTOMER LOYALTY PROGRAM - AADVANTAGE• OTHER TRAVEL POLICIES

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CUSTOMER’S FEEDBACK

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Megan of Singapore, Other on Aug. 30, 2015 Satisfaction Rating - I had to call KrisFlyer due to some redemption matters that could not settled online. Called KrisFlyer and I am left waiting on the phone for more than one hour and they cut off the line. That is for service for premium airline.

Rashmi of Kolkata, Other on May 18, 2015 Satisfaction Rating - Hi, I called Singapore airlines office in Kolkata to check on the flight details to Australia. There was a lady called **. She was so hostile and gave very vague information in a stern voice like it's not her job. First time experience. BAD!

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CUSTOMER’S FEEDBACK

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Jessica of Houston, TX on Sept. 19, 2015 - I have heard two of the worst stories in one night about American Airlines. I will never fly American Airlines. I experienced some of the worst service with American Airlines when I picked up my mom. She was supposed to be in Kentucky at 2 and arrived at 8. Her baggage was not there and she was told they would deliver it that night. The person working the desk rolled her eyes when we asked her about the luggage. The luggage wasn't delivered till the next day. She had to hold for over an hour the next day to see where her luggage was. DO NOT FLY AMERICAN. THEY ARE HORRIBLE. I HAVE HEARD THIS FROM MULTIPLE PEOPLE!

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REFERENCES

• HTTPS://ECONSULTANCY.COM/BLOG/66287-THE-FIVE-BIGGEST-BENEFITS-OF-CRM-SYSTEMS/• CRM STRATEGY AIR CHINACUSTOMER RELATIONSHIP MANAGEMENT PROFESSOR WERNER J. REINARTZ

• APPLICATION OF CUSTOMER RELATIONSHIP MANAGEMENT IN AIRLINE INDUSTRY- MOHAMMAD. J. TAROKH,1 MAHMOUD MAJIDI2

• HTTP://WWW.SLIDESHARE.NET/PREMVIRCHAUHAN/MARKETING-MIX-OF-AIRLINES-INDUSTRY

• HTTP://WWW.SOFTWAREADVICE.COM/CRM/?LAYOUT=VAR_V1

• GOOGLE IMAGES

• HTTP://WWW.ARABCOMPUTERSOCIETY.ORG/ARCHIVES/INDEXACS&PAGE=ARTICLE&OP=VIEWFILE&PATH[]=5&PATH[]=10.PDF

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