CRM in Aviation industry

Group presenters: Jithandera Hundia Abhishek Aggarwal Mayank Trividi M. Saleem Mir. Kapil Sharma Saumitra Silakari Sudarshan Sarangapani Jai Singh Rathore

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

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 customercontact 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-itbuy-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

Travel Customer Management Continuum

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

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

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

Airlines CRM Challenges

Airlines face several key challenges in the context of using CRM to carry out their strategic priorities:
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.

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 customers Preferences Priorities Establishing and strengthening longterm relationships with airline's customers is the key to success.

THANK YOU