1. Group no. 7
Vishv nath soni
Vipul yadav
Bhupendra kumar
Manas gupta
Aishwarya kapoor

4. Importance of CRM

Global passengers to rise by 5 billion in 2010 and more than
9 billion by 2025
 Passenger traffic in Africa forecasted to increase by at- least
7% and Asia –Pac by 6.8% a year, respectively, by 2010
 Asia will be the world’s largest aviation market by 2025
 40% of satisfied customers switch suppliers without
hesitation

65% to 85% of customers who choose a new supplier claim
to be satisfied and very satisfied with former supplier

85% of customers claim to be satisfied, yet willing to switch
to other suppliers

In the 12 months before Feb 07, there was a 49.6% increase
in the number of passenger complaints

5. In airline Industry

Customer relationship management?

CRM is more than IT or a frequent flyer
program.

It is a strategy that enables airlines to
remain competitive today and in the
future.

6. Who are the customers?
Individual Traveler
 The Travelers Company
 The Person Choosing the Airline
 The Travel Agent
 Corporate Customers
 Cargo Brokers


8. 
Airlines’ immediate focus is on cost reductions in
driving to more efficient operations.

Many airlines are turning to customer relationship
management (CRM) as a tool for managing
customer relationship.

11. 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?

13. Customer Information
Information captured falls into the following
categories:
 Demographic profiles
 Loyalty membership information
 Service preferences
 Purchase and travel history
 Contact information
 Online behavior

14. 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.

15. SPECIFIC BENEFITS TO
IMPLEMENTING A CRM STRATEGY
Planning and implementing business processes across
airlines and CRM applications ensures customers are
handled in the most efficient and effective fashion from the
beginning to the end of the interaction based on their realtime value to airlines.
 Implementing CRM applications may simultaneously lower
the cost of design, implementation, installation, training,
ownership and administration. It also reduces the risk of
re-engineering systems at a later date.
 Consistent and dynamic processes are built up-front for
the customer. This forces the airline to consider each
element in the process design including the network,
switch, multi-media management, and the CRM - ensuring
streamlined processes are in place before the customer
makes contact.
 Create and leverage detailed statistics/metrics and cradleto-grave reports.


16. Airlines must change their
approach to CRM in a number of ways

Customer segmentation—Airlines need to recognize that
mileage-based segmentation is inadequate, whereas valuebased and needs-based approaches can help guide
investment decisions and drive greater insight into the needs
of high-value customers.

CRM initiative development—In order to differentiate
themselves from the competition, airlines must abandon a
―fast follower‖ approach to CRM initiative development, in
favour of investing in initiatives with a high return, which
respond to the needs and desires of their own customers.

19. e-CRM IN AIRLINE
Today , more and more airlines are using the Internet to
implement e-business applications and CRM strategy. These
applications can be very resource intensive. e-CRM is interest
intensified in managing customer relationship through the
Internet.
 Establishing and strengthening long-term relationships with
airline's customers is the key to success. It's the focus of a
well-structured and coordinated process of customer
relationship management.
 e-CRM involves far more than automating processes in
sales, marketing, and service and then increasing the
efficiency of these processes. It involves conducting
interactions with customers on a more informed basis and
individually tailoring them to customers' needs.


20. Challenges
Carriers 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

Unified view of the customer
 Integrating multiple processes that cut across in-house and 3rd party systems

Customer knowledge
 Identifying the most and least valuable customers

Loyalty program effectiveness
 Decrease costs
 Retain most valuable members
 Increase members’ expenditures and purchase of distressed inventory

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