Airline Crm
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Airline Crm

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About CRM for Airline Industry

About CRM for Airline Industry

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Airline Crm Airline Crm Presentation Transcript

  • CRM in Airline Industry
  • 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
  • CRM Defined
    • 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.
    A comprehensive customer loyalty management (or CRM) strategy and solution manages all customers interactions in a consistent and value oriented manner
  • Who is the customer?
    • Individual Traveler
    • The Travelers Company
    • The Person or Entity Paying for the Ticket
    • The Person Choosing the Airline
    • The Travel Agent
    • Corporate Customers
    • Cargo Brokers
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  • Obstacles to CRM
    • Lack of buy-in across the business
    • Departmental customer data silos
      • Unwillingness to share
    • Business processes not mature / clear
    • Couldn’t reach all touch points
      • Sales (reservations), check in, in-flight were particular problems
    • Customers interaction methods are changing
    • A bit of marketing will be enough, won’t it?
    • 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
    Carriers’ CRM Challenges
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  • 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.
  • CRM Blueprint
  • Customer Information
    • Information captured falls into the following categories:
    • Demographic profiles
    • Loyalty membership information
    • Service preferences
    • Purchase and travel history
    • Contact information
    • Online behavior
  • Data sources
    • PNR (Passenger Name Record)
    • Reservations system
    • Departure control system
    • Frequent flyer program
    • Revenue accounting
    • Customer contact system (call-center)
    • Baggage management
    • Web site
  • CRM architecture
  • Analysis
    • The analysis can be grouped into three main areas:
    • Segmentation – Grouping customers according to similar characteristics
    • Scoring – Understanding customers’ propensity to perform certain actions
    • Prediction –Forecasting future customer characteristics
  • Decision Systems
    • The decision systems comprise the following functions:
    • Lifetime value models
    • Targeting rules for sales and marketing campaigns
    • Service personalization rules and prompts
    • Service recovery rules
  • Physical architecture