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Application of e- CRM to the airline industry
Application of e- CRM to the airline industry
Application of e- CRM to the airline industry
Application of e- CRM to the airline industry
Application of e- CRM to the airline industry
Application of e- CRM to the airline industry
Application of e- CRM to the airline industry
Application of e- CRM to the airline industry
Application of e- CRM to the airline industry
Application of e- CRM to the airline industry
Application of e- CRM to the airline industry
Application of e- CRM to the airline industry
Application of e- CRM to the airline industry
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Application of e- CRM to the airline industry

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  • 1. Presented By Pragya Rai
  • 2. Introduction  In turbulent, highly competitive marketplace- important to respond quickly and effectively to changing patterns of customer demand  Who are airlines' customers and what are their needs and aspirations?  The opportunities are in managing customer relationships, controlling costs and applying customer profitability to the entire business
  • 3. Key Elements Of CRM  Key Elements of CRM Architecture (Source: META Group)
  • 4. E-CRM  e-CRM is interest intensified in managing customer relationship through the Internet  In hyper-competitive and demand-driven markets - ability to address their customers' preferences and priorities.  Strategically implementing this customer knowledge, from the highest management level to all the employees
  • 5. The benefit of application CRM
  • 6. Revenue Benefit The revenue increase comes from three areas:  Re-attracting defected customers, which accounts for between 0.1 and 0.3% of revenues;  Increasing the share of a customer's travel wallet, which accounts for 0.3 and 1.2% of revenues;  Acquiring new customers, which accounts for approximately 0.05% of revenues.
  • 7. Cost Benefit Associated with these revenues are costs, but these only amount to between 0.3 and 0.6% of the existing cost base:  The marginal additional flights needed as incentives estimated to be between 0.2 and 0.4% of costs;  Additional CRM initiatives amounting to between 0.2 and 0.5% of costs.  Savings in costs due to more efficient and targeted running of the existing CRM program, providing a reduction of 0.1 to 0.3% of costs;
  • 8. Web self-service solutions Three basic steps involved in establishing effective customer relationship management using the Web:  Capture customer information,  Build a customer database and  Create personalized communication.
  • 9. Benefits for the customer  The E-mail was responded to immediately, with personalized, valuable information.  Web self-service allowed customer to take immediate action to resolve issue.  Personalization enabled promotion tailored to customer profile - enhancing one-to-one marketing.  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.  The customer information provided by Apropos and the CRM application enabled the CSR to provide efficient, personalized service.
  • 10. Airline e-CRM System Model
  • 11. e-CRM System Model cntd…  Airline e-CRM model – A system that is made up of components, linkages amongst the components, and dynamics-that takes advantage of the properties of the Internet to make money  It includes three components (subsystem): Web Basec Airline-Passenger Interaction subsystem; Airline Data Warehouse subsystem; Airline e-CRM operation subsystem.  An asset-based solution that includes best-of-breed components to build an e-CRM infrastructure and enable any-channel, any-time communication with customers
  • 12. e-CRM System Model cntd… Airline e-CRM model also:  Provides an understanding of customer behavior and enables airlines to measure results of marketing and merchandising changes.  Supports more effective promotions through integration of data between marketing and merchandising users.  Provides a single view of customers across the enterprise and across contact points.  Gives airlines the ability to respond more dynamically and quickly to market demands.
  • 13. References  An NCR Business White paper (1999). "Customer Relationship Management for Airlines".Available online  Binggeli, U., Pommes, C., Granville, G., and Gupta, S. (2002). Flying High with airline CRM. McKinsey & Company Whitepaper.  Bradshaw, D. and Brash. C. (2000). Surviving in the e- Business world How to personalise customer relationships for increased profitability.  "E-commerce, Alliances spark Lufthansa Uptern", (2000) Aviation Week & Space Technology, May 15, p40.  http://www.emc.com/pdf/business_centers/applications/c rm_wp.pdf%20

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