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
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
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
Strategically implementing this customer knowledge,
from the highest management level to all the
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
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,
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
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
Supports more effective promotions through
integration of data between marketing and
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.
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 &
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.