CRM  in  Airline Industry
Importance of CRM <ul><li>Global passengers to rise by 5 billion in 2010 and more than 9 billion by 2025 </li></ul><ul><li...
CRM Defined <ul><li>The Gartner Group states that “CRM is a business strategy designed to optimize profitability, revenue ...
Who is the customer?   <ul><li>Individual Traveler </li></ul><ul><li>The Travelers Company </li></ul><ul><li>The Person or...
 
 
 
Obstacles to CRM <ul><li>Lack of buy-in across the business </li></ul><ul><li>Departmental customer data silos </li></ul><...
<ul><li>Carriers face several key challenges in the context of using CRM to carry out their strategic priorities:  </li></...
 
 
CRM focuses on <ul><li>Customer acquisition  – </li></ul><ul><ul><li>Who are the profitable customers ? </li></ul></ul><ul...
CRM need to be <ul><li>There are many means of achieving these goals, including: </li></ul><ul><li>Understanding customer ...
CRM Blueprint
Customer Information <ul><li>Information captured falls into the following categories: </li></ul><ul><li>Demographic profi...
Data sources <ul><li>PNR (Passenger Name Record) </li></ul><ul><li>Reservations system </li></ul><ul><li>Departure control...
CRM architecture
Analysis <ul><li>The analysis can be grouped into three main areas: </li></ul><ul><li>Segmentation – Grouping customers ac...
Decision Systems <ul><li>The decision systems comprise the following functions: </li></ul><ul><li>Lifetime value models </...
Physical architecture
Upcoming SlideShare
Loading in …5
×

Airline Crm

12,245 views

Published on

About CRM for Airline Industry

Published in: Technology, Business

Airline Crm

  1. 1. CRM in Airline Industry
  2. 2. Importance of CRM <ul><li>Global passengers to rise by 5 billion in 2010 and more than 9 billion by 2025 </li></ul><ul><li>Passenger traffic in Africa forecasted to increase by at- least 7% and Asia –Pac by 6.8% a year, respectively, by 2010 </li></ul><ul><li>Asia will be the world’s largest aviation market by 2025 </li></ul><ul><li>40% of satisfied customers switch suppliers without hesitation </li></ul><ul><li>65% to 85% of customers who choose a new supplier claim to be satisfied and very satisfied with former supplier </li></ul><ul><li>85% of customers claim to be satisfied, yet willing to switch to other suppliers </li></ul><ul><li>In the 12 months before Feb 07, there was a 49.6% increase in the number of passenger complaints </li></ul>
  3. 3. CRM Defined <ul><li>The Gartner Group states that “CRM is a business strategy designed to optimize profitability, revenue and customer satisfaction.” </li></ul><ul><li>To achieve this the integration of people, processes and technologies is required in a collective effort to: </li></ul><ul><ul><li>Acquire new customers through effective marketing campaigns and marketing analysis </li></ul></ul><ul><ul><li>Grow existing customer base through expanded service offerings that target untapped travel opportunities </li></ul></ul><ul><ul><li>Retain most valuable customers by understanding and proactively addressing individual values and preferences. </li></ul></ul>A comprehensive customer loyalty management (or CRM) strategy and solution manages all customers interactions in a consistent and value oriented manner
  4. 4. Who is the customer? <ul><li>Individual Traveler </li></ul><ul><li>The Travelers Company </li></ul><ul><li>The Person or Entity Paying for the Ticket </li></ul><ul><li>The Person Choosing the Airline </li></ul><ul><li>The Travel Agent </li></ul><ul><li>Corporate Customers </li></ul><ul><li>Cargo Brokers </li></ul>
  5. 8. Obstacles to CRM <ul><li>Lack of buy-in across the business </li></ul><ul><li>Departmental customer data silos </li></ul><ul><ul><li>Unwillingness to share </li></ul></ul><ul><li>Business processes not mature / clear </li></ul><ul><li>Couldn’t reach all touch points </li></ul><ul><ul><li>Sales (reservations), check in, in-flight were particular problems </li></ul></ul><ul><li>Customers interaction methods are changing </li></ul><ul><li>A bit of marketing will be enough, won’t it? </li></ul>
  6. 9. <ul><li>Carriers face several key challenges in the context of using CRM to carry out their strategic priorities: </li></ul><ul><li>Decreasing cost of serving customers </li></ul><ul><ul><li>Moving away from expensive, custom built systems to cheaper pre-packaged apps </li></ul></ul><ul><ul><li>Cost-effectively integrating multiple systems and improving cross-channel service </li></ul></ul><ul><li>Unified view of the customer </li></ul><ul><ul><li>Integrating multiple processes that cut across in-house and 3rd party systems </li></ul></ul><ul><li>Customer knowledge </li></ul><ul><ul><li>Identifying the most and least valuable customers </li></ul></ul><ul><li>Loyalty program effectiveness </li></ul><ul><ul><li>Decrease costs </li></ul></ul><ul><ul><li>Retain most valuable members </li></ul></ul><ul><ul><li>Increase members’ expenditures and purchase of distressed inventory </li></ul></ul><ul><li>Differentiating the product </li></ul><ul><ul><li>Using service to differentiate their product and, thus, justify a higher price </li></ul></ul><ul><li>Raising customers’ switching costs </li></ul><ul><ul><li>Create a unique offering that competitors cannot easily duplicate </li></ul></ul>Carriers’ CRM Challenges
  7. 12. CRM focuses on <ul><li>Customer acquisition – </li></ul><ul><ul><li>Who are the profitable customers ? </li></ul></ul><ul><ul><li>How do we attract them? </li></ul></ul><ul><li>Customer development – </li></ul><ul><ul><li>How do we deliver what the customer wants? </li></ul></ul><ul><ul><li>How they want it? </li></ul></ul><ul><ul><li>When they want it to optimize profits and revenue? </li></ul></ul><ul><li>Customer retention – </li></ul><ul><ul><li>How do we build and sustain customer loyalty? </li></ul></ul>
  8. 13. CRM need to be <ul><li>There are many means of achieving these goals, including: </li></ul><ul><li>Understanding customer value and lifecycle to prioritize marketing and service resources </li></ul><ul><li>Using customer information to target promotional offers and cross-selling activities effectively </li></ul><ul><li>Using customer information in the design and development of products and services </li></ul><ul><li>Recognizing customers as individuals at all customer-contact points </li></ul><ul><li>Offering personalized or mass-customized service </li></ul><ul><li>Utilizing multiple alternate channels for marketing, sales and service transactions in order to improve service and reduce cost </li></ul><ul><li>Increasing the “share of customer” through greater penetration of travel related products. </li></ul>
  9. 14. CRM Blueprint
  10. 15. Customer Information <ul><li>Information captured falls into the following categories: </li></ul><ul><li>Demographic profiles </li></ul><ul><li>Loyalty membership information </li></ul><ul><li>Service preferences </li></ul><ul><li>Purchase and travel history </li></ul><ul><li>Contact information </li></ul><ul><li>Online behavior </li></ul>
  11. 16. Data sources <ul><li>PNR (Passenger Name Record) </li></ul><ul><li>Reservations system </li></ul><ul><li>Departure control system </li></ul><ul><li>Frequent flyer program </li></ul><ul><li>Revenue accounting </li></ul><ul><li>Customer contact system (call-center) </li></ul><ul><li>Baggage management </li></ul><ul><li>Web site </li></ul>
  12. 17. CRM architecture
  13. 18. Analysis <ul><li>The analysis can be grouped into three main areas: </li></ul><ul><li>Segmentation – Grouping customers according to similar characteristics </li></ul><ul><li>Scoring – Understanding customers’ propensity to perform certain actions </li></ul><ul><li>Prediction –Forecasting future customer characteristics </li></ul>
  14. 19. Decision Systems <ul><li>The decision systems comprise the following functions: </li></ul><ul><li>Lifetime value models </li></ul><ul><li>Targeting rules for sales and marketing campaigns </li></ul><ul><li>Service personalization rules and prompts </li></ul><ul><li>Service recovery rules </li></ul>
  15. 20. Physical architecture

×