Customer relation management

1. Customer Relationship
Management
Presented By: Anubhav Borbora
Nitesh Ranjan
Prasanjet Basu
Rishabh Tejpal
Rituraj

2. SOUTHWEST AIRLINES
About the company

3. • Southwest Airlines Co is a major U.S. airline and the world's largest low-
cost carrier, headquartered in Dallas, Texas.
• The airline was established in 1967 and adopted its current name in 1971.
• The airline has nearly 46,000 employees as of December 2014 and operates
more than 3,400 flights per day. As of June 5, 2011, it carries the most
domestic passengers of any U.S. airline as of November 2014.
• As of June 5, 2011, it carries the most domestic passengers of any U.S.
airline.
• 85% employees are unionized.

4. Products & Services
Southwest experience
• Fly to 72 cities in 37 states, 3400 flights every day.
• Fly more than 90 million customers in 2011.
• Attracts customers due to following reasons:
1. Low fare
2. Short Haul
3. High Frequency
4. Point to point service
• Southwest maintains excellent customer satisfaction ratings; for many years,
according to the Department of Transportation, Southwest ranked number one
(lowest number of complaints) among all U.S. airlines for customer complaints.

5. Product & Services
No fee charges
on changing
the flight
At minimum charges
provide satellite based
internet services
Allows to check
one stroller, one
car seat free of
charge.
Get priority
lane access
and priority
boarding
Allows members
to get direct
access to the
front of ticket
counter &
security lanes.

6. Southwest Effect
The term was coined to describe the boost
in air travel by DOT in 1993
The Southwest-effect – When Southwest
starts flying into the new city :
• Air fare drops
• Increase in Air travel
• Its business model is major inspiration
for the other low cost carriers.

7. How is Southwest Airline No.1???
• Strong Faith in Customer-Enterprise Relationship. The
real answer is actually hidden in their philosophy.
• The company truly believes that ‘We like to think of
ourselves as a Customer Service company that happens
to fly airplanes.' This is believed so strongly that
Southwest qualifies a customer service candidate for
employment based on attitude, not experience.
• The company believes that you can teach a person how
to deliver quality service, but the attitude must be brought
to the job.
• They remain at the no.1 spot because of rapid new
product offerings at frequent interval of time.

8. In-flight entertainment
• After completing a testing phase Southwest announced on August 21, 2009 that
it would begin rolling out in-flight Wi-Fi Internet connectivity via Row 44's
satellite-broadband based product. All 737-700s and -800s are now equipped
with Wi-Fi, streaming live television, Beats audio and video on demand.
Evolve interior
• Southwest introduced a plan to retrofit its fleet with a new interior.
Improvements include a modern cabin design, lighter and more
comfortable seats made of eco-friendly products, increased under-seat
space, new netted seatback pockets to provide more knee room, a new
fixed-wing headrest and improved ergonomics.
..Continued

9. Graphical Representation

10. Some more Evidence

11. Strategic Advantage
• In Porter’s view, strategy is “the creation of a unique and
valuable position, involving a different set of activities.”.
• In case of Southwest Airline, it has done things differently
to create high operational excellence and stand
differentiated among its peer airline members
• Southwest Airline has never followed “me too” approach,
on the other hand it has created differences that it can
preserve and sustain for a long duration of time.

12. • Choices and decisions at Southwest are made with the
intent of keeping organizational design aligned with
business strategy.
• Few things that it did differently are as follows
1. Avoiding non-essential services such as in-flight meals
in order to cut cost and enhance efficiency of operations
2. Simplify operations by using one and only one type of
aircraft – the Boeing 737. This means every pilot and
mechanic is capable of working any plane in the fleet
3. Minimizing turnaround time at the gates by eschewing
seat assignments and carefully managing the queuing
for aircraft boarding

13. Taking the Long View
• Companies like Southwest have profited from
relationship-based differentiation, creating a positive spiral
of profitable referrals.
• Southwest spends conservatively on technology and
doesn’t use the term “CRM” to define customer-focused
initiatives.

14. CRM Programs by Southwest Airline
• For Mass market: Company goes on with Continuous
Loyalty programs with frequent flyers.
• For Distributors: They conduct annual security checks and
treat cargo departments of all the airports as their
partners and provide proper tracking facility for the high
value cargo
• In airline industry two major triggers to maintain are the
front end customers and the back end customers, and at
southwest airlines both of them are satisfied differently.

15. Conclusion
It is very evident by the above table that Southwest Airlines is far
ahead of many other airlines on macro level.

16. Thank You