CUSTOMER RELATIONSHIP MANAGEMENT IN SOUTH WEST AIRLINES BY VISHAL KUMAR VERMA- STUDENT OF XISS

2. Vishal Kumar Verma
Kavya Vajjhala
Sneh Singh
Swarika Seraphim
Shashi Bhushan
Rajan Kumar
Sneha Jain

4.  Incorporated in Texas in U.S. by Herb Kelleher and Rollin
king in 1971
 Commenced customer service with 3 boeing 737 aircraft
 Now operates more than 500 boeing 737 aircraft
 Operate more than 3300 flights a day
 35000 employees engaged
 The United States’ most successful low-fare, high frequency,
point-to-point carrier
 Known as a “discount airline” since 1973

6.  For the 12th year in a row, FORTUNE magazine
recognized Southwest Airlines in its annual
survey of corporate reputations in 2008.
 2003 Selected as “AIRLINE FOR THE YEAR”
 2007 included in top 100 most innovative
technology organization
 First airline to establish a home page on
internet
 Ranked number one in customer service
 36 consecutive year of profitability

7. • Work is important ...don’t spoil with seriousness.
• Welfare of people comes first.
• People are important...each one makes a different.
• Employee and customer commitment.
• Caring for post travel reward, gifts for the customers.

12. • People consider it as crusade instead of business.
• Most glowing star in southwest policy.
WORK CULTURE
• Eagerness to be at the top.
• Challenges top competitors as US AIR,UNITED, DELTA
COMPETITIVE
ENVIRONMENT
• CEO HERB KELLEHER played major role with his unique mgmt
style.
• Team of PARKER, COLLIN to handle .
LEADERSHIP

13. 4
• Trust of customers declared it as most
admired airlines and company.
TRUST
• Respects ideas of employees.
• Committee of managers, employee
interaction.
OPEN SHARING OF
INFORMATION
• Respect for sense of humor.
• Compatible attitude of learning.
CREATIVITY SPIRIT

14.  Integrated Low Cost/Differentiation Strategy
Use a single aircraft model (Boeing 737)
Use secondary airports
Fly short routes
Low cost meals
15 minute turnaround time
No reserved seats
No travel agent reservations

15.  Fuel hedging
 Purchased fuel options for years in advance to smooth
out fluctuations in fuel costs
 Substantially increased its hedging in 2001 in response
to projections of increased crude oil prices
 Advantaged after Sep. 11, 2001 attack, the oil shock
from Iraq War, and Hurricane Katrina
 Operated only one model of aircraft
 Boeing 737, medium range-narrow body commercial
passenger jet aircraft
 Easy to replace parts and ground support equipment

16.  The firm identifies different consumer groups, in the market, each with a different
demand curve.
 Southwest Airlines recognizes that any given flights has different types of
travelers
 Business travelers vs. Vacation travelers
 To maximize profit, the firm sets a price for each group by equating marginal
revenue and marginal cost.

20. • Oracle’s comprehensive applications and technology solutions
help airlines reduce costs and enterprise risk by modernizing
operating platforms.
• increase agility and operating efficiency by simplifying
applications architecture
• enhance customer loyalty by personalizing and differentiating the
customer experience
• and ease regulatory compliance through built-in automated
controls.

21. Oracle Applications deliver comprehensive operational
process in:-
Financial management

25.  Very high performance even under huge dynamic data
and number of customers.
 Fully configurable and extensible.
 Robust integrated data security.
 Supported various OS configuration and minimum
system requirement in those days.
 It was the only one CRM application that time which
supported the real time data input and processing.

26. • Most third-party loyalty products couldn’t handle the scale
that we required along with flexibility and high
performance,” says Kathleen Wayton, vice president of
technology.
• To avoid the customer dissatisfaction , since the business
was growing and was difficult to record the reward points of
the customer and other offers it was the call of the day to go
for the CRM application which could meet the need of big
data handling.
• As per Wayton the power of centralized customer information
as a competitive edge for the company which was made possible
only with the help of Oracle Siebel.

27. Centralized customer information system
Advantage-Integrating all the various touchpoints to make sure
consumers always get consistent information

29. ?

31. the company’s Facebook page is the most Liked of any airline in the
world.(What do this convey?)

35. As customers (and potential customers) navigate a company’s marketing
materials, they telegraph their “digital body language”—a term Oracle’s cloud
marketing service strategists use to describe a prospect’s disposition and
intention, aggregated from clues left during online interactions. Oracle Eloqua
Cloud Service solutions leverage these clues to deliver critical insight into the
performance of marketing assets, helping modern marketers deliver exactly the
right message at exactly the right time in the sales cycle.

37. Available as software as a service for rapid deployment, Oracle RightNow Cloud Service
has the tools customers need for superior interaction. Oracle RightNow Web
Experience, for example, serves up the information and interaction they need to engage
the sales and service process, optimized for any device. And Oracle RightNow Contact
Center Experience delivers knowledgebase and interaction center tools to help
representatives address customer questions and issues, on the customer’s terms.

39. • Government regulations
and restrictions
• Fluctuation in gas and oil
prices
• Operate At
International Level
• Focus On Popular
Destinations
• No international
flight.
• Carry small amout of
freight and cargo.
• Inconvenience to
business customers
• Employee
satisfaction
• Customer service
• Low fares
• Stable profitability
• Scheduled service
• Leadership
Strengths Weakness
ThreatsOpportunity

40. Background
 Southwest Airlines disregards rules of airline customer
service-
They offer no in-flight movies, no first class upgrades, no
pseudo-gourmet dinners and even no reserve seating.
 Southwest Airlines survived the economic slump that
followed the World Trade Center tragedy, without
a single retrenchment which was a remarkable
achievement.

41. Intangible Impact of
Customer Service
They focus on creating a memorable experience with the customer.
The following are various success secrets of Southwest Airlines:
 Be nice.
 Train everyone, including back-office people, to be nice.
 Hire people with the ability to care and communicate.
 Encourage and reward good customer service.
 Give good performance, such as on-time departures-not just
good service
 Offer a cost effective product.
 Empower employees to act in the customer’s best interest.

42.  Southwest Airlines gives equal preference to all
customers. This approach has proven to be a major
limitation for Southwest’s customer service.
 Employees are empowered to make decisions.
 It has a “low tech” approach to its customer service.
 The true competitive advantage of Southwest Airlines
in the intangible appeal.

43.  Southwest Airlines uses third-degree price
discrimination to fill the plane with travelers in the
most profitable way
 Depending on the price of elasticity of demand for
tickets
 Charge a higher price for business
travelers who have relatively inelastic
demands and vice versa
 Employee and customer satisfaction