CRM in Aviation industry

Group presenters:
Jithandera Hundia
Abhishek Aggarwal
Mayank Trividi
M. Saleem Mir.
Kapil Sharma
Saumitra Silakari
Sudarshan Sarangapani
Jai Singh Rathore
 CRM Defined

A comprehensive customer loyalty

management (or CRM) strategy and
solution manages all customers
interactions in a consistent and value
oriented manner
 Cont…
• The Gartner Group states that “CRM is a business
strategy designed to optimize profitability, revenue and
customer satisfaction”.

• To achieve this the integration of people, processes and

technologies is required in a collective effort to:

– Acquire new customers through effective marketing campaigns

and marketing analysis
– Grow existing customer base through expanded service
offerings that target untapped travel opportunities
– Retain most valuable customers by understanding and
proactively addressing individual values and preferences.
 CRM focuses on
• Customer acquisition –
– Who are the profitable customers ?
– How do we attract them?
• Customer development –
– How do we deliver what the customer wants?
– How they want it?
– When they want it to optimize profits and revenue?
• Customer retention –
– How do we build and sustain customer loyalty?
 CRM need to be

There are many means of achieving these goals, including:

• Understanding customer value and lifecycle to prioritize
marketing and service resources
• Using customer information to target promotional offers
and cross-selling activities effectively
• Using customer information in the design and
development of products and services
• Recognizing customers as individuals at all customer-
contact points
• Offering personalized or mass-customized service
• Utilizing multiple alternate channels for marketing, sales
and service transactions in order to improve service and
reduce cost
• Increasing the “share of customer” through greater
penetration of travel related products.
 Why & How
• Customer relationships are the key to airline
business growth.
• Airlines must take absolute responsibility for a
customer's satisfaction throughout the "want-it-
buy-it-and-use-it" experience.
• This requires learning and tracking customers'
needs, behaviors, and lifestyles and using this
information to create a specific value proposition.
• This strategy is the path to consumer loyalty
 Travel Customer Management Continuum

CRM in passenger airlines extends beyond traditional sales,

service, marketing and loyalty to include all of the touch points in
a passenger’s travel experience.
 Effective CRM
steps involved in establishing effective customer
relationship management using the Web:

• Capture customer information,

• Build a customer database and
• Create personalized communication
 Forces behind CRM
There are three primary reasons why CRM has
taken hold as rapidly as it has:
1. Competition is fierce;
2. The economics of customer retention are
unequivocal;
3. Technology allows airlines to do this more
effectively and profitably today.
 Benefits to the Airlines :

• Implementing CRM applications may

lower the cost of design,
implementation, installation, training,
ownership and administration.
• Consistent and dynamic processes
are built up-front for the customer.
• Real-time access to historical
customer information allows support
staff to know who your customer etc.
Benefits for the Customers:

The E-mail was responded to

immediately, with personalized,
valuable information.
Web self-service allowed customer to
take immediate action to resolve issue.
The "callback" option was easy to use,
enabling the customer to quickly
request live support.
The intelligent interaction routing
engine immediately connected the
 What they are doing…..
• Focus on cost reduction to reach more
efficient operation.
• However many of them are turning to CRM

BUT
UNFORTUNATELY!!
 Methods of CRM
• Customer segmentation
• CRM initiative development
• Organizational design and
management
 Airline’s CRM Challenges
Airline’s face several key challenges in the context of using
CRM to carry out their strategic priorities:

•Decreasing cost of serving customers

•Moving away from expensive, custom built systems to cheaper pre-packaged
apps.
•Cost-effectively integrating multiple systems and improving cross-channel
Service.
•Customer knowledge
•Identifying the most and least valuable customers.
•Differentiating the product
•Using service to differentiate their product and, thus, justify a higher price.
•Raising customers’ switching costs
•Create a unique offering that competitors cannot easily duplicate.
 E- CRM
• Today, more and more airlines are using
the Internet to implement e-business
applications and CRM strategy.
• e-CRM involves far more than automating
processes in sales, marketing, and service
 E-CRM
• Also increase the efficiency of these
processes

• It involves conducting interactions

with customers on a more informed
basis and individually tailoring them
to customers' needs.
 E-CRM
• What differentiates airlines in today's
hyper-competitive market is their
ability to address their customer’s
»Preferences
»Priorities

• Establishing and strengthening long-

term relationships with airline's
customers is the key to success.
THANK YOU