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Trends impacting airline industry CRM for Airlines From Satisfaction to Loyalty Bridge the divide Bottom-line
Trends impacting airline industry CRM for Airlines From Satisfaction to Loyalty Bridge the divide Bottom-line
Global passengers to rise by 5 billion in 2010 and more than 9 billion by 2025 Passenger traffic in Africa forecasted to increase by atleast 7% and Asia Pac by 6.8% a year, respectively, by 2010 Asia will be the worlds largest aviation market by 2025
40% of satisfied customers switch suppliers without hesitation 65% to 85% of customers who choose a new supplier claim to be satisfied and very satisfied with former supplier
85% of customers claim to be satisfied, yet willing to switch to other suppliers In the 12 months before Feb 07, there was a 49.6% increase in the number of passenger complaints
1 ,0%
CAGR 1994-2005
Limited-Service Restaurants
W ireless Telephone Service Cellular Telephones Computer Softw are EnergyUtilities 75 Hotels
Ex press Delivery 1 00
Hospitals Airlines -1 ,0% New spapers Motion P ictures Netw ork/Cable TV New s Fix Line Telephone ed Service
Customers View
While consumers agree that price is important, they would choose a slightly higher rate for added service 83% of the travellers say that personalised service & attention to their needs provides value, rather than price- defines a good deal for customers Service differentiation is the foundation of brand equity. Brand is a source of sustainable competitive advantage
CUSTOMERS EXPECTATIONS
Frequent flyers expect1- Allow me to contact you through the channel of my choice 2- Recognize & Reward my value 3- Use the information you have about me. 4- Treat me as an individual. 5- Treat me consistently 6- Solve my problems in first time 7- Make amends when things go wrong.
Trends impacting airline industry CRM for Airlines From Satisfaction to Loyalty Bridge the divide Bottom-line
agenda
CRM In Airlines for Operational purposes Automation of basic business processes (marketing, sales, service) Analytical purposes Analysis of customer data and behavior using business intelligence Collaborative purposes Communicating with clients
CRM - ideology
Pre-Airport
Airport
In-Flight
Post-Flight
Promotion notification Travel planning Reservations and booking Ticketing Flight delay notification Virtual check-in and seat assignment Transportation to airport and parking Frequent flyer account management
Airport check-in and seat assignment Baggage check Security Airport shopping or dining Club room access Airport waiting areas Boarding pass and boarding Gate location
Gate connections Baggage claim information Baggage pick-up Customer service and complaint management Transportation from airport and parking Frequent flyer account management
Trends impacting airline industry CRM for Airlines From Satisfaction to Loyalty Bridge the divide Bottom-line
agenda
Customers who are satisfied may still switch Customers who are dissatisfied may stay loyal Majority of customers can be transformed into loyal customers
To secure your customer. Accumulate guest-centric customer intelligence Market to your most
valuable customers
Trends impacting airline industry CRM for Airlines From Satisfaction to Loyalty Bridge the divide Bottom-line
agenda
Value
Value
Conversion
Member Retain
Segmentation
Customer
Communication
Communication
Segmentation
CRM benefits
1- Decreased service costs 2- Reduced Brand marketing spend 3- Increased revenue from target customers. 4- An increase of 2.5 % in Revenue. 5- Increase in $ 5bn for passenger revenue 6- 40% of tracked customer This all turns out to be $ 50 million per year
Trends impacting airline industry CRM for Airlines From Satisfaction to Loyalty Bridge the divide Bottom-line
agenda
Bottom-line !!!!
THANK YOU
Thank You