CRM
in Airline Industry
Who is the customer?
• Individual Traveler • The Travelers Company • The Person or Entity Paying for the Ticket • The Person Choosing the Airline • The Travel Agent • Corporate Customers • Cargo Brokers
Obstacles to CRM
• Lack of buy-in across the business • Departmental customer data silos
– Unwillingness to share
• Business processes not mature / clear • Couldn’t reach all touch points
– Sales (reservations), check in, in-flight were particular problems
• Customers interaction methods are changing • A bit of marketing will be enough, won’t it?
Carriers’ CRM Challenges
Carriers 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 • Unified view of the customer – Integrating multiple processes that cut across in-house and 3rd party systems • Customer knowledge – Identifying the most and least valuable customers • Loyalty program effectiveness – Decrease costs – Retain most valuable members – Increase members’ expenditures and purchase of distressed inventory • 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
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.
CRM Blueprint
Customer Information
Information captured falls into the following categories: • Demographic profiles • Loyalty membership information • Service preferences • Purchase and travel history • Contact information • Online behavior
Data sources
PNR (Passenger Name Record) • Reservations system • Departure control system • Frequent flyer program • Revenue accounting • Customer contact system (call-center) • Baggage management • Web site
CRM architecture
Analysis
The analysis can be grouped into three main areas: • Segmentation – Grouping customers according to similar characteristics • Scoring – Understanding customers’ propensity to perform certain actions • Prediction –Forecasting future customer characteristics
Decision Systems
The decision systems comprise the following functions: • Lifetime value models • Targeting rules for sales and marketing campaigns • Service personalization rules and prompts • Service recovery rules
Thank You
HARISH B.SURI
doc_998464994.ppt
in Airline Industry
Who is the customer?
• Individual Traveler • The Travelers Company • The Person or Entity Paying for the Ticket • The Person Choosing the Airline • The Travel Agent • Corporate Customers • Cargo Brokers
Obstacles to CRM
• Lack of buy-in across the business • Departmental customer data silos
– Unwillingness to share
• Business processes not mature / clear • Couldn’t reach all touch points
– Sales (reservations), check in, in-flight were particular problems
• Customers interaction methods are changing • A bit of marketing will be enough, won’t it?
Carriers’ CRM Challenges
Carriers 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 • Unified view of the customer – Integrating multiple processes that cut across in-house and 3rd party systems • Customer knowledge – Identifying the most and least valuable customers • Loyalty program effectiveness – Decrease costs – Retain most valuable members – Increase members’ expenditures and purchase of distressed inventory • 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
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.
CRM Blueprint
Customer Information
Information captured falls into the following categories: • Demographic profiles • Loyalty membership information • Service preferences • Purchase and travel history • Contact information • Online behavior
Data sources
PNR (Passenger Name Record) • Reservations system • Departure control system • Frequent flyer program • Revenue accounting • Customer contact system (call-center) • Baggage management • Web site
CRM architecture
Analysis
The analysis can be grouped into three main areas: • Segmentation – Grouping customers according to similar characteristics • Scoring – Understanding customers’ propensity to perform certain actions • Prediction –Forecasting future customer characteristics
Decision Systems
The decision systems comprise the following functions: • Lifetime value models • Targeting rules for sales and marketing campaigns • Service personalization rules and prompts • Service recovery rules
Thank You
HARISH B.SURI
doc_998464994.ppt