Why Leveraging a CRM software is Essential in the Aviation Industry?
As the internet is becoming more and more important in business life, many companies considered that business strategy designed to improve revenues and profitability, reduce customer-service costs and increase customer loyalty and further personalize marketing messages and enable mass customization. Throughout, the history of business one of the most crucial aspects of business has been customer relationship. Well, CRM- ‘Customer Relationship Management’ is a simple philosophy or a management strategy that results in increased profits for a business, where you put the customer first and is also not only pure business but also ideate strong personal bonding within people.
This article will teach you everything about the pivotal role of CRM in the Airline Industry and will help you make up your mind.
Technology has been a cornerstone of aviation industry ever since the dawn of aviation— Airline's success depends heavily on its ability to intelligently manage sales, maximise the strategic value of customer centric initiatives and to draw mutual advantages from understanding of airline's customers. The very moment Airlines has realized the importance of having happy customers and they started focusing on CRM as a tool for managing customer relationships.
Role of Customer Relationship Management in Airlines Industry
Many Airlines are turning to Customer Relationship management (CRM) as a tool for managing customer relationship and supports more effective promotions through integration of data between marketing and merchandising users.
Airline’s immediate focus is on cost reductions in driving more efficient operations and enables airlines to measure results of marketing and merchandising changes.
Customers are the most important factor in aviation industry, because good customer experience are of great significance and airlines depends largely on their customers.
Planning and implementing business process across airlines and CRM application ensures customers are handled in the most efficient and effective fashion from the beginning to the end of interaction based on their real time value to airlines.
Establishing and strengthening long term relationship with airline/s customers is the key to the success. It’s the focus of the well- structured and coordinated processes of customer relationship management.
Airlines that make align processes, strategies, and technology around customers are in a better position to deliver a seamless, high-quality customer experience across all channels.
Airlines have a clear overall strategy to achieve enterprise-wide acceptance of a customer-focused culture and to build loyal profitable customer relationships. Well now a day’s airlines have used CRM primarily as a competitive “catch-up” rather than a means of differentiation. Three points that needs to be consider are Customer acquisition, development and retention. All these three plays a pivotal role here. Airlines have maximized value from their investment in technology ensuring that the online customer experience is relevant, personalized, and supported with excellent customer service, support and fulfilment. In Airline Business CRM helps understand what services are important, what value-adds matter, and what innovations are most likely to return ROI.
CRM primary goal is to differentiate a company’s services to the customer through personalization. Let’s parse through a few of the modern advantages of CRM.
Advantages over Existing System
High quality output
Cost competitiveness, simply because of abundance of intellectual capital.
Provision for creating and managing folder hierarchy for managing clients and their documents.
The CRM for Airlines is a strategic business priority which focusing on winning, growing, and retaining high-value customers by maximizing the customer knowledge in terms of customer value and customer needs. Developing personalised services and improving customer services efficiency for high-value customers. CRM gives an opportunity to increase marketing efficiency and measure the effects of individual marketing activities. CRM in airlines extends beyond the traditional sales, services, marketing, loyalty & includes all the touch points in the customer’s travel experience.
Airlines must change their approach to CRM in a number of ways in order to manage the customer more effectively across all lines of service. Let’s better understand this through a case study.
Case Study: A Leading Airline
Challenges: The airline was confronted with intense global competition and a lower marketing budget and needed to drive a higher ROI, effectively optimize marketing campaigns, and increase response rates. Solution: By Delivering a customer dynamic marketing plan for the marketing activity. The approaches:
Enhance the existing customer segmentation scheme.
Analyse the historical portfolio of various types of marketing actions
Create a prototype for marketing action planes
Maximize the customer value/risk ratio by allow budget allocation
While improving overall response rate by 10%, reduced marketing costs by 20%
Customer satisfaction rate Increased by 10%
Achieved average of 80% accuracy rate for predicting future customer value over variable horizons
In the final analysis, developing a new vision for better customer experiences is only the beginning, CRM approach to customer relationship management allows airlines and other network–based service firms to move from mass–based commercial practices to individual precision targeted methods. Using the approach to prioritize resources according to the impact of particular customer interactions, airlines can build achievable operational models that create customer advocates.
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