Crm- for Airline Industry

IBM Institute for Business Value The prox of CRM in the airline pains: A new paradigm for customer charge As airlines difference to gain market sh ar and sustain profitability in todays fiercely competitive and economically demanding environment, they essential develop new ways to manage their customer relationships to optimise customer loyalty and revenues. What tactics should airlines use to acquire, develop and keep open customers with greater precision and improved results? By Declan Boland, Doug Morrison and Sean ONeill The future of airline CRM Contents 1 Executive summary 2 Issue 4 Analysis 8 Implications 14 move forward 15 Conclusion 16 About the authors 16 Contributors 17 References Executive summary The airline industry has reached a crossroads. The do of the worldwide economic slump and the aftermath of September eleventh attacks puddle severely impacted airline economics and viability. plot the U.S. and certain European markets were most severely impacted, airlines worldwide are striving to both regain and improve profitability. Many have stressed on operational improvements to reduce costs, but the customer cannot be ignored.

Customer relationships must be fostered for airlines to maintain competitive advantage and profitability in the long term. Airlines immediate focus is on cost reductions in driving to more efficient operations. However, many airlines are turning to customer relationship management (CRM) as a tool for managing customer relationships. Unfortunately, in many cases, they have failed to name CRM as a holistic strategy, preferably viewing it as synonymous with their frequent flyer programs. In order to manage the customer more effectively crossways all lines of service, airlines must change their approach to CRM in a number of ways: Customer segmentation â€" Airlines need to recognize that mileage-based segmentation is inadequate, whereas value-based and needs-based approaches can help guide investment decisions... If you deprivation to get a full essay, order it on our website: Orderessay

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