Session 3: Assignment One Question

This week we talked about Customer Relationship Management (CRM) as a process and as a software application. Based on the CRM concepts learned, answer the following questions:

Q:
1. List the customer data elements generated when a customer interacts with an airline by (a) making a reservation, (b) using frequent flyer miles, and (c) completing a flight. How does information from CRM improve these interactions?

2. What are the benefits of integrating the sales, marketing and customer support function using a single software pacakge and a centralized database ?

Ans:
1. a) The customer joined a member club for airlines, then they can fill in the form for marking a reservation on airline’s website such as destination, depart and return date and time, trip type (one way or round trip), seat class (economy, business or first class), payment methods, membership ID or personal information, etc.

When customer book same airline next time, they can login their member ID and password, then all information can find out such as booking information before. They can save their time to fill in some information again for themselves. It can build up the good service and image of the airlines.

b) Finished the trips, then customer can earn their frequent flyer miles to exchange gifts, for example, when customer has 50,000points flyer miles, then they can get a free air ticket, upgrade their class from economy to business class, discount of air ticket or coupons, etc. The frequent flyer miles were count their customer how often to use their service in a period. After that, the airlines use this customer data to search their main target group to develop.

c) When customer completed the trips. Customer can fill in their satisfaction in questionnaire. Airlines use this information to improve their service and revenue. If the customer is satisfied with the service, they will introduce their friends to use it. This is a free advertising to earn word of month of customer. This is a very efficient promotion to increase their total revenue of airlines.

The airline can use this information to improve their service. And this can make a channel to get the feedback from customer. The above information can establish a long-term relationship with airlines and customer.


2. There are many benefits to be gained for airlines and airline passengers. Firstly, the passengers could book and check in through internet 24 hours, 7 days a week, at any time, any where and more discount.

Secondly, the airlines can increase sales and customer loyalty. This strategy can improve sales effectiveness, bring higher value to all of airline's key business relationships, help them to understand what each client relationship is truly worth, develop and reinforce a consistent experience for customers, improve management effectiveness, improve tactical and strategic planning, respond faster to competitive challenges, use critical resources more efficiently, and reduce administrative burdens and overall cost.

CRM is a broad term that covers concepts used by companies to manage their relationships with customers, including the capture, storage and analysis of customer information.

Finally, CRM helps the airlines to build loyalty. Because it is a marketing truism that it costs more times to generate new customers than it does to retain existing ones, that is a compelling argument.

2 留言:

Jenny N Lim 說...

For Q2, using an integrated CRM package also allows sales, marketing and customer support to collaborate and provide feedback to each other in real-time. You may add that sales, marketing, and customer support are able to follow up or track a customer no matter where he or she is within their lifecycle in the company. For example, even after marketing refers a lead to sales, they can still follow up what happens to this lead (e.g. did this person eventually become a paying customer ? did he/she have any major issues with the service ?). Or when sales team successfully closes a sale, they can track what happens afterwards (e.g. was the customer satisfied ? did they come back for repeat purchases ?)

Elaine Chan 說...

Marketing team can use CRM data to check the customer record and analysis all information, they are using the existing customer record to launch new product for the suitable segment target groups by email, make the cold call or provide the upgrade service for suitable customer, this can maintain a good relationship mutually. When the customer received this information and interested in, they will place the repeat order, we can through this system to check the record of existing and potential customer. Then, pass to sales department follow up, all process will be recorded.

After that, sales team save time to check the CRM record to follow up action after selling and they can use this data to find out and solve the problem of customer immediately. When finished all transaction, client also enjoy after sales service or express their comment, etc.For example, HGC save all customer information in this system as usual, when the company has a new promotion, they can use the cold call or emails contact the existing and prospect customer directly. Otherwise, when customer has some enquiry, new order or complains, the client also can contact them by email or by phone, the customer service team can check the existing record to find out the problem and take the record by case of customer.

Finally, the customer and the company can easy and save time to check out something from CRM system. If the customer enjoys a good service, then they will be repeat order and referral to other joins this service, the company gains the free advertising and new customer.

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