NUML, Lahore

m. IMRAN n. MEHRR
Customer Relationship Management.

What this case is about?

This case provides a successful application of Customer Relationship Management
(CRM) on KLM Flying Dutchman by its CRM Director, Cristina Zanchi. She moves
all resources to implement the CRM in the organization in three phases
a. Change Management
b. Customer Database
c. Campaign Management.
She defines CRM as acronym (CARE) which means customer acquisition, activation,
retention and extension. She gave every one a target to achieve and install a software
Epiphany’s CRM Suite to track the members habitats while they are in lounges, on
gates, visiting the websites and seat environment and putting everything ranging
from booking, check-in, customer complaint handling, behavior and preferences in
the software to build a database. Software enable KLM employee’s to get a signal on
their screens if any customer has problem last time he travel with airline. Since KLM
is providing this type of attention to their customers it increases customer
satisfaction sharply. She replaces the mass marketing by focused dialogue marketing
after identifying individual customers and customer needs or wishes. She
categorized them by age, customer profitability and frequency of flying then
dividing them into golden and platinum members to get proof of mega success.

What appeal you most?

Aggressiveness and love to introduce new technologies, her enthusiasm to bring
some recognition for the team.

I was appealed by the justification she provides to implement the CRM.

a. Transparency is key to success.
b. Why would KLM pursue SRM while all flights are full? Well, then I
learned to say the chairs of Sabena & Swiss Air were also occupied, but see
what happened.
c. You should think of another solution.

Point of Contradiction?
This case doesn’t cover the criticism or any reference measure taken by AIR France which
uses the same CRM vision.
It tells us only about the CRM practices make the difference and create success across the
board. I don’t think, this can be done only with CRM implementations without raising the all
infrastructure to that level and intense training program is also seems necessary. It was also
observed by Christina that training and culture are also important that should be excellent.
 CASE STUDY # 1
KLM Flying Dutchmen (FD)
(We have got a huge success on our hands)

SUBJECT: CUSTOMER RELATIONSHIP MANAGEMENT

(CRM)

Presented to:

MR. TAHIR ASHFAQ

Presented by:

Name: Muhammad Raheel Taj

Roll #:
Section: B

MSBA (Master in Science in Business Administration)

National University of Modern Languages
Aiwan-e-Iqbal, Lahore
Question asked # 1
WHAT THIS CASE IS ABOUT?

Answer. I observed this case as a special effort by the CRM Director of KLM Flying
Dutchmen, a French airline Company. She has the great urge to represent the benefits
of application of CRM in any business specially Airlines.
Zanchi wants the award of recognition for whole team. For the purpose she pushed
them to make this program implemented.
To be able to run his program gloriously she split his program in three parts 1) Change
Management, 2) Customer Database. 3) Campaign Management and define a program
named CARE which means customer acquisition, activation, retention and extension.
Being characteristically an Italian was her great strength. His ambition to implement
CRM quickly seems to contradict the opinion of many that CRM implementation
above all requires a steady approach. But don not confused this eagerness with a lack
of propriety. After applying the CRM, the turnaround in airline marketing is that to get
a complete view, no matter if it is about the lounge or about on board facilities, real
time at the end of this year.
Another objective is to win new FD members, the airline program is our starting point
and we have to be able to identify our customers. A new customers, however, has no
past. So they start with an incubation period. It this new FD customer did not fly for a
month, he will receive an email with opportunities. If he does, he will receive different
information four weeks after his travel. We star a dialogue with customer tailoring
information to his segment, profitability and behavior.

Question asked # 1
WHAT APPEAL YOU MOST

Answer. I am impressing by the future foreseeing techniques used by the Christina

after CRM implementation. After result oriented effort, she still thinking it can be
done through miracle but need training programs, the alliance within the industry and
the culture changes. Then she feel opportunities to become almost unlimited. She uses
customer complains as a gift. A complaining customer gives you another chance. She
thinks to properly respond to the customers if in their eyes something goes wrong and
try to react within the next few days with feedback in writing signed by the company
CEO.

Question asked # 1
POINT OF CONTRADICTION?

Answer. I contradict or criticize the Christina CRM plan as per following.

 Airline margins are low how can they initiate that kind of risk by investing
huge on CRM software.
 It tells us the about the successful implementation of CRM but nothing about
the profitability whether it increases or decline.
 Benchmark data is not available to evaluate its performance.