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CRM Assignment New
CRM Assignment New
0 Executive Summary
1
Table Content
Contents Pages
8.0 Conclusion 11
9.0 References 12
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2.0 Introduction Of Company Background
British Airways is considered as one of the largest international airlines in the world
which are established in 1974 . For the headquartered are located at London Heathrow
Airport, which it is the world's busiest international airport and has a global network
of flights through partners such as USAir in the US, Qantas in Australia and TAT
Europe in France. Currently, British Airways (BA) covers more than 550 destinations.
According to the data of the year 2008/09, we can see that the company had serves
British Airways serves 95 million passengers a year using 441 airports in 86 countries
and more than 1,000 planes. In addition, it had approximately 45,000 employees in
early 2019. British airways is the result of merger of four companies – British
European Airways, British Overseas Airways Corporation, Cambrian Airways and
Northeast Airlines, which their parent company is International United Airlines
Group which established in 2011 by the merger of British Airways and Iberia. British
Airways had changed from state-owned airlines to private airlines. The company also
had a primary slogan which is “ To Fly To Serve”, “Upgrade to British Airways”, The
world Best Airlines and “ Fly the Flag. The airline has set its own goal of becoming
the world's leading global premium airline. With the increasingly competitive aviation
market, maintaining and handling relationships with all parts is very important to
British Airways.
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3.0 Industry Analysis For Current Development CRM
British Airways is one of the oldest airlines in the world and its origins date back to
1919. It has always been regarded as the industry leader. As a founding member of
the oneworld alliance, British Airways (BA) is the fifth largest airline in the world. In
order for the airlines to sustain for long term in the competitive aviation market, it is
very important for the company to implement the SWOT analysis .Which is a
management tool that helps identify organizational strengths, weaknesses,
environmental opportunities and threats. By having a Through SWOT analysis, an
organization will be able to generate an organized list of factors potentially related to
the company's strategic situation. One of the strengths of British Airways which it
had show the strong brand identity as the as customers show trust and loyalty, they
have built a strong brand image among the leading airlines in the UK that able to
Benefit the business at multiple levels. Besides that, BA also has its own engineering
department to maintain its fleet of aircraft in order to improve airline products and
service products, thereby increasing the number of passengers and also able to
compete with major competitor. Moreover, BA also offers its customers different
loyalty programs to ensure that they only travel back and forth from their airlines such
as the execute club is British Airways’ frequent flyer programme and so on. Through
membership it can assists the companies to identify their target audiences faster and
more accurately, thereby enhancing and improving the services more accurately.
Mobile module software also uses by BA as one of the CRM tool to manage its
communication with the Executive Club members. It helps the British Airway send
information and special offers to executive club members in real time, and allows
executive club members to make reservations on their mobile phones as well.
Secondly, excessive reliance on the UK market is a considerable weakness and must
be handled by British Airways management. According to BA revenues had show that
81% of revenue are coming from US and UK, the current situation has made the
company extremely vulnerable to market slowdown and increased competition in the
UK. The airlines also has a large number of union workers which the collective
bargaining happens all the time and a breakdown in the dealing procedure may disturb
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activities and unfavorably influence business execution. They continued efforts to
manage by layoffs and wage reduction reforms thus the employee confidence will be
reduce, the pressure on service personnel, and reduce employee productivity. The
global market penetration is low for BA, they have not completely entered the
potential markets of developing market such as china and india due to stable financial
conditions, increased disposable income and increased disposable income.
Furthermore, BA had an opportunities to expansion international market. Due to BA
had complete acquisition of Iberia airlines, which owns 13% of the shares, thus it
become the world largest airline with a combined market capitalization of
approximately 5.5 billion euros. By improving the operating conditions of Heathrow
Terminal 5 airport BA will has the opportunity to expand its presence in emerging
markets such as China, India and Middle East. Besides that, the government
intervention it release the pressure on small players which has been greatly affected
the airlines operation. So many competitors have been forced to withdraw themselves
from the market due to the high competition costs and the global economic
difficulties. This give an opportunities for BA to expand and develop their airline
more easily. Finally, the threats for the BA which is the economy slowed, fuel prices
rose and the pound depreciated. It seriously affected air transport due to the global
economic downturn. On the other side, the travel and tourism are moving in the
direction of more green practices had requires all airlines to limit carbon emissions.
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4.0 Problems associated with the company performance assessments
Customer service is at the heart of BA, and airlines pride themselves on providing
travelers with a world-class service experience. There are some challenges faced by
BA when implement the CRM when using the system where it increasing the
complicated by the incompatibility of technology for BA. The company had utilizing
two separate and heavily modified applications in US, UK and the formal system are
not available in other locations, so without an incorporated perspective on customer
collaboration, BA will has limited control over the effectiveness of its service
recovery activities. Thus will lead to inefficient case in compensation, handling
duplicate claims for some event. Furthermore, when implement the Customer Data
Warehouse( CDW) based on Oracle ( codename “ Oceanwave”) also one of the
challenges faced by BA due to the analysis team took 2 years to use the information
for reporting and activities. Complexity are one of the issues facing when using
CDW, where it not design for analytical purposes and data structure is completely
different from previous system which lead to time consuming and difficult to
understand.
Furthermore, it also required a lot of time and effort from contractors to train the SAS
uses on accessing and using the data. There are also query with regard the data quality
hence this had weakens the confidence of analysis team. The query respond are slow
and complex whereby the data for analysis purposes involves many joins that make its
slow and programming skills are require to create SQL queries, even the simplest list
generation. Besides that, the combination of SAS, Business Objects and local
databases is used by the Analyst team to manage more complex activities. However,
the Vantage solution was found to be expensive and inadequate. Since BA has an
earlier unsupported version of Vantage and limited internal IT support, it usually
takes two to three days to query every two weeks. Finally, BA also facing challenges
for social CRM where the BA are infamous in using twitter to connect with
disgruntled customers. Example they promise 24 hours a day to customer service , yet
often fail to deliver.
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5.0 Identify the best practices or strategies in implementing the CRM system.
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6.0 Principles made to maintain competitiveness in the global market
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create a relationship with other customer through their partner in order for them to
having relationship with BA.
Customer value and customer needs are critical to the airline's relationship with its
customers. Many airlines are developing loyalty programs that offer different benefits
to customers. Such as, redemption for free ticket and extra baggage allowance.
Throughout the years, many customer have filed numerous complaints against BA.
Their current offline CRM practices can be improved especially in social media
(Twitter) which fail to deliver the 24 hour service as promise and IT failure which
caused 1000 passenger flight to be delay. In order to for BA to gain competitive
advantage, there are some improvement in implement the CRM. Thus, BA would
need to develop an appropriate 1 to 1 CRM plan in the form of two retention
strategies. Through loyalty marketing can be an appropriate 1 to 1 CRM solution in
order to retain their customer base and not lose any further clients. This able to help
battle against the negative exposure against the organization. Besides that, in order for
BA to create a good relationship with customer it is important for BA to lead the
programme for employee motivation. Companies should listen to employee request in
order to avoid conflicts. BA should run the satisfaction surveys, besides that the
organization ought to improve its HR department about employee satisfaction,
motivation and training. In order for the employee to giving better servicing towards
the clients, by taking care of the employee are the major factor to success in the
airlines industry. Example, when interacting with the clients the employee who are
happy will often show their enthusiasm. Moreover, besides having the royalty
program “ Executive Club Members” the BA also encourage in partner with an
American Life Insurance company which called “ Allstate”. By implement the BA
Frequent Flyer program which it enable the members to earn miles/ points by
purchasing a new car or home owner insurance polivy from Allstate. Furthermore, BA
should launched the program which giving away 15000 free air ticket rewards to the
US residents in order to get attract more potential customer and also these CRM
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activities leverage the personal data received to expand customer knowledge and
provide high quality interaction management with the selected customers. On the
other hand, BA also encourage to launching a dedicated page on the website at
“ba.com/helpme” which is easier for the customer to receive assistance. In a nutshell,
the recommendation for BA is to use an IVR system ( interactive voice response).
Through IVR system, it enable clients to speak with the organization host framework
by phone/ keypad to discourse acknowledgment, in the wake of finding the idea of
their brumblings following their exchange. By implemented IVR system, it able to
reduce labor costs and deal with customer complaints in a more efficient manner.It
not just give customized travel experienced which is quick, friendly and personalized
travel experiences, but also help to resolve complaints, flight information, account
details and upgrade status.
understanding the
customer value and
customer needs is essential
for airlines to build a
relationship to their
customers.
Many airlines are
developing loyalty program,
which offered different
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benefits to their customers
such
as earning points for
future redemption of free
tickets and extra baggage
allowance.
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8.0 Conclusion
In a nutshell, the particular organization must be understand its own strengths and
opportunities in order to improve or expand the business methods. Due to the
customer experience is one of the deciding factor that will make up their mind when
purchasing something or they will making comparison for the company between their
competitor. In order to run the business smoothly and sustain for long time in the
industry the create relationship between the customer and the organization are
important. In order to create and retain the good relationship among their customer,
CRM are playing an important role in assist the company ( BA), it focus on
acquisition, expand and retention of customer base. By having different type of
program it able to create a continuous relationship with the customer. By analyzing,
collecting of client data, and more focused on items and administration to keep up
existing customer relationship. BA increasing effective in internal management and
training in order customer service able to improve. Relationship marketing designed
to achieve a win-win situation for both parties, BA stills need to do more in
implement good CRM to accomplish the goal. Therefore, winning the trust of
customers will be the key to gaining a competitive advantage.
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References
3) Newsdesk, M. C. (2017, April 13). British Airways CRM Case Study. Retrieved from
https://www.mycustomer.com/marketing/strategy/british-airways-crm-case-study.
5) What are the benefits of joining British Airways Executive Club? (2019, April 16).
Retrieved from https://www.headforpoints.com/2019/01/02/what-are-the-benefits-
of-joining-british-airways-executive-club/.
6) Who are British Airways hotel partners where I can earn Avios? (2019, April 16).
Retrieved from https://www.headforpoints.com/2019/01/02/who-are-british-
airways-hotel-partners-where-i-can-earn-avios/.
7) Davies, R. (2019, August 31). Strikes, IT failures, customer unrest: can BA pull out of
this nosedive? Retrieved from
https://www.theguardian.com/business/2019/aug/31/pilot-strike-british-airways-
passenger-anger-computer-failures.
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10) Bhasin, H. (2019, April 29). SWOT analysis of British Airways - British airways SWOT.
Retrieved from https://www.marketing91.com/swot-analysis-of-british-airways/.
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