CRM CONCEPTS

1. Customer relationship process

2. CRM Model

3. Three definition of CRM

4. CRM marketing elements

5. The relationship orientation

6. Pyramids of relationships

7. Profit of close & weak relationships

8. Relationship life cycle

9. Profile of social structures

10. Nature of CRM

11. Offensive vs Defensive strategies

12. Context of CRM strategy

13. Types of CRM

14. Ashridge mission model

15. Structure: Organising around customers

16. From strategy to critical success factors

17. Balance scorecard

18.Serivce profit chain

19. CRM marketing aspects

20. Growth staged in database mgt.

21. Use of different sources of information to create complete customer profile.

 BRITISH AIRWAYS

1.CRM NATURE

British Airways is one of the world’s longest established airlines and can trace it’s origins
back to 1919. It has always been regarded as an industry-leader. As a founding member of the
oneworld alliance, British Airways (BA) is the 5th largest global airline

CW is an 8-node Teradata Warehouse, which houses data from a number of areas of the
business, including customers, marketing, sales, accounts receivables, operations and other
financials.This centralisation of data has a number of potential benefits for British Airways.
A single source of information allows business users to rapidly find answers to questions
critical to understanding customers and business performance. This can then be used to make
informed decisions that affect future enterprise competitiveness.

An integrated source of information is not only less costly to maintain, it also improves
decision-making responsiveness and helps in the identification of cost reduction
initiatives.The largest data subject area currently on ICW is customer information. British
Airways uses the Teradata CRM (TCRM) application, sitting on ICW, to manage its
marketing communications with its global customer base.

2.CRM ELEMENTS

Key customer focus: British Airways was looking for those customers who are frequently
travelling in economy classs and are ready to pay a slightly higher amount for better service
quality.the company focused on such customers who are looking for value for money
services. Delivering long-term and consistent value in a service business was the objective of
British Airways.

Work Distribution: Commercial team is responsible for managing revenue and pricing, sales,
marketing and distribution, as well as planning fleet and network. in-house engineering
function manages and maintains fleet of aircraft and provides limited services to other
operators Flight Operations team is responsible for the safe operation of fleet and is
responsible for the recruitment,training and support functions for pilots Operations team is
responsible for the planning and control of the worldwide operation, with ultimate
accountability for network punctuality and baggage performance. It is responsible for the
planning of ground resources and of both flight and cabin crew

Communication: British Airways uses pull strategies like personal promotion within the
terminal building,Direct marketing and product service demonstration on the internet. They
also uses push strategies like advertisement,sales promotion and public relations with
customers and they use profile strategies like short term press releases or announcements and
long term sponsorships
3.CRM PROCESS

Information phase :fundamentally focus on basic issues about customer information and
customer dealing with organisation. Once transaction occurs by customer, it creates data
which results in interaction between customer and organisation.

Objective phase: The customer gives their own promises and these promises have to be kept
on both sides if the relationship is expected to be maintained, developed and commercialized.
The promise concept is important to both sides in order to ensure profitable business
operations. So foundation of CRM is based on completion of promises and provides benefits
to fulfil the objectives towards customer for long-term relationship.

Trust phase:After sale transaction an interaction is established between customer and

organisation. In trust phase, good customer service and effective support creates add value to
customer and he becomes loyal to organisation; so this way customer satisfaction which
result in trust on product and organisation.

4.RELATIONSHIP ORIENTATION

The workplace programme of British Airways is aimed to provide a working environment

that motivates, engages, supports and develops the colleagues. The workplace programme
includes the training which can help employee having the right knowledge and skills. It
includes the tools which can help employees to serve the customers better; it defines the
mutual goals and visions which can ensure everyone in the organization will has the right
attitude.

The Corporate Social Responsibility is the current strategy which British Airways choose to
handle the relationships with the pressure groups. they defined their strategy as to ensure they
lead the industry in managing and minimizing their environment impact. They focus on four
aspects: climate change, waste, noise and air quality to achieve their objectives. In addition to
the environment programme, the community is another programme which focused on the
charities to support the local communities in the countries which BA operates.

British Airways as the large company is easier to attract attention from media, so how to
maintain good relations with the media becomes very important. And to maintain long-term
close relationship with media and have a comprehensive crisis management plan is
considered as a good way of dealing with media relations. British Airways through the
collection and analysis of customer information, and more targeted products and services to
maintain existing customer relations, British Airways through more efficient internal
management and training to improve the level of service, while it cooperates with suppliers to
reduce product costs, and developed the corporate responsibility ' One Destination' to respond
to outside pressure. Relationship marketing aims to achieve win-win situation between the
parties, British Airways in some areas such as the relationship with the employees still need
to do more to really achieve that goal.
5.CONTEXT OF CRM STRATEGY

British Airways can use Pull strategy whch is a stimulate type of strategy that directed at
targeted end user customers,through stages such as generating increase levels of awareness,
informing and educating to change audience’s attitude, encourage involvement etc, aiming to
bring about a motivation within the audience group and resulted in actions such as enquire
and experiment, finally leads to repeat purchases. (Fill 2002)

Possible approaches could be used by British Airways:

• Personal promotion within the terminal building

• Direct marketing (via mails or emails)

• Product and services demonstration on the Internet

They can also use push strategy by performing some added value activities and push
customers aimed at to bring out repeat purchase actions

Possible approaches could be used by British Airways:

• Advertisement on media

• Sales promotion

• Public relation with customers and all other interest groups

6.CRM MODEL

Britsh Airways uses Extensive problem solving model which displays how a consumer
moves through the purchasing cycle. It argues that a person normally starts its purchasing
cycle through a ‘problem recognition,’ where there is a problem need to be solved; then
moves on to the ‘information search’ stage to search for information that can solve the
problem, this may involves ads, visit to the website and discussion among friends. Next
comes with evaluation on the information he or she received. At this stage, leaflets,
catalogues, ads and discussions are amassed and a set of criteria is further refined. As the
result, purchase decision has been made and action would take. After purchase, waves of
worry and or doubt arise, and an evaluation will be carried out as the result, if the product or
service matches the promise, then both repeat business and word of mouth referrals are likely
to occur over the long period of time.British Airways can also use ATR model (Awareness
Trial Reinforcement) in which suggests that a consumer moves through the purchasing cycle
through a series of stage, starts from aware of a brand; then develop an interest, as the result,
a try out action would take and the product will subject to a reinforcement process.
Internal quality is measured by the feelings that employees have toward their jobs,
colleagues, and companies. What do service employees value most on the job? Although our
data are preliminary at best, they point increasingly to the ability and authority of service
workers to achieve results for customers.