Customer Relationship Management (CRM) consists of the processes a company uses to track and organize its contacts with its current and prospective customers. The work of CRM involves focusing on service-automated processes, information gathering and processing, and integration and automating various customer-serving processes in a company. CRM software is used to support these processes; information about customer and customer interactions can be entered, stored and accessed by employees in different company departments. Typical CRM goals are to improve service provided to customers, and to use customer contact information for targeted marketing. While the term CRM generally refers to software based approach to handling customer relationships, most CRM software vendor’s stress that a successful.
CRM software in India.
What is e-CRM?
Today, more and more airlines are using the Internet to implement e-business applications and CRM strategy. These applications can be very resource intensive. E-CRM is interest intensified in managing customer relationship through the Internet, and many airlines approached this as a separate project to their e-business strategy. What differentiates airlines in today's hyper-competitive and demand-driven markets is their ability to address their customers' preferences and priorities. This means more than simply knowing and understanding their customers better than their competitors do. It means strategically implementing this customer knowledge in every area of the airline, from the highest management level to all the employees who come into direct contact with customers. Establishing and strengthening long-term relationships with airline's customers is the key to success. It's the focus of a well-structured and coordinated process of customer relationship management. E-CRM involves far more than automating processes in sales, marketing, and service and then increasing the efficiency of these processes. It involves conducting interactions with customers on a more informed basis and individually tailoring them to customers' needs.
There are three primary reasons why CRM has taken hold as rapidly as it has:
1. Competition is fierce;
2. The economics of customer retention are unequivocal;
3. Technology allows airlines to do this more effectively and profitably today. There are only three ways to increase the profitability of a customer base; acquire more customers, optimize the value of existing customers, or retain the right customers longer. All of these benefits must be achieved with lower costs. As the economic climate continues to become more competitive, the fight over customers intensifies. Of the three choices above, acquiring new customers is the most expensive. Research shows that acquiring a new customer costs 5 to 10 times more than retaining an existing one. Studies also show that loyal customers will buy more over their lifetime and are willing to pay a premium for doing business with someone they like and trust. Therefore, while organizations will clearly continue looking for new customers, once acquired, they now know that it is worth a significant investment to keep them. CRM is a way to do that.
This revenue increase comes from three areas:
1. Re-attracting defected customers, which accounts for between 0.1 and 0.3% of revenues; 2. Increasing the share of a customer's travel wallet, which accounts for 0.3 and 1.2% of revenues; 3. Acquiring new customers, which accounts for approximately 0.05% of revenues. Naturally, associated with these revenues are costs, but these only amount to between 0.3 and 0.6% of the existing cost base: 1. The marginal additional flights needed as incentives estimated to be between 0.2 and 0.4% of costs; 2. Additional CRM initiatives amounting to between 0.2 and 0.5% of costs. Savings in costs due to more efficient and targeted running...