Teratech Problem Solution

Running head:   PROBLEM SOLUTION: CLASSIC AIRLINES









Problem Solution: Classic Airlines
Danielle Joseph
University of Phoenix


Problem Solution: Classic Airlines
Classic Airlines has found themselves in a difficult situation. They have been loosing customers due to a lack of understanding of the environment in which they operate. They tried to lower their fares and reduce customer service which is not what their customers wanted.   They need to use the information from their CRM system to understand what they need to change to regain lost customers and grow the customer base in the future. By integrating their phone system with the internet system, the information collected will assist them in creating a marketing plan that will move the company into the future. Classic Airlines needs to use the information they have in their CRM system to understand the value of their customer and develop a plan to satisfy those needs and values.


Describe the Situation
Issue and Opportunity Identification

Classic Airlines is the fifth largest airline in the world (Scenario, 2008). They are on a downward spiral in their customer loyalty program, number of flights per loyalty customer and the company stock price. The loyalty program has seen an almost 20% decrease in the last few years. This reflects the change in attitude of customers that do not feel the program is worth staying with. The customers that are left are not flying as much or they are not flying with Classic Airlines since the number of flights for the remaining customers has dropped about 21%. The company stock price has dropped 10% in the last year. This is a reflection of the change in attitude and uncertainty in flying that has permeated the industry since late 2001.
Classic Airlines has some work to do to hold their position and gain more customers. The airline has the information it needs to turn the situation around. Their CRM system is one of the best in the industry but was... [continues]

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