KLM- We have got a huge success on our hands
Subject: CRM-case study chapter1
The case is about KLM Flying Dutchman expanded by 20% in less than six months. The reason behind this was their attention paid to CRM. KLM CRM director Cristina Zanchi maximized their revenues per customer by utilizing the customer insight to augment their service. They wanted to interact with the customer and enhance the customer experience, thereby revenues. At the beginning KLM’s plan to introduce CRM system failed as it required huge investments. KLM wanted to differentiate themselves from the other airlines by focusing on emotional elements. Transparency was the key to success of KLM. Zanchi divided their plan in three phases-change management, customer database and campaign management. Their CRM target is Customer acquisition, Activation, Retention, and Extension. KLM completed their first phase of target and moved to second phase in 2003 by adopting a software system. This software helped them in ranging from booking, checking-in, and customer complaints and importing this information to customer model. Customer satisfaction increased since they made use of this program. Next KLM paid heed to individual customer wishes by categorizing them in factors of age, recency, frequency of flying etc. They developed different kind of campaigns to make customers frequent use of KLM. They also tried attracting new KLM members. The customers receive special offers by email. The customer response boosted to 5-12%. The FD Platinum and Gold members have different boarding lists and have a separate line while boarding. They respond to their customer’s complaints and react within five working days. The number of FD customers increased by 20% and profit by 5%.KLM’s partner Air France has the same vision and they apply the same tools in same situations. Zanchi hopes to have 12 million FD members next year.
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