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Monday 25 July 2011

CRM Airlines Industry



In the competitive travel industry, travel providers are undertaking initiatives centered on identifying, developing and retaining high-value profitable customers, under the overall banner of customer relationship management or CRM.
The overall strategic business objective of CRM is to build loyal profitable customer relationships. Customer acquisition, development and retention are main points to consider.
Now a day’s airlines have used CRM primarily as a competitive “catch-up” rather than a means of differentiation. Rushing to imitate the customer-oriented initiatives introduced by competitors many airlines have done little to determine the value to the customer of those initiatives, or to the business itself. Today, not only are frequent flyer programs a universal cost of doing business, but even recent innovations such as kiosk check-in, flight-notification systems, e-ticketing, virtual check-in and Web-based self-service have become commonplace.
One of the primary goals of CRM is to differentiate a company’s services to the customer through personalization, yet in the airline industry, CRM—at least in the form in which it is practiced today –has become a commodity, with many services indistinguishable from airline to airline.



Purpose
The purpose of the Development of a CRM Airlines Industry is to provide the world-class offshore and onshore services using IT-enabled services. CRM (Customer Relationship Management), sometimes it is called customer management, customer value management, customer centricity, and customer-centric management.
Scope
The scope of the CRM Airlines Industry is as follows:
The overall strategic business objective of CRM is to build loyal profitable customer relationships. Customer acquisition, development and retention are main points to consider. Customer relationship management is a new concept to many organizations. The most forward-thinking organizations devote lot of energy and resources to the set up and management of a Customer Relationship Management capability.
Following is a list of functionalities to be supported by the CRM Airlines Industry. More functionality can be added to this list. And, in places where the description of functionality is not adequate, you can make appropriate assumptions and proceed.
ü High quality output
ü Cost competitiveness, simply because of abundance of intellectual capital.
ü Effective turn-around-time
ü Provision for creating and managing folder hierarchy for managing clients and their documents.
ü Comprehensive security with various permissions like Read Only, Write, Delete, Full Control, Owner etc.,
 Overview
Customer is the key driving force and all the activities are planned keeping in mind the customer’s preferences. This system gives high quality services to customers, for them to be competitive in their market. Understanding the customer's business process and provide the best solutions and services using the latest technologies. The quality matches international standards in terms of precision and timely executions.
Customer segmentation—Airlines need to recognize that mileage-based segmentation is inadequate, whereas value-based and needs-based approaches can help guide investment decisions and drive greater insight into the needs of high-value customers.
CRM initiative development—In order to differentiate themselves from the competition, airlines must abandon a “fast follower” approach to CRM initiative development, in favor of investing in initiatives with a high return, which responds to the needs and desires of their own customers.
As airlines grapple with how to deliver a consistent and distinctive customer experience while maintaining low operating costs, they have turned to the promise of CRM. CRM has gradually come back into focus as airlines recognize the importance of effective customer management in establishing long-term competitive advantage.
CRM’s promise is indeed compelling: strengthened loyalty driving increased revenue, with lower acquisition costs and improved operational efficiency. For full-service airlines, CRM is an essential component of their corporate strategy—the means of differentiating themselves from competitors in the eyes of the customer. And although low-cost carriers may be less reliant on CRM as a means of driving competitive differentiation, even they must invest in fundamental CRM technologies and processes to manage the customer efficiently over the course of the travel experience.
Increasingly, airlines are recognizing that CRM is a long-term investment, with the true benefits reaped through profitable lifelong customer relationships. Although many airlines understand the significance of CRM to their bottom lines, such programs as they exist today are suboptimal. Few airlines truly exploit CRM analytics to segment their customers based on value rather than miles flown; instead, they are using only simplistic segmentation models.
CRM investments are largely driven by the competition rather than the needs of the airline’s most valuable customers. In a bid to imitate first-movers and provide customers with similar services, airlines have effectively eliminated any competitive differentiation provided by CRM initiatives, without fully understanding whether or not they are truly of value to the customer.
Execution of an airline’s CRM strategy is often inefficient as well, with no clear vision or direction; competing departments often set separate goals. Employees may not have the tools to provide consistent levels of service across all customer touch points and may not have the service mentality necessary for a CRM program to be truly beneficial to both the customer and the airline. Airlines must begin addressing these issues now, to manage their customers effectively in the future.




Existing System
  CRM - principles, strategy, solutions, applications, systems and ideas for effective customer relationship management but in the existing system there is no organization provided both following set of conditions in the existing CRM.
  • organizations need to make a profit to survive and grow
  • customers want good service, a quality product and an acceptable price

Limitations in Existing System
As customers become more sophisticated, expecting faster, more reliable service around-the-clock, it's no secret that giving them the power to help themselves is key in providing the availability and personalized service they demand. This system is not that much of perfect medium to find information quickly and securely-anytime.
Proposed System
In the proposed system there comes a new thing, which makes the CRM Airlines Industry more efficient and providing good service and quality.
Customer Relationship Management can have a major impact on an organization through:
  • shifting the focus from product to customer
  • streamlining the offer to what the customer requires, not want the organization can make
Highlighting competencies required for an effective CRM process


Advantages over Existing System
ü High quality output
ü Cost competitiveness, simply because of abundance of intellectual capital.
ü Effective turn-around-time
ü Provision for creating and managing folder hierarchy for managing clients and their documents.
ü Comprehensive security with various permissions like Read Only, Write, Delete, Full Control, Owner etc.,

HARDWARE AND SOFTWARE REQUIREMENTS

HARDWARE REQUIREMENTS                              
PROCESSOR    :  Intel 2.0 GHz or above
HARD DISK     :  80 GB
RAM                 :    512 MB RAM.

   SOFTWARE REQUIREMENTS

OPERATING SYSTEM                     : WINDOWS XP with SP2. 
LANGUAGE (FRONT END)   : JAVA (JDK1.5/1.6)
SERVER                                     : APACHE TOMCAT 5.5/6.0
WEB TECHNOLOGY              : HTML, JAVASCRIPT, CSS.
DATABASE (BACK END)        : MS-ACCESS.
ARCHITECTURE                      : 3-TIER ARCHITECTURE.

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