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Where can you criticize KLM’s CRM approach?

Based on the case study while KLM has managed to significantly distinguish itself based on its
implementation of CRM here are some key points where KLM’s approach can be criticized

1. Being Proactive Rather than Reactive


KLM’s CRM strategy is focussed highly based on previously collected customer data and this involves
a reactive approach based on their previous experience. However this would be a disadvantage to
KLM as CRM requires a highly proactive rather than reactive approach and this would not work in the
favour for customers having a first time flying experience

2. Cost of Implementation
KLM’s strategy for CRM implementation may involve severe costs especially of database
management and that would severely hamper profit margins on a long run basis . Also the
segmentation of customers on the basis of profitability would require a change in the communication
strategy which needs to be looked into

3. Short time duration for CRM implementation


KLM’s strategy for CRM implementation may be criticized on account of shorter duration of
implementation of each phase. KLM’s duration for implementation of each phase of the CRM seems
to be short especially that of change Management. KLM’s strategy of CARE involves Acquisition as its
first step and it would require a strong campaign managementt strategy which is the third phase of its
CRM strategy. Hence these three stages need to work in parallel if one wants the strategy to work

4. Change Management strategy


KLM’s strategy of CRM implementation seems to be highly focused on Database Creation and
Campaign Management. However the Change Management aspect seems to be dependent on the
preconceieved notion of the service orientation of the employees. It would be much more beneficial if
the customer touchpoints are identified via the help of a service blue print and necessary training
being given to the employees based on the customer interaction

These 4 pointers could be considered major criticisms in KLM’s approach to Customer Relationship
Management

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