4th SEMESTER ASSIGNMENT

Masters of Business
Administration
(2021-23)

CUSTOMER RELATIONSHIP MANAGEMENT

&
BUSINESS INTELLIGENCE
(PSMBTE442)

Submitted by:
SAVI JAIN
(35-MBA-21)

Submitted to:
DR.RACHNA MAHAJAN

TOPIC: Customer Relationship Management

IN INDIGO AIRLINES
DATE:
S.NO TABLE OF CONTENTS PAGE NO.

1. CUSTOMER RELATIONSHIP
MANAGEMENT : INTRODUCTION

2. CUSTOMER RELATIONSHIP MANAGEMENT

IN INDIGO AIRLINES

1
CUSTOMER RELATIONSHIP MANAGEMENT : INTRODUCTION

CONCEPT :Customer relationship management (CRM) is an approach to

manage a company's interaction with current and potential customers. It uses
data analysis about customers' history with a company to improve business
relationships with customers, specifically focusing on customer retention and
ultimately driving sales growth. One important aspect of the CRM approach is
the systems of CRM that compile data from a range of different
communication channels, including a company's website, telephone, email,
live chat, marketing materials and more recently, social media. Through the
CRM approach and the systems used to facilitate it, businesses learn more
about their target audiences and how to best cater to their needs.(aissms
chmct.in)

DEFINITION : Customer relationship management (CRM) is the combination

of practices, strategies and technologies that companies use to manage and
analyse customer interactions and data throughout the customer lifecycle,
with the goal of improving customer service relationships and assisting in
customer retention and driving sales growth. CRM systems compile customer
data across different channels, or points of contact between the customer and
the company, which could include the company's website, telephone, live chat,
direct mail, marketing materials and social media. CRM systems can also give
customer-facing staff detailed information on customers' personal information,
purchase history, buying preferences and concerns.(aissms chmct.in)

NEED & IMPORTANCE OF CRM:

● Customer Relationship Management leads to satisfied customers and
eventually higher business everytime.
● Customer Relationship Management goes a long way in retaining
existing customers.

2
 ● Customer Relationship Management leads to satisfied customers and
eventually higher business everytime.
● Customer Relationship Management goes a long way in retaining
existing customers.

CUSTOMER RELATIONSHIP MANAGEMENT IN

INDIGO AIRLINES

ABOUT INDIGO:
Indigo Airlines is a privately owned low-cost domestic airline based in Gurgaon
with Indira Gandhi International Airport as its main base, its tagline is
“go Indigo”.
IndiGo Airlines started operations on 4th August 2006 and is owned by
InterGlobe Enterprises and Mr. Rakesh Gangwal. It is amongst the best
airlines which are offering professional services, economical prices with great
deals and discounted airfares.
IndiGo's strong adherence to a low-cost model, buying only one type of
aircraft and keeping operational costs as low as possible along with an
emphasis on punctuality are said to be some of the reasons for its success even
when the airline industry in India is going through a bad patch. Indigo is known
for its good connectivity, on time arrival and departure and consistent services.
The main aim of the IndiGo is to offer cheaper Airfares to the passengers. Its
target is lower middle class and middle class people who are cost conscious.
Beside lowest airfares Indigo air gives easy options of online booking with hold
and pay facility and easy refund facility.
Currently Indigo airlines have the highest passenger load factor.

As per Indian regulations, Indigo has obtained a licence for running

international flights on completing five years. The primary base of operation is
Indira Gandhi International Airport,New Delhi.

3
It operates to all the major cities of India. IndiGo air tickets can be booked
online and the services provided are user friendly while at the same time,
extremely comprehensive.
(deliverypdf.ssm)

CUSTOMER RELATIONSHIP MANAGEMENT IN AVIATION

INDUSTRY

1. Meaning of CRM in Aviation Industry: CRM is the process of

managing detailed information about individual customers and carefully
managing customers ultimately leading to customer loyalty. It is a
comprehensive customer loyalty management strategy and solution that
manages all customers’ interactions in a consistent and value oriented
manner, which is designed to optimise profitability, revenue and
customer satisfaction. This is a way to achieve integration of people by
acquiring new customers through effective marketing campaigns and
marketing analysis, grow existing customer base through expanded
service offerings that target untapped travel opportunities and retain
most valuable customers by understanding and proactively addressing
individual values and preferences. The deeper the relationship the
airline holds with these customers, the more opportunities there will be
for selling additional products and services.
2. CRM differentiates products: In today's hyper-competitive and
demand-driven markets airlines are differentiated according to 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

4
 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. Nowadays airlines are using the Internet to implement e-
business applications and CRM strategy.In order to differentiate CRM
programs more effectively, airlines will need to understand the
customer in terms of both value and needs. Effective customer
segmentation is vital to the success of any CRM strategy.

3. CRM touch points : CRM is the process of managing detailed

information about individual customers and carefully managing all
customer "touch points” to customer loyalty. Effective and better
communication with customers by establishing mass customer touch
points. These touch points are:
● Reservations
● Baggage tracking
● Food beverages
● Check in & check out
● Frequent flyer program
● Flight attendants
4. FACTORS CRM focuses on:
● Customer acquisition: Find profitable customers and find ways to
attract them.
● Customer development: Finding ways to deliver what the
customer wants and deliver it in the way the customer wants.
Optimise profits and revenue in such a way that the return from
CRM activities is always greater than expenditure on CRM
activities.
● Customer retention: Building and sustaining customer loyalty.

5. Travel Customer Management Continuum: CRM in

passenger airlines extends beyond traditional sales, service, marketing

5
 and loyalty to include all of the touch points in a passenger’s travel
experience.
(Deliverypdf.ssrn)

CUSTOMER RELATIONSHIP MANAGEMENT ACTIVITIES IN

INDIGO AIRLINES

Customer Relationship Management activities are the activities which help the
organisation to identify the most profitable customer and initiate and maintain
relationships with those potential and existing profitable customers. These
activities are taken up with three major objectives; Customer Acquisition,
Customer Extension and Customer retention. Indigo airlines take up different
activities which help in fulfilling all the three objectives.

There are different services and product offerings that are lucrative enough to
attract the middle class of the society to avail services of indigo.
For Eg. Zero cancellation charges, Food and Beverages are allowed inside the
flight, Web Check-in for domestic flights, web check in, in case of urgency
tickets can be booked and cancelled through SMS, in case of delay or
cancellation of flights notification can be sent through SMS, low charges to
select seats no, etc. These are some of the services offered by Indigo airlines
which appeal to the middle class and lower middle class of the country. But
further some activities are taken up by customer relationship management to
maintain good relations with customers and retain them. Customer
relationship Practices are beyond just product or service offerings, it is a
strategy which provides reciprocal benefits.

6
In IndiGo airlines Customer care cell tries to identify such profitable customers
and provide them special services, and if they are not profitable customers
then the special service can be ceased.

List of CRM practices taken up by Indigo airlines:

1. 6C membership Scheme: This is a scheme for those customers of

IndiGo airlines who are consistent flyers of IndiGo airlines. These
customers are provided membership into 6C membership scheme,
which help them avail 10% discount on base rate of their tickets.

2. IndiGo Corporate plan: This plan is for those corporate travellers who
prefer travelling with Indigo airlines for their corporate visits. In this plan
a contract is entered into with the corporation and this is an annual
contract which provides some concessional benefits to those
corporations.

3. Partial Payment Schemes: Those customers who have their account in

Citibank and HDFC banks can make partial payment of tickets and pay
the remaining amount later, or the remaining amount can be paid in
EMIs. In this case banks become intermediaries and airlines develop
good relations with both the customers and banks.

4. FAM trips: Special trips to tourist destinations in partnership with trip

planning sites. These trips are different from the packages that are
provided by the airlines. These are specially planned trips for those

7
 customers who hold account in indigo airlines. These trips can be availed
by all kind of account holders.

5. Value flyer & bundled hotel offerings: Leisure travellers are provided
with a ticket package called value flyer & bundled hotel offerings. Those
customers who are willing to pay some extra amount and get a package
for their travel can avail this plan. Through this plan they can pay some
more amounts and can get free food on board or the package can also
provide hotel offerings.

6. Separate accounts for member, agency and corporate : Indigo

airlines provide different accounts for member, agency and corporate
and they are provided schemes according to their needs and nature of
account specifies different facilities that can be availed by virtue of
holding that account.

7. Call centres: 24/7 multilingual call centre: IndiGo provides services

through there call centres as well, they provide multilingual call centres
that can cater to different people from different parts of India. This
service is provided to make the person more comfortable in talking to
the agent in the language they are comfortable in and find out solutions
for the queries and understand the CRM activities.

8. IndiGo Plus: IndiGo offers a premium service called IndiGo Plus, where
the passengers, at a higher fare, can avail additional benefits like a pre-
assigned seat and a complimentary meal on board. This is available to
those customers who book their tickets 2-3 months before the
scheduled time through the internet.

9. Citizen charter section: This is the customer care centre of Indigo

airlines where customer’s queries are answered. In this facility there is
faster response from the centre and the phone is directly picked by the
associate and there is no need to wait while the machine answers.

8
10.Well Trained Crew: Well trained and groomed in-flight crew assists the
customer to feel more comfortable and take care of all their needs and
most of the services are provided on-time performance.
(deliverypdf.ssrm.com)