C.C.

S National Institute of Agricultural Marketing, Jaipur

Case study on British Airways:

Adoption of CRM
GROUP 2
 CRM at British Airways
Was based on Oracle and • VANTAGE was used against CDW
codenamed “Oceanwave” for simpler campaigns
Difficulties in usage due to:
• More sophisticated
-Complexity
campaigns were
-Query Response
managed separately by
-Performance
the Analyst Teams using
-Training
a combination of SAS,
-Data Quality
Business Objects and
VANTAGE local databases
CDW and Other
Sytsems
Teradata CRM (TCRM) was
BA launched an initiative in 2001 to
implemented on ICW
consolidate information from across the
• ICW is an 8-node Teradata Warehouse organisation into ICW
• centralisation of data
 Configuration - The data source for TCRM is
British Airways went live with
TCRM Version 4 in August BA’s Teradata Warehouse, ICW. TCRM is the
2002. largest application sitting on ICW currently.
The switch from CDW to TCRM
was easy because of –
Simplicity, Performance, Data
Quality, Training, Access to Resource - TCRM is supported internally via a
data, Correct Tools (PC SAS8) single team in the IT department
An integrated campaign
management solution to a user
base in multiple locations
Current and Future Growth Drivers – Specific
TCRM is linked with other campaign requirements, Re-launch of loyalty
operational data in ICW program/ Business realignment, Cost savings,
External requirements, Leisure database
Keeping in view of the fact that Airlines Industry has been under
turmoil in all parts of the world, do you think adoption of CRM
strategy very similar to British Airways by Indian air transport
companies would prove to be beneficial?
Constraints in Indian Airline Industry

Rising labour cost and shortage of skilled

labour
05
Intense price competition among the
players 04
High aviation turbine fuel (ATF)
prices 03
Infrastructure constraint 02
Rapid fleet expansion 01
TCRM at British Airways

Campaign Modelling and Testing 01

Short Implementation time 02
Reduced Marketing Costs 03
Integrated Information 04
Improved Efficiency 05
 360 Degree Customer View
Reservation
Other application subscribe to the hub and
update as required.
Inbound Call (Reservation)
Revenue Management Employee in call center enters new
Some Applications Receive near-real customer details
time updates.

Complaints Call Center

Triggers a “New Customer Created” Triggers a “New Customer Created”
event in the hub.
Customer
business event
Hub

Departure Control Web Booking

New customer is added to main Hub Subscribes to this event and
customer repository creates records

Marketing
Hub does de-duping, address cleansing, master
record reaction
Air India, the national carrier in Public sector has more or less adopted the
CRM tools that are explained in the case of BA above. Still, the Govt has
decided to sell off AI as the losses accumulated has far exceeded the
revenue. If Air India had adopted the policies of Low Cost Airlines, do you
think the customers would have preferred AI and cost of operations would
have kept to the bare
minimum?
 Airline Data
2.5 90
85.5
80.6 80
76.7 77.6
74.4
2
70
67.5

60

1.5
50

40
1

30

20
0.5

10

0 0
Air India (dom) Jet Airways Go Air IndiGo Vistara Spicejet
No. of Complaints/10,000 Pax One time performance (%)
 Reasons for Failure of Air India
MISMANAGEMENT LESS INCOME IN
OF MANPOWER PASSENGER REVENUE
01
LOSS MAKING 06 02
INTERNATIONAL LOW
OPERATIONS MONETIZATION
OF ASSETS
MISMANAGEMENT 05 03
IN GRANTING
BILATERAL
04 NON-
AVAILABILITY OF
AGREEMENTS WITH
PROPER AIRCRAFT
FOREIGN COUNTRIES
 What kind of CRM strategies / tools have been adopted by
Indigo Airlines to get a major share of business over the
last 2/3 years, especially, after the financial failure of Jet
Airways?
 Jet Airways Downfall
Merger and
Drowning in Debts Rebranding Sahara
Airlines

Mismanagement
Full-Service Airline
INDIGO OFFERINGS
• Two categories of clients (corporates and
retail)
• Corporate clients- annual contracts
• Zero cancellation charges
• Free meals
• FAM trips: special trips to tourist destinations
• Ticket booklets
• Providing meal on flight getting delayed
• First airline in India to replace boarding stairs
with ramps
• Best safety measures
• Refund options
 TOUCH POINTS
CUSTOMER FOCUS QUALIT Y and DETAIL
KEY OF GOOD SERVICE

PUNCTUAL
FLIGHTS FREQUENT FLIER
PROGRAM

FLIGHT
ATTENDANTS CLASLESS
SERVICES
 PARADIGM SHIFT IN CRM
Current complaints & requests Airline customers satisfaction
received by airlines services

Competitive analysis Governmental Ratings

Employee anecdotes Customer focus-group

research
DATA TO BOOST CUSTOMER LOYALTY IN AVIATION INDUSTRY
THANK YOU