CRM strategy of Singapore & American Airlines in detail, touch points and their significance, data handling techniques, parameters of importance, their correlation to a opportunity. Feedback's requested.

1. CRM Strategy of Singapore & American Airline 10/16/2015
CRM STRATEGY OF SINGAPORE & AMERICAN
AIRLINES
BY- VIKHYAT KHANNA
ROLL NO. 131
SEC-M4
14/10/2015
1

2. CRM Strategy of Singapore & American Airline
INDEX
• INTRODUCTION
• CRM PROCESS
• BENEFITS OF CRM TO CUSTOMERS
• SOFTWARE USED
• PROCESS FOR DATA MINING & CRUNCHING
• CURRENT TRENDS
• DETAILS OF 7P’S
• MANAGING DEMAND & SUPPLY
• SERVICE GUARANTEE
• REFERENCES
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3. CRM Strategy of Singapore & American Airline
INTRODUCTION
• Singapore airlines limited is the
flag carrier of singapore which
operates from its hub at changi
airport and has a strong presence in
southeast asia, east asia, south asia,
and oceania.
• American airlines, inc. (Aa) is a
major united states-based airline,
operating an extensive
international and domestic
network, and is the world's
largest airline by fleet size and
revenue, and the second-most by
number of destinations, only
after united airlines. It operates
from its main hub at dallas/fort
worth
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4. CRM Strategy of Singapore & American Airline
INTRODUCTION (CONT…)
Founded 1928 (as American Airways)
Commenced operations 1934
Frequent-flyer program AAdvantage
Airport lounge Admirals Club
Alliance Oneworld
Fleet size 945 (including US Airways; excluding their
subsidiaries)
Destinations 344
Company slogan Going for great.
Parent company American Airlines Group
Headquarters Fort Worth, Texas, USA
Key people Doug Parker, Chairman & CEO
[4]
Scott Kirby, President
[5]
Revenue US$ 42.650 billion (2015)
[6]
Operating income US$ 4.249 billion (2015)
[6]
Net income US$ 2.882 billion (2015)
[6]
Total assets US$ 43.771 billion (2015)
[6]
Total equity US$ 2.019 billion (2015)
[6]
Employees 113,300 (2015)
[6]
Website aa.com
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5. CRM Strategy of Singapore & American Airline
INTRODUCTION (CONTD…)
Founded 1 May 1947; 68 years ago (as Malayan Airways)
Commenced operations 1 October 1972; 43 years ago
Hubs Singapore Changi Airport
Frequent-flyer program •KrisFlyer
•PPS Club
Airport lounge SilverKris Lounge, The Private Room, KrisFlyer Gold
Lounge, First Class Reception Lounge
Alliance Star Alliance
Fleet size 109
Destinations 64
Company slogan 'A Great Way to Fly'(English)
Parent company Temasek Holdings (56%)
Headquarters Airline House, 25 Airline Road
Singapore 819829
Key people Goh Choon Phong (CEO)
Revenue S$15.565 billion(FY 2014/15)
Operating income S$442.9 million (FY 2014/15)
Net income S$367.9 million (FY 2014/15)
Employees 23,963 (FY 2014/15)
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6. CRM Strategy of Singapore & American Airline
CRM PROCESS
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7. CRM Strategy of Singapore & American Airline
CRM PROCESS
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8. CRM Strategy of Singapore & American Airline
BENEFITS OF CRM TO CUSTOMER
• Efficiency
• Collaboration
• Increased accountability
• Improved customer experience
• Moreover, CRM keeps customers informed about the information they
think is important for them at the same time understanding their needs &
expectation & delivering a service in accordance.
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9. CRM Strategy of Singapore & American Airline
SOFTWARE USED FOR CRM
• Infusionsoft
• Team support
• Salesforce pardot
• Microsoft dynamic
CRM
• Help desk
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• Act on
• Zen desk
• Fresh desk
• Spice works
• Sugar CRM

10. CRM Strategy of Singapore & American Airline
DATA MINING & CRUNCHING
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Step
1
•Acquaintance (unaware)
Step
2
•Understanding Likes & Dislike
•Understanding Behavior
Step
3
•Compatible likes, Dislike & Common
interest, initiate a relation
•Relationship is carried forward by
considering Behavior, preferences.

11. CRM Strategy of Singapore & American Airline
DATA MINING & CRUNCHING
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• A typical CRM initiative will therefore involve: collection and refinement of customer
related information and gathering actionable insights along with their subsequent
application
• Ranking of customers based on tendency to buy, order frequency, and purchasing behavior.
Techniques
K-means clustering- the oracle tool called oracle data miner (odm). The first step in the
clustering process is to choose the basic run parameters for the k-means algorithm
Association
Clustering

12. CRM Strategy of Singapore & American Airline
DATA MINING & CRUNCHING
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13. CRM Strategy of Singapore & American Airline
DATA MINING & CRUNCHING
• Which customers are the most valuable? What activities contribute
to their value?
• Are the most valuable customers receiving an appropriate
allocation of services to retain them?
• Which customers are most promising for a defined campaign?
• What can be done to transform low profit customers to a position
of improved profitability?
• What is the predicted lifetime value by customer segment?
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14. CRM Strategy of Singapore & American Airline
CURRENT TRENDS OF INDUSTRY
• The global airline industry continues to grow rapidly, but
consistent and robust profitability is elusive. Measured by revenue,
the industry has doubled over the past decade, from US$369
billion in 2004 to a $746 billion in 2014, according to the
international air transport association (IATA).
• Increasing consumer expectations
• Growing pressure to reduce costs and improve operational
efficiency
• Shifting airline landscape
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15. CRM Strategy of Singapore & American Airline
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16. CRM Strategy of Singapore & American Airline
PRODUCT PRICE PLACE PROMOTION PEOPLE PROCESS
PHYSICAL
EVIDENCE
RAINBOW OF SERVICE MARKETING
MIX
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17. CRM Strategy of Singapore & American Airline
Giving a Feel For The “Product” Inside a Service Wrapper .
•Consumers are demanding not products, or features of products but
the benefits they will be offered.
•The airline product includes of two types of services:
1. On the Ground Services.
2. In-Flight Services.
PRODUCT MIX
Airlines service products
 CABIN SERVICE.
 CATERING SERVICE
 RAMP SERVICE.
 OTHER SERVICE. 14/10/2015 17

18. CRM Strategy of Singapore & American Airline
PRICE MIX
Premium
Pricing
Value For
Money
Pricing
Cheap
Value
Pricing
APEX
Fares
Low-Cost
Pricing
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19. CRM Strategy of Singapore & American Airline
• ONLINE 24-HOUR
RESERVATION SYSTEMS.
• CONSOLIDATION.
• TOUR OPERATOR/ TRAVEL
AGENT.
• AFFILIATED WITH COMPANIES.
PLACE MIX
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20. CRM Strategy of Singapore & American Airline
PROMOTION MIX
Advertising
Publicity
Sales promotion
Word of mouth
Airlines Advertisement Needs to Keep in
Mind the Image of Country, The Scenic
Beauty, Tourist Attractions, Rich Cultural
Heritages or Which Would Attract
Number of Tourists.
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21. CRM Strategy of Singapore & American Airline
PROMOTION MIX
Advertising
Publicity
Sales promotion
Word of mouth
The PRO, Receptionist, Travel
Agents, Media People Are Very
Important People in Publicizing The
Business.
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22. CRM Strategy of Singapore & American Airline
PROMOTION MIX
Advertising
Publicity
Sales promotion
Word of mouth
The Travel Agents, Tour Operators,
Frontline Staffs Contribute a Lot to The
Promotion of Airlines Business.
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23. CRM Strategy of Singapore & American Airline
PROMOTION MIX
Advertising
Publicity
Sales promotion
Word of mouth ‘Customer Loyalty Ladder’ .
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24. CRM Strategy of Singapore & American Airline
 COMPETENCE.
 RELIABILITY.
 CARING ATTITUDE.
 RESPONSIVENESS.
 INITIATIVE.
 PROBLEM SOLVING ABILITY.
 GOODWILL.
PEOPLE MIX
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25. CRM Strategy of Singapore & American Airline
• RESERVATION.
• FLIGHT INFORMATION.
• FACILITIES AT THE AIRPORT.
• BAGGAGE HANDLING.
• MEAL SERVICE.
• FLIGHT ENTERTAINMENT.
• DELIVER QUALITY SERVICE.
PROCESS MIX
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26. CRM Strategy of Singapore & American Airline
ON THE GROUND:
• Booking offices or ticket
counters.
• Paperwork.
• Brand logo.
• Tickets.
PHYSICAL EVIDENCE
IN-FLIGHT
•Aircraft.
•Seating Configuration.
•Good Inner-exteriors.
•Cleanliness.
•Uniforms.
•Ambience.
•Baggage.
•Labels or Tag.
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27. CRM Strategy of Singapore & American Airline
MANAGING DEMAND & SUPPLY
• “The wall street journal reports that airline companies have gotten more aggressive in using
operational response”
• To better manage the seasonal miniboom and minibust cycle, they’re scheduling more
aircraft for maintenance and cabin renovations during the slower winter months.
• They’re also offering workers voluntary leaves, flying their planes fewer hours a day and
trimming the number of daily flights to many destinations.
• Overbooking a flight enables airlines to ensure that they fly with as much capacity as
possible – given that 8-10% of passengers do not show up for a flight, you want to make
sure that there are not too many empty seats on the plane.
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28. CRM Strategy of Singapore & American Airline
MANAGING DEMAND & SUPPLY
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29. CRM Strategy of Singapore & American Airline
SERVICE GUARANTEE
• 1. Singapore airlines will always disclose on our website, at our ticket counters, and on our
phone reservation line, that the lowest fare offered may be located elsewhere.
• 2. Singapore airlines shall deliver baggage on time, make every reasonable attempt to
return mishandled baggage within 24 hours, compensate passengers for reasonable
expenses associated with delayed delivery as required by applicable international
agreements, and reimburse customers for lost baggage.
• 3. Singapore airlines will provide prompt refunds after receiving a complete refund
application, where ticket refunds are due - within seven business days for credit card
purchases and within 20 business days for purchases made by cash or check.
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30. CRM Strategy of Singapore & American Airline
SERVICE GUARANTEE
4. Singapore airlines shall accommodate customers with disabilities as required by 14 cfr part
382 and other special needs customers, including during lengthy tarmac delays. This will
include:
• A) provision of wheelchair assistance for transportation to, from, and between gates;
b) boarding assistance;
c) assistance with visual, auditory, cognitive, or mobility impairments while in the airport
and on the plane; and
d) accommodation for certain medical requirements such as medical portable electronic
devices.
• 5. Singapore airlines shall meet the needs of customers during lengthy tarmac delays, as
provided in singapore airlines’ tarmac delay contingency plan.
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31. CRM Strategy of Singapore & American Airline
SERVICE GUARANTEE
• 6. SINGAPORE AIRLINES WILL INFORM YOU, UPON YOUR REQUEST, IF THE FLIGHT ON WHICH YOU ARE TICKETED IS OVERBOOKED. WE ALSO WILL
PROVIDE INFORMATION AT ALL US AIRPORTS ABOUT OUR POLICIES AND PROCEDURES FOR HANDLING SITUATIONS WHEN ALL TICKETED
CUSTOMERS CANNOT BE ACCOMMODATED ON A FLIGHT.
• 7. SINGAPORE AIRLINES’ CANCELLATION POLICIES, FREQUENT FLYER RULES, AIRCRAFT SEATING CONFIGURATION AND LAVATORY
AVAILABILITY ARE AVAILABLE ON OUR WEBSITE AND, UPON REQUEST, FROM THE OUR TELEPHONE RESERVATION SYSTEM.
• 8. SINGAPORE AIRLINES SHALL NOTIFY CONSUMERS IN A TIMELY MANNER OF CHANGES TO THEIR TRAVEL ITINERARIES.
9. SINGAPORE AIRLINES SHALL ENSURE RESPONSIVENESS TO CONSUMER COMPLAINTS. WE SHALL ACKNOWLEDGE A COMPLAINT WITHIN 30 DAYS
AND PROVIDE A SUBSTANTIVE RESPONSE WITHIN 60 DAYS OF RECEIVING IT.
• 10. IN THE EVENT THAT SINGAPORE AIRLINES CANCELS, DIVERTS OR DELAYS A FLIGHT, SINGAPORE AIRLINES WILL, TO THE BEST OF OUR
ABILITY, PROVIDE MEALS, ACCOMMODATION, ASSISTANCE IN REBOOKING AND TRANSPORTATION TO THE ACCOMMODATION TO MITIGATE
INCONVENIENCES EXPERIENCED BY PASSENGERS RESULTING FROM SUCH FLIGHT CANCELLATIONS, DELAYS AND MISCONNECTIONS. SINGAPORE
AIRLINES WILL NOT BE LIABLE TO CARRY OUT THESE MITIGATING EFFORTS IN CASES WHERE THE FLIGHT CANCELLATIONS, DELAYS AND
MISCONNECTIONS ARISE DUE TO FACTORS BEYOND THE AIRLINE’S CONTROL, FOR EXAMPLE, ACTS OF GOD, ACTS OF WAR, TERRORISM ETC, BUT
WILL DO SO ON A BEST EFFORT BASIS.
11. SINGAPORE AIRLINES WILL NOTIFY CONSUMERS THROUGH OUR WEB SITE, TELEPHONE RESERVATION SYSTEM, AND OUR BOARDING GATES AT
U.S. AIRPORTS, WITHIN 30 MINUTES OF US LEARNING OF A DELAY, CANCELLATION OR DIVERSION.
12. SINGAPORE AIRLINES WILL ALLOW CONSUMERS TO CANCEL A RESERVATION MADE USING THE SINGAPORE AIRLINES WEB SITE WITHOUT
PENALTY FOR 24 HOURS AFTER THE RESERVATION IS MADE, AS LONG AS THAT RESERVATION IS MADE ONE WEEK OR MORE PRIOR TO A FLIGHT’S
SCHEDULED DEPARTURE. CONSUMERS WILL NEED TO CALL OUR CONTACT CENTRE TO CANCEL SUCH ONLINE BOOKINGS.
13. SINGAPORE AIRLINES WILL ALLOW CONSUMERS TO HOLD A RESERVATION MADE AT SINGAPORE AIRLINES RESERVATION OFFICE FOR 24
HOURS AFTER THE RESERVATION IS MADE WITHOUT PAYMENT, AS LONG AS THAT RESERVATION IS MADE ONE WEEK OR MORE PRIOR TO A
FLIGHT’S SCHEDULED DEPARTURE.
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32. CRM Strategy of Singapore & American Airline
SERVICE GUARANTEE
• CUSTOMER SERVICE PLAN
• CUSTOMER SERVICE PLAN
• LOWEST FARE AVAILABILITY
• DELAYS, CANCELLATIONS AND DIVERSION EVENTS
• BAGGAGE DELIVERY
• BAGGAGE LIABILITY
• GUARANTEED FARES AND 24-HOUR HOLD POLICY
• REFUNDS
• ACCOMMODATION OF CUSTOMERS WITH SPECIAL NEEDS
• FLIGHTS WITH OVERSALES
• CHECK-IN REQUIREMENTS AND BAGGAGE ACCEPTANCE CUTOFF TIMES
• CUSTOMER LOYALTY PROGRAM - AADVANTAGE
• OTHER TRAVEL POLICIES
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33. CRM Strategy of Singapore & American Airline
CUSTOMER’S FEEDBACK
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Megan of Singapore, Other on Aug. 30, 2015 Satisfaction
Rating - I had to call KrisFlyer due to some redemption
matters that could not settled online. Called KrisFlyer and I am
left waiting on the phone for more than one hour and they cut
off the line. That is for service for premium airline.
Rashmi of Kolkata, Other on May 18, 2015 Satisfaction Rating
- Hi, I called Singapore airlines office in Kolkata to check on
the flight details to Australia. There was a lady called **. She
was so hostile and gave very vague information in a stern
voice like it's not her job. First time experience. BAD!

34. CRM Strategy of Singapore & American Airline
CUSTOMER’S FEEDBACK
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Jessica of Houston, TX on Sept. 19, 2015 - I have heard two
of the worst stories in one night about American Airlines. I
will never fly American Airlines. I experienced some of the
worst service with American Airlines when I picked up my
mom. She was supposed to be in Kentucky at 2 and arrived
at 8. Her baggage was not there and she was told they would
deliver it that night. The person working the desk rolled her
eyes when we asked her about the luggage. The luggage
wasn't delivered till the next day. She had to hold for over an
hour the next day to see where her luggage was. DO NOT
FLY AMERICAN. THEY ARE HORRIBLE. I HAVE HEARD THIS
FROM MULTIPLE PEOPLE!

35. CRM Strategy of Singapore & American Airline
REFERENCES
• HTTPS://ECONSULTANCY.COM/BLOG/66287-THE-FIVE-BIGGEST-BENEFITS-OF-CRM-
SYSTEMS/
• CRM STRATEGY AIR CHINACUSTOMER RELATIONSHIP MANAGEMENT PROFESSOR WERNER J.
REINARTZ
• APPLICATION OF CUSTOMER RELATIONSHIP MANAGEMENT IN AIRLINE INDUSTRY-
MOHAMMAD. J. TAROKH,1 MAHMOUD MAJIDI2
• HTTP://WWW.SLIDESHARE.NET/PREMVIRCHAUHAN/MARKETING-MIX-OF-AIRLINES-INDUSTRY
• HTTP://WWW.SOFTWAREADVICE.COM/CRM/?LAYOUT=VAR_V1
• GOOGLE IMAGES
• HTTP://WWW.ARABCOMPUTERSOCIETY.ORG/ARCHIVES/INDEXACS&PAGE=ARTICLE&OP=VIEWFI
LE&PATH[]=5&PATH[]=10.PDF
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36. CRM Strategy of Singapore & American Airline
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