Crm and Airlines

Ahadmotlaghi, E., & Pawar, P. (2012). Analysis of CRM program practiced by passengers’ airlines industry of India and its impact on customer satisfaction and loyalty. Journal of Art, Science and Commerce, 2(2), 119-126.

CRM is defined as a process designed to collect data related to customers, to grasp features of customers, and to apply those qualities in specific marketing activities. CRM may be used to create a personalized, one-to-one experience that will give the individual customer a sense of being cared for, thus opening up new marketing opportunities based on the preferences and history of the customer. This study is to identify main CRM factors that influence customer satisfaction and loyalty, and to analyze the relationship between these factors and two parameters of satisfaction and loyalty. It particularly analyses on benefits brought by information and communication technology to Airline industry.

To measure the data on factors under CRM, this study was taken up at airlines in India. Using 840 questionnaires collected from passengers of the airlines, the results of the study shows application of CRM program in passenger’s airline industry affects customer satisfaction and directly influences satisfaction level among customers. Besides that it causes higher loyalty of passengers and less customer switch.

The major focus of service companies including airlines is to develop services which attract and keep customers who are satisfied, loyal and speak well of the airline. CRM is an important component of the organisation strategy of airline companies to differentiate themselves from competitors in the eyes of the customer. Most airlines are implementing this strategy to individualize their service offer, create better communicational channels with customers and ensure higher quality offer to crate satisfaction of customers as the base of loyalty.

The results are gain through identifying 7 major factors under CRM which is service quality, trust,...