Crm in Klm

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CRM EXCELLENCE AT KLM ROYAL DUTCH AIRLINES | | | | | ----------------------------- ------------------------------------------------- Submitted To: ------------------------------------------------- Sir Kamran Maqbool | Question: 1: Why do you think KLM won the Gartner 2004 CRM Excellence Award? Introduction KLM Royal Dutch Airlines is an international airline operating worldwide with home base Amsterdam Airport Schiphol, The Netherlands, as most incumbents of the European airline industry, had been facing declining yields (i.e. the revenue per seat) and increasing competitive pressures during the last years. Some of the main reasons behind this were Increase competition due to the deregulation in the airline…show more content…
Disintermediation: Using the Internet, airlines can sell to and support an increasing number of customers directly. The opportunity to exploit and extend these direct relationships is growing all the time. Commoditization: Alliances, code-sharing, growing competition from low cost airlines, and increasingly standardized products mean that for many travelers, on short-haul routes in particular, airline seats are a commodity. KLM realized that it had to differentiate itself by offering a better customer experience at every point of contact. To do this, it needed to rethink its approach to customers, moving beyond the limitations of Frequent Flyer Program data models and processes created in the 1990s. But first it had to overcome internal skepticism, partly derived from a stalled CRM initiative in 1997. CONCLUSION KLM won Gartner’s European CRM Excellence Award in 2004. This award highlighted the airline’s ability to combine grand strategic vision with pragmatic execution, and deployment of software applications with company-wide cultural change. Many lessons learned by KLM are equally valuable to other companies planning a CRM program. Think big, start small and act quickly: Have a definite goal in mind, but start by demonstrating measurable return on investment for small projects. Build on the commitment gained from these early achievements. Keep the communications flowing, and

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