In order to gain market share and sustain its competitive advantages to be the low cost carrier in the high demanding environment, AirAsia must develop new ways to manage both customer relationships and suppliers or partners to optimize customer loyalty, supplier relationships, and revenue. AirAsia has fostered a dependency on Internet technology for its operational and strategic management, and provides an online ticket booking services to traveller online.
Customer Relationship Management (CRM)
Application will be one of the areas of strategic IT implementation that AirAsia can focus to achieve high values to both shareholders and customers. And In long term, customer relationships should be fostered for AirAsia to maintain competitive advantage and profitability. When planning and implementing CRM application, management is recommended the following approaches:
Customer Relationship Management (CRM)
Application will be one of the areas of strategic IT implementation that AirAsia can focus to achieve high values to both shareholders and customers. And In long term, customer relationships should be fostered for AirAsia to maintain competitive advantage and profitability. When planning and implementing CRM application, management is recommended the following approaches:
1. Customer segmentation – mileage-based segmentation is inadequate, rather should focused on value-based and needs-based approaches can guide investment decisions and drive greater insight into the needs of high value customers.
2. CRM initiative development – to differentiate from other competitors, AirAsia should not adopt the “fast follower” approach to CRM initiative development, i.e. learning from other competitors’ approach (e.g. installing kiosks for fast check-in). AirAsia should implement CRM program in favour of investing in initiatives with a high return, which respond to the needs and desires of their own customers.
3. Organizational design and management – AirAsia needs to train the employees, empowering them with a complete view of the customer and clearly articulating the employee’s role in the CRM strategy.
AirAsia has currently adopted information technologies strategically to integrate the operations and coordinate all the business and management functions. The followings are few system implementations that AirAsia has done in its marketing and sales activities as well as operation activity in the value chain.
Yield Management System (YMS)
Anticipates and reacts to the behaviour of customers to maximize the revenue - taking into account the operating cost and aids AirAsia to optimize prices and allocate capacity to maximize the expected revenues by 2 levels:
3. Organizational design and management – AirAsia needs to train the employees, empowering them with a complete view of the customer and clearly articulating the employee’s role in the CRM strategy.
AirAsia has currently adopted information technologies strategically to integrate the operations and coordinate all the business and management functions. The followings are few system implementations that AirAsia has done in its marketing and sales activities as well as operation activity in the value chain.
Yield Management System (YMS)
Anticipates and reacts to the behaviour of customers to maximize the revenue - taking into account the operating cost and aids AirAsia to optimize prices and allocate capacity to maximize the expected revenues by 2 levels:
a) Seat – Seats are available at various prices in different points of time. A reservation done at a later date will be charged more than the one done earlier for the same seat
b) Route – By adjusting prices for routes / destinations that have a higher demand when compared to others.
Results increased revenue (3-4%) by taking advantage of the forecast of the high / low demand patterns, lower prices as YMS has aided AirAsia to increase the revenue by offering higher discounts, more frequently during off-peak times while raising prices only marginally for peak times.
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