What kind of data would be found a) in the operational CRM system of Singapore Airlines, and b) in the analytic CRM system of Singapore Airlines?
Data found in the operational CRM system of Singapore Airlines
As we have known, a business model describes the rationale of how an organization creates, delivers, and captures value – economic, social, or other forms of value. The process of business model design is part of business strategy as well as the path leading to success. For Singapore airline, business model is the most concern that has been helping the organization to success. We will analyze Singapore airline as one of the leading airlines in region as well as all over the world to see how successful it is and what kind of business model have they been using.
Marketing strategy and operation:
Singapore airline applied many measures in marketing activities. They used the strategies such as:
Building brand name
With identifying clearly orientation, Singapore airline had reached in building brand name. From the outset, SIA decided to apply strategy in locating brand name and service. Innovation, applying science and modern technology, excellent service became main factors in building brand name. SIA always take loyalty in their brand attribute. . Especially SIA always take the lead in adopting many innovations as well as apply many kinds of entertainment on the flight and they always striving to keep the first rank. SIA seen as the first airline which providing “hot meal” as well as the beverage has alcohol and no alcohol. Besides, they also apply the entertainment system; especially the passenger can watch their favorite movie. About science and technology sector, SIA always use the most advanced aircraft and always faithful to the policy about change old aircraft and import the newer type and more modern. The company has always taken the lead in the use of modern aircraft such as Boeing 747, Boeing 777, and in 2006, SIA will be the first to use the Airbus A-380.
“Singapore Girl” image:
The typical image for SIA can be found in staff (both male and female), especially the female flight attendants who always referred to as Singapore Girls has become very popular. In addition, the uniforms of SIA based on the harmonious combination between Malay Sarong and Kebaya , later to become symbol characteristic of SIA.
With applying strategy through use image of Singapore Girls in strategy marketing. It really was an extremely impressive idea and form a subtle brand name. This girl image describes all of values of Orient people and hospitality as well as gentle, elegant and tasteful.
Communicate the message strategy:
Forms to communicate the message of SIA are also carried out consistently as brand name strategy. The main message “Singapore Airlines – A Great Way to Fly “is always fully present in the form of advertising in the media, besides the selective advertisements on television has brought the value as well as emphasis of quality aspirations of the brand. All the other communication messages are conveyed through the images of the Singapore Girl under topic and different contexts.
Vision of Singapore Airline:
Singapore Airlines has responsibility not only to be an excellent company, but also to be an excellent citizen of the world by enhancing the lives of the people. With that aim, SIA has made many commitments to society and community, and the health and welfare of country’s citizens. With this goal in mind, they’ve also made a strong commitment to preserving the environment – and our world for future generations.
Culture and entrepreneurship:
SIA is not a small company with few staffs. We are multi-national organizing with more than
28,000 staff located in cities and subsidiaries throughout the world. That’s the reason we have been facing cultural problems because of multinational staffs. Everyday all our staff works together to produce a seamless and positive customer experience. All of them must respect each other as well as their cultures and using international behavior in daily operation such as shaking hand. Besides, in the pilot pool alone more than twenty-five countries are represented.
To keep communicating flow between staffs as well as to help staffs understand about company issues, SIA publishes its magazine monthly. Beside regular dialogue is organized to link management and staffs. To motivate contributing new ideas to improve SIA, we implement “Staff Ideas in Action” scheme for all staff participation. Finally, we still provide forum for evaluation of hard results in sales, markets, yields and customer satisfaction levels.
We are 5-star airline. Our planes are designed with video, spacious seats and many destinations. But basically at the bottom-line, we are trying to give the best services as we can. We train all staff to keep friendly and smile all the time. They must make customer feels comfortable and content in such circumstances. We want to build up public personification about a high quality of our service.
Continuing to train:
We understand that customers demand has been rising daily, we still understand that staffs knowledge is our core to success. That’s why we have 4 training centers (Cabin Crew, Flight Operations, Commercial and Management Development) for inspiring and demanding educational programs. The forms of study might be in classroom, on the job or through full scale simulations.
Career Development and rewards:
SIA staff is regularly appraised for performance, and potential. High-flyers are identified early and given every opportunity to learn and grow. Senior managers are uniquely well developed with frequent rotations amongst top positions in the company. This leads to a management team with great breadth and depth, with a shared understanding of “the big picture,” with a commitment to do what’s best for the customers and the business, not just for one or another department.
If any staff performs well, they will be awarded by many ways such as rising pay, giving some days off or a promotion. We want staff to try their best, want them to understand that the organization appreciates their contribution and will award them fairly.
We offer 63 destinations worldwide:
Asia: East, west, north and south Asia
Europe: Denmark, France or England, etc
America: North America and South America
Oceania: Australia and New Zealand
In these country destinations, SIA flights might be adjusted. There are some terminated destinations during financial crisis in 2007. Besides, other regional economic crisis might affect to SIA flight routines as well.
Besides, we still work with our code share partners to give the best. Hence, customers get to enjoy the convenience of enhanced frequency and greater choice of as one SIA product offering.
We offer high service:
Singapore Airlines (SIA) management quickly realized that the only thing to differentiate them self from competing airlines was is in providing on-air services for passengers. First, SIA must understand the needs and wants of customers. They come from different segment groups with different interest, that’s why understand these factors will help us to see the opportunities as well. Besides, we must make customers understand that travel is not just moving place to place. We must create a comfortable and pleasured way as a differentiation strategy.
Secondly, SIA will take place providing services such as free drinks, headphone and other amenities, etc. By the time, we are trying to go further as well. And SIA has been trying to make service as a culture through the whole organization.
Current and future business issues:
Management Schedule flight
Running in airlines business is quite complex, furthermore when The Airlines scheduling the time flight. Not only required on the million investments but also requires having enough passenger and crew cabin. There is a problem when the Airlines scheduling the time, first must be organize what time is possible departure time from Singapore to other country and it not just one destination but also must organize the time schedule with all destination country. Second, the time in order to customer demand for each destination. Thus, the time must be schedule with both of countries.
As a high value in service, SIA has upgraded innovation into the operational system by international network of sales and air staff, agent and subcontractors (Asia case, 1991). Integrating in Technology infrastructure, SIA sign an agreement with IBM to meet a goal of focusing core business, efficiency of cost management, keeping in high standard service and job satisfaction (CRM Today, 2004). New technology can also bring benefit for passenger who can continue work along journey. Integrating in technology bring SIA makes competitive advantage.
Safety and Policies Issues
From the information of accident of Qantas that currently was happening at Batam Indonesia, SIA frequently and reassuring announcement. The same engine Air bus A380 with Qantas Airline make customer of SIA worry about it.
Other safety issue is about Terrorism. SIA policy under the Singapore government’s policy decisions which all luggage must be check to avoid explosive and ensure that every suitcase in accordance with their owner
All the issues above would be affected in financial issue. High standard service and customer satisfaction gain in financial cost. Inability of Manage the issues above could be shakes SIA. Based on the issue of Qantas aircraft accidents, Singapore Airlines should check and make sure the engine is a safe aircraft. Therefore, the cost of checking surged as should double check the machine.
Singapore airline has succeeded in competing with other airlines (business week, 2010). Singapore airlines focus on innovation into the operational. Based in the succeed, other airlines such as Malaysia airline, Thai airline, Cathay Pacific airlines and other airlines tend to imitate what have been done in Singapore airline and become succeed. Thus, Singapore airline will be threatening.
Turn on to foreign country
Due to maintenance a service to customer, SIA is more selective for recruiting employee. Those of issue will be affected in salary. In Singapore the rising salary is quite rapidly, the way hiring in good employee it also will spend in high salary and compensation. Based on the issues, will be imposed SIA turn on to foreign country
Global alliance issues
The economics of United State is shaking whereas Singapore Airlines have an alliance with United State. This condition will be found a difficult to have Atlantic routes and it become a threat for SIA. Northwest and Delta announced their long Awaited merger this year in April, a combined enterprise worth $17.7 billion that from day one will serve 390destinations in 67 countries (Commercial appeal news, April 2008). Based on those information, probably SIA facing in bankruptcy.
Hence, with clearly business model as well as apply correct strategy, Singapore Airline is really successful in develop their brand name. There are 3 point which is the superior of Singapore Airline are truly excellent service, constant innovation and technological exellence.
Data found in analytic CRM system of Singapore Airlines
Analysis of Customer Relationship Marketing Strategies
Singapore Airlines value proposition
"The day we stop having visions or objectives to work to, then that is the day we atrophy. I can assure you we have no intention of doing that’’.
The above phrase was mentioned by SIA’s CEO to further support that the organisation’s value proposition is to fully concentrate on creating a phase of customer experience especially onservice excellence and innovation, and in addition consistently striving for effectiveness.Throughout the research, averagely all journalist has come with similar conclusion thatSingapore Airline is so successful presently due to their capability and creditability to createcustomer relationship bonding SIA. This intangible action provides excellentservice that customers perceived value in using their traveling services throughout their journeystarting from merely a customer’s intention of purchasing tickets online till they depart.
As a Customer Centric Organisation
Customer-Centric organisations are defined as an organisation who is cultured to learn,achieving and exceed the requirements of customers (Sheth, Sisodia and Sharma, 2000). Thesetypes of cultured organisations will value and treat each and every customer they gainedimportantly. Their customers are highly valued by the organisation to satisfy and exceed theirsatisfaction level. It will be their mission to constantly innovate and improvised their qualityservice standards to achieve customer satisfaction. Better yet, to exceed and gain surplussatisfaction.
Joseph Pine and James Gilmore have observed 4 types of customer experiences. However, to beable to relate it to Singapore Airlines relationship marketing, only Esthetic Experience can berelated. Esthetic experience can be described as involving customer delight in an improved,extraordinary physical configuration. The customer delights is inactively acknowledging or "just being in a setting" of the business. For example, visiting an Art Gallerycreates Esthetic Experience to customers.
SIA is consistently innovating in improving flight attendants abilities in providing product andservices on behalf of the organisation’s reputation are the key drivers. The organisation observesthat satisfied personnel will offer better services to customers, which established an overallimproved customer satisfaction feedback.As the scenario was given on previous page, esthetic experience was created when customersvisits an art gallery. To apply this concept to SIA’s services, it is the same as the painter musthave the suitable emotion to paint a quality painting that will then be hung in their gallery for preview. Therefore, SIA has trained their employees well who will be directly handle customerson behalf of the company’s image and that customers are just enjoying the art previewed and prepare by SIA’s employees and flight attendants.
The Customer Pyramid
The Customer Pyramid is a framework that requires a system that is able to segment customersinto alternative categories. It should be able to recognized, convince, served, and anticipated toconvey differential levels of revenue benefit. With thecomplete data collection, it will be segregated into four different levels that represent different
tiers. Through this framework, an organisation will be able to justify the level of relationshipwith their customer raging from poor to good relationship. The utilization of the CustomerPyramid enables an organisation to boost its profits as it disposes not profitable customers and pushing lower-tiered customers as higher levelled customers through customer focus on andefficient methods.Singapore Airlines has been researching on their perspective of service excellence. In order toconvert a new potential customer to loyal customer, SIA has to pay consistency in theircustomization flexibility. As Mr Yap Kim Wah, SIA’s senior vice president mentioned that theorganisation wants to create the “Wow Effect”, which keeps customers curious and anticipatedwith surprises like new things (Wirtz and Johnston, 2003). And most of the time, manycustomers will not see it coming until they experience it. In accordance with increasing loyalcustomer, SIA enhanced their customer feedback system from their employees regardingcompetition airlines and also in regard about their customer’s negative and positive feedbackmatters a lot to the organisation to conduct their analysis. This is the process that SingaporeAirline has to go through in order to attract more potential customers.
Strategies of SIA’S Customer Retention
Customer Relationship Management is defined as the progression of carefully handling preciseinformation about customers and all customer “touch point” to maximize the level of loyalty. Singapore Airlines utilizes the advantage of technology to boost theefficiency of their customer retention strategy.
SIA invests the seats in A380 which is known as the widest seat available in an aircraft industrywhich comes in the simplest design. It benefits in a way to Singapore Airlines that it runs in along term low-cost maintenance with nearly zero chance of facing defect in those seats.
Secondly, SIA takes their management in educating and training their employees seriously.According to the journal research by Heracleous and Wirtz, Singapore Airlines trains their flightattendant twice more than other airline industries. It is a fact that it is more costly; however it ismore important to spend more on their staff rather than risking the rate of offended customers.
Lastly, the most interesting part is to found out that SIA ia the first airline who built their ownwine cellar. To satisfy their premium customers, it is essential for them to keep vintage wines forat least 7 years before serving to customers during the flight.This “wow effect” has surely differentiate Singapore Airlines with its competitors and then to attract even more potentialcustomer after knowing this fact.
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