CRM – Singapore Airlines

Presentation by

Shaifali (20)

Siddarth (46)

Aarti (04)

Sunil P (47)

Jignesh (31)

Renuka (58 )

Case Findings•Singapore government a major stake holder in SIA• SIA sets up SATA (Singapore airport terminal services) to provide ground service • SATA specialized in training staff•Won many awards for service standards (airline of the year in 2003, best economy class, best first class)

Case Overview

• SIA role model for ‘Service’• Takes full responsibility for air crash in Taiwan

compensating 425,000$ to 81 families

• Aim is not only to satisfy customers but to delight them• First to initiate focus on customer service in airline industry•Tops list of international airlines in categories such as safety & trust, customer service and food•Capacity to command a premium because of exceptional services

Case Findings• Committed to operate young and modern aircrafts – average age below 6 years; competitors aircrafts aged 12-15 years• Depreciated aircrafts in 10 years as compared to others who did the same in 15-20 years• Resultant – better aircrafts with modern facilities• Reduced maintenance costs, more fuel efficiency & less prone to breakdown• Ordered Airbus 340-300E – ‘ quietest cabin in the sky ’ nick named ‘ star of the sky ’

Case Findings• Generated culture of quality service in the organization• Involved developing of a shared vision of excellence among all employees• Pride, passion and motivation resulted in exceptional performance• Employees pointed out gaps and shortfalls (rather than customers)• ‘Staff Ideas in Action’ program implemented good ideas and suggestions from employees• During slowdown employees took pay cuts but amount spent on CRM was not lowered

Case Findings• Differentiation strategy – Marketing Icon ‘the singapore girl’• Necessary to create brand association of in-flight and differentiated quality services• What better than the icon of a ‘Singapore Girl’ dressed in traditional singapore dress• ‘SIA : you are a great way to fly’•Singapore Girl advertisement had 50% consumer recall where as that of 40 other airlines put together was about 9.6%

Case Findings• Quality in-flight service• Best food provided with warm smile• SIA passengers treated with personal attention• A passenger who left an unfinished meal without complaining (having some pork mixture) – Stewardess sincerely upset ran back and forth bringing them cookies and crackers from time to time.• Ready to do attitude – going out of the way to satisfy passengers• A chinese couple did not like the food served because they preferred having noodles – from then on every SIA flight had standby instant mix noodles available• First to keep bottled water.

Case Findings• Comfort first – all seats converted to complete bed ( business class)• Inflight entertainment included video games, movies, news and music• Every seat had a phone, in-flight calls free, fax facility etc• Ground Services- flexible checkin services• monitoring of checkin time of each passenger to improvise• check in through fax and telephone• among the first to introduce electronic ticket booking• Frequent flier program – miles redeemable•

Case Findings• Focus on Training• 1 flight attendant for every 22 passengers• cabin crew less than 26 years of age• 3 stage interview process• 4 month rigorous training program – longest in airline industry• Specialized training centers for cabin crew, operations, commercial development and management

Strong service perception backed up by great people

Customer Service Remains the focus

Questions

1. Over the years SIA has gained recognition for its excellent customer service. It stressed innovations in its in-flight and ground services. What role do such innovations play in the success of a company in the service industry…

2. SIA developed a clear company vision of ‘Excellence in Service’ in the organization. It also emphasized the proper recruitment and training of its staff to maintain its service standards. Explain the importance of recruitment and training for the success of a service organization…

Innovation and technology

Competitive edge– Reduced costs– Better Service experience resulting in delight– Safety and Trust

To get closer to customers and attain lasting results– Adaptive to the changing customer needs.– Competitive differentiation

Focus on customer loyalty and profitability– Improve customer loyalty, customer retention and

customer satisfaction.

Recruitment & Training

Optimize relationship with the internal and external customer.

Personality Development Communication Skills Leadership & Change Management Communication Skills

3. When SIA was launched, its managers looked for service differentiation strategy. The creation of the iconic ‘Singapore Girl’ was successful in differentiating the airline from its competitors on the basis of its in-flight service. How can a service organization create differentiation, and how does a differentiation strategy help in success…

4. Compare the customer service and facilities now being offered by Air India in their non stop flight from mumbai to new york with the customer service offered by SIA as per the case

Questions

Differential Strategy

“Differential Strategy call for the develop of a product or service that offer unique attributes that are valued by customer and that customers perceive to be better than or different from the products of the competition.”

Point of Differentiation at SIA

1. Positioning of service excellence & superior quality.2. Developing the Singapore Girl.3. In flight experience (Young Fleet, Entertainment System).4. Cultural value & practice of constant innovating & learning.

Comparison of Airlines – Mumbai to New York

SIA Air India1. Business, First, Executive & Economy

class

2. Best Food & Served with warm smiles

3. Wines are offer to each class

4. Personal attention to all passenger

5. Preferred dish as per customer preference for Business class & First class passenger

6. Instant food packets served

7. Small water bottles offered

8. Comfortable & relaxing sits

9. Entertainment system called “Krisworld”

10. Individual video screen for each passenger

11. Free of charge seat-to-seat calls

12. Fax facilities

1. First, Executive & Economy class

2. Good Food

3. Wines are given only to First Class passenger

4. Personal attention for few classes

5. Same facilities are provided but personal

touch is lacking

6. No such facilities

7. Small water bottles are served

8. Comfortable & relaxing sits

9. Audio video on demand

10. Movies, games, News & Music for each & every passenger

11. Phone, Email facilities for selective class

Questions

5. How does customer service offered by Kingfisher Airlines at present on their domestic flights compare with the customer service offered by SIA as per the case…

6. ‘the relationship is a two way street but service providers have to take the initiative to hand holding in initial years and even afterwards’ do you agree with this statement…

Comparison of SIA & Kingfisher Domestic KINGFISHER DOMESTIC SINGAPORE INTERNATIONAL LEVELS OF SERVICE (In flight & Ground) In Flight Service FIRST CLASS Valet – to collect baggage Best Food served with smiles Exclusive check in Counters at Airport International panel of Chefs Exclusive Coaches International wines in each class Private Lounge at Airport Personal attention on every passenger Plush sleeperette seats Preferred dishes for First Class Laptop & Mobile phone chargers for every seat Water in Evian bottles (due to concern for Latest International Newspapers & Magazines spillage if served in cups) Steam ironing of Jackets Seat conversion to Luxurious Bed 3 course gourmet cuisines for Business Class Freshly brewed Cappuchino coffee Sleeper suits & toiletry kits Desserts Fax facilities, Email & Web services Audio-Video on demand Krisworld entertainment system Radio / Games Writing facilities provided In seat telephones to make calls KINGFISHER CLASS anywhere in world Valet – to collect baggage Exclusive check in counters Comfortable seats with Merino wool blanket Ground Service Salads + Indian & Continental cuisines Monitor every aspect of Customer Desserts Service like Number of times ringing of phone KINGFISHER RED before being answered Hot Filling Food Web reservations Choice of Beverages Direct check In Indian Newspapers & Magazines Web & flexible check in services Comics for children Online Flight Status Baggage tracing system OTHER CUSTOMER SERVICES Frequent Flyer rewards Frequent Flyer Programme Baggage Tracer system Web bookings & Check in Flight Status on Web E-coupons & Feed back directly to Chairman Special care for senior citizens & Unaccompanied children (need to be notified in advance)

Relationship as a 2 way street – providing better service

Build Better Reputation - Key is to provide service & better service

Ensures Customer Retention - Loyalty Enable to Acquire new customers Better Service – Key Differentiator – seen

as tangible benefits to customers Helps to set Service Standards

Service providers to take Initiative

Excellent Service retains customers

Else – competition is intense – Customer dissatisfaction plays the biggest role in Brand / Service switchover

Focus on Customer Service - A strong service reputation supported by great orientation, standards, culture & training makes it difficult for competition to catch up

Questions

7. ‘ in real world one has to exercise extreme caution and politeness in dealing with customers who do not hold great promise’ do you agree …

8. What are your suggestions to SIA for further improving their customer service level?

In real world one has to exercise extreme caution and politeness in dealing with customers who do not hold great promise’ do you agree …

Customer Value Customers – Well informed, Demanding, changing lifestyles Customer Loyalty Cost of building new customer is 7 times more than retaining an old

customer CRM is crucial for the Industry type In buying decisions critical factor is service Customer Lifetime Value 1 bad experience can also lead to brand switch Service – Intangible, People, simultaneous consumption Develops Long term Relationship Helps overcome customer dissatisfaction issues

What are your suggestions to SIA for further improving their customer service level?

Suggestions

Understanding Changing Needs Customer involvement Convenience - Quick & Simplifying

transaction procedure

Thank you