Even though most of our blogs are touched upon the idea of a CRM system, this article is interesting because of the businesses it intends to target. While most Customer Related Management systems target large businesses with a huge customer database and an even larger budget, there is finally an updated CRM system that focuses specifically on small and medium sized businesses. Idea2 is the resolution, a cloud-based CRM solution that focuses on improving other CRM systems that may not be effective for these businesses (1). According to our textbook, a CRM is defined as a system that uses information about customers to gain insights into their needs, wants, and behaviors in order to serve them better (2). Focusing on the definition alone, the CEO of Idea2 understands the risk of implementing a system that may not work for certain companies, but also emphasizes the need for an effective system. Grace Schroeder even says “with so many CRM implementations falling short, it is important to select a partner can deliver what you need – and not just what they have” (3). That is why the improvements that Idea2 has will be beneficial to companies that implement it, because it not only has what companies want, it goes beyond that.
One improvement that Idea2 has is an “intuitive, role-specific interface” and an information dashboard (4). These features allow companies to export data more effectively and have more information than normal CRM systems. These focuses also improve the way users can actually apply the information in the organization that they’re working in. Another improvement that the Idea2 CRM has is syncing. Unlike traditional CRM systems that sometimes cause isolation of information, lack of visibility and ineffective use of the information produced (which we've all learned), Idea2 is able to sync information with various data sets, rather than just one. This syncing allows a company to better understand their customers, the utmost important factor or a CRM system.
With the improvements in place, it is obvious that the Idea2 CRM system has multiple benefits. Idea2 is said to create a rapid return on investment and also ties together the company’s success to its operation (5). Personally, Idea2 seems that it does a better job of getting the information and relating it to one another. This can be crucial, because the more you know about a customer, the more successful the company will be. Idea2 seems like a step up from a typical CRM system. It involves a lot more customization. The ability to sync different data sets will allow the company to target specific groups of people. Every customer is not the same as the other, so the ability to do this will prove to a company that the implementation of this system is worthwhile.
The last thing that really caught my eye regarding Idea2 was the fact that it could be purchased in three different packages. The first one, Idea2Company, is the simple CRM system “that supports contact, partner, lead, prospect and customer management integreated with issue tracking” (6). Idea 2Custom is a step up from that, focusing more on unique attributes that the company may focus on. In the last package, Idea2Unified goes beyond customization and focuses on productivity and increasing it. This system links all the other system together. The ability to chose what system to purchase allows a company to customize their decision of implementation even more, which I find very promising to a company who is unsure of a CRM system.
Overall, I believe that this system is finally a CRM system that all companies can use, but it is going to be most effective for smaller and medium sized businesses because the system is focused on them. This will relieve companies that are unsure if they should implement a system because this CRM is focused mainly on them.
See Article:
“Idea2 Announces Cloud-Based CRM Solutions for Growing SMBs” TMC.net, March 11, 2010, http://www.tmcnet.com/channels/crm-solutions/articles/78300-idea2-announces-cloud-based-crm-solutions-growing-smbs.htm (accessed March 14, 2010).
References:
(1) “Idea2 Announces Cloud-Based CRM Solutions for Growing SMBs” TMC.net, March 11, 2010, http://www.tmcnet.com/channels/crm-solutions/articles/78300-idea2-announces-cloud-based-crm-solutions-growing-smbs.htm (accessed March 14, 2010).
(2) Stephen Haag and Maeve Cummings, Management Information Systems for the Information Age, 7th ed. (New York: McGraw-Hill, 2008), 502.
(3) “Idea2 Announces Cloud-Based CRM Solutions for Growing SMBs” TMC.net, March 11, 2010, http://www.tmcnet.com/channels/crm-solutions/articles/78300-idea2-announces-cloud-based-crm-solutions-growing-smbs.htm (accessed March 14, 2010).
(4) “Idea2 Announces Cloud-Based CRM Solutions for Growing SMBs” TMC.net, March 11, 2010, http://www.tmcnet.com/channels/crm-solutions/articles/78300-idea2-announces-cloud-based-crm-solutions-growing-smbs.htm (accessed March 14, 2010).
(5) “Idea2 Announces Cloud-Based CRM Solutions for Growing SMBs” TMC.net, March 11, 2010, http://www.tmcnet.com/channels/crm-solutions/articles/78300-idea2-announces-cloud-based-crm-solutions-growing-smbs.htm (accessed March 14, 2010).
Wednesday, March 17, 2010
Tuesday, March 16, 2010
Loyola Invests in Ridley!
Loyola University Maryland opened the Ridley Athletic Complex on March 13, 2010. Fifteen years in the making, the stadium has a six thousand seat grandstand with lights, synthetic turf field, video scoreboard, practice field, weight room, locker room with sixty-five inch flat screens for the home team and visitors, offices for the coaching staff, press, presidential and VIP boxes and concession areas. One can’t help but be in awe at the sight of this “modern cathedral” design “miniature replica of Camden Yards”. But, considering Loyola University Maryland as a business did or will this sixty-two million dollar investment be profitable to the university in the long run?
As a university, Loyola aims to retain its current students while attracting perspective students. In my opinion, if this is the university’s focus in building Ridley, then, of course, the stadium will serve its purpose. I mean, what’s a better way to attract students then to give them an exquisitely designed playground that creates an atmosphere for appropriate campus spirit. School spirit is something Loyola students have an abundance of. The entire week prior to the stadium’s opening was spirit week, and green and grey were everywhere on campus. On game day, despite the rainy weather, Loyola students showed up in record numbers to support the men’s lacrosse team as they played Duke.
Despite the attraction and fun Ridley creates for the students, when former president Rev. Harold Ridley proposed the idea almost fifteen years ago, he had a specific vision for the stadium. He was determined to make athletics an important part of the university, and this stadium does just that. Loyola’s coaches and athletes have expressed that there probably isn’t anything like Ridley in the country and they all agree that there isn’t a nice place to play Division I lacrosse. Logistically, Ridley serves its purpose because Loyola athletes and students are rapidly outgrowing campus and Diane Geppi- Aikens field. There was a need for more adequate facilities for the athletic teams, so Ridley is a good win for this sports minded, athletic campus. Rev. Ridley also had in mind the academic side of campus life. E knew that this new stadium would free up the almost four acres of Diane Geppi- Aikens field in the middle of campus for future academic buildings. (Or, in my opinion, perhaps housing or parking, since students are current running out of both.)
Ridley Complex does create another major advantage for Loyola. Ridley puts Loyola on an equal playing field” with other big time athletic schools like Syracuse, whose Carrier Dome is now being compared to Ridley Athletic Complex. The Greyhounds are unabashedly giddy and immensely excited about this new stadium, and those who saw it on March 13, exclaimed that it exceeded their wildest expectations.
Coming to the monetary aspect of this project, Ridley is by far the largest capital project in the history of Loyola. At one point during production, current president, Father Linane question if the school could afford to spend that much money on an athletic complex.
For my group’s project, we are considering Loyola as a business that aims to retain its customers and acquire new customers; in this case, the customers would be the students. The new stadium plays a key role in our discussion because it can be consider as a business tactic for customer attraction and retention. Student athletes are more inclined to remain with Loyola, while perspective students, athletes or fans, are given more incentive to choose Loyola, if not for the attraction to the physical beauty of the stadium, then for the attraction to the prestige and honor the stadium brings to the university. For 62 million dollars, is it worth it? In my opinion, what Loyola would gain from this stadium will be worth much more than its hefty price tag.
As a university, Loyola aims to retain its current students while attracting perspective students. In my opinion, if this is the university’s focus in building Ridley, then, of course, the stadium will serve its purpose. I mean, what’s a better way to attract students then to give them an exquisitely designed playground that creates an atmosphere for appropriate campus spirit. School spirit is something Loyola students have an abundance of. The entire week prior to the stadium’s opening was spirit week, and green and grey were everywhere on campus. On game day, despite the rainy weather, Loyola students showed up in record numbers to support the men’s lacrosse team as they played Duke.
Despite the attraction and fun Ridley creates for the students, when former president Rev. Harold Ridley proposed the idea almost fifteen years ago, he had a specific vision for the stadium. He was determined to make athletics an important part of the university, and this stadium does just that. Loyola’s coaches and athletes have expressed that there probably isn’t anything like Ridley in the country and they all agree that there isn’t a nice place to play Division I lacrosse. Logistically, Ridley serves its purpose because Loyola athletes and students are rapidly outgrowing campus and Diane Geppi- Aikens field. There was a need for more adequate facilities for the athletic teams, so Ridley is a good win for this sports minded, athletic campus. Rev. Ridley also had in mind the academic side of campus life. E knew that this new stadium would free up the almost four acres of Diane Geppi- Aikens field in the middle of campus for future academic buildings. (Or, in my opinion, perhaps housing or parking, since students are current running out of both.)
Ridley Complex does create another major advantage for Loyola. Ridley puts Loyola on an equal playing field” with other big time athletic schools like Syracuse, whose Carrier Dome is now being compared to Ridley Athletic Complex. The Greyhounds are unabashedly giddy and immensely excited about this new stadium, and those who saw it on March 13, exclaimed that it exceeded their wildest expectations.
Coming to the monetary aspect of this project, Ridley is by far the largest capital project in the history of Loyola. At one point during production, current president, Father Linane question if the school could afford to spend that much money on an athletic complex.
For my group’s project, we are considering Loyola as a business that aims to retain its customers and acquire new customers; in this case, the customers would be the students. The new stadium plays a key role in our discussion because it can be consider as a business tactic for customer attraction and retention. Student athletes are more inclined to remain with Loyola, while perspective students, athletes or fans, are given more incentive to choose Loyola, if not for the attraction to the physical beauty of the stadium, then for the attraction to the prestige and honor the stadium brings to the university. For 62 million dollars, is it worth it? In my opinion, what Loyola would gain from this stadium will be worth much more than its hefty price tag.
Primary Source: Loyola to Open New Lacrosse, Soccer Facility Today
The Shift from Software to the Internet
The article, “Is This the End of Enterprise Software,” explains that “today, realtime information is possible, which has changed everything: How people consume information has changed, how people learn things about each other has changed, and how people stay current has changed. Most of all, our expectations around immediacy have changed."[1] Companies today have to change in order to succeed in a world that is becoming more technologically based every minute. With real-time software, such as Facebook, companies need to realize that they have the opportunity to update their information constantly. People have become to expect fast-paced technology and service. Society today lives at high speed, relying on fast-food stores for dinner and drive-through supermarkets for groceries. People are constantly using their phones and Blackberrys to keep in constant connection with friends and family or to just check the stocks. We are living in a world that focuses on realtime. With Facebook and Twitter, a person can keep the world updated on their lives by the second. What good is an ERP system that does not work in realtime? How is an ERP system that does not operate in realtime supposed to keep current in the constantly changing likes and dislikes of the consumer?
In order to have ERP systems that work in realtime, the article suggests for companies to start to move away from the data warehouses and instead retreat to the Internet. Cloud computing is allowing for tons of information to be gathered and shared to a large quantity of people. Beyond cloud computing, platforms are beginning to form. “These new cloud platforms will unleash unprecedented innovation and creativity throughout all areas of business and the web, with thousands of new apps being created that will revolutionize IT.”[2] The platforms allow all those with access to a certain program to build upon others ideas as well as their own. The article brings up the fact that if only Apple made its own apps, there would be 13 instead of 13,000. The National Institute of Standards and Technology defines a cloud platform as being a way for the consumer to “deploy onto the cloud infrastructure consumer-created or acquired applications created using programming languages and tools supported by the provider. The consumer does not manage or control the underlying cloud infrastructure including network, servers, operating systems, or storage, but has control over the deployed applications and possibly application hosting environment configurations.”[3] Companies do not own the cloud platforms but are able to gain knowledge and ideas from external sources working in realtime.
Without the ability to be constantly updating one’s database, resources, and knowledge, a company would not be able to compete in the world today, where all customers are focused on immediate gratification. I think it is a great idea for companies to start to use the Internet more and more frequently. Today’s society is so computer-based and Internet-dependent that many employees will be able to learn how to use an Internet-based system rather than an external database warehouse or ERP system. I think it would be beneficial, both technologically and financially, to start creating more ERP systems on the Internet.
References:
[1] Bill McColl, “Is This the End of Enterprise Software?” SOA World Magazine (2010), http://in.sys-con.com/node/1318882
[2] McColl, “Is This the End of Enterprise Software?”
[3]Peter Mell and Tim Grance, “The NIST Definition of Cloud Computing” The National Institute of Standards and Technology, http://74.125.113.132/search?q=cache:mt0-6VKV2G0J:csrc.nist.gov/groups/SNS/cloud-computing/cloud-def-v15.doc+define+cloud+platform&cd=10&hl=en&ct=clnk&gl=us
Saturday, March 6, 2010
The Importance of Direct Domain Names
All companies want to increase their web traffic. In an article titled “Herding Web Traffic Through Direct Domain Navigation” by Jeremiah Johnston, there is a discussion about the importance of direct domain names for products. Direct domain navigation is defined as “descriptive domain names that are used by online customers to find products, services or information on the internet in one step” (1). This subject matter is growing in importance and deals with a category called electronic commerce, commonly referred to as e-commerce. E-commerce is “The buying and selling of products and services by businesses and consumers over the internet” (2). Johnston’s article cites that “Despite economic troubles, e-commerce continued to gain positive momentum throughout 2009.” More importantly, there is a belief that using a direct domain name strategy will increase a company’s marketing and web traffic. Some companies that have been successful with this strategy include Calvin Klein, H&R Block, as well as Johnson & Johnson. These companies respectively employ the following domain names: www.underwear.com; www.taxcut.com; www.baby.com. It is clear that the domain names relate to the products that these companies sell. Utilizing such common terminology to market a brand increases product exposure.
It is apparent that simple domain names will lead customers to a particular product and company. Personally, I believe a company must be crazy not to implement a direct domain name strategy. The internet is a fast pace environment with numerous amounts of information and consumer traffic. Organizations must learn that this is a great way to channel customers to particular products. For example, Johnston discusses www.vodka.com. The author illustrates a scenario in which a consumer is interested in buying vodka and types in this web address. Now the Russian vodka company that is owns this domain name has captured a consumer in the vodka market.
Even though I believe that direct domain names are beneficial in building a larger customer base, there seems to be a minor problem. Taking a look at Johnston’s vodka example illustrates that there are only so many terms to describe vodka. Also, more than one company cannot use www.vodka.com as its web address. Essentially, there is the issue of multiple companies in the same industry getting a common domain name. But this problem can be mitigated through advertising on television. Johnston discusses examples from the Superbowl. Doritos advertised on television and utilized three creative domain names which interested consumers could visit. Through this example one understands that direct domain names do not need to be common terms such as underwear, taxcut, baby, and vodka. In reality, direct domain names need to be “direct,” meaning they have to get the consumer to the product that is desired.
There is a belief that “businesses have neglected the most effective marketing tool that they have which is the strategic planning of their internet presence” (3). Direct domain names solve this problem. The internet is a potential goldmine. When companies start implementing a direct domain name strategy their profits are sure to rise while their brands grow.
See Article:
Jeremiah Johnston, “Herding Web Traffic Through Direct Domain Navigation,” Ecommerce Times, February 26, 2010, http://www.ecommercetimes.com/story/69430.html (accessed February 28, 2010).
References:
1 Dotcom Agency, Direct Navigation Domain Names, http://www.dotcomagency.com/sitepages/directnav.asp (accessed February 28, 2010).
2 InvestorWords.com, Electronic Commerce, http://www.investorwords.com/1678/electronic_commerce.html (accessed February 28, 2010).
3 Laura Lake, Internet Marketing Strategy: Why Is It Important?, About.com, http://marketing.about.com/cs/internetstrategy/a/aanetmarketinga.htm (accessed February 28, 2010).
It is apparent that simple domain names will lead customers to a particular product and company. Personally, I believe a company must be crazy not to implement a direct domain name strategy. The internet is a fast pace environment with numerous amounts of information and consumer traffic. Organizations must learn that this is a great way to channel customers to particular products. For example, Johnston discusses www.vodka.com. The author illustrates a scenario in which a consumer is interested in buying vodka and types in this web address. Now the Russian vodka company that is owns this domain name has captured a consumer in the vodka market.
Even though I believe that direct domain names are beneficial in building a larger customer base, there seems to be a minor problem. Taking a look at Johnston’s vodka example illustrates that there are only so many terms to describe vodka. Also, more than one company cannot use www.vodka.com as its web address. Essentially, there is the issue of multiple companies in the same industry getting a common domain name. But this problem can be mitigated through advertising on television. Johnston discusses examples from the Superbowl. Doritos advertised on television and utilized three creative domain names which interested consumers could visit. Through this example one understands that direct domain names do not need to be common terms such as underwear, taxcut, baby, and vodka. In reality, direct domain names need to be “direct,” meaning they have to get the consumer to the product that is desired.
There is a belief that “businesses have neglected the most effective marketing tool that they have which is the strategic planning of their internet presence” (3). Direct domain names solve this problem. The internet is a potential goldmine. When companies start implementing a direct domain name strategy their profits are sure to rise while their brands grow.
See Article:
Jeremiah Johnston, “Herding Web Traffic Through Direct Domain Navigation,” Ecommerce Times, February 26, 2010, http://www.ecommercetimes.com/story/69430.html (accessed February 28, 2010).
References:
1 Dotcom Agency, Direct Navigation Domain Names, http://www.dotcomagency.com/sitepages/directnav.asp (accessed February 28, 2010).
2 InvestorWords.com, Electronic Commerce, http://www.investorwords.com/1678/electronic_commerce.html (accessed February 28, 2010).
3 Laura Lake, Internet Marketing Strategy: Why Is It Important?, About.com, http://marketing.about.com/cs/internetstrategy/a/aanetmarketinga.htm (accessed February 28, 2010).
Wednesday, March 3, 2010
How Businesses Can Take Advantage of Cloud Computing
One article that I researched lays out the need for cloud computing beautifully, stating “Cloud computing comes into focus only when you think about what IT always needs: a way to increase capacity or add capabilities on the fly without investing in new infrastructure, training new personnel, or licensing new software”(1). Cloud computing is all the rage these days; at least it seems from scouring the Internet. Few people know what it actually is and how it works. It is much like the client-server model, but is done over the Internet. For the most part, it is changing IT infrastructure needs by making IT a service and outsourcing from an internal part of any company to specialized IT companies on the Internet. Eric Knorr and Galen Gruman say that the seven different ways of cloud computing are: SaaS (software as a service), utility computing, web services, platform as a service, managed service providers, service commerce platforms, and internet integration. The question now is: what advantages/disadvantages does cloud computing hold?
The first advantage lies in the outsourcing part of cloud computing. If businesses end up outsourcing their IT infrastructure, it saves money (hopefully they would decide to cloud compute only if it cut costs) and possibly time as well. With all their applications, databases, etc over the Internet, there’s no need to have huge servers consuming energy and space at your office. That’s all provided by the company you’re outsourcing to. Furthermore, you need less IT staff. If you have a problem, you contact the company that runs your systems. However, some businesses might find that the way they have their IT infrastructure set up is less costly than cloud computing. As a result of this knowledge and research, the company should stay in its current format. Maybe they do a little research into different divisions of the company and identify where they can cut costs by using cloud computing. On further note, John Weinman says that another advantage related to outsourcing is “agility: Resources and services that are immediately available for on-demand use clearly enhance agility over months-long engineering, procurement, and installation efforts” (2). Another product of outsourcing is specialization. As companies become specialized in their field such as, cloud computing, CRM services, ERP services, and other Internet based services, they get better at what they do and understand their field better. In this way, companies might not even need to have their own IT department at all. It will be outsourced to other companies that know how to run an IT staff with efficiency and precision. The downside of this is that companies might feel like they don’t have their own hands on their information. The personal touch is lost with their data and they might be scared as to who might have access to their data.
Another advantage of cloud computing is that if a small company wants an ERP or CRM system, it does not need as huge of a change within the business as previously conceived. In class, we discussed how it took years to install ERP and CRM systems and to take advantage of their features. With cloud computing putting this as a service, a company can do it all online. There would be no installation of servers and a database program into the whole network. The website that would run your system would be the caretakers of all the hassle. Lag-time between installation and running any system would be greatly decreased. Furthermore, interoperability may be increased exponentially if companies use the same systems over cloud computing. The only disadvantage from this point of view is actually getting the data online. The amount of data entry could be time consuming. In addition to this, Weinman points out that, “The key reason has to do with the usage-based pricing paradigm of cloud services. The important insight here is that even if cloud services do cost more when they are used, they cost nothing when they aren't used. This is a very different story than the enterprise data center, where owned resources continue to cost money whether they're used or not” (2). Instead of having the fixed cost of the entire infrastructure, it becomes a variable cost depending on how much you use it. Overall, the advantages of a business using cloud computing seem to outweigh the disadvantages. Look for this to greatly affect the information technology field, as well as how business use databases, ERP, CRM and SCM systems.
References:
1. Knorr, Eric, Gruman, Galen. “What cloud computing really means,” InfoWorld, April 7, 2008, http://www.infoworld.com/d/cloud-computing/what-cloud-computing-really-means-031, (accessed March 3, 2010).
2. Weinman, John. “Time to do the math on cloud computing,” InformationWeek, March 2, 2010, http://www.informationweek.com/news/services/saas/showArticle.jhtml?articleID=223101216 (accessed March 3, 2010).
Tuesday, February 16, 2010
"Taking Airline CRM Efforts to New, Higher Altitudes"
Customer relationship management, or CRM, is becoming increasingly important in service-oriented industries. The airline industry is no exception, showing particular growth in its CRM efforts after September 11, 2001 . There was no longer a steady stream of eager travelers to sell to, causing airlines throughout the industry to change the way they do business. Rather than selling a commodity, airlines began selling a service, and implemented programs such as the frequent flier program (FFP) . The institution of frequent flyer programs allowed for the collection of data on customers like never before, but now the need for improved IT systems is necessary to utilize this data to its full potential.
I think that this article presents an important concept regarding data collection and information technology. Well-organized and researched CRM provides a competitive advantage to a business, allowing differentiation and focus (segmentation), top-line initiative, and growing the organization . The goal of CRM is “treating customers better, understanding their needs and wants, and tailoring offerings in response.” . As such, using collected data applied with an effective IT system is an excellent way to improve CRM, and in turn the success of the company as a whole.
Airlines have been able to collect a great deal of data regarding their customers, however this information is worthless if it is not used properly and accessible to those whom it would be the greatest advantage. In his article, Higgins provides the example of a customer who previously had a bad experience with an airline. Should the personnel checking the customer into their next flight know this, they can compensate the customer and build on that relationship . Without access to that information, however, airline personnel are left without tools which can help them immensely, especially considering that they are the only personal contact with customers.
Additionally, the improved organization and implementation of data on the corporate level allows airlines to make changes on a grander scale to assist their customers. Higgins also mentions the possible further segmentation of customers with the use of collected data on customers, which would allow for a more personalized experience for customers and more effective marketing. Currently, the airline industry focuses of two major segments, vacationers and business travelers . There are many more customer segments to focus on though, such as college students or more specifically families with children, or young couples. With all of the data that has been collected with FFPs, airlines have the ability to be very specific when targeting different segments, which can greatly benefit its customer base.
The fact of the matter is that airlines have a great deal of information at their disposal, but need the proper IT system in order to use it effectively. Using their collected data more effectively will allow airlines within the industry to appeal to customers more directly, build customer relationships, and eventually build on their top line. Growth in the customer base and revenues of the company allow for more general, corporate growth of the company, in this case the airline. CRM allows the company to improve, and IT allows for the improvement of CRM.
John Higgins, “Taking Airline CRM Efforts to New, Higher Altitudes,” ECommerce Times, February 1, 2010, http://www.ecommercetimes.com/story/69239.html?wlc=1266367417
Ibid.
Stephen Haag and Maeve Cummings, Management Information Systems for the Information Age, 7th ed. (New York: McGraw-Hill, 2008), 71.
Stephen Haag and Maeve Cummings, Management Information Systems for the Information Age, 7th ed. (New York: McGraw-Hill, 2008), 72.
John Higgins, “Taking Airline CRM Efforts to New, Higher Altitudes,” ECommerce Times, February 1, 2010, http://www.ecommercetimes.com/story/69239.html?wlc=1266367417
Ibid.
I think that this article presents an important concept regarding data collection and information technology. Well-organized and researched CRM provides a competitive advantage to a business, allowing differentiation and focus (segmentation), top-line initiative, and growing the organization . The goal of CRM is “treating customers better, understanding their needs and wants, and tailoring offerings in response.” . As such, using collected data applied with an effective IT system is an excellent way to improve CRM, and in turn the success of the company as a whole.
Airlines have been able to collect a great deal of data regarding their customers, however this information is worthless if it is not used properly and accessible to those whom it would be the greatest advantage. In his article, Higgins provides the example of a customer who previously had a bad experience with an airline. Should the personnel checking the customer into their next flight know this, they can compensate the customer and build on that relationship . Without access to that information, however, airline personnel are left without tools which can help them immensely, especially considering that they are the only personal contact with customers.
Additionally, the improved organization and implementation of data on the corporate level allows airlines to make changes on a grander scale to assist their customers. Higgins also mentions the possible further segmentation of customers with the use of collected data on customers, which would allow for a more personalized experience for customers and more effective marketing. Currently, the airline industry focuses of two major segments, vacationers and business travelers . There are many more customer segments to focus on though, such as college students or more specifically families with children, or young couples. With all of the data that has been collected with FFPs, airlines have the ability to be very specific when targeting different segments, which can greatly benefit its customer base.
The fact of the matter is that airlines have a great deal of information at their disposal, but need the proper IT system in order to use it effectively. Using their collected data more effectively will allow airlines within the industry to appeal to customers more directly, build customer relationships, and eventually build on their top line. Growth in the customer base and revenues of the company allow for more general, corporate growth of the company, in this case the airline. CRM allows the company to improve, and IT allows for the improvement of CRM.
John Higgins, “Taking Airline CRM Efforts to New, Higher Altitudes,” ECommerce Times, February 1, 2010, http://www.ecommercetimes.com/story/69239.html?wlc=1266367417
Ibid.
Stephen Haag and Maeve Cummings, Management Information Systems for the Information Age, 7th ed. (New York: McGraw-Hill, 2008), 71.
Stephen Haag and Maeve Cummings, Management Information Systems for the Information Age, 7th ed. (New York: McGraw-Hill, 2008), 72.
John Higgins, “Taking Airline CRM Efforts to New, Higher Altitudes,” ECommerce Times, February 1, 2010, http://www.ecommercetimes.com/story/69239.html?wlc=1266367417
Ibid.
Monday, February 15, 2010
CRMS: Helpful Tool or Privacy Invader?
Reference
Olswang. "CRM: Don't Forget about Privacy." Extending the Enterprise. CBS Interactive, 13 Oct. 2008. Web. 10 Feb. 2010.
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