CRM

Project on

AVIATION INDUSTRY

Submitted by: Group 4

Muskan Arora
Navneet Chahuan
Neha Aggarwal
Nikhil Kumar
Nishtha Gujral
Ria chaurasia
Ruchika Sharma
Aviation industry is broadly divided into two parts military and civil aviation. It is considered as
the fastest growing industry in India. In India, 65% of the national share goes to Bangalore which
is also considered as manufacturing hub for the industry. The initiatives by the government such
as UDAAN are giving further driving force to the aviation civil line in India.
Aviation is a service based industry and being a service based industry, the customers are
considered to be the most prominent asset in the company. The front line employees and all the
touchpoints are taken to be the key areas which could make any airline company either a success
or a fail. Special trainings are given to all the employees so that the best could be served to the
customers. For the same, there are specific laid down customer relationship management practices
followed in aviation industry.
To study the practices of aviation industry, there are two companies which are considered for
comparison which are Indigo and Vistara.

 Indigo is an Indian based low cost airline which are headquarter in Gurugram.
 The company was founded by Rahul Bhatia of interglobe expertise and Rakesh Gangwal ,
US based expatriate Indian.
 The company went public in 2015
 Currently, the company is operating in 1400 flights daily to 83 destinations. Out of this 83
destinations, 60 are Indian and 23 are abroad.
  TATA SIA Airlines Limited is being operated as Vistara.
 It is a joint Venture between TATA sons and Singapore Airlines
 The headquarters are in Gurugram
 Currently, the company is serving in 24 destinations with 1200 flights per week
 On 6 August, 2019 the company launched its first international flight from Delhi to
Singapore

Analytical CRM

INDIGO
1. 6C membership Scheme: There is a scheme for those clients of Indigo airlines who are
regular flyers of this airlines. These clients are delivered membership into “6C membership
scheme”, which help them in addition of 10% discount on base rate of their tickets.

2. FAM Trips: Customised trips to tourist place in conglomerate with trip planning sites.
These trips are unlike from the packages that are provided by the airlines. These are
specially trips planned for those customers who have their separate accounts in indigo
airlines. These trips can be incurred by all kind of holders who have their account.

VISTARA
1. Satisfaction via reward points: where loyalty points are collected based on actual
expenditure on tickets rather than distance travelled.

2. Tier Evaluation Process: They usually check the number of Tier Points received or
number of flights in the past year.

IDIC Practices
INDIGO
1. Identify: They identify clients through 6c scheme which helps in identifying regular flyers
vs normal flyers.

2. Differentiate: Rewards of indigo airlines are loyalty programs and additional advantages
like free flights, seat promotions, free Wi-Fi, hard beverages for free,etc.
 3. Interact: They join with their clients through social media and give news on sales and
upgrades. They use artistic promotion approaches to develop the brand.

4. Customise: These trips are different from the packages that are provided by the airlines

VISTARA
1. Identify: 3 class arrangements, Business class, Premium Economy Class and Economy
Class. This helps them in maintaining a record of their customers in a segregated manner.

2. Differentiate: By checking the number of flights flown in the previous 365 days.

3. Interact: Company interacts with customers through social media and have #FLYHIGH
campaign

4. Customise: Offers like Vistara Student Discount gives up to 10% off.

Value proposition:

INDIGO
1. On time: it’s normal to 15-20 min delay in flight take off (land), lack of punctuality but
we as a customer ignores this. Indigo claims to be on time flight schedule.
2. Low fares: indigo’s secondary value proposition is offering low prices as come to other
airlines.

VISTARA:
1. Loyalty by money, not miles: A registered club Vistara members accrued loyalty point
based on the money that they have spent on travelling instead of miles they travelled.
2. Low cost thinking, full service offering: Vistara claims that they maintain low cost
structure in order to save money and will spend this money on service offering to economy
class.

Customer lifecycle in Vistara and indigo:

There are three phases in customer lifecycle:

1. Pre-travel: customer lifecycle begins when customers’ starts shopping for airfares, hotels,
car rent etc. In this phase the main objectives of airlines are effective
marketing/sales/promotion and target marketing. Process that they adopted to achieve these
objectives are marketing, branding, revenue management, product development. If they
achieve these objectives their result would be increase in market share.
2. Travel: This phase includes check-in, in-flight etc.
 Objective: customized services and personalized services.
Result: Increase in profitability
3. Post-travel: It includes customer claim, service recovery plans, customer
Analysis
Objective: rebook, reward, and recover
Result: increase in loyalty

STRATEGIC CUSTOMER RELATIONSHIP MANAGEMENT

Strategic CRM is responsible for sharing the data of all the customers with the different
departments. The information shared reveals the ultimate objective of the organization towards the
customer and its operations towards them. In a normal scenario, it is observed that the information
provided by the customers in the form of feedback or their basic information are not shared by
departments within an organization. This results in inefficiencies by the company in providing the
required level of satisfaction to the customers on the basis of data provided by them. Strategic
CRM comes in the picture to solve the same concern. It helps to collaborate all the information of
the customer received from various sources and improve the quality of customer service by clearly
defining the Mission, Vision and Goals of the company.
Similar to any industry, Strategic CRM is an integral and important part of Aviation Industry.

INDIGO Strategic CRM

Indigo is known for Cheap Fare prices and Punctuality, hence targeting the customers who are
looking economic prices.

1. Mission
A Passionate and Creative team involved in giving best customer service with charging
lowest possible prices and reliability.

2. Vision
The company has a vision to become world standard company in aviation by understanding
the needs of the customer and delivering the same resulting in fulfilling of customer
expectations.

3. Goals
The ambition of indigo is to take wallet share by charging low fare prices. The wallet share
will be derived by adding costs to food, merchandise, cancellation fees etc. Also the
company has focused on enhancing passenger market share by 42% as currently, the
passenger share is 70% while cargo goes for 30%.
VISTARA Strategic CRM
TATA SIA Airlines limited known as Vistara is an Indian airline. It is a joint venture focused on
providing distinct services of TATA Sons and Singapore Airlines.

1. Mission
Vistara aims to serve the corporate and leisure travel market demanding high quality
distinct services

2. Vision
The company holds a vision in delivering premium class services with distinctive benefits
to all its customers.

3. Goals
The goal of the Vistara airlines is to provide seamless and personalized flying experience
that blends TATA’s and SIA’s service excellence and legendry hospitality.

Customer Acquisition

1) INDIGO
 Cheap fair- Their main aim is to target middle class and families which are conscious
about the prices. Indigo airfare are less expensive as compared to its competitors and
is providing good quality service at low cost with zero cancellation charges.
 Partial payment schemes- Customers who have their account in Citibank and HDFC
can make partial payments of tickets and pay the remaining amount later, or the
remaining amount can be paid with EMI’S. This help the airlines to develop good
relations with both banks and customers.
 Value filter and bundled hotel offering- Customers who are willing to pay some extra
amount and get a package for their travel can avail this plan. Through this plan the
customers can get free food on board or can get hotel offerings.
 Call center- Indigo provides multilingual call centers that can cater to different people
to different parts of the country. The service is provided to make the person more
comfortable in talking to agent in their own language.

2) VISTARA
  No cheap fares no discounts- The company’s pricing strategy is determined by the
value proposition they offer. Vistara promises a seamless experience and service
excellence on board and on ground that is why they do not believe in cheap fares
and discounts.
 Low cost thinking, full service offering- Vistara is maintaining a lean structure of
operation while offering a full service product. The company is keeping low cost
mentality in every single contract. There is no lavish contract with external vendors.
They are scrutinizing every single contracts be it personnel or office space.
 Three class configuration- Vistara is the first full service carries in india to
introduce so called premium class economy. Vistara’s 148 seater airbus A 320-200
will offer 3 separate cabins, with 16 seats in business, 36 in premium economy class
and 96 in the economy class. This premium economy is aimed at travelers who
relishes additional space and amenities to work or relax without the expense of a
business class ticket.
 Tie up with Taj hotel- Vistara is preparing a tie up with taj hotels, wherein
[passengers can stay at Taj hotel overnight instead to taking the same day return
flight, paying a few thousand rupees more.

Customer Retention
1) INDIGO
 6C membership- This is a scheme for those customers who are consistent flyers of
Indigo airlines. The customers are provided membership into 6C membership
scheme, which will help them avail 10% discount on base rate of their tickets.
 Indigo corporate plan- This plan is for those corporate travelers who prefer
travelling with Indigo airlines for their corporate visits. In this plan a contract is
entered with the corporate and this is an annual contract which provide some
concessional benefits to those corporate.
 FAM trips- Special trips to tourist destination in partnership with trip planning sites.
These trips are different from the packages that are provided by the airlines. These
are trips planned for those customers who hold account in the Indigo airlines.
 Separate account for members- Indigo airlines provide different account for
members, agency and corporate and they ar provided schemes according to their
needs and nature of account specifies different facilities that can be availed by
virtue of holding that account.

2) VISTARA
  Corporate customers- Corporate customers have some special benefits like special
fares, free cancellation of bookings etc. eligible customers will enjoy carry on plus
benefits which provide increase cabin baggage allowance of 12kg for the larger
cabin bags.
 Guaranteed reservation in economy 48 hrs/ 24 hrs prior to departure- CV
platinum and gold members will be entitled to a guaranteed seat in economy class.
CV platinum member request must be raised at least 24hrs prior to departure, in
any sector flawn by vistara. CV gold member need to raise the request 48hrs prior
to departure.
 Complementary vistara fly early service- As a CV platinum member, if the person
reach airport early (if there is an earlier flight available within 4 hours of the
originally booked flight) with no additional charge the customer will get a seat in
that flight.

Customer experience management of INDIGO

Offline
• SMS Services: For feedback customer can sms on 566772. Where customer can travel
hassle free with any issue. The assistant of indigo is always there to help at any time. This
is 24*7 facility.

• Partial Payment Schemes: Remaining amount of ticket can be paid in EMIs of the customer
who are having the account with some of the specific bank or can pay the remaining amount
later. In this way airlines develop the strong relationships with customers and bank.

• Citizen charter section: Faster response from the center and the phone is directly picked by
the associate. They act as a call center and try to resolve the problems and make customer
comfortable by interacting in different languages.

• ifly team make known to a training component called "Towards A Happy Customer “:
providing different types of workshop for employees, company overlooks on training
components and focusing on “airport security Program”, ramp training etc. just for
customer centricity.

Online
• E-Mail: customer can mail on Customer.relationship@goindigo.in for sharing their
feedback.
• Individual accounts for corporate, members and agency: There are various facilities that
can be availed by the holder that has separate account.
 • IndiGo Web Check in: Customer can print their boarding pass directly from their laptop.
Now the customer need not require to stand in a long que and manually the checking facility
is provided.

• Indigo mobile application: This application launched by the indigo rendered different
information like booking tickets, knowing the status, scheduling and many more
provisions.

Customer experience management of VISTARA

Offline
• Vistara FlyEarly: This service can only be availed at the airport. It is a complimentary
service which is granted to customer who arrives 45 minutes before of their departure.
Which helps in taking flight earlier.
• Complimentary Priority check-in, boarding & baggage handling: This offer is prolonged
only to the Top 100 corporate customers of Vistara.

• Corporate Flyers can avail some of the following benefits:

- Zero cancellation charge: providing hassle free re-schedule of their flights
- Enhanced cabin baggage allowance
- Preferred seating for no extra fees: offer more space to customer that too free of cost

Online

 Feedback: Have a query or a complaint, suggestions, feedback or anything

https://www.airvistara.com/trip/feedback can be in touch with this site.

 Track your baggage: Reference Number that customer can in future use to check the status
of their delayed baggage online with “WorldTracer”.

 Join Club Vistara: earn and redeem points. By doing the check in mobile app of vistara
customer get the 100 bonus cv points, by booking fight on particular dayetc. These deals
help in earning points and later redeeming it later.

 Mobility Impairment: ‘Manage My Booking’ section on the Vistara website. They Provide
a wheel chair to the customer prior informing within 48 hours by writing a special service
mail to them and assisting it with any type of service.

Complaint Management Practices

Indigo and Vistara have similar Complaint Management Practices.

• In-Flight Service Recovery

While flying, Customers complaints are dealt by the cabin crew in flight. The cabin crew is
trained to empathise with the customer, apologise as well as offer them any alternate service
that is possible in flight.

• Flight Reports
The cabin crew after every flight have to make a detailed flight report for any mishappening
during the flight, or regarding complaints and requirements of the customers which they were
not able to fulfill. These complaints are then handled by the customer relation team who get in
touch with the customers. Along with flight reports the cabin crew also maintain personal diary
to keep the records of complains.

• Online Customer Feedback

Both Vistara and Indigo have a portal on their website for online feedback, where customers
can complaint and describe their problems in detail, which is then adressed by the customer
relation department.
• 24/7 Multilingual Call Center, Chat with us
Indigo has both 24/7 Multilingual Call centre as well as chat with us both with minimal waiting
time to address to the complaints of the customer. They also use this platform as a touchpint
after successful service recovery.
On the other hand, Vistara just has a 24/7 Call centre, the chat with us option is missing on
Vistara’s website. This is a possible gap area which vistara could use.
• Social Media Grievance Redressal
Both Vistara and Indigo gets complaints on social media sites like twitter, facebook, etc. Both
the airlines try and resolve these issues immidiately. The difference in both airlines while
solving customer’s complaint via social media is that Vistara tries and solve the problems on
private chat while Indigo first solves the problem and then comments regading the actions
taken to resolve the complaints.
Customer Satisfaction
The customer satisfaction is driven by the expectation the customer has from a particular brand. If
we talk talk about customer satisfaction for indigo and vistata, the customers have different
expections from both the airlines.

INDIGO
The drivers of customer satisfaction for Indigo are:
Low Cost
Indigo being a low cost airline, the people expect from Indigo to have econmoical prices for their
services. Customers are satisfied if Indigo provides simplied pricing which is inclusive of all taxes
and other charges
On Time Performance
Indigo understands the expectations of its customer and plays specific emphasis on time perfomace
and ensures minimal cancelations on their part. Their employees are a big asset for them who
ensures minimal turnaround time for a timely performance.
VISTARA
The drivers for Vistara are:
 Full in Flight Serving
o Vistara is catering to customers expections by offering full In-flight service with
five meals cycle.
 3 Class Configuration
o The three class configuration in terms of Business, Premium Economy and
Economy caters to needs of different kind of customers.
 Club Vistara- Points Calculated On the Money spent
o Visatara offers loyalty program called Club Vistara, which offers loyalty Points
based on money spent. The Customer easily understand and is more transparent.

Service Recovery Plan

INDIGO:
There was an incident where the person was beaten up by few of the members of the crew there
was this news all over the social media. The company’s reputation was on stake. As the incidence
was so big the person who addressed the incident was the director himself. He himself called the
person and apologized.
IndiGo claims that it deals with the situation as soon as possible. They always try to get the senior
person in-charge to handle the situation, as it gives the customer the sense of importance.
VISTARA:
 They also deal with the situation as soon as possible.
 Also provide you with
 The discounts and the vouchers
 Will compensate on the bases of food coupons, booking on next flight
 They try to apologize first and keep the passenger inform about the status of their
complaint.
Loyalty Programs
Indigo do not have any loyalty programs.
As in case of Vistara
The customers are provided with the 3 types of tiers:
 Club Vistara Silver
 Club Vistara Gold
 Club Vistara Platinum

The upgradation from 1 tier to another goes on with the increase in the tier points count or the
number of flights taken in that duration of 12 months.
In the end of 1 year the total tier points are calculated and then on that bases the upgradation
happens.

Tier Points
required for Flights required
Tier upgrade or for upgrade

CV Silver 15000 or 20

CV Gold 25000 or 30
CV Platinum 35000 or 40

Apart from this they also have their Referral Program: if the passenger refers another person for
joining the club Vistara then the passenger will get 200 referral points.
Platinum Exclusive: in this Vistara sends few of the elite members a complete experiential trip to
ladak or somewhere.
Competitive Advantage
INDIGO
It is a no-frills carrier which focuses on a strategy of operating in low cost and providing maximum
benefits to their customers.
The following points have helped Indigo in gaining competitive advantage over their competitors.
1. They follow low cost, single model
While other airways follow multiple models, indigo focuses on one single model i.e. low cost or
low-price strategy. They believe in providing maximum benefits to their customers and mainly
targets middle class customers.
2. They follow selling and leasing back planes strategy
This strategy has helped them in maintaining their balance sheet as they frequently keep selling
and leasing back its airplanes. They follow a six-year sale and lease back strategy which has helped
them in replacing their airplanes very frequently. Indigo placed order for 100 airbuses even before
they started operating which gave them a price advantage.
3. Focus on Quality and detail
The airline focuses on employing few people but standardize their training. Mr. Bhatia makes sure
that he meets all the hired staff individually and Indigo is also considered as one of the leanest
work forces in the industry.
4. Customer Focus
Indigo largely focuses on consistent low fares, minimum flight cancellations and on time arrivals.
They believe that these are the most crucial factors which a customer expects while travelling.
5. Technology
Indigo planes are equipped with digital link system which helps them in transmission of simple
messages between aircraft and stations via radio called ACARS. When any of Indigo’s aircraft
departs a message is automatically sent from the aircraft to their centers.
VISTARA
Vistara airlines highly focuses on providing rich customer experience similar to premium flights.
The following points have helped Vistara in gaining market share over its competitors.
1. No cheap fares, no discounts
Vistara never offers any discounts or cheap fair rather they claim and focus on providing rich
customer experience. They claim that their standard of service is very different from other
competitors.
2. Loyal customers by fare
Vistara offers a regular flyer program named as “club Vistara” to its customers that is unique as
they do not provide loyalty points to their customers according to the miles, they have flown rather
the money they have spent. So, any head of the family who book flight tickets for all its family
members gets the benefit of the total money he has incurred.
3. Focus on Quality services
Vistara offers a full-service product by keeping a slender structure of processes. They provide high
facilities with like dining with worth prices.
4. Three class configurations’
Vistara has introduced a premium economy class. In this they have a three-cabin service in
industry. They promise to provide a new on board practice from all segment of the customers. This
will also help them in having a differentiated experience for all its customers.

Customer Centricity
INDIGO
Indigo went through serious conflicts which made their customers lose confidence in their services
and hampered their image when a video was leaked where an employee was seen fighting with a
customer.
To regain the confidence back they have started focusing more on better training for their
employees including their ground workers. They are providing soft skills trainings so that their
employees are able to handle grievances in more efficient manner.
They keep monitoring the feedback from the customers and work on improving the customer
services.
They also started providing a mascot to the customers which reflects a common man for the people.

VISTARA
Apart from providing rich flying experience Vistara has now come up with ‘Vistara freedom fares’
where they have included an option that the customers can customize their needs according to their
preferences. For eg. If a customer does not want to include meals, then they can customize their
services according to their preferences.
They came up with this idea as earlier they were not targeting all kinds of customers rather, they
were targeting only those who had the ability to pay for their services which was a little higher
than that of its competitors.
They have also come up with ‘Vistara World’ where they are also targeting youth and making the
experience of the customers more friendly. ‘Vistara world’ is an app where customers can watch
movies, shows and listen to online music for free.