CRM AirAsia

TABLES OF CONTENTS
1.0 Introduction
2.0 CRM Literature Review
2.1 CRM perspectives and definition
2.2 The importance of CRM
2.3 The roles of KM in achieving CRM objectives
3.0 CRM Framework
3.1 The information process
3.2 The strategy development & the value creation process
3.3 The multichannel integration
3.4 Performance assessment process
4.0 Corporate Appraisal
4.1 Company history and background
4.2 CRM in Airasia
4.3 CRM Deficiency Analysis
4.4 Recommendations for improvement
5.0 Conclusions
APPENDIX
REFERENCES
Knowledge Management (MGT 503) – Individual Coursework
1.0 Introduction
The logic of marketing is shifting from the exchange of goods toward intangibles
service, interactivity, connectivity and ongoing relationships (Vargo and Lusch, 2004).
Many companies have recognized and managed customer as assets and adopting
customer-centric strategies, programs, tools and technology for efficient and effective
customer relationship management (CRM). Many CRM software tools and
technologies such as NetSuite CRM+, Seibel CRM on Demand, Oracle, Microsoft
CRM and etc have been introduced for commercial application. The majority of these
tools promise to provide individual applications and services allow company to focus
on enhancing their customer-centricity in terms of specific industry processes, sales
and service processes, and in terms of the customer/role experience as a whole.
Organizations that invest in flexible, proven CRM solution will position themselves
for success both today and tomorrow (http://www.finchannel.com/, 2009). So, what
is CRM? Simple explanation, CRM is putting customer at the heart of the business. In
this report, we will study further on the conceptual foundation for understanding the
domain of customer relationship management. To do so, this report will reviews on
the definition and importance of CRM, CRM framework and contemporary practices
of CRM with KM environment. The main objectives of this report are as below:-
a) To analyze and understand the concept of CRM and the frameworks
b) To appraise the CRM system in Airasia.
c) To provide recommendations of improvements on CRM to Airasia.
2.0 CRM Literature Review
Page 2 of 25 20Nov2009
2.1 CRM perspectives and definition
Over the past decade, the information technology (IT) vendor community and
practitioner community has been explosion of interest in Customer Relationship
Management (CRM). The terms “relationship marketing” and CRM are often
interchangeable used in academic community (Parvatiyar and Sheth, 2001).
CRM is a comprehensive strategy and process of acquiring, retaining, and partnering
with selective customer to create superior value for company and the customer
(Parvatiyar and Sheth, 2001). Vavra (1992) defined CRM as seeking customer
retention by using a variety of after marketing tactics that lead to customer bonding or
staying in touch with customer after a sale made. Some even said CRM meant a
loyalty card scheme, a database, a help desk or a call center. Definition of CRM is
important as the key reason of CRM failure is viewing it as a technology initiative
(Kale, 2004). Different authors and authorities’ have different definition or
description of CRM (Figure 1); Payne and Frow (2005) had summarized as below:
“CRM a strategic approach that is concerned with creating improved shareholder

value through the development of appropriate relationships with key customer and
customer segment; CRM unite the potential of relationship marketing strategies and
IT to create profitable, long term relationships with customer and other key
shareholders; CRM provides enhanced opportunities to use data and information to
both understand customers and co-create value with them: this requires a cross-
functional integration of processes, people, operations, and marketing capabilities that
is enable through information, technology, and application.”
2.2 The importance of CRM
According Customer Think Corporation (2004)’s survey, 68% of customers leave due
to service problem (Figure 2). Therefore establishing and strengthening long term
relationships with customer is the key to success. CRM is important to pursue mutual
benefit among customers and sellers. Customers can enjoy personal treatment,
together with appropriate advice on getting the best out of their purchase; while the
firms are able to improve retention and increase the volumes sold. In fact, CRM also
helps to simplifying the sales processes and helping sales staff to close deal faster.
The organizations are able to provide greater opportunity for cross-selling and up-
selling to their customer who is loyal and committed to firms through CRM. This will
helps the organization to improve the quality of its relationship management with
customer and increased customer satisfaction; thus gained customer loyalty.
Research shows that acquiring a new customer cost 5 to 10 times more than retaining
an existing one, and Cannie and Caplin (1991) also suggested that keeping customers
for life rather than with only making a one time sale.
CRM enable organization to construct predictive customer purchase behaviour with
the support of IT on multi-channels of communication with customers and
information stored in corporate database. As customer expectations have been change
rapidly, the most prudent way to keep track of customer change and appropriately
influencing them is to build co-operative and collaborative relationships with
customers (Sheth and Sisodia, 1995).
CRM also creates new knowledge sharing platforms and processes between
companies and their customers. Many case study evidence proven that CRM is a
potentially powerful competitive tool, contributing to improved success of both
companies and their customers.
2.3 The roles of KM in achieving CRM objectives
There is a consensus from marketing, sales and services that data are highly valued;
but information has no value if it is not transformed into knowledge (Oubrich, 2003).
However, identifying, extracting and transforming data into actionable information is
an ongoing challenge. Thus, company needs to enhance their ability in KM to
leverage the value insight. KM can be defined as the process of extended knowledge
becomes key value added resources shares among the company; however, CRM
proposed an additional dimension that “if only we also knew what our customers
know” (Gibbert et. Al., 2002). CRM may seem just another name for KM, but it can
be differentiate by a number of key variables as shown in Figure 3 (Gibbert et. Al.,
2002).
CRM process required customer knowledge to pursue the goals of relationship market
(Bueren et. Al, 2005). Belbaly et. Al (2007) argued that customer knowledge creation
development is supported by a new category of IS referred to as KM system which
enables the management of the knowledge embedded in the new product development
process. There are three sorts of knowledge required in CRM process which play an
importance in the interaction between a firm and its customers (Bueren et. Al, 2005 &
Salomann et. Al, 2005). Firstly, knowledge about customer (needs and wants) is to be
incorporated for product development. Secondly, knowledge for customer about
products and firm is to support buying cycle. Thirdly, customer posses’ knowledge
about product and services (feedback) is for improvement purpose. Therefore, KM
techniques are necessary for the creation, storage, dissemination of relevant
knowledge in CRM processes; this is proven that KM capabilities in a firm play a key
role in CRM success (Croteau and Li, 2003).
KM is useful for CRM activity and it has become strategic resource of organization to
maintain their competitive advantages. Furthermore, CRM and KM having the same
goals to provide an organization with the information on their customers’ wants and
needs; it is help to identify their valuable customer, generate quality sales lead, and
plan and implementing campaigns with clear goals and objectives.
3.0 CRM Framework
Conceptual frameworks and theory are typically based on combining previous
literature, common sense, and experience (Eisenhardt, 1989). Due to the different
influences may leads to the different development of CRM framework, but there is no
one “right” CRM framework for every business sector (Duane, 2009). Many
researchers have addressed that the integrated and comprehensive framework should
be based on a process-oriented cross- functional conceptualization (Payne et al., 2005;
Dous et al, 2005; Parvatiyar et al., 2001; Figure 4).
Payne et al. (2005) develops a framework for CRM based on five generic processes:
(1) the information management process, (2) the multichannel integration process, (3)
the value creation process, (4) the strategy development process and (5) the
performance assessment process. The framework (Figure 5) is the result of literature
review on Payne et al. (2005)’s CRM frameworks combining with actual CRM tools
(ERP Baan, http://www.infor.com/product_summary/erp/erpbaan/). An effective
CRM now has to support a wide range of roles, channels and devices in order to
support and adding value to a wide network of partners, customers and employees.
Basically, CRM activity will involve collecting customer, suppliers, partners and
other relevant data through multiple channels such as web, phone, fax, email and etc
(the multichannel integration process) and using KM approaches intelligently
transforming data into actionable information (the information process). Company
vision and objectives must be clearly identified (the strategy development process) in
order to transforms it into programs or business process that deliver value for the
customer, business and associated co-creation activities (the value creation process).
The CRM process cycle for next step was to interact with customer through multi
channels to maximize commercial exposure and return (the multichannel integration
process). Finally, proper monitoring processes are needed to safeguard against failure
and helps to keep track the alignment of goals, results, and resources (performance
assessment process).
3.1 The information process
The fundamental to a successful CRM strategy requires seamless customer-centric
processes, supported by integrated technology across the enterprise and its supply
chain which provide the right information at the right time (Radcliffe, 2001). To
ensure that technology solutions support CRM, CRM tools must be making tradeoffs
in flexibility, customizability, cost, convenience and speed of deployment; certainly it
must match to the needs of the business. However, CRM tool is just a supplement to
CRM strategy, appropriate strategy and excellent implementation is essential for a
successful CRM (Parvatiyar et al., 2001).
3.2 The strategy development & The value creation process
The strategy development process shall include basic steps of strategy formation,
decision making and implementation. Bell (2000) points out that understanding the
present allows people to attain an orienting perspective to provide a basic for moving
forward. Hence, the strategy formation for CRM shall be based on the company
mission and objective with taking into consideration of value creation for customer,
employees and investors. Then, decided on the long term plan and operating plan
based on the objectives set. Finally, take necessary action to effect implementation.
The value-creation process is built on the capabilities and motivation of the
company's employees to develop product and process innovation according to
customer needs; to identify existing and potential customer profitability for decision
on customer acquisition and customer retention activities; and the organization's value
to customers, and the basis of its valuation by shareholders. At this point, KM
participate an important roles by putting the information processing power of
technology to anticipating or predicting customer needs.
3.3 The multichannel integration
The multi-channel integration process plays important roles to translate business
strategy and value creation into value-adding interactions with customers. These
include all pre-sales communications, the sales interaction, post-sale service and
support with the customer. Now days, there are many channels option available in the
market such as field sales forces, internet, direct mail, business partners and telephony;
or a hybrid channel model which involves multiple channels. Therefore, it is
important for company to define distinct channel roles and tailoring them to the needs
of targeted customer segments rather than trying to provide “Everything to Everyone
Everywhere”.
3.4 Performance Assessment Process
The performance assessment process covers the essential task to monitor CRM
indicators is aligned with the objectives set; which helps managers collectively
formulate plans, make decision and guide ongoing daily activities. Kaplan & Norton
(2001) pointed out that the traditional financial measurement tools such as profit and
loss statements, balance sheets and cash flow statements are measuring the past
activities and are “lag” versus “leading” indicators. Since companies implement the
measurement methods very differently based on their internal decision making styles,
Kellen (2002) suggested a comprehensive CRM measurement frameworks which
involving the point of view from a variety of different business units. The CRM
measurement frameworks shall includes brand building, customer equity building,
customer-facing operations and leading indicator measurement.
Page 10 of 25 20Nov2009
4.0 Corporate Appraisal
(This part of report is solely used for academic purposes only and it should not be
disclosed to any third party.)
4.1 Company history and background
AirAsia is the largest low cost carrier with the widest route connectivity in Asia.
AirAsia recognized as the lowest fares, quality services and dependability LCC; and
with the unmistakable tagline, “Now Everyone Can Fly” (Annual Report 2008).
AirAsia is working out with five fundamental values – Safety, Valuing Our People,
Customer Focused, Integrity and Excellence in Performance as corporate culture to
achieve everything in exceptional results.
4.2 CRM in AirAsia
“The most important thing about great customer service is ensuring that the customer
has an opportunity to speak with you” said Tony Fernandes, Group CEO of AirAsia;
and he strongly believes that CRM is a very useful tool if managed well. Many types
of CRM tools in the market, but the common CRM framework for airline will be as
provided by Siebel and IBM on 2005 (Figure 6).
Page 11 of 25 20Nov2009
4.3 CRM Deficiency Analysis Using Lambe’s KM Framework
AirAsia has invented to new CRM system in March 2009. Ideally, CRM system is
analyzing the information gathered to gain insight into each customer’s needs and
behavior, and used it to improve the customer’s dealing with company. But in actual
fact, is AirAsia able to mange well their CRM system? In this section, we will analyze
the CRM system in AirAsia using Lambe’s KM Framework.
4.3.1 The Two Laws
AirAsia has an effective CRM system to address the route that has proven to be high
yielding and delivered sustained profit. In fact, AirAsia has identified and expected
the Malaysia to Singapore route can delivered a sustained profit and will double up
the destinations link to Singapore by end of 2009. By the way, AirAsia also identified
their high value customer, and provide loyalty program to serve them better.
Base on the customer reviews on website http://www.airlinequality.com/Airlines
/AK.htm (Figure 7), out of 98 customer review, 36% of the rating is below 5. The
main reasons for low rating are flight cancellation without notice (48%), poor
customer service or call center (22%), flight delay or change schedule without notice
(17%), and others (13%). This is proven that AirAsia only managing the early part of
the customer life cycle and neglecting service after sales and very little attempt on
customer complaints.
4.3.2 The Three Activities
Buying patterns are analyzed; customer will receive email or sms to suggest the
destination of interest with travel guide in website for their decision making.
Page 12 of 25 20Nov2009
AirAsia has customized their service after sales by providing variety choice and
recommendation of hotel, hostel and car rental service.
Introduction of AirAsia GoCorporate to provide special package for corporate
travelers; whereby AirAsia had predicted that some of corporate sector wish to cut
travel costs during economic downturn.
4.3.3 The Two Tools
IT system is linked to most customer touchpoints as stated in CRM framework for
airline provided by Siebel and IBM on 2005 (Figure 6). But base on the customer
reviews (Figure 7), it justify that the call center and customer care emails is not
responding. And there is discrepancy on the communication with customer on flight
cancellation and change schedule.
AirAsia has done well on targeting market, merchandising, and promotions by
analyzing knowledge about customer. In AirAsia website, we can see that information
on travel destination, hotel, transport, climate and recommendations is provided to
customer for decision making before purchase.
The deficiency analysis (Figure 8) shows that AirAsia is focus on targeting marketing,
merchandising, promotions, general information and other issue while have very little
attempt on customer complaints.
Page 13 of 25 20Nov2009
4.4 Recommendations for improvement
Based on the review of situational analysis of AirAsia’s CRM system, AirAsia has a
well-established CRM strategies and framework. Recommendations as below made
for further improvement in long-run.
(a) Implementation of TQM
AirAsia recognized by SKYTRAX at 3 Star ranking. 3 Star ranking signifies a
"satisfactory" standard of core Product across most travel categories - but reflects
poor or less consistent standards of Staff Service / Product quality in selected
Onboard or Airport features (http://www.airlinequality.com/Airlines/AKhtm).
Without a doubt, poor or inconsistency services won’t have a relationship in long run.
Therefore, AirAsia is recommended to embrace the Total Quality Management (TQM)
philosophy to improve quality and reduce cost parallel with CRM system.
The simple objective of TQM is “Do the right things, right the first time, every time;
always striving for improvement and always satisfying the customer” (DOD, 1989 ).
Application of Deming Management techniques (Figure 9) may hold the potential for
improving both management practices and the quality of services provided through
AirAsia.
(b) Monitor the customer experience by using FMEA.
Failure Mode Effect Analysis (FMEA) is a globally recognized best practice risk
planning tool widely used by automotive, medical, banking, business and so on.
AirAsia is recommended to predict or measure the customer experience in systematic
way by using FMEA rather than waiting for complaints from customers.
Page 14 of 25 20Nov2009
FMEA analyses potential failure modes, potential effects, potential causes, assesses
current process controls and determines a risk priority factor. The purpose of the
FMEA is to evaluate processes for possible failures and to prevent them by correcting
the processes proactively rather then reacting after failures have occurred.
(c) Dialogue with customers.
A simple notification can be an opportunity for a valued dialogue. Certainly, AirAsia
has done well on event notification; repurchase reminder, reward information and
whichever that focuses on targeting marketing, merchandising and promotions. The
portion that AirAsia miss out is service follow up. Service follows up such as a thank
you or a satisfaction check is to ensure that each customer leave with a smile on their
face, a feeling of having been well taken care of and for having purchased just what
they needed or wanted; which provide positive customer experience.
Satisfaction guaranteed but not a guarantee, regular studies or market research shall
be carried out periodically to measure levels of customer satisfaction. A distisfied
customer is our most important source of knowledge (Bill Gates). The results will
provide excellent feedback on the efforts to improve quality and value-added.
Make sure customers are recognized at all contact point rather than early part of
customer life cycle. Customers’ time is precious, respond quickly to customer queries
whether by email, sms or come to the service counter.
(d) Empower staff.
Poor service after sales and problem on customer complaint is mostly due to front line
staff can’t timely decisions nor effectively facilitating customer dissatisfaction and
defection. Front line staff such as flight attendant (FA), customer services staff shall
Page 15 of 25 20Nov2009
be provided training on better knowledge and soft skill on customer service and
communication skill to deliver service excellence. Basically, front line staff shall have
good listening skills, problem solving skills and to be proactive and anticipate
customer problems.
Employees should be evaluated on their ability to deliver high level of service, and
provide additional incentives to encourage employees to exceed customer
expectations.
(e) Assessment on CRM system
Assessment of results in CRM helps to safeguard against failure and mange conflicts
in relationships. A balanced scorecard (Kaplan & Nortan, 2001) that combines a
variety of measures based on financial perspective, customer perceptive, business
process perspective and learning and growth perspective is recommended to measure
CRM performance; rather than only based on market share and total volume of sales.
The Balanced Scorecard (Figure 10) will allow AirAsia to monitor present
performance and tries to capture information about how well the organization is
positioned to perform in the future.
Good assessment procedures shall included the periodic evaluation of goals and
results, initiating changes in the relationship structure if needed, and creating a system
for discussing problems and resolving conflicts.
We truly are in an era of transformation. If AirAsia do not give their customers some
good reasons to stay, their competitors will give them a reason to leave. The ability to
address these customer need, it will not only exhibiting best practices, but also to
ensure AirAsia surviving quite nicely in an uncertain time.
Page 16 of 25 20Nov2009
5.0 Conclusion
CRM is a powerful competitive tool, contributing to improved success of both
companies and their customer. However, the process cannot be completely enabled by
technology; it can only be done when the technology and KM are deployed. The
successful of company-customer interaction required an excellent communication
skill, customer service skill, and the ability to abstract, analyze, understand and act
upon patterns arising out of customer encounters.
CRM is more than just a set of technologies, it is repeatedable process to ensure
ongoing, continually improving, and consistent results and this requires the active
involvement of business management. CRM strategies fail or succeed for many
reasons. When they fail it’s often because they lack of knowledge about CRM and
proper guidance. It is important to setup a comprehensive and balanced conceptual
framework to facilitate their understanding; and as a base in the development of CRM
used to leverage the customer-centric vision across all departments and employee
levels. Key success lies on ensuring that customer experience is relevant, personalized,
and supported with excellent customer service, support and fulfillment.
“It is central to our philosophy as a company that provides 5-star service… every
single one of our staff is taught and encouraged to put our customer first” said Dato
Abdul Aziz (AirAsia Annual Report 2008). Understanding these attitudes is just the
start for AirAsia; it is an art to leverage this insight in the marketing effort. Bear in
mind that technology solutions is just a tool, but understanding the mind of the
customer goes far beyond technology, and it is a challenge yet to be widely met.
Page 17 of 25 20Nov2009
APPENDIX
Figure 1
No. Definitions and Description of CRM Author
CRM is a term for methodologies, technologies, and e-commerce

1 Stone and Woodcock, 2001
capabilities used by companies to mange customer relationships.
CRM is an enterprisewide initiative that belongs in all areas of an

2 Singh and Agrawal, 2003
organization.
CRM is a comprehensive strategy and process of acquiring, retaining, and

3 partnering with selective customer to create superior value for the Parvitiyar and Sheth, 2001
company and the customer
CRM is about development and maintenance of long-term, mutually

4 Buttle, 2001
beneficial relationships with strategically significant customers
CRM includes numerous aspects, but the basic theme is for the company
5 to become more customer-centric. Methods are primarily Web-based Gosney and Boehm, 2000
tools and Internet presence.
CRM can be viewed as an application of one-to-one marketing and

Peppers, Roger, and Dorf,
6 relationship marketing, responding to an individual customer on the basic
1999
of what the customer says and what else is known about that customer.
CRM is a management approach that enables organization to identify,

7 attract, and increase retention of profitable customers by managing Hobby, 1999
relationship with them.
CRM involves using existing customer information to improve company

8 Coulwell, 1999
profitability and customer service.
CRM attempts to provide a strategic bridge between information

technology and marketing strategies aimed at building long-term
9 Glazer, 1997
relationships and profitability. This requires : information-intensive
strategies".
CRM is an enterprise approach to understanding and influencing
10 customer behavior through meaningful communication to improve Swift, 2000
customer loyalty, and customer profitability
CRM is an integrated effort to identify, maintain, and build up a network

with individual consumers and to continuously strengthen the network for
11 Shani and Chalasani, 1992
the mutual benefit of both sides, through interactive, individualized and
value-added contacts over a long period of time.
Journal of Marketing Vol. 69 (October 2005), 167-176
Figure 2
Page 18 of 25 20Nov2009
Figure 3
Key Variables KM CRM
Employee, team, company, network of
Source of knowledge Customer database.
companies.
Axioms If only we knew what we know. Retention is cheaper than acquisition.
Unlock and integrate employees' knowledge Mining knowledge about the customer in
Rationale
about customers, sales processes, and R&D. company database.
Performance in terms of customer satisfaction
Objectives Performance against budget
and loyalty.
Metrics Customer satisfaction Customer retention
Employee, team, company, network of

Benefits Customer retention.
companies.
Recipient of incentives Employee. Customer.
Captive, tied to product / service by loyalty

Role of customer Passive, recipient of product
schemes
Encourage employees to share their
Corporate role Build lasting relationships with customer.
knowledge with their colleagues.
European Management Journal 9October, 2002) Vol. 20, No. 5, pp. 459-469
Figure 4
Page 19 of 25 20Nov2009
Figure 5
Page 20 of 25 20Nov2009
Figure 6
Figure 7
AirAsia Customer Rating AirAsia Customer Review

(Oct2008~Oct2009) Rating (Oct2008 ~ Oct2009)
0
4% 6% 1 Others
9% 13%
23% 2 Flight
7% Delay /
3
2% Change Cancellation
4% 4 schedule without
5 without notice
7% notice 48%
18% 6 17%
9% 7
Poor
11% 8 Customer
Service /Call
9 Center
10 22%
Sources: http://www.airlinequality.com/Airlines/AK.htm
Page 21 of 25 20Nov2009
Figure 8
IT KNOWLEDGE
MANAGEMENT
Moderate Moderate
- IT system is linked to most - Effectively targeting
customer touchpoints. market by analysing
- Call centre and customer care knowledge about customer.
email is no respond or inactive. - Providing information on travel
- No email / sms on flight guide, and recomemdation for
cancellaion or change schedule. customer to decide before purchase.
- Little effort on improvement plan for
customer feedback.
PROFILE COLLABORATE PREDICT

Effective Effective Effective
- Buying patterns are analyzed, - Discover customer needs on - Foreseen corporate sector
send email or sms to suggest hotel, hostel and car rental after would like to cut travel costs
destination of interest & flight booking. during economic downturn.
travel guide. Provide variety choice of hotel to suit
Introduced AirAsia GoCorporate
customer needs & provide to provide special package for
recommendation. corporate travelers
MANAGE THE ENTIRE LIFECYCLE

Poor
- Poor service after sales
- Very little attempt on customer complaints.
IDENTIFY HIGH VALUE CUSTOMER

Effective
- Identify the route that has proven to be high-yielding and
is expected to deliver sustained profit. For example - Singapore.
Page 22 of 25 20Nov2009
Figure 9
Figure 10
Page 23 of 25 20Nov2009
REFERENCE
AirAsia Berhad, 2008. Annual Report.
Belbaly, Nasim., Benbya, Hind., Meissonier, Regis. (2007), An empirical

investigation of the customer knowledge creation impact on NPD Performance, In
Proceedings of the 40th Hawaii International Conference on System Sceinces, pp. 1-10
Bueren, A., Schierholz, R., Kolbe, L., and Brenner, W. (2005), Improving
performance of customer processes with knowledge management business, Process
Management Journal (11:5), pp. 573-588.
Cannie, J.K. and Caplin, D (1991), Keeping Customers for Life, Chicago: American
Marketing Association.
Croteau, A.M. and Li, P (2003), Critical Success factors of CRM Technological
Initiatives, Canadian Journal of Administrative Sciences, 20, 1, 21-34.
DOD, 1989, http://auciello.tripod.com/tqm.htm
Duane Sharp (7 Apr 2009), CRM Issues and Methodologies: Many Issues Need
Addressing in Early CRM Implementation Stages, http://customer-
relations.suite101.com/article.cfm/crm_issues_and_methodologies
Eisenhardt, Kathleen M. (1989), Building Theories from Case Study Research,

Academy of Management Review, 532-50
Glen Urban (2005), Don’t just Relate – Advocate! A Blueprint for Profit in the Era of
Customer Power, Wharton School Publishing
http://www.airasia.com/site/en/pressRelease.jsp?id=1052e16f-c0a8c85d-eb784700-
8636418f&type=read
http://www.airlinequality.com/Airlines/AK.htm
http://www.finchannel.com/Main_News/Tech/49029_Leading_Organizations_World
wide_Choose_Microsoft_Dynamics_CRM/ (2009)
Julius Chritauskas, Nin Bzys (2006), Problem of Implementing TQM Principles in

Lithuanian Chemical Engineering Enterprise, Vadyba / Management 2006m. Nr.2
Kale, Sudhir H. (2004), CRM Failure and the Seven Deadly Sins, Marketing
Managemnt, Vol. 13, pp42-46
Kaplan, R.S. & Norton, D. (1992), The Balanced Scorecard – Measures that Drive
Performance, Harvard Business Review, 70, 71-79.
Page 24 of 25 20Nov2009
Oubrich, M. (2003). Processus d'intelligence economique: transformer l'information

en connaissance. Cret.log-Universite de la Mediterranee, Aix en Provence.
Parvatiyar, Atul and Jagdish N. Sheth (2001), Customer Relationship Management:

Emerging Practise, Process, and Displine, Journal of Econimic and Social Research,
3(2), 1-34.
Patrick Lambe (2001), Knowledge-Based CRM: A Map, www.straitsknowledge.com
Payne, Adrian and Pennie Frow (2005), A Strategic Framework for Customer
Relationship Managemnt, Journal of Marketing, Vol. 69, pp 167-176
Radcliffe, John, “Eight Building Blocks of CRM: A Framework for Success”, Gartner,
December 13, 2001
Salomann, H., Dous, M., Kolbe, L., and Brenner, W. (2005), Rejuvenating Customer
Management: How to Make Knowledge For, From and About Customers Work,
European Management Journal, (23:4), pp. 392-403.
Vargo, Stephen L. and Robert F. Lusch (2004), Evolving to a New Dominant Logic
for Marketing, Journal of Marketing, 68(1): 1-17.
Vavra, Terry G. (1992), Aftermarketing: How to keep customer for life through
relationship marketing, Homewood Ill.: Business One Irwin.
Page 25 of 25 20Nov2009

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TABLES OF CONTENTS

2.0 CRM Literature Review

2.1 CRM perspectives and definition

2.2 The importance of CRM

2.3 The roles of KM in achieving CRM objectives

3.0 CRM Framework

3.1 The information process

3.2 The strategy development & the value creation process

3.3 The multichannel integration

3.4 Performance assessment process

4.0 Corporate Appraisal

4.1 Company history and background

4.2 CRM in Airasia

4.3 CRM Deficiency Analysis

4.4 Recommendations for improvement

customer relationship management (CRM). Many CRM software tools and

technologies such as NetSuite CRM+, Seibel CRM on Demand, Oracle, Microsoft

on enhancing their customer-centricity in terms of specific industry processes, sales

and service processes, and in terms of the customer/role experience as a whole.

domain of customer relationship management. To do so, this report will reviews on

a) To analyze and understand the concept of CRM and the frameworks

b) To appraise the CRM system in Airasia.

c) To provide recommendations of improvements on CRM to Airasia.

2.0 CRM Literature Review

2.1 CRM perspectives and definition

practitioner community has been explosion of interest in Customer Relationship

interchangeable used in academic community (Parvatiyar and Sheth, 2001).

CRM is a comprehensive strategy and process of acquiring, retaining, and partnering

important as the key reason of CRM failure is viewing it as a technology initiative

(Kale, 2004). Different authors and authorities’ have different definition or

“CRM a strategic approach that is concerned with creating improved shareholder

2.2 The importance of CRM

customer and increased customer satisfaction; thus gained customer loyalty.

CRM enable organization to construct predictive customer purchase behaviour with

the support of IT on multi-channels of communication with customers and

information stored in corporate database. As customer expectations have been change

influencing them is to build co-operative and collaborative relationships with

customers (Sheth and Sisodia, 1995).

potentially powerful competitive tool, contributing to improved success of both

companies and their customers.

2.3 The roles of KM in achieving CRM objectives

However, identifying, extracting and transforming data into actionable information is

an ongoing challenge. Thus, company needs to enhance their ability in KM to

be differentiate by a number of key variables as shown in Figure 3 (Gibbert et. Al.,

development is supported by a new category of IS referred to as KM system which

incorporated for product development. Secondly, knowledge for customer about

about product and services (feedback) is for improvement purpose. Therefore, KM

techniques are necessary for the creation, storage, dissemination of relevant

role in CRM success (Croteau and Li, 2003).

plan and implementing campaigns with clear goals and objectives.

3.0 CRM Framework

Conceptual frameworks and theory are typically based on combining previous

be based on a process-oriented cross- functional conceptualization (Payne et al., 2005;

Dous et al, 2005; Parvatiyar et al., 2001; Figure 4).

performance assessment process. The framework (Figure 5) is the result of literature

(ERP Baan, http://www.infor.com/product_summary/erp/erpbaan/). An effective

(the multichannel integration process) and using KM approaches intelligently

transforming data into actionable information (the information process). Company

channels to maximize commercial exposure and return (the multichannel integration

3.1 The information process

The fundamental to a successful CRM strategy requires seamless customer-centric

in flexibility, customizability, cost, convenience and speed of deployment; certainly it

CRM strategy, appropriate strategy and excellent implementation is essential for a