CUSTOMER RELATIONSHIP MANAGEMENT (CRM) OF EASY JET
Customer relationship management (CRM) of Easy Jet
TABLE OF CONTENTS
CRM: AN INSIDE LOOK3
THE NEED FOR CRM4
CRM TO EASYJET5
ECONOMICS OF CRM6
Economic Profits and Cost6
Cost Curve Analysis7
Economies of Scale8
Supply and Demand for Labor9
Customer Relationship Management of EasyJet
Up till the early 1980s "customers are seen as average statistic, passive buyers with a predetermined role of consumption. Market research and inquiries had extremely limited or no interaction with the customers. It is mostly a one way communication in the old economy. As the business competition gets tougher in the 1990s, Kotler admitted the economy has shifted into a customer economy where companies became customer owning focus because customers are now more knowledgeable and in short supply.
Customer relationship management (CRM) of Easy Jet today has evolved to become more customer oriented. Companies are shifting towards the customer segment focusing on customer relationship management, customer lifetime value and customer retention, EasyJet is a diversified company and already so successful in the old economy, was not spare from the shift either. Its former CEO, Jack Welch, executed a series of changes in the company to prepare GE for the shift towards customer focus (Cascade, 2003, 12). Once there, it concentrated on Customer Relationship Management (CRM) to improve Customer Lifetime Value and Customer Retention. This is done by continuously delighting customers to achieve customer satisfaction, with that come customer loyalty and ultimately a successful company.
CRM: An Inside Look
The key to a company's success is excellentcustomer service. Regardless of which industry one is a part of, customer care is of utmost importance. An increasing number of organizations are realizing that with growing competition, new technological innovations and constantly improving services and products, consumers are being pulled in different directions. It is vital to ensure that customer loyalty programs are an integral part of an organization. Acquiring new customers is important, but holding on to existing customers is crucial. After all if existing clients are satisfied they will help in acquiring new ones by spreading the news of the outstanding customer services. To serve customers better, many companies have adopted a Customer Relationship Management (CRM) system. These systems integrate people, process and technology in order to maximize a company's relationship with all their customers (American Society for Quality 1). With the advent of CRM's, companies have been looks outside the company boundaries for aid in such a demanding customer service field. More precisely, the companies are looking to tender their CRM responsibilities to an external party in some form of a contract. This is commonly referred as CRM and it is becoming one of the most rapidly growing industries.
The Need for CRM
Customer relationship management (CRM) is a company's decision to hire an outside firm to handle the company's computer operations, network operations, and IT function to a vendor for a specified time (Lankford 2). This strategic move is decided by higher management when they realize that the handling of these operations by another party will reduce costs and ...