Lufthansa is Germany’s aviation flagship company and also one of the major airlines operating on a global scale. Established in 1926, Lufthansa currently is one of the biggest members and also founders of the Star Alliance, the world’s most important airline cooperation. Divided into five strategic business segments (passenger business, logistics, Maintenance Repair Overhaul, catering and IT services), the following report will focus on the passenger business segment and Lufthansa’s activities in terms of customer relationship management (CRM) in this division. Being one of the first airlines to have established a customer loyalty program, Lufthansa successfully runs its frequent flyer concept Miles & More (Lufthansa, 2007).
In a competitive environment like the aviation business, relying on a loyal customer base which generates a major part of the company’s revenue is one of the key drivers for success. Due to cost pressure in the late 1990´s and the crisis in the aviation business after the terror attacks in 2001, airlines more than ever before recognized and appreciated the value of a relationship to its important profitable customer segments. Thus CRM strategies have become increasingly relevant for Lufthansa and other airlines.
Lufthansa’s CRM strategy in the passenger business segment is concentrated within the Miles & More program. Different statuses of memberships are designed to attend to customers throughout the stages of customer’s lifetime and therefore represent the value of the customer for the company. Beneath the Miles & More surface, an accurate value chain is required. The value chain contains Lufthansa´s Customer Portfolio Analysis, IT and Database Integration, Value Proposition Development and Customer Lifecycle Management. These factors combined enable Lufthansa to create a state of the art CRM system.
Inhaltsverzeichnis (Table of Contents)
- 1. Introduction
- 2. Overview: Current situation
- 2.1 Lufthansa's current CRM strategy
- 2.2 Level of importance of Lufthansa's CRM strategy
- 2.2.1 Strategic CRM
- 2.2.2 Operational CRM
- 2.2.3 Analytical CRM
- 3. Analysing Lufthansa's CRM Value Chain
- 3.1 Lufthansa's CPA
- 3.2 Customer Intimacy
- 3.3 Lufthansa's Network (Development)
- 3.4 Value Proposition Development
- 3.5 Customer Lifecycle
- 4. Financial Factors
- 5. Market Watch
- 6. Evaluation
- 6.1 Strengths
- 6.2 Weaknesses
- 6.3 Opportunities
- 6.4 Threats
- 7. Recommendation and Conclusion
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This report aims to analyze Lufthansa's customer relationship management (CRM) strategy within its passenger business segment. It examines the effectiveness of Lufthansa's CRM value chain, encompassing elements such as customer portfolio analysis, IT integration, value proposition development, and customer lifecycle management. The report also considers the financial factors, market dynamics, and a SWOT analysis to evaluate the overall success and future prospects of Lufthansa's CRM approach.
- Lufthansa's current CRM strategy and its effectiveness.
- Analysis of Lufthansa's CRM value chain components.
- The role of the Miles & More frequent flyer program in customer loyalty.
- Evaluation of the strengths, weaknesses, opportunities, and threats (SWOT) associated with Lufthansa's CRM strategy.
- Financial implications and market factors influencing Lufthansa's CRM performance.
Zusammenfassung der Kapitel (Chapter Summaries)
1. Introduction: This introductory chapter establishes Lufthansa as a global aviation leader and introduces the focus on its passenger business segment and CRM activities. It highlights the significance of CRM in the competitive aviation industry, especially given cost pressures and industry crises. The chapter emphasizes the importance of customer loyalty and the role of the Miles & More program as a key component of Lufthansa's CRM strategy. The importance of a robust value chain, including Customer Portfolio Analysis, IT integration, value proposition development, and customer lifecycle management, is underscored as crucial for a successful CRM system.
2. Overview: Current Situation: This chapter provides an overview of Lufthansa's current CRM strategy, emphasizing the goal of satisfying customer needs across all segments, from economy to first class. The importance of customer experience and word-of-mouth marketing is highlighted, particularly the disproportionate impact of negative experiences. While focusing on high-value business and first-class customers, Lufthansa aims to cultivate loyalty across all customer segments through upselling. The chapter details the Miles & More program, its benefits and challenges, including system complexity and the need for consistent service delivery.
3. Analysing Lufthansa's CRM Value Chain: This chapter delves into the key components of Lufthansa's CRM value chain. It examines Lufthansa's Customer Portfolio Analysis (CPA), encompassing market segmentation, data mining, tools and models, and lifetime value calculations. Further, it explores the concept of "customer intimacy," analyzing the use and integration of databases, IT evolution, database architecture, and the goal of achieving a single customer view. The chapter also analyzes Lufthansa's network development, value proposition development (cost perception, customer value sources, customer experience), and customer lifecycle management (identifying, acquiring, transacting with, and retaining customers).
4. Financial Factors: [This chapter summary needs to be added based on the missing content from the original text.]
5. Market Watch: [This chapter summary needs to be added based on the missing content from the original text.]
6. Evaluation: This chapter presents a SWOT analysis of Lufthansa's CRM strategy. The strengths, weaknesses, opportunities, and threats related to their CRM approach are identified and discussed, likely providing a balanced perspective on the effectiveness and potential for improvement of their system.
Schlüsselwörter (Keywords)
Customer Relationship Management (CRM), Lufthansa, Miles & More, frequent flyer program, customer loyalty, value chain analysis, customer intimacy, data mining, market segmentation, customer lifecycle management, SWOT analysis, airline industry, strategic CRM, operational CRM, analytical CRM.
Lufthansa CRM Strategy Analysis: Frequently Asked Questions
What is the overall purpose of this report?
This report analyzes Lufthansa's customer relationship management (CRM) strategy within its passenger business segment. It examines the effectiveness of Lufthansa's CRM value chain, financial factors, market dynamics, and performs a SWOT analysis to evaluate the overall success and future prospects of Lufthansa's CRM approach.
What aspects of Lufthansa's CRM strategy are examined in this report?
The report examines various aspects of Lufthansa's CRM, including its current strategy and effectiveness, the components of its CRM value chain (customer portfolio analysis, IT integration, value proposition development, customer lifecycle management), the role of the Miles & More program, a SWOT analysis, and the financial and market factors influencing its performance.
What is the role of the Miles & More frequent flyer program in Lufthansa's CRM strategy?
The Miles & More program is a key component of Lufthansa's CRM strategy, aimed at fostering customer loyalty. The report likely discusses its benefits, challenges (system complexity, consistent service delivery), and overall contribution to customer retention.
How does the report analyze Lufthansa's CRM value chain?
The analysis of Lufthansa's CRM value chain delves into key components such as Customer Portfolio Analysis (CPA), encompassing market segmentation, data mining, tools and models, and lifetime value calculations. It also explores customer intimacy, IT integration, network development, value proposition development (cost perception, customer value sources, customer experience), and customer lifecycle management (acquiring, transacting with, and retaining customers).
What is the significance of the SWOT analysis in this report?
The SWOT analysis provides a comprehensive evaluation of Lufthansa's CRM strategy by identifying and discussing its strengths, weaknesses, opportunities, and threats. This helps to offer a balanced perspective on the effectiveness and potential for improvement of their CRM system.
What are the key financial and market factors considered in the report?
While specifics are not detailed in the provided summary, the report considers financial implications and market factors influencing Lufthansa's CRM performance. This likely includes competitive pressures, industry trends, and the overall economic climate.
What is the structure of the report?
The report is structured into several chapters: an introduction, an overview of the current situation, an analysis of Lufthansa's CRM value chain, a section on financial factors, a market watch, an evaluation including a SWOT analysis, and finally, a conclusion with recommendations.
What are the key takeaways or conclusions expected from this report?
The report aims to provide a comprehensive assessment of Lufthansa's CRM strategy, highlighting both its successes and areas for improvement. The conclusion and recommendations section will likely offer insights into how Lufthansa can optimize its CRM approach to enhance customer loyalty, profitability, and competitiveness.
What are the keywords associated with this report?
Key terms include: Customer Relationship Management (CRM), Lufthansa, Miles & More, frequent flyer program, customer loyalty, value chain analysis, customer intimacy, data mining, market segmentation, customer lifecycle management, SWOT analysis, airline industry, strategic CRM, operational CRM, and analytical CRM.
- Quote paper
- P. Schulz et al. (Author), 2007, Customer Relationship Management: Lufthansa, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/113709
