CRM in IndiGo Airlines

An Overview

• IndiGo commenced operations on 4 August 2006

• Zoomtra.com is an authorized partner of Indigo Airlines.

• Fastest growing airline in India

• A pure low cost carrier

• All economy 180 seat aircraft

• They serve 22 cities within India with 188 daily flights.

• Food sold on board

• No frequent flyer program

• No airport lounges

3

The IndiGo story

• Highly profitable and fastest growing airline in India

• Strong Cash flows

• Superb Product quality recognized by the market place

• Largest low cost airline in India

• Industry leading on-time performance

• 99.91% technical reliability

• Comprehensive power by hour (PBH) and maintenance agreements

• Strong Management

4

IndiGo Offerings

• 2 Categories of Clients– Corporate

– Retail

• Corporate Clients: Annual Contract

• Zero Cancellations Charges

• Free Meals

• FAM Trips: Special trips to Tourist Destinations

• Ticket Booklet.

IndiGo Offerings

• Fastest Turnaround Time in the industry : 17 minutes Average

• Travel Agents taken for FAM Trips.

• Seat Spacing 2 inch more than other low fare flights(Made in France; Toulouse)

• Giving Tickets with both the hands

• Providing Meal on flight getting delayed.

Market Structure & Network

Increasing Market Share

8

Great On-time performance

9Source : DGCA

Meaning of CRM in AirlinesIndustry

• CRM is the process of managing detailed information about individual customersand carefully managing all customer“touch points” to customer loyalty.

• Managing the “touch points”

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Touch Points

Touch Points

Reservations

Check in & check out

Frequent flier

program

Business Class

Services

Flight Attendants

Food & Beverages

Baggage Tracking

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CRM Practices

• Online reservation system

• Separate accounts for member, agency and corporate

• Call Centres

• Domestic Travinsure

• Proper schedule available on the website

• Baggage Tracer

• Well trained and groomed in-flight crew and most importantly on-time performance.

• Cheap Fares

• Ancillary Services

• Food and Beverages are allowed inside the flight

• IndiGo offers new, comfortable, air conditioned buses.

• Notification by SMS in case of flight delay

• Refund is available in case the flight is delayed by more than two hours

Online Reservation System

Accounts

OFFERS

Comfort & Convenience

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Safety first at IndiGo follow best practices

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Awards

Refund Options

• In case of delay or cancellation of the flight, the passenger shall have to right to choose a refund; or a credit for future travel on IndiGo; or re-booking onto an alternative IndiGo flight at no additional cost subject to availability.

• In case of a delay or cancellation of the connecting flight at the point of transit, IndiGo will, at its discretion and subject to availability of seats, first offer the passenger the option to travel on the next IndiGo flight, or that of another airline or if either options cannot materialize, then at its discretion, provide lodging and dinner for overnight stay .

Seat Plus

• It allows the customer to choose seats which they desire and feel most comfortable on at the time of booking or anytime up to two hrs before the departure of flight.

• Seats have charges associated with them depending on their location in the aircraft.

Customer Feedback

• Positive:– “good quality from this budget airline. Flight on time, leg room good and boarding a

breeze. I will use IndiGo Airlines as it is value for money.”

– “The great thing about IndiGo is the on-time performance. ”

– “No queues at checkin, nice crew, cheerful and professional”

• Negative:– “One bad thing about this airline is that they do not even serve water at free. Snacks

were expensive, outside foods are allowed.”

– “The only complaint is that the food is expensive - INR 150 for chicken sandwich is too much, considering it's just a 2 piece sandwich which you can get for INR 50 at super-markets.”

– “The food served aboard was ok, but more variety would be appreciated. ”

– “The only hassle was the reservation website did not accept internationally valid credit card.”

Source: http://www.airlinequality.com/Forum/indigo.htm

Problems

• Food is costly

• Website needs improvement

• No frequent flyer programme

• Absence of special treatment for elite customers.

ROI from diff CRM activities

CRM Initiatives

Low Effort To Implement HighLow

Import

ance to C

usto

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Hig

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Paradigm Shift In CRM

Suggestions & Recommendation

• Value Based customer segmentation

• Frequent flyer programme

• Corporate Discounts

• Customer advocate centre.

• Radio frequency identification (RFID) baggage tags.

• Improved seat quality

• Roving Agents

• New Internet booking engine driving greater consumer traffic towards online bookings

• Rewards & Recognition for Employees for exceptional customer service

• Identified customers for each employee

• Empower the employee

• Set targets and success metrics

• Address customer needs throughout the lifecycle

• Add- on Selling Strategies

• Airport Lounges

• Cheaper Food and more variety

Suggestions & Recommendation