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Wed, Mar 25, 2009

Airlines Slow To Learn Alternate Meaning Of 'CRM'

But Customer Relationship Management Makes Frequent Fliers Feel Special

If you've been exposed to aviation jargon, you're probably familiar with the term 'CRM.' "Crew Resource Management" was in the spotlight during the US Airways ditching in the Hudson River, and flight schools sometimes refer to it as "Cockpit Resource Management" for single-pilot operations.

But there's a new "CRM" being studied by the airlines, and its stands for "Customer Relationship Management." It involves managing information to equip employees who serve you with information which will help them do so more personally. The Wall Street Journal reports airlines have been slow to exploit CRM, largely because of incompatible computer systems.

One early signs US airlines are "getting it" is a new post-boarding perk for frequent fliers on Alaska Airlines, seated in coach. Flight attendants will bring you your favorite drink and greet you by name. Cam Marston -- a frequent flier with Delta, American and US Airways -- was on an Alaska flight recently, when a nearby Alaska frequent flier was served the drink.

"It really made an impression," Marston told the WSJ. "With the technology available today, it would seem easy to do to add personalized service... I think there is huge opportunity."

Other applications for the technique might include knowing your bag was lost on your last flight, and being greeted with an apology and complimentary airport lounge pass on your next trip.

So... if Amazon can automatically evaluate your purchase history to suggest other books you might like, and hotels can keep track of your favorite kind of pillow, why haven't the airlines been on this sooner? Industry experts say poor labor relations are one reason. Arming a disgruntled employee with more personal information on passengers could have an obvious downside.

But obsolete IT infrastructure is also a factor. Many airlines have relevant customer information on separate, incompatible computer systems, making it hard to even identify who their best customers are.

But Alaska Airlines is proving it can be done. Its conspicuous greetings and drink deliveries to good customers, even in coach, has been implemented despite customer information being scattered across six different computer systems and databases.

The last link in the chain is decidedly low-tech. Flight attendants are given manifests with frequent customers identified...on paper.

FMI: www.alaskaairlines.com

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