The Significance of CRM for Business: A Case Study on British Airways

This case study examines the significance of Customer Relationship Management (CRM) for British Airways. The study aims to identify the importance of CRM in delivering airline services, analyzing the challenges faced by the airline in managing customer relationships. The research employs a systematic approach, utilizing secondary data from books, journals, and articles. The case study investigates the impact of CRM on customer satisfaction, brand loyalty, and overall business performance. It explores the implementation of CRM systems like Teradata and their advantages, such as improved data accessibility and analytical capabilities. The study also delves into the problem statement, highlighting customer dissatisfaction and the need for technological upgrades. The objectives include comprehending CRM aspects, analyzing its importance, identifying its usefulness in customer attraction, and providing recommendations for performance improvement. The case study is structured to include an introduction, literature review, research methodology, findings and analysis, and conclusion with recommendations. The research philosophy is interpretivism, with an inductive research approach and experimental research design. The study's significance lies in understanding the impact of CRM on organizational growth and providing insights for British Airways to enhance its customer relationship management practices.

Case Study

Abstract
The case study demonstrates the influence of CRM on the performance of British
Airways. The objectives of the case study is to identify the importance of CRM for delivering
airline services to customers of British Airways. Customer relations is the process of formulating
and developing relationship with the customers by making communication with them after
selling particular products or services. To carry out the case study efficiently, precise research
methodology has been used by the researcher. Data has been collected from secondary sources.
This helps him in analysing and current impact of customer relationship management system on
British Airways. Secondary source of collection of data includes gathering data from books,
journals, articles proposed by different authors and researchers. In order to accomplish the aims
and objectives of the case study, the researcher has analysed relevant articles, books and journals
which helps in providing robust evidence to the research.

Table of Contents

CHAPTER 1: INTRODUCTION
1.1 Title
“To identify significance of customer relationship management for business enterprise” -
A case study on British Airways.
1.2 Introduction
The process of managing, analysing, interacting with customers with the aim of
improving the relationships between customers and companies so that customer can be retained
and organisation able to promulgates sales is known as customer relationship management
(CRM) (Rouse, 2017). In the era of globalisation and trade liberalisation, many national and
multinational organisations are establishing their business in the market economy of United
Kingdom. Thus, in order to sustain in the competitive environment customer relationship
management plays crucial and essential role for the organisation. In this context, the following
case study will present the customer relationship management used by British Airways in order
to increase customer satisfaction and attraction. British Airways is one of the leading and most
reputed aviation industry incorporating in United Kingdom. The airlines is one of the world's
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Illustration 1: British Airways
(Source: Boeing 787-9, 2017)

longest established airlines which was founded in 31st March 1974 (History and heritage, 2017).
Headquarter of the organisations is located at Waterside, Harmondsworth, United Kingdom.
There are more than 45000 employees currently employed in the organisation in more than 100
countries (Pearson, 2016). Approximately, hundreds of thousands people travel in airlines. It is
very essential for the management of airlines to coordinate with the customers efficiently so that
relationship with them can be improved adequately. The management of British Airways needs
to make drastic cost saving with external spend. Thus, eventually, British Airways implemented
Teradata Customer relationship management system on Integrated Commercial Warehouse
(ICW). There were ample of advantages that Teradata Customer relationship management
system gave to the British Airways. It was easy to use and analytical team of the organisation
needs to give minimum efforts to comprehend and calculate the queries of customers. The speed
of accessing data has been greatly improved on Teradata (Grégoire, Salle and Tripp, 2015). For
attaining research objective the current investigation will follow a very systematic process. This
process will comprise literature review, research methodology and data analysis chapters. All
these segments of investigation process will help in getting appropriate solution of the research
problem.
1.3 Background of research
In present era, use of information technologies are increasing rapidly. With the help of
information technologies and systems, the management of organisations can monitor, supervise
and coordinate with each other effectively and efficiently (Wirtz and Lovelock, 2016). In order
to coordinate with customers precisely, management of firms install integrated communication
systems, utilises digital technologies and uses traditional methodologies so that they can serve
customers better and efficient. British Airways is one of the leading airlines company of United
Kingdom which has been focusing on improving the customer relationship. Despite of delivering
precise services to the customers, the organisation is facing issues related with managing
relationship with customers. The organisation is using various methodologies like they have
improved company's website, using telephone to communicate with passenger, live chat, direct
mail and social media. Thus, the following case study aid in analysing the importance of
customer relationship management and its affects on customer behaviour and brand loyalty.
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1.4 Rationale of study
The case study is based on analysing the significance of customer relationship
management of British Airways. We are living in the world which is characteristics by
dynamism where each and every organisation is strive to perform better (Lacey, 2015). The case
study will help in analysing the impact of effective relationship with customers in growth and
development of business organisation. Customer satisfaction plays vital role in business growth,
thus it is very important for the organisation to focus on delivering excellent quality of services
so that customers issues and problems can be resolved and efficient relationship can be
maintained. Furthermore, this case study will aid in providing the best recommendations to the
management of British airways, so that their customer relationship management systems can be
improved and they can drive on the path of growth and development.
1.5 Problem statement
The case study concentrates on the challenges and issues faced by the British Airways
relating with maintaining customer relationship. From the analysis of the websites and customer
reviews about the organisational services, it was identified that majority of customers remained
dissatisfied with the services delivers by British Airways. Further, the management has not
installed and upgraded technologies and customer relationship management systems. Many
departments including human resource department of British Airways were not implementing
change in the organisation and thus becoming barrier in growth and development of organisation.
1.6 Aim and objectives
Aim
“To analyse the influence of customer relationship management on the performance of
business”: case study on British Airways.
Objectives
The objectives of the following case study is listed below:
 To comprehend the aspect of CRM.
 To analyse the importance of CRM to business services of British Airways.
 To identify the usefulness of CRM for generating customer attraction, retention loyalty
and commitments towards British Airways.
 To provide suggestions which can be incorporated by the management to improve the
overall performance.
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1.7 Research questions
The questions for case study are listed below
 Describe the aspects of CRM for British Airways?\
 Explain the importance of CRM to business services of British Airways?
 Describe the usefulness of CRM for generating customer attraction, retention loyalty and
commitments towards British Airways?
 Explain how British Airways will able to improve their performance?
1.8 Structure of case study
In order to accomplish the aim and objectives of case study, it is very important for the
researcher to establish precise structure. This will help the end users to comprehend and develop
brief understanding about the case study. In this context systematic structure will be formulated
in the following case study which are described below: Chapter 1: Introduction- Introduction will be the beginning of the case study. In this
chapter brief information will be provided by the researcher about the case of CRM of
British Airways. By reading introduction an individual can comprehend about the
direction of case study. In this way, end users will able to comprehend about the goals
and purpose of case study efficiently. Chapter 2: Literature Review- Literature review is the biggest chapter in the case study.
The aim of literature review is to establish theoretical framework of research. In this
chapter, researcher will identify and analyse the articles, journals, books written by senior
scholars. This will aid in increasing the effectiveness of the case study and researcher will
able to generate robust evidence. Chapter 3: Research Methodology- In this researcher will use different tools and
approaches of research so that effective framework can be created. This will aid the end
users to identify the structure of case study and they will able to understand the aim and
objectives of case study. Chapter 4: Findings and Analysis- This is the fourth and most important chapter of the
case study. In this chapter, researcher will analyse and interprets the gather data
systematically so that efficient outcomes can be produced. It can be done in many ways
but in this case study, researcher will use thematic analysis to interprets the collected
data.
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 Chapter 5: Conclusion and Recommendations- Conclusion and recommendation is fifth
and the last chapter of case study. In this chapter, the researcher will wind up the case
study by providing brief synopsis of the research. Recommendations will be provided so
that improvements can be made.
1.9 Framework and analysis
The framework and analysis comprises research methodology components. It helps in
providing efficient benchmark to the case study. In this context, the framework and analysis of
research is provided below: Research Philosophy: Research philosophy is an idea or belief of the way through which
data will be collected, analysed and interpreted. In the present case study, the researcher
will use interpretivisim philosophy of research (Baskerville and Wood-Harper, 2016). Research Approaches: There three type of research approach and in the present case
study of customer relationship management of British Airways, the researcher aims to
use inductive research approach. Research Strategies: Research strategies are the plans which helps in carrying out the
case study (Davies and Hughes, 2014). In the present case study, the researcher will use
both qualitative and quantitative methods of research as a part of research strategy. Research Design: There are various research design which are used by researchers to
increase the effectiveness of the research. For the present case study the researcher will
use experimental research design. This will help in accomplishing the aims and
objectives of the research effectively and efficiently. Data Collection: Data collection is the process of gathering relevant data from authentic
sources (Roulston and Shelton., 2015). In the following case study data will be collected
from secondary sources. Books and other articles will be the sources of secondary data
collection methods. Sampling: Sampling is the process of taking small proportionate of data from large
information. In the following case study, sampling will be used in order to select books
and journals from various authors.
 Data Analysis: The data will be analysed using thematic analysis through which
meaningful information can be produced by the researcher.
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1.10 Significance of research
Customer relationship management is an important aspect and determinant which impacts
the growth and development of organisation (Harvey and Turnbull, 2016). The following case
study will analysis the significance of customer relationship management practices used by
British Airways in United Kingdom. This case study will help the end users to comprehend the
concepts of customer relationship management and they can develop understanding about its
pros and cons. Further, the following case study will help the management of British Airways to
know about their existing customer relationship management system and way to improve it so
that the organisation can drive on the path towards sustainable growth and development.
1.11 Conclusion
From this chapter, it can be concluded that with the help of information technologies and
systems, the management of organisations can monitor, supervise and coordinate with each other
effectively and efficiently. In this context, the researcher has described the introduction of the
study, background of case, rationale and research aim and objectives of the study. The precise
structure and framework has been discussed. Eventually the significance of the study has been
discussed in chapter first.
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CHAPTER 2: LITERATURE REVIEW
2.1 Introduction
Literature review is the longest and important chapter of case studies and dissertation. In
this chapter, researcher aims to explain about the title of case study by identifying and analysing
the articles and books written and researched by senior researchers, authors and scholars. This
will aid in establishing a theoretical framework for the particular case study. In order to analyse
the significance of customer relationship management system of British Airways, the researcher
will use relevant literature so that effectiveness in the quality of case study can be increase. This
will further aid the end users to develop understanding about customer relationship management
systems. The chapter is divided in three part which are based on the objectives of case study. In
first part, the researcher will explain the meaning of customer relationship management, in
second part the researcher will explain the significance of CRM and in third part the researcher
will describe the usefulness of CRM.
2.2 Case Brief
British Airways made dramatic decisions related with cost saving with external spend
after 11th September 2001. This led to importance changes in their customer relationship
management environment. As the longest established airlines, British Airways origins can be
trace back to 1919. Since then many modifications has been made by the management of British
Airways so that the productivity and profitability can be increase and effective relationship with
customers can be made eventually (Whitney and Cooperrider, 2011). The management of British
Airways operates in over-capacity, slim markets with ample of governmental regulations and
geopolitical influences. The management faced constant battle for long term survival. “Future
Size and Shape” program was launched in 2002 in response to the constant pressure and to gain
competitive advantage. The motive of program was to restore airlines sustainability and
eliminate the complexity from the organisations after the attacks on 11th September 2001
(MyCustomer Newsdesk., 2004). Having been a Teradata user since the early 1990’s, BA
launched an initiative in 2001 to consolidate information from across the organisation into its
Integrated Commercial Warehouse, or ICW. The vision for ICW is to simplify the decision-
making processes by simplifying IT infrastructure and improving decision support capabilities
within British Airways. Currently ICW is an 8-node Teradata Warehouse, which stores data from
different departments of business which includes customers, sales, operations, marketing and
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financial departments. Presently on ICW, customer information is the largest data subject area
for management. To manage marketing communication with its global customer base, the
management of British Airways implements Teradata CRM (TCRM) systems.
In the 1990s, the marketing group of British Airways comprises regional offices that
established independent marketing campaigns leading to fragmented operations and the potential
for redundant communications. The analyst team of British Airways conducts campaigns
utilising SAS and business objects. After that the management of BA decided to implement their
Customer Data Warehouse (CDW) that have code named “Oceanwave” which was based on
Oracle. The analytics team faced several issues regarding CDW such as comprehending the
structure of data, using customer data for analysis, slow and lagged performance and the quality
of data was also not precise either. Thus, the management shifted from CDW to Vantage
solutions for simple and efficient campaigns. For complicated campaigns, the analytics team of
BA used combination of different tools such as SAS, Business Objects and local data base.
However, the Vantage solutions results to be more expensive and inadequate. As the
management of British Airways, install obsolete version and they have limited IT support, it took
them 3 days to build bi-weekly queries (MyCustomer Newsdesk., 2004). The management of
British Airways needs to make drastic cost saving with external spend. Thus, eventually, British
Airways implemented Teradata Customer relationship management system on Integrated
Commercial Warehouse (ICW). There were ample of advantages that Teradata Customer
relationship management system gave to the British Airways. It was easy to use and analytical
team of the organisation needs to give minimum efforts to comprehend and calculate the queries
of customers. The speed of accessing data has been significantly improved on Teradata. The
complex data has been calculated within minutes and provide precise outcomes efficiently. The
quality issues in data was easily identified and rectifications can be made easily that increase the
effectiveness in the quality of data and information. It required only one day to teach, trained and
provide information to the employees in one month in order to increase the skills and
competencies of employees regarding implementations of Teradata. Globally all the
communications to executive club members and BARCs customers are done using Teradata
customer relationship management system. TCRM supports integrated email, direct mail, call
centre and web channels from one interface. It is a one-stop shop for all marketing
communications, including Executive Club and BARCs information (BA On-line Registered
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