PROPOSED SOLUTIONS FOR IMPROVING CUSTOMER CARE QUALITY OF VIETNAM AIRLINES

INTERNATIONAL EXECUTIVE
MASTER OF BUSINESS ADMINISTRATION PROGRAM

PROPOSED SOLUTIONS FOR
IMPROVING CUSTOMER CARE
QUALITY OF VIETNAM AIRLINES
VIETNAM AIRLINES

2012

i


ACKNOWLEDGEMENTS
During implementation process of this project and perfect thesis of International
Practice Master of Business Administration Program , I always get the helpand
attention of instructor. On this occasion I would like to express deeply gratitudeto:

Despite conscientious efforts, but due to poor qualifications as well as practical
experience so thesis is inevitable shortcomings certainly. Therefore, I hope to
receive comments from teachers and classmates for my thesis is completed.

Hanoi,

October 2012
Student

ii


TABLE OF CONTENT

Cover page
Acknowledgements

i
ii

Contents

iii

List of symbols and abbreviations

vii

INTRODUCTION...................................................................................................1
1. Reasons for choosing the subject .........................................................................1
2. Rationale and objectives of the subject ................................................................2
3. The object and scope of research topics. ..............................................................2
4. Research methodology.........................................................................................3
5. Structure of the thesis: .........................................................................................3

CHAPTER 1 ...........................................................................................................4
SOME BASIC RATIONALE OF THE CUSTOMER CARE OF THE AIRLINES.
................................................................................................................................4
1.1 Factors affecting the airline customer care. .....................................................4
1.1.1 The concept and characteristics of air transport services. .......................4
1.1.1.1.The concept of air transport services................................................4
1.1.1.2. Characteristics of air transport services..........................................6
1.1.2 Concepts and characteristics of airline customers...................................8
1.1.3 Factors that affect customer care of the air transport enterprises. ........13

1.2 The basic content of the airline customer care. ..............................................14
1.2.1 Customer Relationship Management (CRM) of the airline. ...................15
1.2.2 Business development efforts of the airline customer oriented focus......19
1.2.2.1.Products and services.....................................................................19
1.2.2.2.Service price ..................................................................................20
1.2.2.3.Distribution channels. ....................................................................25
1.2.2.4.Trade promotion. ...........................................................................26
1.2.3 Development of human resources and corporate culture of the airline. .29
1.2.3.1. Human resource development. ......................................................29

iii


1.2.3.2 Corporate culture...............................................................................31
1.3 Lessons learned about the customer care of the international airlines. .........32
1.3.1 Some research experience in the customer care of a number of
international airlines. ....................................................................................32
1.3.1.1 Singapore Airlines..............................................................................32
1.3.1.2. Thai Airways International................................................................ 33
1.3.2 Some lessons for VNA. ..........................................................................34
CHAPTER 2…........................................................................................................37
SITUATION OF CUSTOMER CARE OF VNA.............................................37
2.1 Overview of the VNA. .....................................................................................37
2.1.1 Process outline of formation and development of VNA. .....................37
2.1.1.1 Foudation and development history ................................................37
2.1.1.2 Functions and tasks. .......................................................................38
2.1.2 Overview of business results of VNA from 2005 to present .................40
2.2

State of solution to customer care of the VNA ..........................................41

2.2.1 Reality of Customer Relationship Management at the VNA. ...............41
2.2.2 The reality of the business effort development of focus customeroriented of VNA. ............................................................................................ 46
2.2.3 Reality of human resources development and corporate culture. ........66

2.3

Evaluation of customer satisfaction for business activities of VNA .........68
2.3.1 Achievements .....................................................................................68
2.3.2 Shortcomings and limitations of the VNA ...........................................69

CHAPTER 3 ........................................................................................................71
PROPOSED SOLUTIONS FOR IMPROVING CUSTOMER CARE OFVNA
TO 2020................................................................................................................71
3.1 Some overview forecasts of the business environment and air transport
services-oriented development of VNA after Vietnam joined the WTO in the
period to 2020. ......................................................................................................71
3.2 Proposed solutions to customer care period 2012-2020. .................................78
3.3 Some macro petition. ......................................................................................91

iv


CONCLUSION
REFERENCE LIST

v


List of symbols and abbreviations

1. VNA: Vietnam Airlines
2. WTO: World Trade Organization
3.CRM: Customer Relationship Management
4. LCC: Low Cost Carrier
5.ISO: International Organization for Standardization
6.TCT: Corporation
7. Transit: Transit Passengers through Vietnam
8. IATA: International Aviation Association
9. SITA: Type of cable to transmit information in aviation
10. ATPCO: revenue management program in aviation
11. VPCN: Branch Office
12. Representative: Representative Office
13. VPKV: Regional Office
14. ASEAN: Association of Southeast Asian Nations
15. FDI: Foreign Direct Investment
16. ODA: official development assistance capital
17. APEC: Association of Petroleum Exporting
18. HKDD: Civil Aviation
19. PAX: Passenger

vi


INTRODUCTION
1. Reasons for choosing the subject
Vietnam is a country joined the WTO in 2007 and integration into the world
economy. In addition to these opportunities, businesses in general and Vietnam
Airlines (hereinafter referred to as VNA) in particular face the challenges, risks and
competition. To survive and grow, Vietnamese enterprises have to constantly
improving competitiveness.

As an air transportation business enterprise, as well as other Vietnamese
enterprises, VNA are faced with the situation of increasingly fierce competition
from domestic rivals, including: Jetstar Pacific, Vietjet Air, Air Mekong and foreign
airlines flying the same routes. Competition is not only with other airlines that VNA
must compete with other means of transportation such as rail transport, road
transport, sea transport ...
To be able to propose solutions to improve customer care, VNA has to study, to
understand the needs of customers by analyzing customer groups, determining your
target market, development Customer relationship management system (CRM) to
take care of existing customers. Besides, VNA also need to develop internal
resources, efficient use of organizational resources, especially human resources to
develop its customers.
VNA was founded in 1995 with amount of passengers were transported
increased by an average of 15% / year. Revenue increased by an average of 12% /
year. VNA has direct flights to 40 cities around the world in 18 countries and 20
provinces and cities in Vietnam. As national airline, besides political tasks, VNA
has been contributing to economic development, strengthen exchanges and
integration between Vietnam and the world.
However, in the context of globalization world economy becomes inevitable
competition between airlines increasingly fierce, competition with other forms of

1


transport equally harsh, beside opportunities, prospects, VNA is facing competition.
To achieve long-term development goal is to maintain existing customers and
attract new customers, VNA to reinforce modern fleet, constantly improving the
quality of services, and applied advanced sales technology, in line with market
characteristics as well as to satisfy the increasing demand of our customers.
For customer care, VNA has to study, to understand needs of customers by

analyzing customer groups, determining the target market, developing customer
relationship management system (CRM) to maintain existing customers.
Through the process of studying Master of business administration program, I
have more knowledge of economic management, methodology as well as the
method of administration, I would like to use my knowledge to suggest solutions to
improve the quality of customer care for the company that I am working.
Because of these reasons, I chose the subject "Proposed solutions for improving
customer care quality of VNA" as the subject for my thesis.
2. Rationale and objectives of the subject
- Systematized theoretical basis for solutions to improve quality of customer care in
the field of air transport operations;
Activities assessment to improve quality of customer care solutions for VNA;
 Propose measures to improve the quality of customer care for VNA, namely
development Customer relationship management system to maintain existing
customers and make efforts to obtain business solutions new customers for VNA in
conditions Vietnam's integration into the world economy.

3. The object and scope of research.
Research objects: Concept of customer in the thesis is understood that passengers
use transport services of VNA. Thesis addresses elements affecting between VNA
and customers, these solutions to improve the quality of customer care of VNA.


Scope of research:

2


+

Concept of customer in the thesis is understood that passengers use transport

services of VNA, including retail and group.
+

Limited: Customer purchasing passenger transport services on international

routes and domestic routes.
+

Time and the number of actual survey: VNA policies from 2000 to present

base on VNA survey data from 2000 to present.
4. Research methodology.
- Methodology: The subject use dialectical materialism method.
Specific methods: Statistics and detailed analysis of existing solutions to improve
quality of customer care of VNA, the thesis points out limitations and reasons so
that it is to become basis for the proposed solutions to improve customer care policy
for VNA up to 2020.
5. Structure of the thesis: In addition to the preface and table of contents, the thesis

is divided into three parts as follows:
Chapter 1: Some basic rationale of the customer care of the airlines.
Chapter 2: Current status of customer care activities of VNA over time.
Chapter 3: Proposed solutions to improve customer care quality for VNA
period to 2020.

3

CHAPTER 1
SOME BASIC RATIONALE OF THE CUSTOMER CARE OF THE
AIRLINES.

1.1 Factors affecting the airline customer care.
1.1.1 The concept and characteristics of air transport services.
1.1.1.1.

The concept of air transport services.

To give an idea of the service is difficult. So far, the researchers, the wellknown experts came up with a lot of concepts. But there are still a lot of controversy
surrounding the concept and also very limited. The main problem is not capacity
issues, research capabilities in the constantly changing variety of services. But also
need to figure out the concept more acceptable. Here are some concepts to meet it.
Services by Philip Kotler were understood as follows: an activity or service to
supply benefits to swap, mainly intangible and do not result in the transfer of
ownership. The implementation of the service can be associated or not associated
with the physical product. So services are activities such as: rent a room at the hotel,
travel by air, seek medical attention, sending auto to repair, watch movies, take
clothes to laundry ...
Another concept: a service is activity includes factors do not exist, addressing
relationship between client or customer owned assets to the supplier without the
transfer of ownership. Products and services within or beyond the range of physical
products.
Air freight service is any service that uses transport aircraft in service, on the
basis of regular or irregular, and is defined in the Chicago Convention of the United
Nations on civil aviation as follows : "Air Transport Service is any regular air
transport service that uses the aircraft for the purpose of public transport of
passengers, cargo or mail, parcel".
Products of air cargo services business are load supply, or the amount of

goods that can be transported in accordance with the predetermined time. Air

4


transport product is composed of factors including: load supply, network routes,
flight time, tranfer points, connection time and other complementary products.
General transport and air transport in particular has an important role and
has great effect on the national economy of each country as well as for the world
economy, a special catalyst push national economy and international economic
relations to be developed. International Air Transport Association (IATA) evaluated
the role of air transport industry in this era as follows: "Air transport is one of the
most vital resources of the world. Its development as an economic sector and the
field of air transport services have put in the place of one of the largest branches
contribute to the achievement of modern society. Air transport is essential for
economic development. In a community and the global market is growing fast, air
freight transport to facilitate a quick millions and billions of dollars of goods to
markets all over the world. "[1].
Air transport industry has an important role in the integration process of a
country with the world that other vehicles can not match. Air transportation network
is important arterial system of international economic activities, contributing to the
economic concept of the border beyond the borders of individual countries. Open
air also means expanding economic cooperation, political and socio-cultural
exchanges, strengthen economic linkages between regions, serving the needs of the
growing movement of social , contributing to the overall development of the socioeconomic and cultural between the regions in the country.
Besides, aviation also promotes the development of international tourism
and regional integration among countries and among regions of the world. Air
transportation system serving all areas of social life such as production and
circulation,

consumption,

contribute

to

ensuring

national

security

and

defense. Therefore, we can say the development of air transport reflect the level of
each country.
In current trend of integration, air transport has advantages compared to
[1]: Website: www.iata.org
5


other means of transport in terms of speed. Air transport is a modern type of traffic
and safety; Air transport have the ability to connect many parts of the country and
many countries in the world where other vehicles can not do it; air transport takes
place regularly and rapid revolving funds.
In summary, the basic role of air transport: sector generated a significant
portion of the total social product and national income; Meeting the needs of the
growing movement of goods and passengers in the society ; contribute to overcome
the uneven development between regions; expand economic ties and cultural
exchanges with foreign countries; enhance the defense capability of the country.

1.1.1.2. Characteristics of air transport services.
Characteristics of air transport services, including "The Invisible", "can not
be separated from the source", "The unstable and difficult to standardize quality",
"not preserved".
The "invisible" is that it does not exist as an object. This invisible for each
type of service has different levels of expression. In terms of types of air freight
services, intangible shown in that customers choose airlines to go from one point to
another point, that is, they buy the company's products and services. But before
buying the product, they can not measure the specific quality of products and
services. They can only be expected through the previously sold product or
information about the company, the customer can not see, can not stop touching the
product. This feature requires that managers need to pay attention to the material
goods transport services so that customers feel and that he has served. If so, the
attempt to improve the quality of new services mean.
"The inseparable from source" Service is not formed, the production and
consumption then that the production and consumption of services take place at the
same time. If service can provide by human, the presence of the supplier is
inevitable. This characteristic leads to the main limitations to the effectiveness of
service delivery channels. Inseparable of products and services is also reflected in

6


the participation of clients in the aviation service. In essence, consumers decide the
producer must produce goods to satisfy their needs. Relevance of consumer in the
production of services are often more pronounced than goods. Services provided by
a air freight services company can be consumed by customer travel needs is in the
shortest time.
"The unstable and difficult to standardize quality."It is original

performance of the products produced by an advanced industrialized society is the
level of standardization of product quality. Moreover, the production will not be
carried out without a high level of standardization. Consumers buy a product by the
manufacturer in the hope that this product will be the same with thousands or even
millions of other products of the same type.
Air transport services is also unstable and difficult to standardize; previous
product with next product often have certain differences. This is because in the
provision of air services with the participation of many employees provide
services. When booking, ticketing, customer contact staff in the ticket office or
agent; flight procedures at airports customers to communicate with the staff in-flight
procedures and customer served by the hostess.
Of course, the staff is very difficult to provide the same services at
different places, in different times and for different customers. Moreover, customers
are consumers and service quality decisions based on their feelings. Experience of
each person is different and even the feel of a day at a time is also
different. Aviation products and services will be of high value to meet customer's
individual needs. Therefore, in the aviation service provider in no small part be
personalized, free from regulation. That makes air services increased level of
difference. The conclusion drawn is to see clients as separate individuals, even if
they are large organizations.
"Not store" is products and services consumption directly or quickly damage
can not be stored. The service can not be produced in advance, then stored in a
warehouse until sold. Air freight service is the transportation industry especially

7


where the production and consumption processes occur simultaneously. Air
transportation service products can not be stored or saved.
While providing a certain number of seats on a particular flight, if the number

of seats that are not sold out when the flight takes off, the excess number of seats
can not be stored for sale on the next flight. It was not kept of products and services
air freight.
To overcome this difficulty for effective service delivery, need to have
accurate market forecasting, demand management measures well (for example,
application of the reservation system, the Revenue administration system Yield
Management System, diversification rates attached conditions fence ...) which can
fill up the flight, take advantage of the even on flights to avoid excess demand or
lack of short supply, keep credibility with customers.

Above characteristics of the service can be illustrated by the following model:

`

Not
availbale

Integral

Services

Heterogeneous

quickly
broken

Figure 1.1: The relationship between characteristics of products and services.
1.1.2 Concepts and characteristics of airline customers.
Any business or organization will also need customers. In other words, the
customer is aim of every business. A business can only exist when have customers.

Of course, needs to understand that customer concept here means that people buy
something of the business or organization. Most people agree that actions related to

8


the exchange of money. In many cases, understanding is enough. However, in a
broader perspective, can be considered customers with whom we exchange their
values (value).They give us something (usually, but not always money) in exchange
for something else (usually goods or services).
In a world of increasingly fierce competition, competitive pressures force
more businesses to better serve. The business can not stand the pressure of
competition will fail.
To be able to develop strong, the company is always trying to keep up with
changing customer needs and meet those needs. So the airlines have to analyze the
needs, behavior of customers, thereby making the overall solution and appropriate
policies on products, customer care before, during and after the trip fly. Here is
some sort of group of customers that the airlines are using.
Classified according to the number of passengers in the group, the airlines
divided by a number less than 10 delegations called retail customers, number of
delegations from 10 or more call Group.
Classified according to the market, airlines divided by the market.For
example: the local market, market Indochina, Japan, Korean market, French market
...
Classified according to the purpose of the trip, the airline divides customers
into groups of passengers traveling for business purposes, workshops, rest, student,
medical treatment, military transfers, labor, immigrant ...
Passengers travel for business purposes including journeys related to work and
pay for the travel company. Passengers traveling for business purposes and
sometimes a boss but passengers traveling for business purposes does not pay

directly from their pocket money from the company.
Passengers traveling for the purpose of attending conferences and seminars at
home and abroad is a modern trend. This group is also the company paid for travel
as long as they can attend the seminar on time. Hotels to conference workshops

9


often went into winter. The conference they attend usually held in the city luxury
hotel system.
Passenger market travel for the purpose of rest is divided into two categories:
passengers traveling and visiting relatives (VFR-visit friend and relative-visiting
friends or visit relatives). Unlike traveling for business purposes, passengers
traveling for leisure purposes have to pay airfare.
Students to study abroad is an emerging group of customers by increasing the
learning needs of students wishing to study in the university they wish. This
audience demand for flexible, high weight of luggage to carry books, documents
and personal belongings. They usually come in the season (school holiday).
Therapy passengers were emerging customer groups and the number is
increasing. When increasing life, the need to travel to places that can heal more.
When treatment of travelers, who often goes by. Therefore, additional airlines to
note the special service for customers located stretcher services, service use oxygen
tanks, service trolley ...
Workers often run by organized labor export worry visa, airline tickets.
Customers usually travel in large groups, urgent get tickets due to wait for a visa
from the embassy, the demand for low cost, go an urgent get tickets.
Move troops also was a new trend as previously they often travel by road and
sea.They often take a turn and needs to go low.
Immigration was relatively common when the object exit needs to be living in
a better country in the country they are living still occur. This audience is usually a

turn to the other countries, they also have low demand.
According to “Flying Off course, the Economics of International Airlines”, in
early days of international air transport, the majority of passengers travel for
business purposes. The passengers traveling for leisure purposes are usually
rich. Market consumers do not expand with an increase in personal income and a
reduction in the real cost of airfares, hotel rates for the purpose of reducing business
travel fast. In Europe, the proportion of business travel for the purpose of reducing

10


to rest approximately 15.3%, 72.5% traveling, 10.4% visiting friends and relatives,
about 1, 8% are traveling for other reasons (according to Business Monitor). Thus,
traveling for leisure purposes (traveling and visiting relatives) accounted for 83% of
the air transport market comes from England.
Also it is statistically the relative proportion of customers travel frequently by
plane is called regular customers (Frequent Flyer). Number of this regular
customers usually fly with business purposes but sometimes travel for tourism
purposes. According to statistics in the United States in 1989 regular customers at
least 10 flights a year accounted for 6% of air passengers flying but over 41% of
the total number of flights.
Travel purpose affects the frequency of travel and the time of flight. While
passengers flying for business purposes more often, they usually make the trip
shorter. Meanwhile, customers who travel for the purpose of resting, visiting
relatives or long vacations and travel packages are often customers wishing to set
time.
When resting analysis, we find the rate that women make up 53% (London
airport figures) and even more when guests are visiting relatives. We analyze the
amount of travel for the purpose of rest focus on ages 30 to 49. Rate from 60 years
and older is also very high. However, at the age of 50 or under 16 years old in the

UK make up less than 10% of passengers traveling for leisure purposes.
The important social and economic factors also affect the travel needs of
each individual client by traveling for the purpose of rest to pay for their holiday
and their wives and children. As a result, those with higher income get market share
of traveling for the purpose of more rest.
In addition to the factors of gender, age, income, politics, culture, we also
investigated the social and economic problems such as: the number of people in the
family put together, walks of passengers, passengers profession. Evaluation of
socio-economic problems of customers in each market will be very useful for
airlines in advertising planning, launching and promoting the sale of other sales

11


activities and also help to decide advertising strategies. The knowledge of this
market will assist airlines in product planning, pricing decisions as well as
forecasts. Moreover, airlines know the customer's purpose of travel, time of flight,
an understanding is needed of the hotel is also very useful to make policies to
maintain existing customers and attract more customers in the future.
Crops by day, week, high season is a very important issue and airlines often
increase during peak load to serve the travel needs of passengers.Distribution time
school student, the annual holiday in offices, factories, public holidays such as
Christmas, New Year, cultural events, sports are important factors create travel
demand much of customers called high season. In Europe, the traditional summer
holidays of child labor and the person who did what he identical with beautiful
climate conditions in the Mediterranean. In those days this summer who did
northern Europe to southern Europe usually to rest, the influence of the high season
flight schedule of the airline.
Customers who bought air transport services are often the income in
society. The rich client or senior officials need to sit in luxury cabins, is

distinguished from other customers. Therefore, traditional airlines aviation service
classification according to three classes of services includes: First Class (First
Class-Class F), Business Class (Business Class - Grade C) and often (Economy
Class- class Y). In the service class, the airline division of the different booking
classes corresponding to the different rates (sub-class) to serve different customer
groups that satisfy the different needs of each customer groups.
In short, the traditional airline market segment in routes, according to the
market, the purpose of the trip. Others will divide customers into traveling for
business purposes, traveling for the purpose of resting, visiting relatives and
traveling for other purposes. This division is important because it relates to predict
customer demand for product planning flight planning, in-flight service and
especially the price.The figure below shows the market segmentation based on the
trip's purpose and needs of the customer.

12


Table 1.2: Segmentation based on the purpose of the trip
and customer needs.
Customer Ratings

Demands

High

The

have

frequenc

Bay stops

Services

Check-in

Low

ability to

inflight

procedur

Price

y of

cancel

comfort

es, quick

flights

and

checkout

change
reservati
ons

It is important

5
4
3
2

Does not matter

1

(Nguồn: Flying Offcourse)
: public service PAX
: visiting relatives PAX
: tourists PAX
: workers PAX
1.1.3 Factors that affect customer care of the air transport enterprises.
Factors affecting the enterprise customer care air transport system is the
measure of organization, technical and professional skills to influence economic
customers to commercialize products products and services, attract more customers
both in terms of number of customers and increase the volume of customers buy
products and services.
Factors affecting this include the impact from inside and outside the
enterprise.
The external factors affecting business including the policies of the

ministries, other airlines.Now the Civil Aviation Administration of Vietnam

13


(Department HKDD) managing unit management issues related to aviation
enterprise licensing as established, approved commercial rights to fly to the aviation
business, shop browse published rates between countries, approved ceiling for
domestic flights network in Vietnam ... The emergence of a range of cheap airlines
(Low Cost Carrier LCC) is also a factor affecting the traditional airlines. LCC firms
have an impact on the market. Along with the sale at very low prices, the company
LCC bring benefits to the community, creating new flows as low-income people can
also participate using air freight services. However LCC carriers have a certain
influence as the majority of its LCC to use the aircraft is about to expire use,
technical costs too little leads to flight safety is not high.
The factors affecting the business which is the organizational structure of
the enterprise.Air transport enterprises should have the organizational structure and
customer-oriented culture. Businesses need to have the professional research
customer needs, proactively deploy products according to customer needs, specific
operational deployment to maintain and develop customer relations. Structure of the
enterprise of the necessary customer care center (Customer Care Service Center)
function to find out what customers need and air transport enterprises can do to be
able to meet the highest customer needs.The efforts of the business itself are
presented in the

modern fleet development, human resources, product

accompanying services marketing and customer ...
1.2 The basic content of the airline customer care.
Customers determine the sustainable development of any business including

airlines. Therefore, improving the quality of customer care is the goal of the
airline.To maintain customers, airlines need Customer Relationship Management
system (Customer Relationship Management - CRM) and implementation of
content management customers seriously, seriously Customer Relationship
Management System to take good care of their existing customers to always choose
the company.Besides taking care of existing customers, airlines have to find
appropriate measures to develop its customers, attract new customers to use its

14


services and making them its loyal customers.So in order to attract customers, the
airlines need to effectively use the variables of effort and organizational resources
for business customers know and use its services.Here is the basic content of the
customer care shown by customer management system and the basic content to
attract more customers through the efforts of business and organizational resources
of airlines.
1.2.1 Customer Relationship Management (CRM) of the airline.
Customer relationship management is used as an important solution in the
business, is the basic content of the airline's customer care.CRM is considered
mandatory for airlines general and VNA in particular to the implementation if you
want long-term survival and development in the market and competition is
becoming increasingly fierce.Therefore, the airline has been investing more and
more on customer relations to generate benefits in the long term is to maintain its
customer base.In addition, customers increasingly better understanding of the
services they receive. They compare, choose airlines provide most valuable benefits
based on past experience, and needs her.Therefore, customer relationship
management is indispensable for the airlines.
Since the appearance of goods trading relations, we have made the storage
and use of information about suppliers, buyer-clients in a variety of different forms

based on the purpose, cognitive and existing facilities.This is a primitive precursor
of customer relationship management. As the development of information
technology, it has support for enterprises in the management of customer
information and customer information management system - Customer Information
Management System-CIMS, followed by the Automatic Sales System SFA - Sales
Force Automation - was born. Can say this is the premise of CRM today.
The concept of CRM in business in general has become more popular in the
latter half of the 90s of the 20th century.But so far, the market analysts, researchers
still do not agree on the exact definition of it. There are many concepts of CRM. By
David Sims: "CRM is not a technology or any tool support, but it is a program to"

15


red carpet "entrance to reception and customer service" [2].Ideas and concepts is
nearly identical to the business philosophy of "Customer is God".Also according to
Rayan Crow Cour, for that "CRM is a business process that uses a deep knowledge
about customers is accumulated over time an effective way to build and implement
their business strategies to meet the specific needs of each client's goals
"[3].Jennifer Pratt said: "CRM is a management model, in which the customer is the
center of all activities and processes that make business.CRM uses modern
technology, integrated strategic planning, personal marketing techniques and
organizational development tools to build relationships inside and outside, in order
to increase revenue and profit profit as well as to increase productivity in the
enterprise "[4].
Finally, an evaluation concept is quite adequate, it is regarded as an expert
definitions and is widely recognized for CRM, which is: "Customer Relationship
Management (CRM) is a expression of the business strategy to attract, select,
[2]: />[3]: / print.jsp?contentId = 413 & subjectid = 104
[4]: = 413 & subjectid = 104

[5]: />develop and maintain relationships with the most valuable customers "[5].This
concept is considered to be quite adequate and is widely recognized for:
Firstly, CRM is not only a technology management; collection of model; an
organizational model or abstract as the "red carpet" that CRM is regarded as a
manifestation of the business strategy, it associated with the long-term and largescale, covering all business activities of the enterprise customer towards
predetermined goals.
Secondly, the CRM is a way of implementing business strategy.In a competitive
environment, businesses must always attract, entice customers, ensure sales to
maintain profitability and business development activities. With a predetermined

16


strategy, CRM deployment attracting customers, based on the evaluation criteria
and classification to choose the client intends to bring the most benefits in the
present as well as long-term future to build and maintain relationships to ensure the
survival and development of enterprises.
Thirdly, CRM requires the coordinated participation of most of the functions
of the business such as: human resources, sales, accounting, information ...
Fourthly, CRM is not a business strategy.However, in the current business,
CRM is indispensable for business for CRM to ensure that business strategy is
implemented effectively, especially in the long term. CRM based on the strategic
direction for the implementation of customer relationship management. CRM
results obtained are the customers, the enterprise market to ensure maintenance and
business development. CRM is the basis, the premise is very important to build
business strategies. Thus, CRM and Business Strategy dialectical relationship to
each other. In particular, the strategic direction determines the content of the CRM,
conversely, CRM implementation is well underway oriented business strategy.
Fifthly, large enterprises are now generally diversified businesses, the
expansion of the business into new areas requires market research, competitor and

economic ... From the fact that, that CRM deployment to implement business
strategies with existing sectors are crucial in micro data in building new business
strategy towards business. From the above concept of CRM, we have years of
content management clients is as follows:
Planning and
development
activities seek
to attract
customers

Build a
database
of
customers

Analysis,
strategic
customer
choice

Develop and
maintain
relationships
with strategic
customers

Evaluate
the
performan
ce of

CRM

Figure 1.3.The contents of the CRM client management.
Firstly, the planning and implementation of search operations, to attract
customers.From the strategic direction of air transport operations, the Right CRM
blueprint for finding, attracting customers. Planning can not not mention the

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collective marketing solution for each specific customer oriented enterprises to
deploy the search activity, their attraction. Marketing solutions commonly used are
product, price, distribution and promotion.
Secondly, build customer database is an indispensable requirement for air
transport operations.Construction of database clients include: determining the scope
of the customer database (what information and criteria need to be taken in the
customer database); selection method of obtaining and processing; developing
mechanisms to maintain development, process log information into the system
database; perform logging, update the information in the system database.However,
the management and use of the database depends on the technology and human
development, the implementation of this work.
Thirdly, analysis of, strategic customer choice.Strategic direction of the
market, customers in the field of air transport group pointed out that enterprise
customers need to focus resources toward achieving long-term goals. However, in
order to identify a specific object customer is strategic customers, we have to build
a system of evaluation criteria, credit scoring, customer rating. Next is to build
strategic customer defined process. Followed by the deployment of analysis,
strategic choice among customers. This work is not easy, it requires the job to be
highly professional, ethical and technological support. The process of analysis,
evaluation, and determine customer requires strategic objective, independent, crosscheck monitor, proposed control after selection.

Fourthly, build and maintain relationships with strategic customers.Maintain
relationships with strategic customers are always looking for ways to satisfy
customer needs. The supply of the service to be customer oriented and always for
the benefit of customers. To do so, the policy incentives for strategic customers
need to be made. There are so, to ensure the sustainable development of the air
transport business in the long term.
Fifthly, assess the effectiveness of CRM activities are considered to be the
most important component of CRM, shown in the two angles is evaluated CRM and

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CRM reviews."Evaluating CRM" is based on a financial index, with CRM,
effective assessment method is to be customer-centric. "Evaluation of CRM" as the
system application software, system software using CRM as a tool to provide air
transport enterprises of the statistical data, the analysis of the customer.Statistical
data and follow directions completely depends on the use of information and
capacity of business leaders. In fact, CRM software system is a system throughout
the enterprise business sector and it is used for many other business sectors,
depending on its intended use.

1.2.2 Business development efforts of the airline customer oriented focus.
To develop customers, airlines need to effectively use the variables of the
business effort. Its business efforts oriented to match and satisfy customer
needs. Here is the approach of business efforts to develop the airline's customers.
1.2.2.1.

Products and services.

An offer can be considered as an atom with nuclear or core in the center,

surrounding the core product.It should be considered for evaluation at several
levels, including:
First is the basic products and services are services that exceed the needs of
customers or is the main reason for customers to service organizations.
The second is peripheral products and services are additional services for
basic services provided by the service organization.If the service is basically
unitary, peripheral services can be many.Peripheral services may be required or
not.These services correspond to the needs and wants of customers, making a good
point for basic services and increase the quality of basic services. For example, on
stage Hanoi - VNA Seoul, is basic shipping service from Noi Bai airport to Incheon
airport.Peripheral service booking system, send the goods by aircraft registration,
meals on board, passengers may or may not be needed, depending on their needs
and desires.

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