british airways crm case study

• Customer relationship management (CRM)

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Case study: British Airways’ global B2B sales gathered under Salesforce cloud

British airways has gathered its international business-to-business sales under salesforce sales cloud to bust silos.

• Brian McKenna, Senior Analyst, Business Applications

British Airways has brought its business-to-business sales effort together globally under the umbrella of Salesforce’s software-as-a-service (SaaS) Sales Cloud. More recently, the airline’s sales staff have benefited from the use of the SaaS provider’s enterprise collaboration platform, Chatter.

Ed Millington-Jones, sales enablement manager at BA, describes how the airline began the move towards Salesforce at the time of the merger of the British flag carrier with the Spanish flag carrier Iberia to form International Airlines Group (IAG) in 2011.

Today, BA and Iberia has a joint sales staff of some 700 people, with Iberia concentrated on the Hispanophone and Lusophone territories in Latin America, as well as Europe.

Millington-Jones says the collaboration capabilities baked into Salesforce with its Chatter software platform are critical to how the sales staff work internationally, in virtual teams.

“They use Chatter an enormous amount for collaboration. We use it for groups focused on business issues, and we use it for virtual teams, where you might have a lead account manager in one territory, say the UK, and other people on that same account in other territories, say the US or Hong Kong or Europe. So, our sales staff find the collaboration in Chatter enormously useful, for prospects and cases as well for accounts,” he says.

BA sales staff also benefit from self-service business intelligence (BI), provided by way of Tableau being integrated into Salesforce, says Millington-Jones. Sales staff also use another SaaS system, Anaplan , for the modelling of financial forecasts.

“As our sales teams are working more flexibly and remotely, collaboration tools become incredibly important,” he says.

Creating a virtual international office

The B2B sales effort for whose selling, systems, metrics and reporting Millington-Jones is responsible is distinct from the business-to-consumer side of British Airways, which sells to individual passengers, under the banner of BA.com.

Millington-Jones’s sales colleagues sell to corporate organisations directly, and to travel management companies and travel agencies.

They have been going through what he describes as a “transformation programme” aimed at establishing a “one-stop shop for our sales teams internationally, a virtual office”.

The sales organisation had been previously siloed in functional areas and geographies. “Different processes existed, different ways of working. We have a global sales team now, including an inside sales team in Dublin, to manage new business. And sales operations are concentrated in one place, Bratislava. They used to sit at a country level, and an area level,” he says.

Sales staff sell jointly with Iberia, who take care of the Spanish- and Portuguese-speaking territories in Europe and Latin America.

Choosing Salesforce

The team chose Salesforce for customer relationship management  (CRM) for the new business created by the merger, leaving behind a BA-customised CRM “legacy system” called iSell, originally from Baan in 2014.

“The clinching thing was, we saw Salesforce as best in class for what we were and are trying to do. We like that it is highly configurable,” says Millington-Jones.

The sales staff master all their accounts in Salesforce Sales Cloud, feeding their Teradata data warehouse with customer data. They also like that customers can input their own data, via their Salesforce instance, he says. “That drives efficiencies in terms of speed to market,” he adds.

Another major benefit  Millington-Jones reports is that whereas previously account managers had been “wasting time pulling in data from in-house legacy systems”, they now benefit from being embedded within Salesforce. “There is more speed to market” with prospects turned into customers and “speed to [deal] closure”.

Moreover, he says, “we are constantly looking for new solutions for our business with Salesforce”. It has a five-person centre of excellence team focused on how Salesforce can benefit the BA B2B sales effort more, he says, and are using Trailhead , the supplier’s developer education programme, a lot.

The sales team is also looking at how Salesforce ’ s artificial intelligence software layer,  Einstein , could be used to better identify and match sales opportunities to travel agencies and corporate customers, he says.

“When we first adopted Salesforce, we launched with a more limited set of uses cases [than now], but as we have developed, we have integrated other systems, such as Tableau and Chatter, and that has made our sales people’s jobs easier and more streamlined,” says  Millington-Jones.

Read more about IT in the airline industry

• CIO interview: Mike Croucher, head of IT architecture and delivery, British Airways .
• Virgin Atlantic’s business-to-business and cargo divisions have found Salesforce CRM to offer a “family feel” beyond the software .
• How Asian airline carriers are counting on personalised services, blockchain-enabled loyalty programmes, automation and predictive maintenance to lower costs and improve passenger experience.

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Case studies : british airways global consumer relations program takes off with astute solutions.

#contactcenterworld , @astutesolutions As a premier global airline, British Airways (BA) travels to 216 destinations across 94 countries, serving over 36 million people a year. In 2003, BA launched a global customer relations initiative aimed at overhauling its technology infrastructure and service processes (baggage, compensation, etc.). Astute Solutions’ ePowerCenter consumer interaction management solution was selected to accomplish BA’s expansive objectives.

The solution delivered the functionality that today fuels BA’s uncompromising service. It enabled a total view of the customer, enhanced information gathering and reporting, and significantly streamlined processes, thus playing a key role in improving BA’s service quality and effectiveness across all customer touchpoints.

The airline industry has many distinct challenges. Competition, regulation and fuel prices are examples of the uncontrollable external pressures in aviation. Many of these variables have the potential to impact the passenger experience. Yet, in the airline business, like most consumer-oriented businesses, service quality is the main brand differentiator. Understanding this reality and desiring to differentiate the BA passenger experience, British Airways partnered with Astute Solutions to overhaul and optimize its customer service recovery process and systems.

Flying 36 million passengers annually to over 216 destinations, British Airways is the United Kingdom’s largest international scheduled airline. Customer service is at the heart of BA, and the airline takes pride in providing passengers with a world-class service experience.

Inevitably, there are occasions when service standards are compromised.To mitigate passenger dissatisfaction in these situations, BA has a network of customer relations offices, responding to passenger communications through channels such as phone, mail, email and fax. In 2003, BA completed a review of its operations across customer relations and identified a number of key issues and opportunities:

• The existing processes were complicated and lengthy
• Multiple customer databases were being created across the airline
• It was not possible to report on company-wide service failures

BA’s challenges were further complicated by its non-integrated collection of technologies. For example, the company was using two separate and heavily modified applications in the UK and US, and had no formal systems in place at some of its other locations. Without an integrated view of customer interactions, BA had limited control over the effectiveness of its service recovery activities. This led to excessive customer relations expenditures due to:

• Less efficient case handling and compensation processing
• Multiple/duplicate claims for the same incident
• An increase in goodwill abuse

These findings led to a series of initiatives with the following objectives:

• To create a single, global customer service platform connecting all customer relations sites and 350+ service representatives
• Improve the speed and lower the cost of service recovery, by increasing operational performance and productivity
• Provide timely and relevant feedback to the company, and become aware of service problems immediately
• Increase operational performance and productivity
• Improve passenger compensation procedures across 145 airport locations

Following a rigorous vendor evaluation process, BA chose ePowerCenter from Astute Solutions to help achieve these objectives. "Astute had the technology we were looking for, but their experience in our industry and organizational commitment to their customers’ success was of equal importance to us," said British Airways Global Customer Relations Manager, Richard Stabbins. "We needed to have confidence that the company we selected could successfully handle a global implementation. We had that confidence with Astute."

Astute Solutions met BA’s aggressive implementation schedule, rolling out the ePowerCenter solution across key locations within nine months. An entirely web-based application, ePowerCenter was deployed as a unified solution, running as a single application on a single, global database.

ePowerCenter replaced 11 non-integrated systems and is currently being used in more than 25 countries. The reduction in technology platforms helped BA reduce its total cost of ownership, while enabling better cost management across the organization.

The solution was designed to deliver excellent responsiveness across BA’s global wide area network (WAN). Even during peak load times with more than 230 agents processing cases concurrently, there is no degradation in performance. By capturing customer issues across all communication methods, ePowerCenter provided BA with a global view of all customer interactions and service issues at a granular level. In addition, ePowerCenter enabled BA to work with external and existing legacy information systems. Through a web-services interface, ePowerCenter was integrated with reservation systems, baggage tracking and operational customer databases, giving service representatives a complete view of customer information in real time.

Upon completion of the ePowerCenter case and issue tracking implementation, the next step was to add and develop a passenger compensation solution for use across the BA airport network. On the occasions when a passenger’s bag is lost or onward flight connection is missed, the airline is required to offer cash to cover the passenger’s out of pocket expenses. In partnership with Travelex, Astute developed a compensation solution that fully integrated with ePowerCenter platform, extending it from the contact centers out to BA’s airport operations.

Known for its currency services, Travelex is one of the world’s foremost issuers of pre-paid debit cards. Once issued by an airline representative, a passenger can use the card to obtain cash at an ATM or to make purchases at any point of sale.

Utilizing multiple currencies (Pounds, U.S. Dollars and Euro), the solution enables ATM cards to be activated and funds loaded in real time. Simultaneously a record of the transaction is created in ePowerCenter. The new compensation service is currently offered at over 110 airport locations, and when fully deployed, will be available at more than 140 airport locations around the world.

The impact of Astute’s work was felt immediately, as British Airways Head Global Customer Relations, Frances Taylor, explains: "Astute’s solution was the backbone of our program. We expected it to significantly impact efficiency, customer recovery and continuous improvement on a global scale. And it did. Today, the ePowerCenter solution enables our service representatives to quickly resolve customer issues, enhance recovery and continually improve our ability to measure and act on what our customers are saying. It is vital to our continuous improvement program."

The British Airways strategy to improve service recovery was contingent on its ability to provide fast, efficient, and effective interactions. Astute’s solution delivered on BA’s objectives and enabled the following:

• A unified, highly scalable solution now handles over one million interactions per year for BA - replacing its numerous, non-integrated systems
• Claims and other complex customerrelations processes that sometimes took weeks to complete are now simplified and reduced to one hour or less - an efficiency gain exceeding 1000%
• In place of a lengthy, manual process, BA airport teams can now issue compensation to customers on the spot when needed via a compensation card. The card is ready for use at thousands of ATM or Point of Sale (POS) locations worldwide, greatly enhancing the recovery process
• Service quality greatly improved through the automation of workflow between departments and regions
• BA now has the agility to allocate resources where they are needed most because it has real-time visibility into passenger experiences
• Because ePowerCenter’s enhanced data collection and reporting capabilities provide the entire organization with an in-depth view of the passenger experience, BA can now enhance its product offering based on better information

Together, these organizations are enhancing service for millions of passengers around the world while raising the bar on what constitutes truly enhancing the customer experience.

#contactcenterworld , @astutesolutions

Today's Tip of the Day - Think Strategically

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Published: Monday, February 27, 2017

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Know your customers: case studies from BA, The Guardian and Milka

Insight into how BA, The Guardian and Milka are using customer insight to stay ahead of the marketing game.

• Insider knowledge will deliver a winning deal – read the cover feature here
• Mark Ritson’s seven rules of brand management – are you following them?

British Airways: Know Me

Knowing your brand is about knowing your customers, and British Airways has recently taken a quantum leap in not just knowing them in great depth but also acting on the information in real time. Using iPads and even looking up passengers’ pictures on Google Images, BA is giving its staff the equipment to seek out passengers proactively and make an intervention – pointing them where they need to go or giving them an upgrade to first or business class, for example.

BA has just launched Know Me, a system that provides a single view of every customer and their history with the airline, which can be accessed on the move by service staff on planes and in airports. Senior staff now carry iPads that can bring up a seating plan for a specific BA flight, identifying where each customer is sitting, alongside relevant information such as what food they commonly order, whether they are loyalty scheme members and whether they have previously registered a complaint. BA has gathered all its data on customers from every service channel – the website, call centre, email, on board planes and inside airports – into one ‘data warehouse’, from where it can be used at any of those points of contact.

At Marketing Week Live, BA head of revenue and customer analysis Jo Boswell showed a video of service staff discussing their experiences with the new system. One had responded to a call about a customer trying to access the executive lounge, and although he wasn’t actually entitled to use it, he was allowed in as the staff member had identified previous service problems the customer had suffered.

The Know Me system also incorporates images that have been put online in the public domain, so staff can identify specific customers they need to find. Boswell says: “Our special services colleagues at Heathrow Terminal 5 were spending a lot of time on Google Images, trying to get a facial picture of the customer they were due to meet. We thought a simple thing would be to embed that functionality into the application. Once our colleagues have found that they can allocate the right picture to a name, that could then be eventually stored in the system for future use.”

The iPad system is not the only element of Know Me. Another is a system that returns pop-up messages to the consoles of check-in staff, prompting them to direct customers where they need to go.

BA plans a massive expansion of this programme during 2012, Boswell says: “Today we are delivering on average 320 of these personal recognition messages each day, but we have a bold ambition to get to 4,500 daily messages by the end of this year. That equates to about seven messages per flight. We are also planning to extend those to all registered customers, not just our frequent flyer members.”

BA will clearly have to be careful with its implementation of Know Me. While some customers will feel grateful for being lavished with extra attention, others might feel they are being spied on by staff. And if passengers learn that they can get a future upgrade by stocking up a couple of complaints on the BA database, it might encourage the wrong kind of behaviour.

But although BA doesn’t yet have results on how successful the initial implementation of Know Me has been, Boswell claims that market research during pre-launch trials showed improved satisfaction levels.

The Guardian: adapting to changing consumer habits

Changing media consumption habits are keeping The Guardian on its toes. Understanding where readers are consuming its news and features is key to understanding where its content needs to be.

The release of Apple’s iPhone came as an epiphany. As mobile business director Steve Wing told the audience at Marketing Week Live, it became palpable very quickly that more and more people were going to view the newspaper’s website on mobile devices. “It was, technically, one of those ‘oh shit’ moments, where you realise that everything has changed.”

The Guardian has learned much about the new digital habits of its mobile users. For example, between 60% and 70% of those using Guardian iPhone and iPad apps return to them several times a day – many more than its readers of other formats. “These are our brand advocates of the future,” Wing says.

For The Guardian, which is now a ‘digital first’ news organisation, separate editorial products have different audiences and objectives, even where they host many of the same articles. For example, Wing says the free-to-view website is a generalist ‘broadcast’ medium, while mobile apps, often paid-for, are more specialist ‘narrowcast’ vehicles.

The rise of mobile has been accompanied by a proliferation of media platforms across the web. The consequence is that media brands can no longer expect consumers to seek them out, but must have a presence anywhere that their users – and their competitors – are willing to venture.

“People expect to find The Guardian on Facebook, as much as they expect to find us on Google+, and as much as they expect to find us on YouTube. They will expect to find you at least in a mobile-optimised form,” says Wing.

News consumption is dominated by mobiles in the morning, while Facebook and Guardian.co.uk perform better at lunchtime, according to Wing. The Guardian is now working on how it needs to change its news operations in response.

“How do you commission your stories for different audiences at different times of the day? How do you schedule differently for the weekend if you’re not just talking about sport?” asks Wing.

Among The Guardian’s forthcoming product plans are an expansion of the number of apps aimed at specialist users, and the ability to make additional purchases within apps. But Wing admits that the additional money it expects to make from mobile products won’t replace that being lost from print advertising, judging by current estimates. “The amount of mobile ad revenue does not match the time people are spending there. That’s a big disjoint that needs fixing.”

The Guardian continues to lose more money every year, and is expected to announce a loss of £45m for the year to March 2012. Understanding consumer behaviour is key to its growth but it is a brand that still has some way to go to work out its place in the world of fragmented media.

What you don’t know about your brand will hurt you, as Kraft demonstrated when its Milka brand lost 15% of its sales volume in Germany between 2010 and 2011.

Kraft European analytics manager Matt Stockbridge told Marketing Week Live that media spend had increased substantially during the year, yet Milka had drastically underperformed compared with its competitors. Overall, German chocolate sales volumes fell by 4%, but Milka had done almost four times worse. “The reason the market declined by 4% was us. We screwed the market,” says Stockbridge.

The knee-jerk reaction was to blame a badly executed advertising campaign, but an analytical assessment of Milka’s sales data across the year and throughout Germany revealed findings that directly contradicted the initial hunch of an advertising failure.

Media spend, new product developments and sales promotions all had positive impacts on sales over 2011, driving increased purchases by volume compared with the previous year. In fact, advertising had the biggest positive impact on sales and without it, Stockbridge says, “we would have declined by 20%”. Where Milka had fallen down was on distribution, competition and price, all of which deterred consumers from buying its chocolate bars.

Each of these elements behind the decline could be blamed almost entirely on two price promotions that Milka had run in the previous year, but chosen not to repeat. They had been ditched because of the speed with which consumers had relieved retailers of their Milka stocks, destroying any profit margin for the manufacturer.

But in removing the promotions, Milka lost volume sales because the price did not seem as attractive to consumers, while negative sales impacts from distribution and competition arose because retailers gave the same promotional slots to other manufacturers, meaning those brands took market share from Milka.

Stockbridge says that Kraft learned important lessons about German consumers, who are the most price-sensitive in Europe. “If you run a promotion in the UK, you’ll usually attract the lighter users who will buy a single bar and won’t come back. If consumers in Germany see lower prices, they’ll buy 15 bars,” he says.

By investigating shopping habits rather than relying on just the top-line sales figures to tell the whole story, Kraft is now able to look at how to solve the very sticky issue of falling chocolate sales.

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British Airways CRM Strategies for Enhanced Customer Experiences

British Airways is one of the world’s airlines which has been trusted by society. Established in 1976, British Airways has evolved into a global airline renowned for its international flight services, particularly within Europe.

As the aviation industry continues to evolve and customer expectations soar to new heights, it has become increasingly crucial for British Airways to adopt advanced tools and technologies to effectively manage their customer relationships.

As British Airways recognizes the significance of maintaining strong connections with its customers, it has adopted a strategic approach that includes the implementation of Customer Relationship Management (CRM) software.

This British Airways CRM software catalyzes optimizing the relationship between the company and its customers, facilitating superior customer service and a delightful flying experience.

Moreover, British Airways CRM software encompasses numerous advantages that underscore its significance as a valuable asset for the company.

In this article, we will explore comprehensive insights into the details of British Airways CRM software, including the benefits and a software alternative recommendation.

Table of Content

What is British Airways CRM?

British Airways CRM (Customer Relationship Management) is a robust cloud-based software system utilized by British Airways to effectively manage and nurture its relationships with customers.

It serves as a centralized platform or application that integrates and analyzes vast amounts of customer data, enabling the airline to gain valuable insights and tailor its services to meet individual needs and preferences.

The airline CRM software facilitates seamless communication, streamlines customer interactions, and enhances the overall customer experience. By leveraging this sophisticated tool, British Airways can optimize its marketing strategies, personalize customer interactions, and cultivate long-term loyalty.

Ultimately, it plays a pivotal role in driving customer satisfaction, fostering brand loyalty, and sustaining the airline’s competitive edge in the dynamic aviation industry.

What are The Benefits of CRM for British Airways?

The implementation of British Airways CRM software stems from a multitude of compelling factors. Notably, this CRM aviation software offers valuable advantages. In this section, we will delve into the crucial benefits that it brings forth, unraveling the transformative capabilities it holds in optimizing customer experiences within the company.

By exploring the importance of ERP or CRM software, we can uncover how it elevates and refines the overall customer journey.

1. Improve customer service experience

One of the key areas where British Airways CRM software demonstrates its efficacy is in improving the customer service experience. By harnessing the power of CRM, British Airways can cultivate a deep understanding of its customers. It enables the airline to deliver personalized and tailored services that align with individual preferences and needs.

The comprehensive customer data gathered and analyzed through the aviation ERP system empowers British Airways to anticipate customer requirements, address concerns proactively, and provide prompt and accurate resolutions to issues.

This proactive approach to customer service not only enhances customer satisfaction but also fosters long-term loyalty.  The CRM software enables British Airways to streamline communication channels, ensuring seamless interactions with customers across various touchpoints.

Additionally, the CRM system enables the airline to maintain customer interaction records, allowing for a holistic view of each customer’s journey. This empowers British Airways to provide consistent and personalized service for its customers.

2. Targeted marketing and sales

CRM software enables British Airways to gain valuable insights into customer preferences, behaviors, and purchasing patterns. It can develop highly targeted marketing campaigns and personalized offers that resonate with specific customer segments.

By tailoring its marketing messages to individual preferences, British Airways can significantly enhance the effectiveness of its promotional efforts and maximize return on investment .

Moreover, British Airways CRM software facilitates seamless integration with other sales tools, allowing for a cohesive approach to customer engagement. The system empowers British Airways to track customer interactions, monitor their engagement with marketing campaigns, and measure the success of various sales initiatives.

3. Data-driven decision-making

British Airways CRM software can facilitate data-driven decision-making processes. By harnessing the power of customer data, the CRM system empowers British Airways to make strategic choices across various aspects of its operations.

With access to such comprehensive and detailed insights, British Airways can extract valuable patterns, trends, and correlations that drive meaningful decision-making.

By leveraging the data-driven capabilities of the CRM system, British Airlines can gain a deeper understanding of customer behavior, preferences, and satisfaction levels.

This knowledge allows the airline to tailor its services, marketing strategies, and operational processes to meet and exceed customer expectations. It enables British Airways to identify emerging trends, anticipate market demands, and respond swiftly to changing customer needs.

4. Cross-selling and upselling opportunities

An in-depth understanding of customers’ preferences allows the airline to identify relevant cross-selling opportunities. This is where additional products or services can be recommended to customers based on their past purchases or interests.

By presenting customers with personalized offers that align with their needs and preferences, British Airways can increase the likelihood of additional purchases and revenue generation.

Furthermore, the CRM system enables effective upselling strategies. By analyzing customer data and identifying patterns of behavior, British Airways can identify opportunities to offer customers higher-priced or upgraded options that better suit their needs.

This could involve presenting premium cabin options, additional services, or special packages that provide an enhanced travel experience.

The CRM software also facilitates proactive communication with customers regarding new offerings, promotions, or exclusive deals.

British Airways CRM software ensures that these offers are targeted and relevant to each customer, increasing the chances of acceptance and generating incremental revenue for the airline.

5. Manage collaboration

British Airways CRM software allows various departments, such as sales, marketing, customer service, and operations, to access and share customer data, insights, and updates in real time.

This enables teams to work together more efficiently and effectively, ensuring a unified approach to customer engagement and service delivery. Collaboration within the CRM software also facilitates a holistic view of customer interactions and experiences. Furthermore, the CRM software enables effective coordination and alignment of activities.

Teams can collaborate on marketing campaigns, sales initiatives, and customer service strategies, leveraging the shared customer data and insights available within the CRM software. This collaboration ensures that efforts are synchronized, messages are consistent, and resources are utilized optimally to achieve common objectives.

How does British Airways Use CRM to Improve Customer Service?

Many companies utilize CRM software to accomplish specific goals or purposes, and British Airways is no exception. British Airways employs CRM software with the primary objective of enhancing its customer service, also creating good and positive relationships with its customers.

In doing so, British Airways CRM software operates various functions to elevate the customer service experience which will be discussed in this section.

1. Personalized customer interactions

Armed with comprehensive tools, British Airways can deliver personalized experiences to each customer. By leveraging the CRM system, the airline can address customers by their name, understand their travel history, and anticipate their needs and preferences.

This level of personalization enables British Airways to create a more meaningful and engaging customer experience.

Furthermore, the CRM software enables British Airways to track and record customer interactions across various touchpoints, whether it’s through the website, mobile app, social media, or contact center.

This holistic view of customer engagement enables the airline to provide consistent and seamless experiences regardless of the communication channel used.

2. Efficient issue resolutions

British Airways leverages CRM software to enhance customer service by streamlining and expediting issue resolutions. The CRM system serves as a centralized repository that captures and organizes customer data, including feedback, complaints, and service requests.

This comprehensive view of the customer helps agents to understand the context of the issue and deliver timely and accurate resolutions.

Furthermore, the CRM software enables British Airways to establish automated workflows and processes for issue management. By leveraging predefined rules and workflows, airlines can ensure that customer issues are directed to the appropriate teams. It helps reduce response times and minimizes the risk of issues falling through the cracks.

The CRM software also enables British Airways to monitor and measure key performance indicators (KPIs) related to issue resolution. By tracking metrics such as average response time, first-contact resolution rate, and customer satisfaction ratings, the airline can identify areas for improvement and optimize its support processes accordingly.

3. Loyalty program management

British Airways CRM software can tailor its loyalty program offerings to match the specific needs and interests of its customers. The airline can personalize promotions, exclusive offers, and rewards based on each member’s preferences and travel habits.

This level of personalization enhances the overall customer experience, fostering a sense of value and appreciation among loyalty program members.

Furthermore, the CRM software assists British Airways in tracking and measuring the effectiveness of its loyalty program initiatives. It enables the airline to monitor member participation, redemption rates, and overall program performance.

This data-driven approach allows British Airways to refine its loyalty program strategies and optimize rewards. It also makes informed decisions to continuously enhance the value proposition for program members.

CRM Alternative for Airways: HashMicro

The advantages of CRM software serve as a driving force for companies seeking to implement it within their operations. As a result, numerous CRM software providers have emerged, offering solutions tailored to meet the specific needs of businesses.

One such trusted provider is HashMicro, renowned for its advanced CRM software equipped with cutting-edge technologies.

HashMicro CRM software boasts comprehensive features presented through a user-friendly dashboard. With a seamless interface, users can navigate through the software effortlessly, taking advantage of its extensive capabilities.

HashMicro CRM software also has good service, starting from a free demo service that can be tried before implementing the software to an after-sales service that is always available.

The flexibility of HashMicro CRM software enables companies to tailor the software according to their specific requirements. Companies have the freedom to choose the desired features and customize the dashboard to align with their operational preferences.

This flexibility makes HashMicro CRM software an enticing choice for both startups and enterprise-level businesses.

When considering the cost, HashMicro CRM software offers an affordable pricing structure that sets it apart from competitors. Notably, the software grants unlimited user access, eliminating the need for additional fees associated with expanding user capacity. Moreover, companies can benefit from a 50% discount by applying for a PSG Grant .

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Case Study: 10 World-Famous CRM Implementation Failures

• Category : Case Studies
• Last updated on June 17, 2024
• By Ginika Anajulu
• No Comments
• Posted by Ginika Anajulu

CRM implementation failure rates are alarmingly high, nearing 90%, primarily due to companies misjudging their readiness for transition. One of the most notable CRM implementation failures was experienced by Hershey.

Hershey’s implementation plan, initially set for 48 months, was overly ambitious. Despite believing they were ready for the transition, they were caught off guard by the challenges, resulting in severe operational disruptions and a significant drop in their stock price.

To avoid such pitfalls, companies must thoroughly research and evaluate the best ways to integrate a CRM system with their existing customer interactions and workflows, ensuring alignment with their growth objectives.

This article discussed the world’s famous CRM implementation failure and preventive measures.

Reasons Why Most CRM Implementations Fail

• Focusing more on internal priorities than on customers’ needs is disastrous. Once you ignore customers’ needs, they will ignore your business, and failure will present itself.
• Lack of management from the business executives. Any business where the leaders are not fully engaged in CRM implementation would face failure.
• Rushing to implement CRM to enjoy credits offered by the CRM vendor leads to failure.
• Assumption kills; when you assume that a CRM software will perform a specific task without learning the features of the CRM can take that business to grave.
• Implementation missteps brought about by improperly staffed teams. The users of the CRM should be well-equipped with the CRM implementation processes.
• Complicated CRM software can be complicated for the CRM team to use. Ease-to-use CRM is the best to enable them easily understand the implementation processes.

Case Studies of CRM Implementation Failures

1. hershey's crm implementation failure.

The Hershey Company, commonly known as Hershey’s, is one of the largest chocolate manufacturers in the world.

In 2020, Hershey achieved its 100% certified and sustainable cocoa commitment in 2011. Despite being the world’s best chocolate manufacturer, Hershey encountered CRM failure in 1999.

• Their system testing failed.
• Its stock and quarterly profits dropped by 8% and 19%, respectively.
• Hershey’s could not process over $100 million worth of Kiss and Jolly Rancher orders, even though it had most of the inventory in stock.

Root Cause Of Hershey's CRM Implementation Failure

In 1996, Hershey decided to upgrade its legacy IT systems to an integrated ERP environment, incorporating SAP’s R/3 ERP software, Manugistics’ supply chain management (SCM) software, and Siebel’s customer relationship management (CRM) software.

Although the recommended implementation time for these platforms was 48 months, Hershey’s executives insisted on a 30-month turnaround to complete the rollout before Y2K. Additionally, they attempted to deploy all three technologies simultaneously, which was not ideal given the company’s operational readiness.

Compounding the issue, Hershey received the bulk of their holiday orders during one of their busiest sales and distribution periods. The new systems were not prepared to handle the surge, causing conflicts between various departments. The severity of the situation led to significant operational disruptions and a drastic plummet in their stock price.

Preventive Techniques

• Do not try to rush ERP system implementation to meet unrealistic timelines.
• Do not try to deploy a complex technology at once. Focusing on one centralized solution prevents minor problems from slipping through the cracks.
• Test the business processes and systems using a methodology to simulate realistic operating scenarios.
• Ensure you plan carefully and thoroughly when implementing complex technologies.
• Always Try to reduce incoming orders during the cutover period.

By adhering to these preventive measures, your company will mitigate failure risks and position itself to drive ERP success.

2. Vodafone's CRM Implementation failure

Vodafone is widely known to be one of the largest wireless phone companies in the world. They develop various products and services to help build future digital societies.

Despite their efforts to deliver a better customer experience, the following CRM failures caught them unawares:

• Error in customer billing data and price plans.
• Failure in customer support response.
• Massive Financial Losses
• Vodafone breached Ofcom’s billing rules.

Root Cause Of Vodafone's CRM Implementation Failure

In 2013, Vodafone experienced a significant financial loss due to a failed ERP implementation, costing the company millions.

The failure led to Vodafone breaching Ofcom’s billing rules. Firstly, their system failed to credit the accounts of customers who had paid for mobile credit top-ups, and they were slow to address the issue. Secondly, Vodafone failed to inform customers of their right to escalate unresolved complaints to a third-party resolution scheme after two months.

The new system’s failures caused a surge in customer complaints, prompting a formal investigation by Ofcom. Following the investigation, Ofcom fined Vodafone £4.6 million: £3.7 million for taking money from pay-as-you-go customers without providing the corresponding service, and £925,000 for mishandling customer complaints.

• Ensure you understand your company’s needs and how best to connect a CRM system with customers and workflows. CRM failure often occurs when a company invests in software that streamlines emails and text messages, but its customers prefer to communicate with them on the phone or in person.
• Quality data is necessary to realize the benefits of a CRM system. So, eliminate duplicates and correct inaccurate entries when combining databases or data sources.
• Equip your team with the knowledge and resources they need to respond to customers’ complaints correctly. You can still offer refresher courses for ongoing support even after formal training. You can also take advantage of training programs and learning opportunities, such as knowledge databases, offered directly by the CRM vendor. In the case of Vodafone, their representatives needed to be equipped with the resources and knowledge they needed to support their customers.
• Before starting the migration, consider using CRM software that integrates with your team’s other systems, like email, document sharing, marketing automation software, sales software, etc.

3. Blackberry's CRM Implementation Failure

Blackberry has been the most magnificent smartphone worldwide since the early 2000s. In the UK, It held over 55% of the smartphone market share in 2009, but its RIM disaster pushed it down to less than 4%. Blackberry has fallen victim to a botched CRM implementation, often with the following disastrous results:

• issues with its email services
• Messaging delay
• Browsing delay
• Poor customer support

Root Cause Of Blackberry's CRM Implementation Failure

“The service outage was caused by a core switch failure within RIM’s infrastructure; the system has a backup switch, but it failed to function as previously tested; we apologize for any inconvenience and are working to restore the normal service”.

– The company said in a statement.

The beginning of the end of Blackberry met them in 2010. BlackBerry has faded even further into the abyss to the extent that countless numbers of BlackBerry users have left Blackberry ever since then.

At that time, Most Blackberry users encountered slow or collapsed email services, browsing delays, etc, while BlackBerry Messenger also broke down.

Blackberry and their decision maker RIM-(Research in Motion), delayed explaining to their customers the cause of the service outage and when it would be resolved. They left their customers in the dark for some time. They neglected to use CRM software to send concise messages to their customers; instead, they relied on Facebook.

• Ensure you conduct quality checks on your service to know if it’s still in line with the current quality trends.
• Design a backup plan for your service and always test it. Blackberry designed a failover to backup switch, but the failover did not work as planned. So, you need to continuously evolve your backup strategy so that it responds whenever its needs arise.
• Being open and transparent in dialogue with your customers is the primary factor that helps in trouble times like this. It makes them believe in whatever you are saying.
• Do not delay giving them information about the problem and when it will be solved.

4. Cigna's CRM Implementation Failure

Cigna is a global health service company with the mission of helping people improve their health. Cigna has over 70,000 employees serving over 150 million customers throughout the world.

Due to their strong desire to deliver a better customer experience, they undertook a $ 1 billion initiative to overhaul their IT infrastructure and implement a CRM system in 2002. The CRM implementation did not work as expected, and the below failures sprang up immediately;

• $445 million net loss in 2002
• A drop in membership from 13.3 million to 12.5 million.
• Failure to access information about their coverage.
• Glitches in customer service

Root Cause Of Cigna's CRM Implementation Failure

Cigna embarked on a $1 billion initiative to move 3.5 million customers to a new system. The goal was to enhance productivity and reduce costs by replacing disparate legacy systems with a unified infrastructure.

Despite close monitoring by Chief Information Officer Andrae Anania, the project encountered significant issues. These challenges led to a massive revenue loss exceeding $400 million and caused widespread glitches in customer service, leaving millions of customers dissatisfied.

As a result, Cigna lost 6% of its healthcare members in 2002 alone.

• Take the time to follow best practices to reach CRM success carefully.
• Don’t expect the users to adapt to a new system in a short period quickly; take time to train and prepare them for the upcoming operational shifts.
• Hands-on training is essential for users to understand how to use a particular feature.

5. General Motors's CRM Implementation Failure

General Motors Acceptance Corp Commercial Mortgage(GMACCM) is the champion in business real-estate loans with a mortgage portfolio totaling more than $151 billion. In 1999, GMACCM began its own CRM initiative to increase automation, efficiency, and the amount of borrower information available to call center staff.

Unfortunately, the below problem surfaced;

• loan officers lost their business
• The rivals lured away their customers.
• 99% of its loan consumers zeroed out to a customer service operator.
• Multiple complaints from customers marred the company.

Root Cause Of General Motors's CRM Implementation Failure

The lack of user-centred design methodology is why GMACCM’s CRM implementations failed. They implemented a CRM solution without clearly defining the intended user’s needs. The CRM solution automated voice response technology as the first point of contact for consumers making loan inquiries.

They later discovered that 99% of its loan consumers were zeroing out to a customer service operator. Many complaints were coming from different customers, and loans lost a lot in their business.

• Ensure you always stick to customers care representatives to learn your customers’ challenges. GMACC should have continued using customer service agents to handle queries instead.
• The users of the system should be identified. User analysis, task analysis, and testing should have been employed.
• Consider conducting a simple user test as one of the CRM implementation strategies to know the user’s preferences. Had they conducted user tests, they would have discovered that many users would bypass their state-of-the-art system instead of talking to a live person.

6. BMC's CRM Implementation Failure

BMC Software, Inc. is one of the world’s largest developers and vendors of independent systems software. This $1.5 billion software company undertook an initiative for the implementation of CRM. They failed two times and succeeded on the third attempt. At the first attempt;

• They experienced very low utilization, with only 30 to 50% of users adopting it.
• They experienced the problem of inaccurate data.

They encountered the following problems on the second attempt;

• Failure to capture wide usage.
• The mistaken impression was that all the users needed to get on boarder more features and better data.

Root Cause Of BMC's CRM Implementation Failure

BMC was interested in the processes that they would perform faster without considering the needs of their customers. Methods and systems were implemented without involving the key executives. They assume that IT managers could handle CRM initiatives; that software would sell itself to employees and automatically generate the required organizational changes.

• If you rush into CRM implementation, you’ll run out of it. So, do not rush.
• Take your time to calculate your customer strategy, which helps employees understand where they are going.
• Equip your employees with the tools needed to succeed.
• Ensure you manage change effectively by showing support teams how to achieve their aim through new processes.

7. British Airways's CRM Implementation Failure

British Airways are well known for quality in-flight services and customer service. Their flight service covers more than 170 destinations worldwide whilst supporting the UK economy by providing vital channels for trade and investment. British Airways have a long history of CRM failure.

• The data structure wasn’t designed for analytical purposes, so it was difficult for the analytical team to understand the system.
• Creating queries was slow and complicated, even for the most straightforward generation.
• A lot of time is consumed in training the SAS users.
• The analytical team’s confidence was undermined due to many questions regarding data quality.

Root Cause Of British Airway's CRM Implementation Failure

British Airways undertook an initiative in 2001 intending to simplify the decision-making processes. The initiative was to consolidate information from the organization into its Integrated Commercial Warehouse. They adopted Ocean Wave, also known as Customer Data Warehouse, as the CRM. The analytical finds it challenging to understand because it wasn’t designed for analytical purposes. They experienced failures, and the CRM implementation took them two years to complete.

• Take your time to assess the company’s needs because most CRM failures have more to do with how the company views itself than the system’s ability.
• Companies should concentrate on CRMs that are Simple and training-rich; so team members can use CRM easily and quickly when tasks are automated.

8. Owen Corning's CRM Implementation failure

Owen Corning is the world’s largest manufacturer of fiberglass composites. They claimed to be the global leader in residential, commercial, and industrial building materials, including insulation and roofing products. But the following CRM failures slapped them in 1992.

• They were unable to boost the customer service of their current customers.
• Unable to create fresh interactions with potential clients.
• They experienced the draining of a large chunk of the budget.

Root Cause Of Owens Corning's CRM Implementation Failure

The primary reason why Owens Corning failed in its CRM implementation was that it neglected customers’ preferences. They decided to adopt a CRM tool in 1992 due to a lack of consistency in marketing across different departments.

The CRM team found it challenging to integrate the new system because the company was busy updating its internal processes using an extensive ERP system.

This took away the attention of the representatives from the CRM integration, and customer service was not taken care of.

Prevention Techniques

• Owen Corning should have taken the customers’ needs as the main priority and worked backwards from that point.

9. Dow Chemical's CRM Implementation Failure

Dow Chemical is among the three largest chemical producers in the world. With a presence in about 160 countries, it employs approximately 37,800 people worldwide.

In a bid to update customer support, they undertook a CRM initiative but experienced failures in the process:

• Inadequate definition of business processes.
• Failure to support users

Root Cause Of Dow Chemical's CRM Implementation Failure

Dow Chemical rolled out an extensive, overly complex CRM in 1992. This overly-complex CRM initiative failed due to an inadequate definition of the business processes. It was unable to provide remote support for the users. Later, an attempt at implementing a smaller, more localized CRM initiative was successful. It allowed the company to address more specific issues and scale down the number of projects allowed.

They should have clearly defined the overall business processes for better CRM implementation.

10. CarsDirect's CRM Implementation Failure

CarsDirect.com is a leader in the online automotive space. They have been in the business of helping people buy cars for over 12 years now. They suffered the following failures after implementing a customer tracking tool;

• $50 million in operational losses
• Failure to achieve a return on investments
• Budget overruns
• Customer confusion, frustration, and dissatisfaction.
• High post-implementation running costs

To prevent this kind of failure, the best option is to use a scalable and robust CRM tools that accomodates the growth of the company. For instance, Salesforce and Hubspot .

Conclusions

CRM implementation is a complex process that requires careful planning and execution. Unfortunately, the failure rate of CRM implementation is high, with some studies suggesting it is as high as 90%.

This article explores some of the most famous CRM implementation failures, including those experienced by Hershey, Vodafone, Blackberry, Cigna, General Motors, British Airways, Owen Corning, Dow Chemical, and CarsDirect. The root causes of these failures are analyzed, and preventive measures are presented to help companies mitigate failure risks and position themselves for successful CRM implementation.

Choosing easy-to-use software and taking time to understand the best practices are crucial to a successful CRM implementation.

Ginika Anajulu

Ginika is a passionate content writer who is interested in SEO Digital Marketing. When she is not working, she dives into the world of cooking.

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10 CRM studies you need to read before you select your next CRM

Take a look at these CRM case studies before deciding which is the best software for your needs

British Airways

Wells fargo.

1.  Uber

3. British Airways

4. Wells Fargo

6. McDonald's

8. Unilever

9. Activision

10. Amazon  

In a crowded market, discerning what the best CRM software is to meet your needs is difficult. Reviews, statistics, and user feedback are all useful, of course, but sometimes reading evidence of how a brand has employed a CRM tool as part of a specific project is what is really needed to convince businesses that a particular piece of software is a good fit.

The need for a trustworthy CRM case study is made even more pressing given the sheer number of solutions on the market - many with their own strengths and weaknesses, as well as target audiences. For example, would a list of the best CRM for startups be relevant for your company? Or would the best recruitment CRM be more suitable? There are also the best insurance CRMs , the best CRMs for real estate , the best sales CRM , and more to consider. 

One of the best ways of answering, “ What is CRM software? ” is to look at the tools already on the market and then, if you want to see how they have been employed effectively by brands in the past, examining some high-profile CRM case studies should be next on your agenda. Below, we outline 10 CRM studies that will demonstrate the full potential of this powerful solution and how it’s been used across a wide range of industries.

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The 10 CRM studies you need to read 

Today, Uber is known the world over for having disrupted mobility completely, garnering a valuation that dwarfs that of more established players in the automotive space - despite owning zero vehicle assets itself. However, despite its future-first ethos, Uber still depends on CRM software to ensure it is able to harness the huge quantities of data at its disposal. 

Uber uses Salesforce CRM software to extract data from individuals who engage with its brand on social media, ensuring that interactions are monitored, complaints are responded to, and all feedback can be put towards the creation of a better customer experience. By piecing all relevant data within a holistic dashboard, Uber can tailor offers, recommendations, and promotions based on previous customer interactions.

Uber has always understood that the real value lies in customer data - not simply providing a transportation service. That’s why it makes more sense to think of it as a technology company; not a taxi firm. With that in mind, finding a suitable CRM platform has long been critical to Uber’s success. This has allowed the company to monitor customer behavior and riding habits - even as it experiences rapid growth. 

Another of the great disruptors of the 21st-centrury economy, Airbnb couldn’t have achieved its huge success without relying on a suitable CRM solution. The scale of the Airbnb platform is mind-boggling. The platform boasts more than 100 million guests globally, has listings in 65,000 cities and 191 countries, and is used by an estimated one in every four leisure travellers. 

This scale means that Airbnb is privy to huge quantities of data and faces a seriously large number of queries every day. To manage this, Airbnb decided to make use of the Zendesk CRM , which offered the scalability, reliability, and uptime needed to facilitate growth as the number of hosts and guests using the platform continued to rise rapidly. 

Airbnb’s Global Customer Experience team uses Zendesk to provide real-time support to customers across multiple channels, with every contact recorded within Zendesk Support. Zebdesk also empowers Airbnb to gain a grip of customer data by providing a 360-degree view of each customer. This means support can be personalized and a better customer experience can be delivered.  

The travel industry has bounced back remarkably well after being decimated by the pandemic. Brands have had to reconsider how their revenues are driven, however, with global airline capacity taking several years to return to pre-COVID levels. One of the ways that brands have attracted tourists back in the air is with value-add services like the British Airways Executive Club. 

Utilizing the Teradata CRM, the British Airways Executive Club is a loyalty scheme that allows individuals to earn points by purchasing flights, hotel stays, or car rentals through British Airways or its partners. Customers can also save their preferences so repeat bookings are smoother, ensuring a seamless customer experience. They also have the opportunity to work their way up the membership ranks, achieving blue, bronze, silver, gold, or Premier membership.

The British Airways Executive Club demonstrates how CRM solutions can be used to strengthen customer loyalty. The platform allows the airline to keep track of customer preferences so it can offer targeted deals based on their membership level and past bookings. 

One of the largest banks in the US, Wells Fargo manages sensitive information for approximately 70 million individuals. But even with its considerable scale, Wells Fargo must continue to uphold the highest standards of customer service - particularly given the competitive nature of its industry. As well as other established financial institutions, organizations like Wells Fargo have also seen their market share come under threat from new fintech start-ups.

In light of the increasingly competitive financial sector, Wells Fargo employs a CRM solution to ensure its many different departments run smoothly and customer communication is seamlessly enabled. This means empowering social media connectivity and collating customer contact across multiple channels. 

Wells Fargo has revealed that its use of a CRM has enabled it to greatly increase efficiency so greater focus can be placed on high-value work because certain manual tasks can be streamlined or even automated. This has led to the creation of more optimized platforms, allowing the bank to save time and energy and ensuring customers receive better service.

Once the world’s number one smartphone manufacturer, Nokia’s brand still carries some considerable heft - even if the likes of Apple , Samsung , and Google have taken its smartphone crown. Nokia’s use of the Salesforce CRM has played a major role in ensuring that the company continues to generate significant revenues in a fast-changing market.

One of the major challenges facing Nokia before it began using the Salesforce CRM was how to manage the diversity and scale of its products and markets across different geographies and languages. Salesforce allows Nokia to more easily organize its data - no matter how spread out it is.

Salesforce allows Nokia to select and segment data into specific target groups for more effective lead generation. It has also led to the creation of the Nokia Intelligent Care Assistant, which integrates directly with the Salesforce Service Cloud. This collaboration provides a holistic subscriber view, which enables truly omnichannel customer service, including proactive support. Although Nokia’s brand may not carry the same weight as it once did, without the company’s employment of the Salesforce CRM, it may no longer be around at all.

The fast-food giant McDonald’s has become one of the most recognizable brands in the world - but their success is down to more than just flipping burgers. McDonald’s has a long-running partnership with CRM platform Astute Solutions, which provides the restaurant chain with detailed insights on customer satisfaction levels and other forms of feedback. Providing a breakdown by region or individual restaurant, Astute enables McDonald’s to quickly identify potential customer issues so they can be remediated swiftly. 

With McDonald’s serving an estimated 60 million people every day, managing the huge amount of data at its disposal is key to providing a quality service. As such, the company’s CRM provides real-time access to customer information, integrates data from across a network consisting of thousands of restaurants, and provides accurate reports for managers.

Despite McDonald’s global standing, the fast-food space is a crowded one and the restaurant chain is always looking to open new sites and launch new products. In order to gain visibility into what customers want and how best to capture potential new customers, data is key. For an organization of McDonald’s size, managing this data has only been made possible through its use of a CRM. 

The automotive space has undergone massive change in recent years and further evolution is predicted for the not-too-distant future. Even though BMW may have been around since the early 1900s, it knows that no firm is immune from disruption - even those that have existed for over a century. 

With most vehicles now incorporating an increasing number of software solutions, they represent an effective way for firms to harvest, collate, and analyze data. BMW uses a CRM to realize the benefits that can be unlocked through this data, by capturing data from multiple sources including - whether that includes dealerships, web pages, call centers , SMS, or through direct marketing .

In addition, CRM software has played an essential role in the company’s loyalty scheme, “The Owner’s Circle.” This lets BMW owners of old or new cars register their vehicles online and monitor their car’s financing and maintenance. All this helps to strengthen the post-purchase relationship between the vehicle owner and BMW, allowing them to check the status of their new car order, view the maintenance history of a used car, or get reminders about upcoming service milestones. It’s about maintaining engagement after a transaction has been completed.

One of the world’s largest producers of consumer goods, Unilever manufactures a host of items that are commonly purchased by households across the world, including Dove. Persil, Domestos, and many more. Given the sheer number of goods Unilever produces, it understandably handles a huge amount of customer data. Using SAP’s CRM, Unilever was able to improve its call center capabilities and increase the productivity of its consumer-facing teams.

Unilever has also employed CRM tools to capture real-time information from customer surveys across and run targeted campaigns to capture customer data. The company’s use of the technology has allowed for faster response times to consumer queries and more efficient maintenance of customer databases.

Unilever represents a great example of how CRM tools can provide clarity and unity to a company that has grown far beyond its domestic market and offers products that spread across multiple categories and industries. The analytics functionality, in particular, allows Unilever to better understand consumer challenges allowing the company to apply its innovations and digitalization efforts to the launch of new products.

Video game maker Activision is responsible for some of the most popular series in the world, including the likes of Call of Duty , Crash Bandicoot, Guitar Hero, and many others. But where Activision’s only real concern was ensuring sales figures were high enough, now the company’s aim is to build long-lasting customer relationships. For that, a CRM is key.

Making use of the Salesforce CRM, Activision was able to completely overhaul its customer service offering. Before employing the CRM, almost half of all customers experiencing an issue spoke to an Activision rep over the telephone, but today 82% use an online self-service portal, with 10% opting for social channels. This has had a major impact in terms of cost reduction and customer satisfaction levels.

Because of the way that the Salesforce CRM can scour social networks for relevant posts, Activision has been able to get much closer to the gaming community. As such, it has become easier to understand their likes, dislikes, needs, and issues. Challenges have been resolved faster and insights have been put towards the creation of the next blockbuster game

Amazon may be one of the biggest companies in the world but it still requires third-party help in the form of a CRM solution. The e-commerce juggernaut not only provides an online retail site but also offers a popular cloud computing service in the form of Amazon Web Services, which has been using Salesforce CRM since 2006.

Elsewhere, Amazon has crafted its own bespoke CRM strategy to ensure it offers native integration with other Amazon software. The technology giant uses its CRM to share personalized offers and promotions with customers, collect data en masse and store it, and provide recommendations based on an individual’s purchase history. 

In the years since its founding, Amazon has seen plenty of companies come and go, but still, it remains top of the tree. Over the years, the company has understood that what sets it apart is not the products it offers, but the data that it has access to. And the best way of managing this is through a CRM.

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Barclay has been writing about technology for a decade, starting out as a freelancer with ITProPortal covering everything from London’s start-up scene to comparisons of the best cloud storage services.  After that, he spent some time as the managing editor of an online outlet focusing on cloud computing, furthering his interest in virtualization, Big Data, and the Internet of Things. 

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KNOWLEDGE MANAGEMENT IN AIRLINE INDUSTRY: CASE STUDY FROM THE BRITISH AIRWAYS

With the global expansion and increasing complexity of business processes, knowledge management has become an essential topic for managers. Managing knowledge in organisations influences multiple aspects of the business, starting with the design of organisational strategy and ending with the improvement of customers` experience. In the airline industry knowledge management plays even more important role, taking into the account the scale of the industry and the complexity of its operations. British Airways have been effectively managing knowledge inside the organisation through a variety of tools and represent an interesting case within its industry. The article will explore how knowledge is managed in the British Airways and the impact it has on the business.

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Customer Relations Management at British Airways - Case Study Example

• Subject: Management
• Type: Case Study
• Level: College
• Pages: 9 (2250 words)
• Downloads: 2

Extract of sample "Customer Relations Management at British Airways"

Table of Contents

1.0 Introduction4

2.0 CTM Theory4

2.1 CTM at British Airways5

3.0 Recommendations8

4.0 Implementation Schedule10

5.0 Conclusion11

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British Airways Case Study

Introduction.

This case study report aims to assess the business environment in which British Airways operates in the United Kingdom and worldwide. The ramifications of these variables can be grasped with a clear understanding of the internal, micro, and macro business contexts. An organisation’sorganisation’s internal business environment consists of all the forces and factors within the company that directly or indirectly impact its performance (Brinkman, Navarro and Harper, 2014). These include leadership, employees, marketing strategies, company culture, manufacturing methods, and resources. The micro business environment consists of the influences exerted directly on a single company. There are many different types of stakeholders, including the company’s employees, stockholders, and customers. These aspects are typically under management’s purview, allowing for fine-tuning to achieve peak efficiency. The macro business environment describes the external forces and variables that have an impact. Economics, politics, the law, culture, technology, and environmental shifts are all part of the picture (Fang et al., 2020). These elements are typically outside the control of specific businesses, yet they have a major bearing on how those businesses function.

British Airways Overview

Founded in 1974, British Airways is a full-fledged airline division of IAG (International Airlines Group). The airline offers economy and premium economy class seats, business and first-class seats, and a frequent flyer program, among other products and services for leisure and business passengers. Its main bases are at London’s Heathrow and Gatwick airports, and the company flies to more than 200 destinations worldwide (Powley, 2022). As a member of the OneWorld Alliance and with numerous other airline alliances, British Airways provides its customers with numerous flight options and perks. Recent landmarks include a 2010 merger with Spanish airline Iberia and a 2015 purchase of Aer Lingus.

British Airways’ total revenue in 2022 was £11,030,000,000, an increase of 190% from 2021’s £3,693,000,000, and the company’s total personnel cost was £2,100,000,000. British Airways’ market share of passenger traffic at London Heathrow Airport increased by 220% in just one year, from 10.3 million in 2020 to 34.0 million in 2022 (British Airways Annual Report and Accounts, 2022 p. 2). The transportation sector is home to British Airways and the aviation industry. The airline transports passengers and freight, and its routes extend from inside Europe to the rest of the world. The business is involved in a sector with stringent safety and security regulations. Competition for British Airways comes from both direct and indirect sources. Other multinational airlines, including Delta, Emirates, Air France, and Lufthansa, are some of its main rivals. Low-cost airlines like Ryanair, EasyJet, and Southwest Airlines are a tthreatenny’s bottom line.

The Board of Directors, the Executive Management Team, and the many operating units comprise British Airways’ centralised organisational framework. The Board of Directors is answerable to the shareholders for the firm’s overall administration. The company’s strategy, finances, and customer satisfaction are all under the purview of the Executive Management Team. Sean Doyle serves as CEO of British Airways, and Antonio Vázquez Romero serves as Executive Chairman of the International Airlines Group (Bloomberg, 2023). The company’s top brass comprises seasoned veterans with decades of combined expertise in the aviation industry.

The Impacts of Brexit and COVID-19 on BA’s Internal Environment

The internal climate of British Airways has been significantly affected by both Brexit and the Covid–19 outbreak. The global lockdown measures in response to the Covid-19 pandemic severely hampered aircraft operations and had far-reaching consequences for the aviation industry. As a result of these difficulties, British Airways recorded an operating loss of £2,328 million for the fiscal year ended December 2020. In order to deal with the constant, ever-changing global travel restrictions and the three UK Government lockdowns, BA drastically cut its flying schedule, personnel, automobiles and service. Compared to the next year, BA’s schedule was cut by an average of 66% in 2018. As of the end of January 2020, British Airways no longer serviced China (British Airways Annual Report and Accounts, 2020, p. 2). Because of the epidemic, British Airways had to delay the arrival of new jets and retire older planes, which altered the size and makeup of its fleet.

The aviation industry also felt the effects of Brexit, with the possibility of a no-deal Brexit being one of the main worries. If the United Kingdom were to exit the European Union (EU) without a withdrawal agreement, it was unclear what regulations and limits would be imposed. For instance, businesses with non-EU residents holding more than 50% of their shares were required to cease EU operations. According to British Airways’ 2020 annual report, the Brexit deadline and the risks of a no-deal situation remained a concern and may have a major impact on the company (British Airways Annual Report and Accounts, 2020, p.5).

After the devastating effects of the Covid-19 outbreak, the government of the United Kingdom implemented the Tourism Recovery Plan. Rebuilding the aviation industry is a top priority. Thus, the plan includes initiatives like funding tourist hotspots, boosting internal tourism, and opening up international borders. A strategy for making the tourism industry more environmentally friendly and welcoming to all kinds of visitors is also outlined in the report.

The recovery plan can mitigate British Airways’ losses from the epidemic and Brexit. However, the report also notes that maintaining steady passenger demand is a major obstacle for worldwide or the aviation sector worldwide consumers’ increased awareness of the environmental impact of their travel choices means that even though passenger demand is expected to rise, it cannot be taken for granted. The government’s recovery plan aims to solve this issue of environmental sustainability in the aviation industry.

British Airways must figure out how to maximise profits while minimising its environmental impact as it rebuilds. British AiInfinancial reports acknowledging British Airways’s commitment to lowering its carbon footprint by investing in sustainable aircraft and energy-efficient equipment. A sustainable aviation sector is expected to spearhead the industry’s revival, and the business says it will collaborate with politicians to help them create such a framework. According to Doing Business data published by the World Bank Group in 2020, the United Kingdom’s score for cross-border trading improved between 2019 and 2020, suggesting a more favorable business climate for international trade (World Bank Group, 2020). The better business climate in the country is good news for British Airways since it will allow them to run their business more profitably.

The Impacts of the UK Government’s Recovery Plan on BA’s Micro-Environment

British Airways can anticipate considerable changes to its immediate surroundings due to the UK government’s recovery plan, as detailed in the Plan. British Airways and other airlines stand to gain from the plan’s initiatives to revive the tourism economy. The plan aimed to encourage demand for travel and aid the airline sector in recovering from the effects of the Covid-19 pandemic by offering to fund places of interest, foster local tourism, and securely reopen international borders (Tourism Recovery Plan, 2021).

The Covidian-19 outbreak and Brexit have significantly affected British Airways’ environment. As a result of global lockdown measures, air traffic drastically decreased as a result of the pandemic. According to the company’s annual report, this led to considerable losses (British Airways Plc Annual Report and Accounts, 2020). However, Brexit has brought new questions and hazards to the aviation sector, especially in the case of a no-deal Brexit. It posed problems for airlines operating in the EU regarding rules and restrictions (van Hall et al., 2019; British Airways Plc Annual Report and Accounts, 2019). The local context in which British Airways operates has been affected by Brexit in a mixed way. According to the airline’s Annual Report and Accounts, falling air travel demand directly resulted from the Brexit impasse. The report notes, however, that the airline has taken measures, including getting a European Air Operator Certificate to lessen the blow of Brexit (British Airways Plc Annual Report and Accounts, 2018, p. 12).

Even though the British government’s recovery plan is encouraging for British Airways, it is crucial to remember that aviation’s environmental sustainability is still a major obstacle. The Plan highlights the importance of providing visitors with a more environmentally friendly and welcoming experience. In response, British Airways emphasised its commitment to lowering its ecological impact by introducing sustainable planes and fuel-efficient technologies (British Airways Plc Annual Report and Accounts, 2020). The recovery plan should have a beneficial effect on British Airways’ immediate surroundings. Domestic travel is a big part of the airline’s business, and the plan’s emphasis on boosting domestic tourism should lead to higher demand for domestic flights. This has the potential to boost earnings, which might aid the airline in making up for the heavy losses sustained during the pandemic. The plan’s assistance to businesses in getting ready for overseas tourists’ return may also be useful to British Airways. British Airways, one of the world’s best airlines, is in a prime position to entice foreign tourists to the United Kingdom.

The Impacts of PESTLE Factors on BA’s Operations

A company’s bottom line, stakeholder relations, and overall strategic course are all subject to the whims of the ever-changing business setting. For instance, in light of Brexit, the recent Covid-19 outbreak, and the worldwide recession, analysing the influence of environmental dynamics, fluctuation, and uncertainty has become much more pressing. Worthington et al. argue that administrators and entrepreneurs must constantly assess the organisation’sorganisation’s environment because of its complexity (Worthington and Britton, 2018).

British AiPolitical variables, including government rules and policy, heavily influence British Airways United Kingdom’s planned exit from the European Union sparked anxiety over the airline’s future in Europe. British Airways received some aid from the UK government’s recovery plan for the tourism industry. However, the airline’s activities are influenced by national legislation regarding taxation, immigration, and safety.

Inflation, interest, and currency exchange rates are only some economic elements that impact British Airways’ bottom line. The airline’s income and profitability were majorly hit due to COVID-19 and the subsequent lockdowns. The airline had to cut back on its services, lay off employees, and appeal to the government and investors for financial aid. The airline’s 2020 annual report details the drastic drop in income and passenger numbers that the pandemic caused.

Social variables such as shifting consumer tastes and population dynamics affect British Airways’ business model. The airline must provide more ecologically friendly and sustainable travel options to meet customer demand. The company’s 2020 annual report highlights the airline’s dedication to sustainability and carbon reduction.

The airline sector faces both advantages and disadvantages due to technological developments. For example, industry 4.0 expertise like AI, IoT, and big data can boost productivity, enrich the customer experience, and lower overhead. Cybersecurity hazards and the necessity for substantial investments in infrastructure and training are just two examples of the dangers posed by technological progress (Brunet-Thornton & Martinez, 2018). Technological elements, including digital platforms and innovations, also impact British Airways’ operations. The airline needs to put money into digital platforms and technology like contactless payment alternatives and smartphone check-in if it wants to enhance its operations and passenger experience. The 2020 annual report for the airline highlights the company’s usage of cutting-edge tech and innovation, such as biometrics and AI.

Legal considerations like regulations and legislation also affect British Airways’ activities. The airline must follow all applicable safety, security, and employment rules and regulations (Hamilton & Webster, 2018). The airline’s adherence to regulations and laws such as the General Data Protection Regulation (GDPR) and the Modern Slavery Act is highlighted in the 2018 and 2019 annual reports.

British Airways and the aviation industry are emphasising environmental concerns like climate change and sustainability. As part of a broader effort to improve its environmental footprint, the airline must invest in alternative fuels and reduce its carbon emissions, which, according to Hoffman and Georg, are considered “very important” in modern business (Hoffman & George, 2018).

In conclusion, British Airways can enhance its flight services and provide more tailored offers. The airline can streamline the booking process to increase customer satisfaction. Training has the potential to improve both the quality of service and morale. British Airways may improve its operations by increasing efficiency, optimising processes, and lowering costs. Using AI and automation can result in cost savings and increased productivity. By reducing its carbon footprint and investing in green technologies, British Airways can positively contribute to protecting the environment. British Airways can profit from the tourist recovery strategy implemented by the UK government by providing customers with discounts and vacation packages to well-known locations in the UK and prioritising the customers’ health, safety, and security. The digital marketing strategy will help the airline expand its user base and the number of people with its brand. It is also possible to collaborate with the government and other tourism operators to revitalise the sector by capitalising on the growing demand for domestic tourism. In addition, British Airways can collaborate with regional hotels and travel agents to provide customers with exclusive package deals.

Bloomberg (2023).  Sean Liam Doyle, British Airways PLC: Profile and Biography . [online] Bloomberg.com. Available at: https://www.bloomberg.com/profile/person/20433160 [Accessed 28 June 2023].

Brinkman, J., Navarro, I. and Harper, D. (2014).  Unlocking the Business Environment . Routledge. Doi: https://doi.org/10.4324/9780203782644.

British Airways (2019).  British Airways Plc Annual Report and Accounts for the year ended 31 December 2019 .

British Airways (2021).  British Airways Plc Annual Report and Accounts for the Year ended 31 December 2021 .

British Airways (2022).  British Airways Plc Annual Report and Accounts for the year ended 31 December 2022 . [online] Available at: https://www.iairgroup.com/~/media/Files/I/IAG/annual-reports/ba/en/british-airways-plc-annual-report-and-accounts-2018.pdf.

British Airways Annual Report (2018).  British Airways Plc Annual Report and Accounts . [online] Available at: https://www.iairgroup.com/~/media/Files/I/IAG/annual-reports/ba/en/british-airways-plc-annual-report-and-accounts-2018.pdf.

Brunet-Thornton, R. and Martinez, F. (2018).  AnalysingAnalysing the impacts of Industry 4.0 in modern business environments . Hershey, PA: IGI Global.

Department for Digital, Culture, Media & Sport (2021).  The Tourism Recovery Plan . [online] Available at: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/992974/Tourism_Recovery_Plan__Web_Accessible_.pdf.

Fang, S., Goh, C., Roberts, M., Xu, L.C. and Zeufack, A. (2020).  Female Business Leaders, Business and Cultural Environment, and Productivity around the World . World Bank, Washington, DC. doi https://doi.org/10.1596/1813-9450-9275.

Hamilton, L. and Webster, P. (2018).  The international business environment . 4th ed. Oxford, United Kingdom: Oxford University Press.

Hoffman, A.J. and Georg, S. (2018).  Business and the Natural Environment . Routledge. doi https://doi.org/10.4324/9781351238946.

IAG (2020).  British Airways Plc Annual Report and Accounts . [online] Available at: https://www.iairgroup.com/~/media/Files/I/IAG/annual-reports/ba/en/british-airways-plc-annual-report-and-accounts-2020.pdf.

Powley, T. (2022). British Airways threatens to pull passenger jets at London City airport.  Financial Times . [online] 2 February Available at: https://www.ft.com/content/7ea08abc-c9b1-11e5-a8ef-ea66e967dd44 [Accessed 28 June 2023].

van Hall, S.A., van Leeuwen, C., Lengton, E.E. and van der Linden, R.W.H. (2019).  European Business Environment . Routledge. doi https://doi.org/10.4324/9781003021926.

World Bank Group (2020). Doing Business 2020: Comparing Business Regulation in 190 Economies.  Doing Business , [online] 21(162). doi https://doi.org/10.1596/978-1-4648-1440-2.

Worthington, I. and Britton, C. (2018).  The business environment.  8th ed. Pearson Education Limited.

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Digital fail: An awful customer experience with British Airways

I've been through this process a fair few times and I can't think of a single time when it has been horrendous enough to complain to the airline, or even send a Tweet for that matter. However, I am currently flying over North America with British Airways on a flight from San Francisco to London, following a few days with NetSuite in San Jose, and I can honestly say that I'm astounded by British Airways' incredibly poor customer service.

I really want to emphasise that I don't typically feel the need to complain about irregular customer service – a flight delay for example – because things go wrong and not everything can work perfectly all the time. However, British Airways really pushed the boat out today and it's end-to-end experience really proved why traditional systems and CRM don't have a place in this digital age.

So, let me start from the beginning. Given that I'm 6 ft 7 I always like to make sure that I check in online 24 hours prior to departure, as soon as it opens, in order to get an aisle seat – given that it is about a 10 hour flight. However, on this occasion I was moderating a panel at SuiteWorld when the check in opened, which meant that by the time I got to my laptop I was 45 minutes late. After scrambling to find my booking reference number and expecting to be disappointed I began the check in process. I inputted my name, told the system how much luggage I was checking in, accepted the terms and conditions and then when I tried to move on to the next step I was told that online check in was not available for my flight.

Erm, what? I literally can't remember the last time I turned up at the airport without checking in online, so I tried again. Same response. I tried a different browser (because you never know) and again, got the same response. I gave it a go on my Android mobile, again same response. Reluctant to call the customer service line and given that I was flying premium economy on this rare occasion, I decided that I would have to just knock back a few red wines if I got stuck in a middle seat and hope for the best.

Computer says no...

The next day a group of us turned up at SFO at about 2pm for our flight, a good few hours before departure. I know that the check in assistants get arsey if you don't have a boarding pass when you hand over your luggage at the counter, so I went over to one of their Point-of-Sale systems to try checking in there, only to find the touch screen wasn't working (on all of them) and so I couldn't progress on that front. Fail number 2. 

So I headed to the queue and decided I'd try the old fashion way, checking in from start to finish with a person. At this point I'm feeling a bit annoyed by the poor quality of my digital experience and just want to get my boarding pass, find out where I'm sitting, head through security and down a couple of drinks in the bar. I should be so lucky. I was then told that my 4.40pm flight was, and I quote, “massively overbooked”, and that customers were being 'involuntarily downgraded'. So having booked a premium economy ticket, I'm now at the airport with a few hours until my flight and being told I am being put in economy (I've only flown premium economy once before in my life so was kind of looking forward to the treat).

I'm also told that first class is being downgraded to premium economy and economy passengers are being bumped completely, so I should be lucky I have a ticket. So I agree and ask that can I at least have an aisle seat – given my height. Nope, apparently not, I've got a window seat. Then the British Airways employee asks me if I am willing to catch a flight later on in the evening (five hours later) because they will give me a few hundred dollars compensation. Given that I was in no rush to get back, and I'm a poor journalist, I told her that I would possibly be interested, but inquired as to whether I would be in premium economy on the later flight as per my original ticket?

She had no idea. She looked at her computer on her desk, tapped a few keys, and then told me she's not sure because the system isn't telling her. So she picked up the phone and rang operations – operations turns out to be a woman named 'Karen' – who pretty much said the same thing, that I would be on the next flight but that they couldn't guarantee that I would be premium economy. Fine, given that I was going to be economy anyway, I decided to take the cash and spend a few extra hours in the bar with a fellow journalist who had come to the same conclusion.

However, we were also told, having confirmed that we would give up our seats on the earlier flight, that we would still have to go to the gate for the earlier flight because we were on a 'waiting list' and wouldn't 100% be bumped to the next flight. So at this point I haven't been able to check in online, I couldn't check in on a system in the airport, I was told I had been downgraded, and then told that I may or may not be bumped in exchange for a few hundred dollars. I'm reluctant to make a 'cheap whore' analogy but it was starting to feel that way...

So with basically no idea what was going to happen, which flight I would be on, where I would be sitting, we headed for security. After a couple of drinks in the bar we went to the boarding gate to see if we were going to be on the earlier flight – which we soon found out we were not, they needed the space and we were going to get put on the next flight with a cash card for our troubles.

I then, however, asked if I was going to be premium economy or if I could get an aisle seat in economy. The first person I spoke to told me I'd have the same seat number as I would have had on the previous flight (window, economy). Then someone else said no that was wrong, so they tapped the computer, apparently couldn't find anything useful, so decided to phone operations – the ever helpful Karen. At this point I probably had three or four British Airways employees trying to figure out where I would be sitting on a flight – hardly rocket science. I have no idea how long this went on for, but

Then, thankfully, an incredibly helpful woman came over who seemed to understand the basics of the British Airways booking system. She told me that I would in fact be in premium economy on the later flight (grateful) and that I would be receiving my few hundred dollars in compensation. At which point she then left the other employees to top up my Visa card with the money – cue another disaster.

For some reason the system was then loading the cards with double the amount it was meant to, which British Airways HQ would obviously not be particularly happy with. Again I waited and waited and waited and watched the employees scramble, make calls and generally look dismayed with the computer screen. Eventually the same helpful woman came over and knew what the problem was and managed to get the card loaded with the correct amount and gave me my boarding pass.

Hallelujah!

• This just showed me how frustrating it is to offer customers a digital option (online check in), which then just doesn't work. Especially when there is no explanation of the problem or what I could expect when I checked in in person. They had my email and my phone number, where was my message to let me know what was happening? In fact, wouldn't it be more efficient to email passengers the day before asking them if they would mind catching a later flight? This would have avoided all chaos at the airport.
• I fly a lot and 99% of the time it is a perfectly acceptable experience. However, this just highlights that when something goes wrong – in this case being “massively overbooked” (who's fault?) - the processes and workflows go to shit and no-one knows how to work the systems or what the hell is going on.
• It is also evident that there are still power users in companies that know the systems inside out, whilst others are completely in the dark. Are we not past this? I expect that when I'm dealing with a major brand like British Airways that they know how to work seat allocation on their systems. Apparently not.
• I tweeted British Airways too complaining and am yet to get a response, so you can add social fail to the list too.

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British Airways – Case Solution

British Airways (BA) was the world’s largest airline in 1983, winning the Airline of the Year award. However, BA's public image over the years remained weak. This case study looks into how BA can further enhance its global presence through an effective worldwide advertising campaign to “make the airline proud again”.

​John A. Quelch Harvard Business Review ( 585014-PDF-ENG ) July 17, 1984

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British Airways Case Answers

Introduction – british airways case study.

British Airways (BA) was the world’s largest airline in 1983, winning the Airline of the Year award. However, 1982-1983 was their first profitable year in 10 years, and despite service improvements and cost cuts, their public image remained weak.

One of the company’s main objectives was to “make the airline proud again,” and this was to be done using a large, worldwide advertising campaign, the concept campaign.

This is an evaluation case because the concept campaign has already been created and aired; there is nothing else to do at the moment until the reaction to the campaign is known.

The main issue here is to determine if it will be effective and if they could have done anything else instead or in addition to the campaign to improve their image.

Company – British Airways

BA was the world’s largest carrier in terms of passengers, miles flown, and a number of countries serviced in 1982-1983. 42% of their sales came from the UK, 25% from the rest of Europe, and 33% from the rest of the world.

BA was a state-owned enterprise that resulted from the merger of British European Airways and British Overseas Airways Corporation in 1972. Many expected economies of scale to materialize from this merger, but this was slow to happen, and BA incurred losses throughout the 1970s.

In 1979, there was a change in management at BA as part of the newly elected conservative government’s plan to reduce losses in state-owned enterprises. This led to improvements in products and services along with a hiring freeze and early retirement program to reduce the size of the workforce.

By 1982-83, BA was profitable for the first time in 10 years as a result of these efforts. However, to be sold to private investors by the end of 1984, this performance would have to be sustained.

Although 1983 was a great turnaround year in terms of increased performance and service quality, BA’s public image remained weak, having a reputation for being inefficient and incompetent like other state-owned enterprises.

Consumers had many negative associations with British Airways, including that they were inefficient, incompetent, and unfriendly. They were also rated poorly on in-flight service, value for money, and punctuality. Consumers were segmented as business and pleasure travelers, with business travelers requiring higher product and service quality.

In the US, perceptions of Pan Am and TWA were better than those of BA, but among BA customers, perceptions of BA were better, meaning that they actually had good service quality.

Leisure travelers had a high recall of BA bolt-on features such as hotel, car rental, and packaged tours but did not see BA as having good value for money or being a good deal. The name of the airline and its lack of a strong image led to BA being associated with consumers’ perceptions of Britain as a country.

Competition

British Airways had to face different competitors depending on the country the flight route was in. For international routes, in the UK, their principal competitors were British Caledonian and Pan American, and they had a similar share relative to their principal competitors.

In the US, their principal competitors were Pan Am and TWA, and they had a lower market share relative to their principal competitors.

In other countries, for the most part, they had a lower market share than their principal competitors, a similar market share in a few markets, with Zimbabwe and Trinidad being the only markets where they had a higher market share.

British Airways was often picked as the second choice carrier, particularly for leisure travelers to the UK, after the consumer’s own national flag carrier.

SWOT Analysis

BA offered more international routes than any airline worldwide. In most countries, BA catered to pleasure passengers rather than business.

On top of just travel, British Airways was really providing service and hospitality to consumers. They had their Concorde, First Class, and Super Club service for business class passengers that offered more comfortable seating and higher service level, and hotel, car rental, and package tour packages for leisure travelers.

BA had service in 89 cities in 62 countries outside the UK. After the UK, their second-largest market was the US, representing 14% of revenues. Still, the rest of the world outside of the US and UK represented 44% of revenues.

British Airways’ prices were generally comparable to those of their competitors but were still required to be placed in all advertisements.

Traditionally, with Foote, Cone, & Belding (FCB) agency, BA allowed individual subsidiaries in their respective countries to make promotion decisions for that country, but they had to go through FCB. The purpose of this was to get a better rate from FCB, not to centralize control of their advertising worldwide.

Advertising campaigns were generally tactical in nature, focusing on the features offered by BA that would differentiate them from the competition, but these could be easily mimicked by competition, and they only affected those who cared about the differentiating factor in question.

It was also required that every advertisement put out by BA include a price, so it was difficult for British Airways to make advertisements that would be viable to use worldwide or even within a country.

When Saatchi & Saatchi (S&S) were appointed to take over BA advertising, they were asked to make BA into a global brand and bolster their image. Rather than give individual subsidiaries and affiliates autonomy with their tactical campaigns, they set up a system where all communications would go through headquarters first.

Also, they came up with a concept campaign that would be used worldwide with five objectives: projecting BA as a world leader in air travel; establishing BA as the world’s most successful airline; demonstrating the superiority of BA products; adding value to the eyes of passengers across all BA products; and developing a distinctive, fashionable, contemporary style for the airline.

They came up with eleven commercials, one lead, one called “Manhattan Landing,” and ten other “preference” series commercials showing famous individuals disappointed not to be booked on BA. These were intended to be aired in all BA markets, with the only change being the voiceover.

Specific to the US, the concept campaign was seen as a means to address the fact that British Airways was not recognized as the world’s largest airline. In the US, much bigger means better, so this deficiency could mean significant sales if addressed. On top of that, there was a…

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