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    Delta Airlines Case Study

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    Aleena Sinan
    Delta Airlines is one of the largest airlines in the world, transporting 160 million passengers annually. Delta relies heavily on customer relationship management (CRM) and big data to retain loyal customers and increase revenue. Delta's CRM strategy utilizes customer data collected from bookings, flights, credit cards, and more to personalize services and target promotions. By analyzing data from areas like baggage handling and customer habits, Delta aims to improve operations and customer satisfaction using big data.

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    Delta Airlines Case Study

    Uploaded by

    Aleena Sinan
    113 views7 pages
    Delta Airlines is one of the largest airlines in the world, transporting 160 million passengers annually. Delta relies heavily on customer relationship management (CRM) and big data to retain loyal customers and increase revenue. Delta's CRM strategy utilizes customer data collected from bookings, flights, credit cards, and more to personalize services and target promotions. By analyzing data from areas like baggage handling and customer habits, Delta aims to improve operations and customer satisfaction using big data.

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    Delta Airlines is one of the largest airlines in the world, transporting 160 million passengers annually. Delta relies heavily on customer relationship management (CRM) and big data to retain loyal customers and increase revenue. Delta's CRM strategy utilizes customer data collected from bookings, flights, credit cards, and more to personalize services and target promotions. By analyzing data from areas like baggage handling and customer habits, Delta aims to improve operations and customer satisfaction using big data.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    113 views7 pages

    Delta Airlines Case Study

    Uploaded by

    Aleena Sinan
    Delta Airlines is one of the largest airlines in the world, transporting 160 million passengers annually. Delta relies heavily on customer relationship management (CRM) and big data to retain loyal customers and increase revenue. Delta's CRM strategy utilizes customer data collected from bookings, flights, credit cards, and more to personalize services and target promotions. By analyzing data from areas like baggage handling and customer habits, Delta aims to improve operations and customer satisfaction using big data.

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    Delta Airlines Case Study

    (Exemplar of Big Data and CRM)

    Setor Ahiable & Zihan Qi

    Delta airlines are a major American airline headquartered in Atlanta, Georgia in the
    United States. Delta started as an aerial crop dusting operation in 1924 but has now
    grown into one of the world’s largest airlines transporting about 160 million passengers
    yearly. Delta also operates in about 64 countries worldwide

    Delta has ten domestic hubs and three international hubs including Amsterdam
    Schiphol Airport and the Charles de Gaulle Airport in Paris. (Delta, 2016)

    Delta has had a consistent annual revenue increase over the years and this has mainly
    been due to the loyalty and expansion of customers. Loyalty of customers has been
    massively aided by Delta’s customer relationship management(CRM) which has heavily
    relied on big data. The figure below shows Delta’s revenue generation over the last
    couple of years:
    (Reese, 2015)

    Delta Customer Service

    Delta Airlines’ Business Model is heavily based on their customer relationships. The
    figure below summarises just what this entails:

    (Skurdal, 2008)
    CRM for Delta Airlines is important for basically the following reasons:

    ● Focusing on retaining high-value customers


    ● Maximizing customer knowledge in terms of customer value and customer needs
    ● Developing personalized services and improving customer service efficiency
    ● Increase marketing efficiency

    CRM is significant because global passengers is expected to continue rising in the


    coming years and it is important for Delta to retain their loyal customers. Most travelers
    say that a personalized service is important for the airline decision and are less likely to
    switch if they have this satisfaction.

    Delta’s CRM is controlled through the following avenues from on their mobile phone
    application or website from Pre flight through to Post flight:

    This leads to creating a financial, social, structural and personalized bond with the
    company.

    (Ghanekar, 2012)
    SWOT Analysis of Delta Company
    Delta Airlines CRM and Big Data

    The airline industry is today very interested in Big Data but how exactly does Big Data
    help a company like Delta make money? Or how exactly does Big Data help Delta
    airlines in anyway at all?

    Big Data, as understood and accepted by most today, is high-volume, high-velocity and
    high-variety information assets which can create substantial economic value and help
    with operations, decision-making, risk management and customer service. IBM believe
    big data is essential for evolution of data and information management.

    Data analytics has been used efficiently to increase sales in the retail industry examples
    are companies such as Amazon and eBay. Therefore how can an airline emulate the
    successes of these online e-commerce retail companies’ use of big data. They can do
    this by:

    1. Greater Value Creation for customers


    2. Increased Personalization

    Increasing value for customers to use their services and increasing personalization is
    obviously going to increase demand for the airline and therefore generate more
    revenue.

    (Abhishek Singh, 2013)


    OPPORTUNITIES AND THREATS FROM BIG DATA

    Delta has been able to use big data to provide the following opportunities:

    1. Create value propositions based on increasingly real-time information about


    customer preferences and needs and using that information for targeted
    services.
    2. Delta has invested over $100 million in airport baggage systems to track and
    improve its baggage handling. With more advanced tools for baggage data
    collection and analysis, Delta’s operations teams at airports and headquarters
    have been able to better identify key causes and trends in mishandled bags and
    implement effective solutions.By integrating real-time flight data into its baggage
    systems, Delta now automatically alerts baggage handlers when connecting
    bags need to be transferred directly to another plane instead of sent through the
    airport’s luggage sorting system.
    3. Delta has made use of more advanced data in its efforts to better engage
    customers and generate loyalty. The airline combines customer data from flight
    purchases, routes flown, and credit card spending to piece together customers’
    demographic profile, travel habits, spending ability, and even what company they
    work for. The company uses that data to carefully tailor promotions and target
    customers with whom the airline senses there is more opportunity. If you have
    recently joined a travel-heavy professional services firm

    However some threats from using big data exist. These are:

    1. Customers may feel their privacy is being invaded on a bit too much and may
    decide to use another airline

    (Sean L. 2013)
    In conclusion CRM for delta is obviously one of the important business factors for the
    company. Big Data has been aiding the company enhance their CRM over the years
    and this has helped in customer loyalty and customer expansion

    References & Bibliography

    Reese, P. (2016). ​Delta Airlines by Peyton Reese. Thinglink.com. Retrieved 29


    November 2016, from ​https://www.thinglink.com/scene/637014755545972737

    Skurdal, A. (2008). ​DELTA. ANDREW SKURDAL. Retrieved 29 November 2016, from


    http://andrewskurdal.com/delta/

    Ghanekar,. (2012). ​CRM Practices in the Airlines Industry. Slideshare.net. Retrieved 29


    November 2016, from ​http://www.slideshare.net/mandarghanekar/group-assignment-21

    Abhishek Singh. (2013)Big Data – how airlines should use it more effectively to boost
    ancillary revenue – Tnooz. (2013). Tnooz. Retrieved 13 October 2016, from
    https://www.tnooz.com/article/big-data-how-airlines-should-use-it-more-effectively-to-bo
    ost-ancillary-revenue/

    Delta (2016). Retrieved 13 October 2016, from


    http://www.delta.com/content/www/en_US/about-delta.html

    Sean L. (2015) Big Data Takes Flight at Delta Air Lines – Digital Innovation and
    Transformation. (2015). Digit.hbs.org. Retrieved 13 October 2016, from
    https://digit.hbs.org/submission/big-data-takes-flight-at-delta-air-lines/

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