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CJM Assignment

british airways

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0% found this document useful (0 votes)
40 views19 pages

CJM Assignment

british airways

Uploaded by

Dhwani Gandhi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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British Airways

CJM Plan [TEMPLATE]

British Airways

Student Name: Dhwani Gandhi- 1233530

Jeseem - 1154410

Date: 4/10/24

CRM-A-Management Project: MGMT-6066/Moreau-Rodgers

Dhwani Gandhi and Jeseem


British Airways
CJM Plan [TEMPLATE]

Introduction

Overview
British Airways is an airline service that provides a secure and fast boarding process. In addition to that, it is the second largest carrier of the
airline in the UK. In the British Airways case study, the underlying problem could be seen that although they have their tier levels and rewards
system, they face challenges from customer satisfaction and boost their customer loyalty, where the aviation industry is changing rapidly to
retain and attract more customers towards their service. This report was created to help British Airways understand the trends and customer
demands going on in the industry. Similarly, to find out their potential customers and to provide a hassle-free and smooth service for their
customers, creating an increase in brand loyalty towards their brand over other airline industries.

From our current research done in Statista, the current opportunities in the aviation industry are:

• The emerging trend of mobile apps and the ease to book tickets from a mobile app is way easier. As many users find it easier to access it
and is mobile friendly as well. The trend of mobile applications in aviation is rising, which can give way to what British Airways could
enter and provide a competitive advantage from the rest of the airline companies.

• AI has taken an enormous impact, where many companies use AI for customer assistance, which is an easier method and timesaving as
well.

Problem: British Airways executive-level tier aware, but they will enhance customer loyalty and satisfaction.

Recommendation from analysis:

• From our analysis, it has been seen that the potential clients are business travellers and leisure travellers.

• However, it's seen that leisure travellers travel patterns are frequently as compared to business travellers.

Key objectives:

• To enhance customer loyalty and brand recognition and satisfaction towards their airline

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British Airways
CJM Plan [TEMPLATE]

• To understand the current trends in the market as well as customer demands in the aviation sector.

• Retain clients and understand the customer journey and their pain points.

• Recommendation for British Airways

Highest Valued Customer


Overview
British Airways is more popular among the millennials. According to the research in Statista, it has been shown that 54% of British Airways
customers are male and tend to have a higher income. This applies to people who are willing to have a high-quality service and an impeccable
travel experience. They also target high-income families that enjoy travelling with BA, and according to the data found, the consumers of BA
tend to be nuclear families. Overall, their current target audience tends to be interested in travel, politics, and much more. In addition to that,

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British Airways
CJM Plan [TEMPLATE]

British Airways customers always look for something new and a luxurious experience when flying with them. The problem which British Airways
has is:

During the pandemic, there were a lot of customers not flying; however, they overtook this in 2023, where they earned 30% more revenue,
which surpassed the post-covid time.

• British Airways faces competition, especially from EasyJet’s, who provide at a cheaper price. This led to consumer preference changes as
well as their competitor's mist number of customers in 2022 and 2023 compared to British Airways.

• Many people are growing more environmentally conscious and are not willing to fly by air as before, and according to the research,
more than 55% of the customers look for something thrill-seeking and something new.

The opportunities British Airways has:

• It could create unique premium services, as according to the data in Statista, it has been shown more than 55% seek more unique
experiences, so they could create something new and unique, which would give them a competitive advantage.

• Since Millennials are the most valued customers, they could understand more about demands. Develop exclusive, tailored services for
high-value customers and create personalized travel packages combining flights, accommodations, and experiences.

• Sustainability Services where they could appeal to environmentally conscious people, develop sustainable practices and technology, and
minimize their carbon footprint.

Segmentation Criteria
In the case study, it is depicted that British Airways has served over 145,000 customers and that they want to establish long-term loyalty and
enhance customer satisfaction. To do this, as British Airways has their CRM, they could use it to create more personalized experiences for their
customers as well as target the right ones and understand their demands. They could enhance their Avios rewards points by offering more
unique and diverse points as well as addressing the rising concern among eco-conscious customers.

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British Airways
CJM Plan [TEMPLATE]

Since Millennials are often the focus of marketers, and for British Airways, they represent a significant opportunity. BA is more popular among
Millennials than other airlines, and these customers typically have higher disposable incomes and are more likely to live in urban areas. This

This behavioural segment is valuable for BA as they are likely to be loyal customers who frequently use the airline's services and are interested in
innovative offerings. 36% of these customers are innovators or early adopters of new products, making them ideal targets for new services or
upgrades. By focusing on these two segments, British Airways can tailor its Executive Club offerings and marketing efforts to maximize customer
retention and acquisition, enhancing loyalty and satisfaction among its most valuable customer groups.

Target Audience (Appendix has the comparison between the 2 target audiences created)

The first target market is the business professionals, consisting of business travellers and corporate travellers. The age group is between 26 and
45, with high income and university education. These people are career-focused, and their interests are in finance, the stock market, financial
advising, and watching anything related to finance and economic issues and the growth market of them. They tend to travel frequently for
professional reasons, which makes them an immense potential customer for British Airways. In addition to that, it aligns with BA’s positioning
and brand presence as well. According to the research, 54% are male professionals. This caters to BA’s audience to enhance their loyalty as well
as their premium services. In addition to that, the business target group prioritizes efficiency and comfort while also seeking opportunities for
networking, making them perfect candidates to receive perks through loyalty programs.

The second target audience is the leisure travellers, which mostly consists of the young population, the Millennials, and then Gen Z, who love
travelling and seek unique experiences each time they travel. It is a mix of genders, particularly in the urban area, and according to the research,
it has been shown that 55% of the of the audience seeks unique experiences from the airline whenever they are traveling. They are early
adopters and would mostly likely try out anything that’s new. Their preferences are traveling, food and dining, and engaging in digital platforms
as well.

The target audience are the potential clients for British Airways, although they have different preferences. By focusing on them, British Airways
would be able to enhance its customer loyalty and brand recognition. By segmenting these groups, British Airways could provide distinct services

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British Airways
CJM Plan [TEMPLATE]

or rewards, which could enhance customer satisfaction even more. Since they are into the digital world, BA could market digitally their messages
as well as tailor premium experiences for them. Overall, British Airways could enhance their customer loyalty and satisfaction by targeting their
messages to this target audience, as they tend to travel more frequently.

Personas (Designed)

Within our target market(s), we’ve identified the following buyer personas to represent our ideal customers:

Dhwani Gandhi and Jeseem


British Airways
CJM Plan [TEMPLATE]

Dhwani Gandhi and Jeseem


British Airways
CJM Plan [TEMPLATE]

Dhwani Gandhi and Jeseem


British Airways
CJM Plan [TEMPLATE]

Customer Journey Map


Overview
The customer journey map talks about Lisa who loves adventure and tends to travel a lot. She’s a leisure traveler and likes to seek for luxurious
experiences when traveling. The CJM helps as it knows how the research, awareness and the touchpoints go through the process when finding
about British Airways. The persona helps her to remain loyal to a certain airline which would be beneficial to British Airways.

Dhwani Gandhi and Jeseem


British Airways
CJM Plan [TEMPLATE]

Dhwani Gandhi and Jeseem


British Airways
CJM Plan [TEMPLATE]

Customer Journey Map (Graphical Design of Map) Customer Journey Map Rationale
As seen in the customer journey that Lisa is a career-oriented person as well as she loves traveling and family oriented as well. This CJM was
selected as she has a high-income as British Airways customers are mostly high-income individual it would be a potential for them. In addition to
that CJM is helpful as it would help you know the pain points and where you stand at and gives you a deeper understanding which would help
you stand out from the competitive market (reference) Lisa also positions well with the segment of British Airways which is an asset as she
travels frequently and earns 180k a year which is considered a high-income.

The CJM shows how Lisa learns about BA is through travel and luxury magazines which shows that mostly BA is targeting the right target
audience as they want to foster brand loyalty and satisfaction. By customers engaging in their premium services and making use of the rewards
points. As you can see that Lisa is family oriented and seeks adventures travel. She’s curious to know if BA caters a loyalty program for business
and family travel but due to restricted time, she can’t neglect her responsibility in her business or family. So British Airways could create services
that are business related as well as family oriented as well making it unique than rest of the airlines. In addition to that they could make
premium services catering to business and leisure seeking traveler or families who travel frequently which creates a differentiation market based
creating a competitive advantage which could lead to more customer satisfaction and loyalty.

However, in another aspect of the pain point its shown that she has confusion regarding coordination with family rewards in that case it could
be solved by exceptional customer service which would make it smooth and seamless journey and would recommend it to others through word-
of-mouth. However, if it doesn’t work it would make her skeptical regarding British Airways service and not maker her loyal or satisfied towards
the brand. To avoid this BA can use the digital tools effectively and avoid any situations like this to arise. Creating distinctive rewards system
based on the personalization would engage the customer to continue using their airline.

By understanding their journey map British Airways would be able to know their preferences British Airways can maximize the benefits of
Customer Journey Mapping (CJM) by tackling any concerns that Lisa might face in her interactions, with the airline service provider online or
managing her bookings smoothly and efficiently for instance when encountering glitches by providing exceptional customer support promptly
to instill confidence among customers and build trust in the brands reliability and commitment to customer satisfaction. Moreover, Customer

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British Airways
CJM Plan [TEMPLATE]

Journey Mapping also underscores the significance of setting British Airways from its competitors to ensure that it remains a choice for frequent
flyers, like Lisa who have multiple options available when planning their travels.

Customer Journey Map Recommendation


British Airways could tailor their marketing messages to Lisa based on luxury holidays with families to go for which would create a more
personalized message and would engage the audience to look at the whole marketing message sent along with that they could provide some
services that the family could benefit from which would enhance the customer experience while traveling with British airways. As she looks for
adventure and luxurious experiences. In addition to that BA could create sperate accounts for business/personal use and family use so that opts
a smooth and easy process and doesn’t confuse them and could get an idea of how much rewards point each account holds by providing such
unique experiences for the customer it would create a long term of brand loyalty as well as frequent travels as there providing services which
are different from the rest of the industry airlines.

Since she’s on a time budget they could provide opportunities like fast baggage service, pre-boarding or fast lane services which caters to her
which timesaving as well efficient. With these suggestions BA would create a longtime customer value.

Conclusion

BA holds 37% market share(ref) and is the second most used airline in UK. With these target market and CJM it showcases that British Airways
should target personalized messages based on the customer preferences which would make them feel more inclusive towards the brand as well
as emphasizing unique experiences and if they want to cater more customer they could look at the market research as it has been showing
people are getting more environmentally conscious and could cater to something sustainable or less carbon footprint. By understanding their
target audience and CJM British Airway could create a huge market in their industry towards satisfaction and brand loyalty.

References

Here are the APA citations without the "Retrieved" date:

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British Airways
CJM Plan [TEMPLATE]

Statista. (n.d.). British Airways - statistics & facts. https://www-statista-com.fanshawe.idm.oclc.org/topics/5372/british-airways/#topicOverview

Statista. (n.d.). Loyalty programs in Australia - statistics & facts. https://www-statista-com.fanshawe.idm.oclc.org/topics/11206/loyalty-


programs-in-australia/#statisticChapter

Statista. (n.d.). Impact of technology on travel and tourism - statistics & facts. https://www-statista-
com.fanshawe.idm.oclc.org/topics/7844/impact-of-technology-on-travel-and-tourism/#topicOverview

Statista. (n.d.). Share of leisure air travelers who are satisfied with airline contact options in the United States in 2017. https://www-statista-
com.fanshawe.idm.oclc.org/statistics/705984/us-leisure-air-travel-by-satisfaction-of-airline-contact-options/

Statista. (n.d.). Customer satisfaction with traditional airlines in North America in 2023, by class. https://www-statista-
com.fanshawe.idm.oclc.org/statistics/1474540/customer-satisfaction-with-traditional-airlines-in-north-america-first-class-business/

Statista. (n.d.). Summer travel destinations with the highest change in global tourist demand in 2023. https://www-statista-
com.fanshawe.idm.oclc.org/statistics/1466426/summer-travel-destinations-highest-change-global-tourist-demand/

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CJM Plan [TEMPLATE]

Statista. (n.d.). Travel frequency for business purposes in the U.S. https://www-statista-com.fanshawe.idm.oclc.org/forecasts/997126/travel-
frequency-for-business-purposes-in-the-us

Statista. (n.d.). Share of leisure air travelers by travel class in the United States in 2017. https://www-statista-
com.fanshawe.idm.oclc.org/statistics/703205/us-leisure-air-travel-by-travel-class/

Statista. (n.d.). Share of consumers enrolled in loyalty programs in Australia in 2022. https://www-statista-
com.fanshawe.idm.oclc.org/statistics/1399736/australia-consumer-loyalty-program-enrollment/

Statista. (n.d.). Share of consumers enrolled in ten or more loyalty programs in Australia in 2022, by gender. https://www-statista-
com.fanshawe.idm.oclc.org/statistics/1472649/australia-consumer-enrollment-in-ten-loyalty-programs-or-more-by-gender/

Statista. (n.d.). Share of air travelers who are willing to pay extra for specific services in the United States in 2017, by gender. https://www-
statista-com.fanshawe.idm.oclc.org/statistics/706134/us-air-travel-by-willingness-to-pay-extra-for-specific-services-by-gender/

Statista. (n.d.). Share of leisure air travelers who are willing to pay extra for specific services in the United States in 2017. https://www-statista-
com.fanshawe.idm.oclc.org/statistics/706170/us-leisure-air-travel-by-willingness-to-pay-extra-for-specific-services/

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British Airways
CJM Plan [TEMPLATE]

Appendix
Include the following appendixes:

Leisure Travel Spending Worldwide USD


6000

5000

4000
Billions USD

3000
5328.3 5173
2000 4269
3241.5
2616.2
1000

0
2019 2020 2021 2022 2023
Years

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Business TravelSpending Worldwide


USD
1600
EXpendinute In Business Travel

1400
1200
1000
Billions USD

800 1484
1430 1336
600
1027
400 697
661
200
0
2019 2020 2021 2022 2023 2024
Year

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CJM Plan [TEMPLATE]

AVERAGE NO. OF TRIPS PLANNED


PER PERSON 2024
Leisure Trips Business Trips

India 5.3
3.9
Australia 3.1
4.3
Singapore 2.5
4.7
United Arab Emirates 4
4.3
Countries

United States 3.8


5.1
United Kingdom 2.8
5.1
Germany 4.6
6.1
Thailand 3.1
6.4
Hong Kong 4.4
6.7
China 5.5
6.8
0 1 2 3 4 5 6 7 8
Aevrage Tips Booked Per Person Worldwide

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CJM Plan [TEMPLATE]

US RESPONDENTS WHO HAVE


TRAVELED BY AIR
Percentage of Respondents Business Percentage of Respondents Leisure

50%

41%
39%
31%
20%
19%

FIRST CLASS BUSINESS CLASS ECONOMY

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British Airways
CJM Plan [TEMPLATE]

PAY ADDITIONAL SERVICES BY THE US


RESPONDENTS
Business Leisure

NONE OF THE ABOVE 16% 20%


CANCELLATION INSURANCE 21% 21%
EARLY CHECK-IN 29% 25%
INFLIGHT ENTERTAINMENT 32% 29%
SERVICES

PRIORITY BOARDING 32% 29%


FREE CHOICE OF SEATING 35% 33%
CHECKED BAGGAGE 36% 34%
FOOD BEVERAGES 40% 36%
ONBOARD WIFI 43% 39%
% OF RESPONDENTS

Dhwani Gandhi and Jeseem

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