Study On The Customer Retention Strategy In The National Civil Aviation Industry

The civil aviation industry has been enjoying a rapid development since the establishment of P.R.C. The competition among domestic airways is becoming much more ardent, meanwhile the industry is pressed by the international "Open Sky" policy. In order to gain more customers, domestic airline companies have devoted a great deal of human and material resources. However, they have ignored the work of Customer Retention, which results in the waste of resources and defecation of customers. Based on the comprehensive understanding of the history and management status of the civil aviation industry in China, this paper establishes a dynamic model of Customer Retention through the research on basic theory about Customer Relation Management (CRM) and Customer Retention and finally puts forward a Customer Retention policy to the actual situation of the domestic civil aviation industry.Firstly, based on the 50 years' history of the domestic civil aviation industry, this paper affirms the great achievements obtained so far. However, we have to realize there are still many problems existing, especially the problems about Customer Retention. And then SWOT analysis is conducted. Secondly, by the means of researching on the basic theory about CRM and Customer Retention, four essential factors that affect Customer Retention are analyzed respectively. They are Customer Delivered Value,Customer Satisfaction,Customer Trust and transfer cost. The dynamic model of Customer Retention is proposed through the combination of these factors, customer life cycle and the behavior of customers. Finally, based on the model and the actual situation of domestic civil aviation industry, the Customer Retention policy is put forward which is aimed at strengthening the construction of customer-centered corporation civilization, looking for the correct customers, heightening Customer Delivered Value by the means of pricing policy, heightening customer Satisfaction through controlling of the distance between expected and perceived value, heightening Customer Loyalty through individual service and increasing the cost of customer transformation.