Study On The Frequent Flyer Program In The CRM Of Finnair

With the continuous enhance of the process of economic globalization, the income per capita of the moderately developed and above countries has been improved. Increasingly frequent international trades and the rapidly increase of the demands of cross-border travel bring unprecedented opportunities for the airlines worldwide. At the meantime, the well-known airlines worldwide are encountering serious challenges:exploration new international markets, gaining of sustainable competitive advantages, cultivation of core competitiveness and change of the current market have all become significant issues.Customer Relationship Management is a significant innovation in the field of company management and marketing theory since the new century. It has been commonly accepted when it was born. It has been widely practiced, especially in the customer-oriented companies, where the customer management is highly valued. In this regard, the practice of CRM in airlines could be a good example. With the frequent flyer program as its main content, the CRM is attached with importance both from the perspective of theory and technology, which is the basis, by the airlines. The effect of the FFP has to some extent become the key of their future competiveness in the market.This paper takes Finnair, which has been awarded Best Airline in Northern Europe for five years in a roll, as the study objective and pays particular attention to its Frequent Flyer Program. By a systematic analysis of the relevant theories concerning Customer Relation Management, Customer Segment and the Frequent Flyer Program, this paper makes further clarification on the significance of enhancing customer relation management and implementing the Frequent Flyer Program by the airlines. This paper presents you a comprehensive analysis of the Frequent Flyer Program offered by Finnair as well as its main problems. Through the horizontal comparison with such program of other well-known airlines, the successful experience of the Frequent Flyer Program has been summarized. Based on the experience, this paper proposes optimizing suggestions for the Frequent Flyer Program of Finnair. With study of the individual case of the Frequent Flyer Program of Finnair, this paper also proposes recommendations for national airlines to enhance their customer relation management and improve their Frequent Flyer Program in order to increase their competitiveness.