Implementation of a CRM System at Cargolux Airlines International S.A.

Abstract

After years of stagnation of demand growth, the air cargo industry had to face dropping yields due to an overcapacity in the market and fierce competition from pure cargo airlines but especially from combination and belly carriers during recent years. Cargolux Airlines International S.A. was confronted with similar challenges and decided to descry competitive advantages to ensure a financially viable level of business. As the air cargo industry is considered to be a “people-business”, excellent customer relationship management and customer service turns out to be a distinctive feature that ensures business consistency in the long run. In order to improve the relationship with its customers, Cargolux Airlines International Airlines S.A. initiated a CRM project in September 2017, consisting in the implementation of a CRM software. However, equalling CRM solely with a technological solution is a common misconception and at the heart of many CRM project failures. The Economist Intelligence Unit published in a study that 56% of CRM projects fail for various reasons but mainly because there is no common agreement about what CRM is and most importantly what it requires and involves (Farias, 2017). Therefore, this thesis aims to give Cargolux’s top management valuable recommendations in order to maximise the chance of a successful CRM implementation. Next to the reviewed literature, that gives a foundational understanding of the holistic nature of CRM, the thesis is based on a thematic analysis. A total of 15 interviews with high-ranking employees in 6 countries have been conducted which give valuable insights and allow to make recommendations. The findings suggest that Cargolux will only succeed in implementing a CRM if it puts CRM as integral part of its business strategy, addresses some internal grievances and adapts the organisation’s structure, processes and culture accordingly.