Kelompok : 10
Ketua : Rahmadya Karisma Haris (224110327)
Anggota : Veronica (224110019)
Meyta Rezky Setiorini (224110101)
Sherly Septirani (224110224)
Kelas : S1-ZU-10
Information Technology is growing rapidly and has become a part of daily life. Almost all informations can be easily accessed by public. Not only the public but the company also has used information technology to make approach with its customers, because there is no doubt that information technology creates new spaces that allow users to expand the network and operations can help companies in achieving wider market share .
The role of technology is much needed in every field of transport, such as transport by land, sea and air. Social media is also being the attention of the airline because they found it easier to get closer to customer by providing an easy access to all the information. For example, Indonesia Air Asia using the other social media beside their own website, such as facebook and twitter.
Is using the social media can really create loyalty from customers to the airlines? Then do they feel helped by the presence of companies who use social media such as a forum to get the information they want quickly and easily?
In essence, people would prefer something that allows him to perform daily activities and easily accessible than a complicated thing. This tendency will form a habit of costumers that in their daily life was already struggling with a lot of social media. Then the airline’s presence in social media is increasingly making customer feel easier and more comfortable when they want to access schedules, routes, promotions, and other things around on the airline through social media. Moreover, customer more freely express their comments and suggestions to the airline. The objective is obvious, that the airline wants a two-way communication and good interaction between them and their costumers. Refers to the phenomenon, we do the research that is intended to determine how much influence of SCRM implementation to the consumer loyalty level.
THE THEORETICAL BASIS
The company surely wants their costumers have a high level of loyalty to the company, it can be represented by repeat purchases undertaken by the customer to the company’s products, for which CRM is required. According to Storbacka and Lehtinen (2001:3) CRM is to build relationship strategies that refine relationship and thus increase their value. Companies in developing customer-oriented business culture-centric intended to win the hearts of consumers. Implementation of CRM also includes the company’s operational activities such as marketing, sales, and services, as well as for analysis of the exploitation of customer data to improve the performance of the company such as customer financial data, marketing data, and other data services.
Three phases of CRM by Kalakota and Robinson (2004:121) to be performed by the company are as follows:
1) Acquire: acquire new customers by providing easy access to information, new innovations and exciting services.
2) Enhance: Improve relationships with existing customers by providing good services to the customers (Customer Service). Application of cross selling or up selling the second phase could increase the company’s revenue and reduce the cost to acquire customers (Reduce Cost).
3) Retain: retaining customers is the company’s efforts to gain customer loyalty by listening to our customers and strive to meet customer needs.
As the development of technology grows and so does the ability of communities to interact on social media, the traditional CRM had evolved into SCRM (Social Costumer Relationship Management). Social CRM is the approach taken by the company and supported by technology to help companies solve business problems in dealing and interacting with customers. Social CRM can be regarded as a major change in business approach to solving customer problems involving social media such as: twitter, facebook, or other social platform.
Social CRM is a philosophy and a business strategy, supported by a technology platform, business rules, workflow, processes and social characteristics, designed to engage the customer in a collaborative conversation in order to provide mutually beneficial value in a trusted and transparent business environment. It’s the company’s response to the customer’s ownership of the conversation.-Greenberg (2010:34 ),
Hence, by using the concept of Social CRM, there is a correlation between people (the public), process (how automation and CRM application), and technology (software and social media) that can affect customer loyalty.
We use research methods: spreading questionnaires and doing interviews. Questionnaires and structured interviews conducted in this study created and developed based on variables that have been defined as people, process and technology. This research questionnaire contains many questions that will also identify the significance of these variables on the dependent variable we are customer loyalty characterized by repeat purchases.
Our target/respondents are all the internet users and the people who are not Internet users but use the other people to use the Internet for their interests. This online questionnaire then spreaded through twitter and facebook to respondents and structured interviews will be conducted with experts.
Our research type is descriptive research. Descriptive research is a type of researh that is undertaken in order to describe the characteristics of the variables of interest in a situation (Sekaran, 2006:158). The variables people are the man behind the account or social media page which is representative of the airlines the airlines or we can say administrator. Variable process is a form of interaction in the form of discussion and provision of information between the administrator and users. Variable technology is a media technology that bridges the interaction, in this case: social media Social-CRM activities undertaken by the airlines. Meanwhile, the dependent variable is customer loyalty, the indicators are repeat searches for information until repeat purchases by costumer.
Respondent Characteristics by Sex
Based on the results of the questionnaire, the data obtained characteristics of respondents by sex. As many as 38% of respondents are men, while 62% are women. Although most of our respondents are women, but the percentage gap is not too far.
Characteristics of Respondents by Age
Based on the results of the questionnaire, the data obtained characteristics of respondents by age. As many as 80% of respondents aged between 18-25 years. This means, most respondents considered a young age. As many as 13% of respondents aged 26-35. A total of 4% of respondents are under age 18. 3% of respondents are aged over 35 years.
Characteristics of Respondents by Jobs
Based on the results of the questionnaire, respondents characteristic data obtained by the job. Most of the respondents are students with percentage 71%. It means that the population we research are users who accessed the internet and social media are mostly the students. 25% of respondents have jobs as private sector employees. Respondents who have a job as a civil servant at 3% and the remaining 1% have other jobs.
From the data we got that the intensity of Internet usage by 55% of our respondents stated they use it very often, followed by 35% of respondents stated frequently use the internet. Respondents who rarely use the internet are only 9%, and no respondents who have never used the internet. Other data we got from the questionnaire that we shared declared activities to access and find information about the airlines over the internet shows a relatively big difference that 88% of respondents claimed that they have accessed or found information about the airlines, while 12% have never accessed or searched for information about the airline. The data is consistent with our study that the use of the internet to search for information about the airlines are very often.
Analyzing variable ‘technology’ for the question items 1, 2 and 3, we obtained data that respondents frequently access the Internet and they ever used the internet to search for information about airlines, and social media accounts used by respondents to access information about the airlines: The airline website is the most selected media and used by respondents with a percentage of 80%. Twitter is used as a social media where respondents are using this to access information about the airlines showed as a percentage of 17%, whereas facebook is used by 3% of respondents.
Searching information through social media is easy to do, this is because social media has become part of people’s lifestyles, especially among the young who can easily access through the gadgets they own.
Analyzing variable ‘people’ for question number 4 about the latest information by admin of airline’s social media, question number 5 about admin responses, and question 8 about admin’s language and words that are used in responsing to the customers, we found that respondents agree social media admins always provide the latest information and able to respond to costumer’s problems, suggestions, and complaints and also use polite language with each percentage exceeds 50%. This number of percentage is good. But from the question number 6 and 7 about variable people found that 58% of respondents said that the admin does not always respond and reply to questions from the customer, also by 68% of respondents stated that the admin is not quick in replying to a question from the customer. This means that the admin responds the customer although not all suggestions, questions, or complaints responded quickly.
Analyzing variable ‘process’ for the questions number 9, 10, and 11 are about the assessment of social media usage, the information that is searched about the airlines, and costumer’s opinions about information that is provided. Respondents showed that social media is an effective media for airlines to provide information. The information that is searched by respondents are : promo for 51%, followed by information about the flight fare with a percentage of 35%, schedules and routes by 14%. Respondents considered that the information provided through social media is helpful, it is indicated by the percentage of 90%.
Correlation between the variables people, process and technology
From the results we have collected, it appears that there is a relationship between people, process and technology. It was seen from the good response from the admin via social media can influence customers to make a purchase decision and make airlines as a customer preferences. Usage of technology; internet and social media are easily accessible from their gadget makes it easier to customer to search information about the airlines. Although the data by 59% of respondents do not conduct periodic information retrieval, but by 61% of respondents make a purchase and 67% of respondents make it as a preference to make airlines.
The decision to purchase
Decision making airline as a preference
So it can be seen that the three variables are related one another and give effects to consumers in making purchasing decisions that also affect customer loyalty.
From the survey results we got, we conclude that people make it as a preference. It is because the routine provision of information through social media that make most of the customers who can easily access social media feel that the provision of this information is very helpful to them in knowing the latest information about the promo or flight schedules. Even though people do not always seek information regularly but the general public still make the purchase.
Although admin’s respond are not quick in response to their problems and do not always replying the input provided by the customer, the information from airlines through social media will influence customer decisions in making a purchase then make them buy the airline’s products, either normal flight fare or promotion of ticket. By making that airlines to be such a maket preference, indicating that the formation of customer loyalty.
Airlines: recommended for aviation enterprise to have an employee to serve as the permanent administrator in managing and responsible to social media that is owned by the airlines. The goal is if the customers need information about the airlines so that admin can reply and respond quickly so that the customers can quickly get the informations that they need.
Society: recommended for the public who use air transport as a derived demand for the needs, using social media is helpful to obtain information about promotion or other information from the airlines, because now the airlines have been using social media to be able to close the gap and to approach the community and expect two-way conversation that can enhance CSR’s airlines. Moreover, this is done so that the public is not being close-minded from the development of information technology to access all the information needed.