Case Study

Aeroméxico Adopts Mercator’s Loyalty Management Solution, CRIS

Background

Aeroméxico is the leading airline in Mexico, operating scheduled domestic and international services to North America, South America, Central America and the Caribbean, Europe, and Asia. Group Aeroméxico includes Aeroméxico mainline, Aeroméxico Connect (regional subsidiary), and Aeroméxico Travel (charter division), which together hold 41.7% of the domestic market share, making it México's largest domestic airline, and 79.8% of the international market share.

Challenge

Due to evolving market dynamics, Aeroméxico needed to make several changes to their Frequent Flyer Program offering. In addition, there was an opportunity to transform Club Premier to a coalition loyalty program. In September of 2010, Aeroméxico embarked on this path and formed a joint venture with Groupe Aeroplan, a global leader in loyalty management, to create Premier Loyalty & Marketing (PLM) which owns and operates the Club Premier program. Today, Club Premier is the leading coalition loyalty program in Mexico and manages the frequent flyer program for Aeroméxico with a strong member base of over 2.9 million members.

During the transformation of Club Premier, Aeroméxico identified that the technology platform on which the loyalty program ran had not been enhanced for decades. The legacy technology, due to its outdated architecture and limited features was not only restricting Aeroméxico from addressing market demand but also proving an extremely expensive platform to run on in terms of cost and resources. Club Premier was growing quickly in terms of transaction volume as well as the number of members and partners and a scalable technology platform was needed to keep pace with this growth. Program membership was expected to grow at an annual rate of more than 25% and the system users were increasing at a rate of 15% year on year. With fewer technicians experienced in the legacy environment to support the system, operational complexity was causing inefficiencies and a loss in productivity; thus making it difficult to usher Aeroméxico into a next generation Frequent Flyer Program and a new Coalition Loyalty venture.

Solution

Aeroméxico, quickly realized that they needed a platform for their loyalty program that was built on the latest technology, less expensive to operate, and flexible enough to accommodate a dynamic and innovative coalition loyalty program.

Mercator’s loyalty management solution, CRIS (Customer Relationship Information System), was implemented to manage Club Premier as well as its Club Premier Corporativo and Salon Premier schemes. CRIS helps airlines achieve visibility across all channels, and drive service delivery - through every business unit. CRIS was deployed to help Aeroméxico:

Redefine the customers’ experience - Drive loyalty, retention and acquisition through a substantially enhanced customer experience.

Deliver insights - Leverage multiple opportunities to cross-sell and up-sell, based on individual customers’ unique activities.

Enable end-to-end customer management - Interface seamlessly with all key operational systems including reservations, campaign management solutions, revenue accounting, reward web shops and baggage solutions.

Leverage flexibility – Maintain flexibility and scalability to easily adapt to market requirements.

Results

Mercator’s CRIS product helped to optimize Aeroméxico’s loyalty services and enhance the overall customer experience while reducing costs and improving communications with customers.  In addition, CASA provides a critical foundation for Aeroméxico as it becomes more customer-focused and creates new rewards to ensure continued business with the airline.

Jeremy Rabe, Director of Club Premier, Aeroméxico said: “We are always looking for ways to provide a superior customer experience at every touch point.  Having a state-of-the-art loyalty solution is one of many steps we are taking towards this goal. The implementation of CRIS allows us to enhance our customer knowledge, implement more frequent promotions and increase our speed in handling customer requests.”

With CRIS, users are able to work and manage a single comprehensive integrated system in latest technology instead of disparate systems in legacy technology. A flexible design allowed the system to be quickly adapted to Aeroméxico’s unique business model and processes. Out-of-box predefined interface touch points allowed all-important information to be shared seamlessly. By choosing CRIS, Aeroméxico management succeeded in significantly driving down IT and business operating costs, achieving higher levels of profitability and improving their customer service experience.

AeroMexico Adopts Mercator's Loyalty Management Solution
CRIS is a state-of-the-art loyalty tool. It has enabled Club Premier to catch up with the largest FFP’s in the world in terms of program attributes and is now serving as the base for implementing innovative product elements to accelerate our growth into a coalition loyalty company. We are working closely with Mercator to keep CRIS on the cutting edge of loyalty technology.

Jeremy Rabe CEO, Club Premier

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