Customer Service in Airline Industry

 

Introduction

The airline industry is one that has been struggling all over the world, in the past decades. This struggle has been brought about by among other things, fluctuating prices, tight quality control rules, fluctuating demand and to top it up competition. All this problems have placed customer satisfaction by airlines to take a back-sit. However, the need to utilize airline services is still on the rise with more and more airlines coming up. Thus, airlines have started shifting their focus towards customer oriented service quality.  

The customer always plays an integral part of any business. Without the customer, the function of operating any business takes a back seat. Thus, the way the customer views any given business has the power to propel the business to higher planes and profit of to destroy that business. It is therefore essential that the customer as well as the needs of the customer are not only given priority but also be well taken care of by the company. Airline companies have to especially put this into account considering the fact that a large percentage of their business comes from passengers who are likely to form a faster opinion of the airline. Thus it is imperative that the company tries and find out what the customers want. This means establishing not only what the customers perceptions are as far as the services provided go but also what the customers expect from the service and what services they consider important. Only then will they be able to not only appease customers, but also engage their loyalty as well as keep up with the competition.

Defining customer service aims and values

Successful companies have been able to maintain their customers being able to define their customer service aims as well as values. This is achieved by creating an effective customer relationship management (CRM). This creates an avenue where not only can the customers share their view and opinions, but where the company can put up its ideas for the customers to be able to participate. CRM in essence creates a two way exchange process where companies are able to able to gain personal information on their customers, their needs, wants as well as purchase patterns. In essence, CRM would help the airline understand as well as anticipate the needs of its current as well as potential clients. Thus for the airline to be able to successfully define its customer service aims and values, it has to be able to create avenues in which it can engage with the customers to be able to know elements that make the airlines’ customers happier or more satisfied (JHA, 2008, p. 2).

High quality service provision provides for a happy and loyal customer. Jan Carlzon, the former CEO of the Scandinavian airlines highlighted the importance of engaging happy clients by outlining the importance of creating a customer oriented carrier. This policy enabled Jan pull the airline from a state of near bankruptcy to a successful airline during his tenure. He believed that the first contact that the customer had with the airline, whether remote or personal formed the very first impression (Barlow & Stewart, 2010, p.85). Thus, the quality of the service greatly depended on the first impression. Thus front line employees of any given airline organization have the power of shaping a customer’s experience as well as perception as far as the airlines is concerned.      

Customers are more often than not able to define quality and value in different ways. However, there are for main categories that have been used to define value according to the customer; value is low price; value is whatever a customer wants in a product or service; value is quality divided by price; and value is all that a customer gets for all that they give. Using all this definitions, one can be able to come up with a clear definition of their customer service aims as well as values. One way of achieving this is to brand the service provided. This means that the company or in this the airline offeres the competency of its employees as a service brand of its own. Service brand acts in the same way as a product brand. This means that it has its own brand promises, values and personality.

Case study of an airline that has been able to successfully implement a service brand is Southwest Airlines. This company has been able to brand its customer services as ‘fun and spirited with southwest staff delivery magnificently’. The company offeres low fares, reliable and clean airlines, and a guarantee of arriving on time to it’s’ customers. On the other hand the airline has other notable deficits such as the fact that it has no fist class, no food is served on the flight and some seats are very uncomfortable (Tolpa, 2012, p.32). However, the services provided by the employees are sufficient to keep the airlines customers loyal. The patients are guaranteed that other than receiving friendly and hospitable service by the airlines employees, they will ultimately arrive on time. Through consistent and pleasant delivery, the airline has been able to turn a mass transportation (commodity product) into a successful service brand, clearly defining their customer service aims and values.

Ensuring a ‘listening organization’ partnership

Most companies that have able to be successful have been able to develop a listening organization. This means coming up with a method that will ensure that different ideas that may be brought into the company are heard. This does not mean listening to all ideas brought in, it means that one is able to sieve between the ideas that are passed around within and without the company that will be able to eventually profit the company.

There are a number of reasons why ensuring a listening organization is beneficial to any particular company. The first is that listening enables the company to gain information which will eventually aid in decision making. Furthermore, trust is created through communication. This ensures that the employers are aware of the needs of the workers. In this case, trust will be created between the airline and the agency company (Rappaport, 2011, p.32). Listening also helps reduce conflict between the airline and their partners that may be brought about by misunderstandings. Finally, motivation is essential in ensuring that the employees are well motivated. In this case, the agents, though employees of Check-u-In, will feel like they belong in the Zeta Air family.

A listening organization is achieved by ensuring a number of things. The first step to take is to go back to the airlines drawing board. Here, it is imperative to determine the kind of conversations relevant to the people involved. It is important to establish the group of people that are meant for that information (Rubino, 2005, p.17). Once this has been accomplished, the information is then funneled to this people who have to give their responses in turn.   It is imperative for the employees to be able to know that they can share important contributions and therefore contribute to the company’s success.

Communication in such a partnership as that of the airline can be created and enhanced by creating easily accessible platforms. This includes restructuring roles and responsibility so that certain persons have the role of listening on behalf of the company. The creation of such a department ensures that all stakeholders are well aware of the existence of a department where what they have to say can be heard. This department also plays the oversight role of sieving in the information that is likely to build the company while discarding that information that is irrelevant to the company.

It is also important to create a platform where customers can share their experiences, ideas or complaints. This ensures that the customers feel like they have the power to not only contribute their ideas but that the airline is listening to them. Given the fact that that the world has been able to evolve into a sharing community, with more people sharing their experiences online, such a platform would ensure that the airlines brand forms ‘part of the story’ (Gillin, 2011, p.67). Like most competent and successful companies worldwide, this platform has been created by providing online alternatives such as websites and social media interactions. Once such a department has been created, it is important to inform stakeholders of its existence as well as encourage them of the need for their participation.

Options for the development of customer driven processes

The creation of a customer driven process is no easy task. Over years, companies have been able to shift from the individual task of seeking consumers to the merging of the process. In the airline company, this is witnessed where different airlines are able to work together to be able to provide services to the customers. Recently, American airlines and U.S airways witnessed a similar merger. Thus, what are the options available for the development of successful customer driven process?

Market segmentation: This involves the division of large heterogeneous markets onto smaller more manageable markets. In this case, the customer market is segmented according to demographic, geographic, psychographic, or behavioral variables. Being able to understand the different customers that use the airline, their different tastes and preferences will ensure that the needs of these customers are met while putting their preferences into consideration (Webster, 1994, p.33). Effective market segmentation in terms of customer oriented decisions is one that is measurable, easily accessible, meaning that it can be easily reached to be served, and substantial. It should also be differentiable and actionable.

Market targeting: Targeting usually reveals the market segment opportunities. The company must in this case first collect and analyze data on current segment sales, growth rates, and expected profitability for various segments. It will be interested in segments that have the right size and growth characteristics. After evaluating different segments, the company must now decide which and how many segments it will target. A target market consists of a set of customers who share common needs or characteristics that the company decides to serve. Because customers have unique needs and wants, a supplier could potentially view each customer as a separate target market (Schnaars, 1998, p. 41).

Differentiation and positioning: differentiation comes in when one wants to make their product different from all others. Thus, differentiation determines the potion the product/brand will take in the mind of the customer. A product’s position is the way the product is defined by consumers on important attributes that appeal to the consumer. Thus, the more appealing the product is to the consumer, the better positioned the product is in that particular consumers mind. Most often than not, consumer’s position product with or without the help of marketers, it is therefore essential that the company be able to position their product in a way that will greatly appeal to the customers (Bradley, 2003, p.54).

To build profitable relationships with target customers, marketers must understand customer needs better than competitors do and deliver more customer-value. To the extent that a company can differentiate and position itself as providing superior value, it gains competitive advantage. In the case of Southwest airlines, they have adopted a more for less strategy. Thus, unlike the other airlines, they offer more services for a cheaper price.

The creation of a customer driven process is important for this particular airline for through the incorporation of such services, the airline will be able to create a new target segment (Ferrell & Hartline, 2008, p. 34). This move is likely to attract more customers due to the uniqueness of this particular service. As far as the position of the new service is concerned, the airline will be able to provide a product that is not only customer oriented but unique. This will provide for an edge over the completion.

Role played in the development of a successful service partnership

Ultimately, people play an important role in not only the development but also the continued success of any successful business. Though feedback, whether negative or positive, any given company is able to evaluate itself. To begin with, there is the contribution made by the agents. The agents will be able to provide the very best ground handling service. Thus the important role played by the agents will ensure that the airline is able to gain more customers. The appreciation of the agents will ensure that they deliver the very best when handling the airlines customer. The agents will be the first interaction that the clients will be thus they will be in charge of positioning the brand of our product to the customers (Sorli & Stokić, 2009, p.38). If in any case the customer gets a bad experience when being handled by the agent then this will be able to reflect back to the airline.

The customer is the ultimate contributor to the airline. Thus they should be treated with all respect. In this case, there should be channels available that will allow for communication from the customers. This channel will not only enable the airline to receive feedback from the customers as to the extent of the new services but will also allow them to contribute as to what the airline can do to enhance their experience. Ultimately, listening to the customers and their needs is what will develop the airline. If an idea presented by the customer is not only good, but also adoptable, then the partnership, in making an effort to adopt this idea will be bettering the airline.

The empowerment of not only the partnership employees but also the customers makes all the difference in the business. The employees have to be made aware of the fact that the individual contributions make all the difference in the company. Furthermore, allowing the employees to know that they can pitch in ideas that will be able to develop the company goes a long way in establishing trust (Barkley & Saylor, 2001, p.62). Trust, in any given company, even an airline, is the key to ensuring prosperity. Furthermore, empowering the customers by giving them the voice to voice their concerns ensures that the airline is aware of its general weaknesses as well as weakness that may crop up from employees or the system. By addressing these concerns the airline ensures the provision of the very best customer based service.

Finally, development is very essential for the continuous growth of the partnership. This means that even after setting up the partnership for the benefit to easing the customers’ ground handling need, the partnership should not stop there. It should be able to come up with ways of improving the services provided by the partnership. This could include introducing other services that may appeal to certain segments. Furthermore, the partnership may introduce a reward system for the customers loyal to the airline. Such ideas are able to attract different clients with different tastes ultimately bring in development into the partnership. Development will always create a better service partnership.

 

Communication, recognition and reward actions that might contribute to the success of the proposed partnership

Recognition

The key to any successful partnership is recognition (Lyons & Coronado, 2007, p.23). This recognition, whether of both partners or of the customers plays an important role in establishing boundaries as well as rules. The airline should be able should be able to recognize the ground handlers and the role they play in the partnership. This is because they represent the image of the airline and in the eye of the customer they are a part of the airline. On the flip side, the ground handlers should respect the customers for by extension, they form part of the airline. It is therefore imperative that they treat the customers with utmost respect. Recognition plays an important role in ensuring that both ends of the partnership are held accountable for any mistake that may result from either side.

Recognition has also and still plays an important role in the partnership through the customers. The partnership should make the point of recognizing the needs of their customers and trying its best to meet those needs.  

Communication

Communication also plays an important role in ensuring the smooth running of a partnership. Case study: A flight is experiencing delays in its departure. Any number of reasons ranging from bad whether to technical problems may occasion this delay? Or in another occasion, the flight has been cancelled. The airline makes no point of notifying the ground handling agency on the other side. This will cause a major problem for if the flight is to show up late, the customers would be stranded with no one to handle their luggage. On the other hand, if the flight would fail to come in then the agents’ time and energy would have been wasted.

A second scenario is where luggage from the customers has been lost or misplaced or lost at the airport and no report has been made to the airline. Leaving the customer to make the complaint thus, taking the airline by surprise.

Thus communication plays an important role in the partnership in ensuring that the partnership is beneficial to the customer as well as to both the partners.

Reward actions

Rewards should be put in place for not only the customers but also for the hard working employees of the partnership. In the case of customers, the airline should be able to reward their loyalty by not only providing top notch service, but also putting up a reward system where it pays to be loyal. This includes introducing free flights for the most loyal customers on the part of the airlines or half price flights. On the part of the handlers, they may n tern partner with another franchise such as taxi companies so that instead of the customer looking for their own means out of the airport they can be taken straight to those exclusive to this partnership. Rewards should also be set up for the hardest working employees so that they can feel appreciated. Well appreciated customers and employees will ensure the eventual growth and success of the partnership.

Conclusion

Customers play the important role of ensuring the steady growth of any company. By developing a friendly customer oriented business strategy the partnership will ensure future growth as well as success. It is always important to put the needs of the customer above all. In doing so the airline has not only created a strategy that gives them leverage over their competitors but created a competitive brand image which will play an important role in attracting more customers.

 

 

 

 

 

References

BARKLEY, B., & SAYLOR, J. H. (2001). Customer-driven project management building quality into project process. New York, McGraw-Hill. http://www.lib.sfu.ca/cgi-bin/validate/books24x7.cgi?isbn=0071369821.

BARLOW, J., & STEWART, P. (2010). Branded customer service: the new competitive edge. [s.l.], Read how you want.

BRADLEY, F. (2003). Strategic marketing: in the customer driven organization. New York, J. Wiley.

FERRELL, O. C., & HARTLINE, M. D. (2008). Marketing strategy. Mason, OH, Thomson South-Western.

GILLIN, P. (2011). Social marketing to the business customer: listen to your B2B market, generate major account leads, and build client relationships. Social Marketing to the Business Customer. Hoboken, N.J., Wiley.

JHA, L. (2008). Customer relationship management: a strategic approach. New Delhi, Global India Publications.

LYONS, A. C., & CORONADO M., A. E. (2007). Customer-driven Supply Chains: Strategies for Lean and Agile Supply Chain Design. Goldaming, Springer London.

RAPPAPORT, S. D. (2011). Listen first! turning social media conversations into business advantage. Hoboken, N.J., John Wiley & Sons. http://www.books24x7.com/marc.asp?bookid=40732.

RUBINO, J. (2005). Secrets of building a million-dollar network marketing organization from a guy who's been there, done that, and shows you how you can do it too. Charlottesville, VA, Upline Press.

SCHNAARS, S. P. (1998). Marketing strategy: customers and competition. New York, Free Press

SORLI, M., & STOKIĆ, D. (2009). Innovating in Product/Process Development Gaining Pace in New Product Development. London, Springer London. http://dx.doi.org/10.1007/978-1-84882-545-1.

Tolpa, E. (2012). Measuring customer expectations of service quality: case airline industry.

Webster, F. E. (1994). Market-driven management: using the new marketing concept to create a customer-oriented company.

 

 

 

 

 

  

 

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