Due to high maintenance costs, United Airlines has implemented new regulations in recent years. Because of the increasing cost of petrol, United Airlines now charges a premium for checked luggage. The airlines currently bill $25 for the first suitcase, and $35 for the second bag. Other questions that have been raised by our consumers include travel delays, missing baggage, unhelpful staff, excessive fees for checked bags, and unreliability. United Airlines is failing to retain passengers by upgrading their travel experience in the current tough airline market as a result of the above setbacks. Given the position of a marketer, my obligation is to ensure that United Airlines creates new ways to manage customer relationship and, therefore, optimize customer loyalty and profitability of the organization.
Discussion
First, I will develop a vision to understand the concept of customer relationship management and its usefulness in transforming customer relationships. I will develop a business case that will support my vision including customer retention. A clear communication of the vision will help convince employees of United Airlines of importance of closing the gap between the services passengers anticipate and what they have been receiving. Assurance as a service quality entails the ability of employees to demonstrate trust and confidence. Developing a vision will help employees become aware of the significance of creating trust and confidence. Customers will develop confidence in the services provided by United Airlines if the performance meets their standards. Therefore, a clear communication of vision will help employees learn what customers expect and educate them on the quality of services we deliver.
Second, I will focus on customer value. The objective of the organization is to manage customers effectively and this will involve understanding the profitability of customers and segmenting them based on their values. Customer value is useful in differentiating service levels and establishing opportunities to develop loyalty of those customers that are the most valuable to the company. Employees of United Airlines will understand customer value by surveying them and determining opportunities that will help in fulfilling the level of services they expect. Demonstrating reliability entails providing customers with the services that were promised dependably and accurately. By focusing on the customer value, the company will have to invest in services that are best for customers and can attract more. Customers want airlines that keep their promises and by exhibiting reliability the company will provide core services that will meet customer's needs.
Third, I will empower employees by communicating to them on the significance of providing customers with quality services. This will involve ensuring that employees have access to information on critical issues concerning customer interactions. Empowering employees will help them demonstrate the dimension of responsiveness which entails helping customers by providing prompt services. Employees need to have access to information on the main areas such as baggage claim, company's website, or reservations. The use of appropriate incentives will enhance employees' attentiveness and promptness in dealing with passengers when they have questions, complaints, or problems.
Fourth, I will set targets and success metrics. I will ensure that the company invests in customer relationship management initiatives that result in a high return which correlates to the needs of the customers. The company and the customers must obtain value from the CRM initiative. Considering feedback from both customers and staff would be appropriate. Demonstrating empathy is essential, since it lets customers know that the company is doing the best to satisfy their needs. With a set of targets and success metrics, the company should ensure that customers' demands are met to avoid losing some to competitors.
Fifth, I will take the responsibility of addressing the needs of customers throughout the lifecycle by becoming an all-important partner of the customer. Interacting and gaining information from the customers is essential. I will analyze the information by polishing the actions of the company to target the needs of customers and develop a customized experience. With tangibility, customers would like to derive their perception of the company by comparing the physical facilities with the services offered. The physical facilities should be conducive to working and interacting with customers.
Regarding the issue of attracting other customers, I will ensure that the airlines understand the needs of the customers. The airlines should use mobile solutions to maximize customer contact. In the current world, mobile marketing is an essential tool to reach and attract customers. Customers would like to embrace the mobile community that would allow airlines meet their needs. Most customers prefer self-service initiatives that improve their travel experience. I will provide customers with a level of service that is different from other. In the airline industry, it is appropriate to differentiate services offered based on customer and business value. With customer self-service initiatives, low-value customers can benefit from reduced cost, increased efficiency, and rewards from purchasing tickets online. Conversely, in the case of high-value customers, they will receive special treatment that reflects their status. The company will provide incentives such as special in-flight services and automatic upgrades.
Conclusion
United Airlines must ensure that they close the gap between the service level passengers anticipate and what they have been receiving and attract more customers by adopting the following steps. The first step is to develop a vision to understand the concept of customer relationship management and its usefulness in transforming customer relationships. The second step is to focus on customer value and differentiate service levels. The third step entails empowering employees by communicating to them the significance of providing customers with quality services. Fourth, the management should set targets and success metrics. Lastly, it is important to take the responsibility of addressing the needs of customers.
Recommendations
The issues that United Airlines is experiencing include charging a fee for checked baggage, which makes most customers feel dissatisfied. Similarly, the airlines experience the problem of attracting more customers and bridging the gap between the service level that customers anticipate and what they have been receiving. My recommendation is that the company should propel better operations decisions. Improving the efficiency of the operation will involve an analysis of customer value. Value-based segmentation will be useful in understanding the habits of a different class of customers. Besides, analyzing customers will help enhance yield management and pricing. Information about the customer will assist in determining those who do not consider price when choosing an airline. The second recommendation entails empowering United Airlines to enhance its capabilities in differentiating services and improving operations. Employing effective customer management traits depends on whether employees are service-oriented and empowered to understand and analyze needs of the customers before making the right decisions.
