Question

Answer the following Case Study.

PREMIER AIRLINES CAS Premier Airlines is 25 years old and serves mainly the eastern half of the United States. About 55% of the passengers are business travelers and 45% use the airline for personal trips Annual revenues are $2.1 billion and the airline employs 12,000 people. Premier has had reasonable financial success.

For customer satisfaction, Premier is average; for operating cost, Premier has an average rating relative to competition. On most routes, Premier two competitors. The age of the lower than the average competitor. A frequent flyer program slightly below industry has at least e fleet of planes is slightly marketing manager) was appointed three years ago.

Customer satisfaction is emphasized but private market research and public surveys show that Premier is slightly below average in overall customer satisfaction. Complaints cover reservations, airport checking, flight operations, and post flight services. Many complaints mention rudeness and lack of customer sensitivity on the part of employees.

Based on discussions with ground and in-flight employees, the Quality Director learned that employees believe they are not provided with sufficient resources and t needs. The employees express bitter comments about management' emphasis on keeping costs low. Employees also believe that “customers expect too much”.

Premier uses a private firm to do market research. The research asks customers flight services, and baggage services. Results are summarized by the Quality Department and forwarded to departments. Complaints are received by the Quality Department, acknowledged, and sent to the appropriate department for action and input for a response to the customer. Management to provide overall ratings for airport checking, has been proud of the detailed work instructions and training that is provided to all key employees.

The CEO learned of the distinction between customer satisfaction and customer loyalty. He wonders if the mediocre rating on customer satisfaction causes customers to switch to competitors. The lost revenue then creates pressure to reduce operating costs which may cause further loss in customer satisfaction.

The Quality Director must identify the changes needed to improve customer satisfaction and loyalty but also maintain financial stability.

Answer 1

Customer satisfaction and loyalty are very essential for any business to run in the competitive market. But investing more money into the business every now and then is not a feasible solution. Hence measures should be taken for customer retention and increase customer satisfaction and increase revenues from the business. The measures taken for the same can be as follows:

- Build a strong relationship with employees by keeping in touch with them personally through mail, calls and social networks.

- The customer service should be given with perfection and dedication for which employees should b trained specifically.

- focuses should be made on areas where customers have complained about in the past and the loopholes should be identified.

- Employees should be heard for their issues for giving the best service and they should be trained and motivated in such a way that they serve the customers with their full potential.

- The response time of dealing with customers should be reduced and they should get their problems solved in a short span.

- If operating costs don't have to be increased, non-monetary benefits can be attached to employees performance if they increase customer satisfaction with their services.