Academic Master

Management, Marketing

Customer Management in RYANAIR Airline

Introduction

In this report, we measured the factors bound to affect customer quality service and retention in the RYANAIR airline company. These factors were relationship commitment, customer satisfaction, customer perceived safety, service quality attributes, and customer loyalty.  We ascertained that the airline’s Services Company has a lower response time to its clients hence making the clients prefer other airline services. The company does not consider the opinions of its esteemed customers over the social media and, therefore, does not act on them per their requirements, hence making it hard to meet their needs. It is also clear that poor customer service may be directly related to the small number of workers employed in the company.

This information was gathered through the empirical models and interviews conducted with anonymous clients and staff from RYANAIR company. The objectives of this report are to identify strategies for effective customer service as well as to generate ideas on customer satisfaction, retention, and service quality. This concerns airlines’ quality dimensions and subsequently determines the relationship between aspects of service quality and passengers’ satisfaction with the airline services (Grönroos, 1984). This report aims at the identification of strategies to aid in putting tentative plans into action as well as the identification of effective customer management theories and models.

Value proposition

The reports ascertain that the company should adopt customer relations behavior theory for effective customer management in the airlines, the customer service desks should be in possession of social channels ablaze, and smartphones should provide a benchmark for high response speed for all customers (Ulrich & Brockbank, 2005). Through the use of this theory, customer needs will be fully explored to facilitate high-quality service, which would, in turn, lead to high customer retention and satisfaction. Through the CRM strategy, the company manager will be in a position to identify and view all their customers and hence provide efficient services to meet their demands (Payne & Frow, 2005, p. 140).

Additionally, through the use of customer relations models of IDIC (identity, differentiate, interaction, customize) the company will be able to know its potential customers and distinguish them by their needs and their value to the company (Park, Robertson & Wu, 2004). The managers will also be in a position to interact with their clients, who are of utmost value to them. They will also be able to define their values and service demands. This model will enhance the understanding of the corporate customers to serve them profitably.

After evaluating the airline performance report, we were able to conclude that the company should opt for the social media strategy to offer unique ways of enhancing a real travel experience. This would also help solve the clients’ problems, hence improving the performance rates and the number of customers in the company (Chen, 2008). In the airline performance report, we analyzed how responsive the support is, how long the company takes to respond, whether the company strives to achieve in-channel resolution, and if the company shows support for customer social response. Timely responses are bound to instill confidence in their customers as they are aware that their responses will be timely and regular.

Creating increased value from the customer base

Customer value is increased by focusing efforts and resources on your best customers. In identifying the best customers for the business, customers are subjected to evaluation to measure their business value. In the bid to classify the customers, the company opts of customer segmentation.  The first step on how to increase value is by understanding what drives value for the customer. Customer segmentation provides insights necessary to focusing on profitable customer segments throughout the customer’s lifecycle. Through customer segmentation analysis the company can allocate its customer relations management resources to help in the provision of quality airline services. The data of customer segmentation is obtained when the airfare is a segmentation criterion in general.

Creating more customer value involves exploring critical factors that drive the growth of the company. According to the spreadsheet, the airline company has captured data, which has enabled them to understand the importance of customers in each segment and the opportunities that the business has to offer. In increasing customer value, the company has classified customers according to values in their varied segments. In relevance to the spreadsheet, the customers in critical few, very high value, and high value comprise of the best customers of RYANAIR airline services. The customers in these segments contribute high margins of revenue as compared to the other segments as they travel frequently. In increasing customer value, the company should get a win-win price, which entails that customers are receiving value, but also the company is maximizing customer returns. Focusing on resources and investments to the most valuable customers and segments will result in the highest value In return. The value will exceed for one year based on the current trends in the airline company.

Increasing profitability

RYANAIR can increase its profitability through the market share factor. This would involve creating a monopoly from which it will be exposed to minimal competition. Therefore, the demand for their services will be more inelastic. The company will, therefore, gain profits through an increase in flight fares. The company can also increase its profitability through effective management and leaders. Competent managers are bound to lead organizations toward long-term profitability by ensuring effective customer management (Zeithaml, 2000, p. 70). Increasing efficiency in airline services is also bound to attract a lot of customers, hence enabling the company to generate extra profits. Expansion of the market sectors is also a practical approach to increase profitability (Storbacka, 1997). Multiple airline branches attract clients from all over the globe who in turn, generate a lot of profits from their many clients.

RYANAIR can also generate high profits from advertising its services. Adverts can be a more excellent way to attract potential clients for long term deals. Advertising campaigns can increase demand hence making the services more inelastic demand.

How to provide outstanding customer experience

The airline service can provide outstanding customer experience through personalization in customer service. This involves knowing the personal information and service history in case they reach out for support. The provision of such opportunities to customers instills them with unforgettable experiences (Gurǎu & Ranchhod, 2002). The company can also make sure that all its branches acquire centralized information systems to liaise in the provision of extra treats to their clients. Outstanding customer service can be ensured by going the extra mile in making the customers happy. This can be achieved through the provision of onboard refreshments to the customers, providing cleanliness, and offering other essential services (Hallowell, 1996, p. 40). Leveraging the power of technology is also a critical move to impact on customer experience. The company needs to provide quick access to clients and offer solutions to offer excellent travel experiences than its competitors.

RYANAIR Company can also employ the analytical customer management model. This model is efficient in the analysis of client information gathered through various sources to enable the business to make informed decisions (Zeithaml, Rust & Lemon, 2001). The analytical model applies methodologies such as pattern recognition, data mining, and correlation to evaluate client’s data. Through the analysis of the data, the company will be in the know-how of techniques to enhance client’s service as their minor issues are identified and solved. For instance, through analysis of the customer data, the company will be able to determine that the customer has been using their airlines. The bottom line is that this newly invented customer service system will bring resolution, fast, and one-on-one channels to deal with customers.

Conclusion

. This report examines the customer service quality and level of customer satisfaction in RYANAIR Airlines using the company performance data from the company together with information acquired from the Department of transportation air travel reports. The adoption of the strategic customer relationship approach would also help in building a customer-oriented workplace, hence impacting the quality of customer service. Understanding the customer’s value leads to the acquisition of lifelong customers who act as a source of current returns and the foundation of future growth. This approach will drive the staff towards the provision of high-quality booking services. Incorporating operational systems into the organization will also help enhance customer service through automating customer support. These systems enable the organization to gain insights into client information, hence providing a basis for effective relations with the customers. This would also enhance customer care service through online platforms such as mobile phones, emails, telegrams, and ticketing portals through which they can access flight services quickly and in –time.

BIBLIOGRAPHY

Ulrich, D. and Brockbank, W., 2005. The HR value proposition. Harvard Business Press.

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Gurǎu, C. and Ranchhod, A., 2002. Measuring customer satisfaction: a platform for calculating, predicting and increasing customer profitability. Journal of Targeting, Measurement, and Analysis for Marketing10(3), pp.203-219.

Storbacka, K., 1997. Segmentation based on customer profitability— a retrospective analysis of retail bank customer bases. Journal of Marketing Management13(5), pp.479-492.

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Gurǎu, C. and Ranchhod, A., 2002. Measuring customer satisfaction: a platform for calculating, predicting and increasing customer profitability. Journal of Targeting, Measurement, and Analysis for Marketing10(3), pp.203-219.

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