Introduction

In recent years, United Airlines have employed new rules due to the high operational costs. Precisely, the rising fuel cost resulted in United Airlines charging their customers a fee for checked baggage. For the first bag, the airlines charge $25 while the second bag accrues a fee of $35. Most of our customers have expressed concerns over other issues that include flight delays, lost luggage, unhelpful employees, high fees for checked bags and unreliability. Due to the above setbacks, United Airlines are struggling to attract customers by improving their travel experience in the current competitive airline industry. Given the position of a marketer, my obligation is to ensure that United Airlines creates new ways to manage customer relationship thus optimizing customer loyalty and profitability of the organization. Although United Airlines experienced setbacks in recent years, they can foster customer relationships by developing a vision, focusing on customer value, empowering employees, setting targets and success metrics and addressing the needs of the customer throughout the lifecycle.

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 to understand the 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 from the passengers. Customer will develop confidence in the services provided by United Airlines if the performance meets the standards. Therefore, a clear communication of vision will help employees to 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 a 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 feedbacks from both customers and staffs would be appropriate. Demonstrating empathy is essential since it allows customers to realize 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 since they do not receive individual attention.

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 customer is essential. I will analyze 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. Customers will provide positive responses about the company when the personnel communicates with a friendly tone of voice. 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 customer. The airlines should use mobile solution 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 on 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 throughout the lifecycle.

Recommendations

The issue that United Airlines is experiencing includes 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 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 to 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.

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