Business Problem
Abstract
In today’s business world, customer service is a crucial part of the business practices aimed at growing the company and increasing overall effectiveness in the supply chain. Customer satisfaction is an important factor when it comes to customer service and it relates to the customers being satisfied with the services they get in terms of availability of information, speedy responses, and overall convenience. Many companies today have not been active in providing efficient customer service. This is because they rely on traditional communication channels and strategies such as the use of e-mail services and landline phone communications. The traditional communication strategies are limited in terms of ease of access to customers, the cost of running and operating them, and convenience. For this reason, the companies have faced a downward spiral in terms of growth and customer service delivery. It is for this reason that mobile applications have been adopted as part of firms’ business strategy. One such company is Lufthansa Cargo, which serves customers across major destinations in the world and provides cargo handling services. Mobile applications adopted by the company are easy to use and many customers have subscribed to them. They are also supported by technology elements that allow real-time communication over the internet, which makes it cheaper than using traditional communication strategies. It is for this reason that mobile applications are important for customer service provision. This paper discusses the viability of the use of mobile applications in customer service to provide an opportunity for students to apply technology solutions to the business problem of customer dissatisfaction. Mobile technology, particularly the use of mobile applications is relevant for customer service because it enhances information sharing, the speed of service, and convenience.
Introduction
Mobile technology is one of the most pronounced technological developments in the 21st century. It has been adopted in various fields considering its effectiveness in facilitating communication and interaction with special emphasis on the mobile applications ease of use and effectiveness in information exchange. One of the fields that have adopted the mobile technology is the business field. Numerous organizations in the world today are embracing the digital business strategies due to not only technological innovations but also due to the dynamic customer needs and globalization (Setia, Venkatesh and Joglekar 565). In the practical world, the use of smart mobile devices is growing thus making the mobile platform promising in terms of adding value to businesses.
In the customer service domain, customer service over mobile applications is already becoming a reality with companies developing and adopting customized and generalized mobile applications to keep in touch with their customers. The mobile applications incorporate software features that are designed in a manner that is accessible to customers. In addition, the applications are automated to a certain extent to ensure that information shared by the customer or the company reaches the right person in real time. This is one of the major strengths of the mobile applications. According to West, mobile applications present a viable platform upon which businesses can overcome the challenges of customer service as the applications help in communication across wide geographic areas and thus many customers can be served effectively (1). By making services available to customers when they are looking for it, businesses offer value addition by providing effective customer service. This is a useful way of not only ensuring that customers are satisfied but also ensuring that they keep doing business with the company.
For companies like Lufthansa Cargo, nothing is more telling about the business’ commitment to customer service delivery than the manner in which the company handles customer complaints. Lufthansa Cargo is a worldwide cargo carrier airline that hugely relies on logistics and cargo handling services. As a player in the global air freight, the company serves customers from various major destinations through cargo freight services. However, in cargo handling, there are a series of steps which are employed to ensure the cargo movement is swift and efficient. In the previous years, there were cases of lost cargos and delayed delivery that were attributed to an operating system that managed the movement process. This led to many customers being dissatisfied and, eventually choosing to transfer their cargos via competing air freights. The main reason behind the dissatisfactions was that the operating system managed logistics without incorporating the aspect of quality of services offered to customers (Cohen 11). A study carried out on airline companies indicates that customers highly value basic services when it comes to service process in which information on matters such as delays in baggage delivery, ticketing status, and flight schedule are important (Tolpa 1). This means that customers are directly affected by the quality of service. Thus, accessibility, availability, and willingness to help customers is part of the quality aspect (Tolpa 28). In Lufthansa Cargo’s case, the downside of the operating systems is that it could not address the complexity of making flight connections and handle the high capacity of cargos leading to flight delays (Tolpa 12). Due to the downside of the operating system, the cargo handling system was only accessible to the company staff. This meant that customers had to rely on e-mail and telephone communication to make complaints about poor services. The realization of this problem triggered the company executives to consider an effective option to provide customer services and handle complaints. The main reason was the risk of losing the customers, which would plunge the company into losses.
In response to the problem of customer dissatisfaction due to ineffective customer services, Lufthansa Cargo signed a deal with Google Flights, which runs mobile applications that allow users to access company services and receive real-time responses to their queries. Google Flights is a mobile application that is interoperable across a wide spectrum of devices and operating systems that provide airline flight updates and allows customers to reach the help desk in real-time. The move by Lufthansa Cargo to enter into a partnership with Google was to enable the company to offer tailored services to customers and to allow easy and fast communication with the customers. This was part of the strategy to deliver quality customer services by focusing on the customers. This meant that the quality of services responded to the customer needs and strived to meet their expectations.
The cargo handling and transportation includes different processes such as check-in, cargo claims, movement status, and collection. The value of each process greatly depends on the service characteristics which the customers concentrate on considering that their cargo is in the hands of the airline. An important part of the processes is communication and information exchanges so that customers can be aware of how and when their cargo is transported. The Google Flight application is useful in terms of communication and information exchange. The application provides preflight services such as bookings and check-ins via a mobile platform upon which customers can easily access and make their requests for services from the airline. For the customers who are concerned about the delivery of the packages, they can present their complaints on the mobile platform via text messages or instant messages which will be received immediately by the company service providers who then respond to the concerns or the complaints. This is one way of keeping the customers informed about emerging issues that may affect the delivery of cargo thus keeps the customers satisfied because they are aware of the issues underlying the transportation services. The mobile application also allows customers to make payments via their credit cards and provides information about available flights. This means that the mobile platforms exhibit the aspects of reliability, individual attention to customers, and responsiveness (Tolpa 44). These are important attributes that contribute to effectiveness in customer service. Customers can conduct business with the airline at their comfort without having to gain physical access to the company premises.
Analysis of the use of Mobile Applications in the Business Context
Businesses operate primarily focusing on profit making and improvement of business processes. Mobile applications such as Google Flight are characterized by significant strength, weaknesses, opportunities, and threat aspects. To understand the concept behind the application of mobile applications in the business context, a SWOT analysis is presented. The strengths, as far as the use of the mobile applications is concerned, communicate the element that the applications are free for all users and the interfaces are well-designed to be user-friendly. In addition, they are compatible with various mobile devices and can be integrated with other applications such as social media platforms. The applications also rely on internet technology, which makes communication across geographical boundaries easier and less expensive. Research shows that mobile phones are becoming increasingly important to daily life and interactions in the formal and informal contexts (Rakestraw, Eunni and Kasuganti 2). With more customers having mobile phones, it means that more people will be able to use the mobile applications in conducting businesses. With the internet technology also having a global reach, communication is made easier in the global business context. From a customer service perspective, the mobile applications are a cheaper option compared to making phone calls and are more convenient for the business staff’s interaction with customers across the globe.
The major weakness in relation to mobile applications in the business context is that it introduces a format of service guides that may be different from standard guide styles and some users may not be able to use it. This weakness means that some customers may be locked out of the benefits of the applications because they cannot be able to use the format that requires technical knowledge on how to operate the platforms. However, mobile application designers anticipate this challenge and for this reason, they incorporate application functionalities that are direct in terms of content and simplified in terms of use. A good example is the platform that allows users to use touch sensitive screens to input information. This weakness also highlights the need for businesses to employ staff members in the customer service department that have knowledge and skills in using the applications.
There are various opportunities related to the use of mobile applications in customer service effectiveness. Google Flights, for instance, has developed versions of the application that are compatible with personal computers, mobile phones, and tablets. According to Heitkötter, Hanschke and Majchrzak, mobile application development has taken a cross-platform approach that allows the developers to implement a single application code base that is executable on different platforms (122-123). This means that a diverse range of customers using different devices can be served via the mobile applications. In addition, the mobile applications development domain is characterized by creative approaches that constantly seek to improve functionalities and interfaces. The foundational elements in the design of the application interfaces include support features to enable multiple languages to be used as well as modalities. For a company like Lufthansa Cargo, serving in the global market means they serve customers who speak different languages. Serving them may be a challenge particularly over phone conversations or e-mail creations because it would require a translator. However, the programming of mobile applications makes it possible to incorporate the use of different languages to allow the users to access information and make use of the platforms to reach the company. In addition, the company staff is less constrained in terms of translating the languages used by the customers because the tech features in the applications translate the data so that it is delivered in a language that the staff can comprehend. Therefore, the interfaces often placed on an improvement path on a day to day basis helps to ease communication between customers from different nationalities doing business with the company.
There are also threats associated with the adoption of mobile applications in the customer service domain. Issues of privacy and security may arise due to the aspect of third party developers. Third party developers can easily access the unique codes used in the creation of the applications and which may provide them with a leeway to access customer information (Rakestraw et al. 13). The fact that the third parties can access information means that the potential of competitors taking advantage of the weaknesses or critical information of the company threatens the manner in which a business conducts its practices and interacts with customers. In addition, this may discourage some customers from using the mobile application to conduct business for the fear of compromising their safety and privacy. However, this threat can be easily averted by entering into a formal partnership with trusted third party IT companies such as it was in the case where Lufthansa Cargo partnered with Google, a leading IT brand in the global scene. The strategic company with the tech giant enables Lufthansa cargo to develop secure systems that follow the privacy and security guidelines to ensure the safety of customers and information remains a priority matter all through the use of the mobile platforms.
Applying Mobile Applications into Business Activities
The application of mobile applications in business activities such as customer service provision should take a strategic approach. The strategic approach assesses the suitability and viability of mobile applications for the business. The approach allows managers to make informed decisions that increase the competitive advantage of the company. Mobile applications like other business technology aspects must be judged based on a cost-benefit analysis because not every move to adopt mobile technology ultimately improves the business processes from the efficiency and effectiveness dimensions (Hoos, Gröger, Kramer and Mitschang 71). In implementing mobile technology applications in the business process, it is essential for companies to consider the regulatory framework as well as the principles that govern the use of the platforms. It is also important for managers to consider the cost-benefit analysis of the mobile technology in relation to the company practices.
In implementing the mobile technology, companies need to consider the target customers, managing the mobile experience, business processes that will be modified to support the mobile applications, and how service quality can be managed. In the case of Lufthansa Cargo, the partnership with Google was meant to ensure that the company runs mobile applications that can be trusted and are compatible with customers across the globe. This is part of the reason behind the simplified interface. In addition, the tech giant, Google, helps to ensure that the mobile applications run all through the day and night to serve customers in different time zones. The expertise that characterizes the Google experts helps to ensure that the applications run efficiently without breaking down. In the practical sense, the choice to use mobile applications in the customer service domain requires the input of the company staff and business experts as well as IT experts. This way, the technical capabilities of the applications can be customized to match the business needs and goals of the company.
Summary
The evolution of mobile technology provides a new opportunity to businesses by extending mobile infrastructure into the business processes. Companies such as Lufthansa Cargo, which depend on service provision to customers must ensure that their customers feel valued and, therefore, they must be efficient in responding to their problems as they relate to the company business practices. For this reason, the companies adopt the mobile technology features and functionalities. Mobile applications facilitate proactive customer services, and this means that problems of customer dissatisfaction can be eliminated before they come to the customer's attention. This is particularly attributed to the use of internet connectivity and the wide use of mobile phones by customers today. According to Tolpa, the move to adopt the mobile application in customer service, connected Lufthansa Cargo to attributes such as reliability (60). This means that the adoption of mobile technology helped to improve the image of the company as well as practically improve the customer service provision domain considering that pre-flight services were conveniently offered to the customers. In conclusion, the option of embracing mobile technology requires a strategic approach in which executives will ensure that it is more beneficial than costly to the company. With more benefits to offer to a business, mobile applications are a viable option that improves the customer service process.
Works Cited
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