Abstract3
Literature Review4
Definition of the Problem4
Collection of Opinions, Feelings and Facts5
Identification of the Actual Problem7
Formulating Potential Solutions8
Assessing the Alternatives10
Methodology13
Questionnaire14
Results15
Conclusion15
Appendix17
References20
Abstract
Many airlines offer benefits to their clients in order to gain their loyalty. One of the benefits that are offered is frequent flyer mileage. This analytical report will view the feasibility of a membership at Miami International Airport that increases the frequent flyer mileage of its members while providing the members with a Visa classic card that enables them to accumulate more frequent flyer miles. This analytical report will explore the problem that the airline is addressing. In addition there will be a collection of facts opinions and feelings. The identification of the actual problem is primary. The formulation of the potential solutions is important. In addition, the alternatives will be explored and assessed. A questionnaire will be distributed to one thousand of the gold and platinum members. These members will be surveyed on their opinions of a membership card that is for the residents and the frequent air travellers to the city of Miami. These executives will be surveyed in the NBA Miami Heat organization, the Burger King organization, the Carnival Cruise lines organization and the IKEA Furniture organization. The respondents will be given a collection of ten questions on the questionnaire. The results of the questionnaire will be examined and the feasibility of the annual membership fee to Miami International Airport for the present members of the gold and platinum frequent flyers club will be examined.
Analytical Report
Literature Review
What is required in order to revamp the profits of ABC Airlines is research and acting. The research will be conducted by means of survey. The survey will be distributed by means of Facebook and Survey monkey .com to the executives in the area that have flown the most with ABCs Airlines. The survey will provide the information on the feasibility of the action plan. The action plan is a process that describes the particular actions that should be consolidated by an enterprise that delineates the needs of ABC Airlines. The action plan will be composed of the schedules and the objectives of the organization. The action program provides a list of all of the conventions and trade shows. This action plan includes dates and the objectives that should be accomplished during each of the event (Winston, 2011; Lawton & Solmko, 2005).
Definition of the Problem
In addition, the CEO Susan Smythe has stated that there is no margin for ABC Airlines to take in order to decrease the rates of its flights. The low passenger volume has not been beneficial for ABC Airlines. ABC Airlines has been compelled to enter a price war from which it cannot emerge victorious. The board of directors has placed a cost decrease of 15% that is to be put into effect over the next year and a half. The CEO and the CFO feel as if they are responsible for ABC airline’s crisis with regards to marketing their services. The administrators of ABC Airlines are required to devise a marketing technique that can bring the ABC Airlines back into a position of having a competitive advantage (Pride & Ferrell, 2012; Morrell, 2005).
Collection of Opinions, Feelings and Facts
A client interview that has been conducted by Susan Smythe with regards to the 1000 platinum and gold ABC Airlines reward program demonstrated that the subscribers are not content with the quality of service that has been part of the ABC Airlines rewards program. The Vice President of Marketing, Bill Johnson says that more than fifty percent of the clients are dissatisfied with the mileage that they are accumulating per flight and 80% of the members are disappointed with the service upgrades including the reward voucher redemption programs. The most discouraging results of the survey are that almost 70% of the ABC Airlines members stated that they would not consider suggesting the ABC Airlines membership to family or friends. This has caused significant damage to ABC airline’s image and the effectiveness of the frequent flyer program. One of the most effective implements in the air travel industry is the communication that is generated by the client. The anticipations of the clientele have decreased and the decrease has the effect of a diminishing client base. The actors in the airline industry have the reliance of satisfied clients who would refer their service to colleagues and friends (Eid, 2012).
The client loyalty report has demonstrated that the new subscriptions in the program have had the outcome of decreasing 20,000 clients per year. This decrease infers a drop from 50,000 to 30,000 in the past twelve months. The Vice President of Marketing, Bill Johnson states that originally there were 200,000 loyal subscribers that started in the program. Considering the members who remain, loyalty is decreasing and the frequent flyer program subscription has decreased and the members of the client base are explaining that they have no other option than to fly with other air passenger carriers. The CRM client relationship management system is not being put to its optimum capacity. In accordance with the CEO, Susan Smythe, the system has been established in a manner where the internet channels are not aligned with the phone system. The CIO, Wayne Bennett has stated that in the event that the clients choose to communicate over the interment and the telephone, they have no manner of knowing if they are communicating with the same individual. The needed economic resources that was required in order to establish this system was not delegated in its original establishment. The system does not fit the requisites of their client base. It is important to be able to accommodate all of the client points of interaction in order to gain a complete view of the client profiles. This deficiency creates a disruption in the communications that are placed between the clients and the client service representatives. The outcome is frustration and confusion for both sides. In the event that the clients do not perceive that the challenges are being attended to in an expedient manner and an efficient manner, the client loyalty goes. Wayne Bennett, the Chief Informatics Officer has stated that other challenges that have been taking place with the communication system are that the clients are complaining that they are being placed on hold for extended wait times. The CEO has assessed in the surveys that a great deal of satisfaction has been attributed to the long wait times that the clients have been held on the phone (Reinartz, 2006; Wirtz, 2005).
Identification of the Actual Problem
The basis of all of the problems that are causing the ABC airline crisis are the deficiencies of the ABC representative to address the needs of the clients. ABC airlines has the requisite of directing its attention to the needs and the desires of the markets that they are targeting which are the weekend leisure and business flyers. These clients have demonstrated their opinions and ABC is able to visualize the causal attributes and the areas of the challenges. The mission of ABC is that there is a client is number one mind-set. This perspective is important from the CEO to the fleet air craft cleaning personnel. The diminished call times with the clients should not be a primary factor in the client service area. The ABC Airlines rewards programs needs be able to make a feasible offer to its clientele in order to maintain that they fly with ABC. ABC airlines has to compete with the benchmark that has been established by its clientele with regards to their reward programs and try to surpass their offers. A comprehensive marketing approach could provide ABC with the competitive advantage that it requires (Reinartz, 2006; Wirtz, 2005).
Formulating Potential Solutions
Considering that the stock market is approaching unprecedented apexes, the economy is in a consistent growth mode, many of the marketers are finding the marketplace saturated. The traditional marketing programs are not having the success that they once experienced. There exist more than 3.5 billion internet web pages. Being able to attract the clientele is more difficult than it has ever been. It is important that ABC Airlines revamp its website and communication. The website that is operated by ABC airline is probably deficient in the Google's quality score guidelines that are important with regards to Google Ad Words. The clientele base at ABC Airlines is becoming more and more complex and sophisticated (CRM Trends, 2014).
The client experience is important due to the attribute that there are many actors in the air passenger market. As a result the client base is becoming more frugal. The clients have the buying power that enables them to demand more service and amenities. This year the customer relations marketer will be empowered with presenting a holistic experience through all of the ABC airline touch points. The infrastructure could be redeveloped in order to facilitate knowledge sharing and intelligent communication. The smart companies have a Chief Client Experience officer that will provide identification and optimize the unfulfilled anticipations. The techniques that in incorporate the creation of content, gamification and loyalty programs will continue to have a substantial participation in the client experience development. In addition the initiatives that facilitate a holistic experience that are similar to Uber might be implemented. Uber is a program that enables the clients to call, follow and pay for a limousine service by means of a mobile application (CRM Trends, 2014; Goode, 2014).
The organizations comprehend that the offline dynamism of ABC Airlines could be duplicated online. The perception of discovery, entertainment and inspiration is important to fulfill. This is the manner by which ABC Airlines will convert a competitive disadvantage to a competitive advantage. It is possible for ABC Airlines to integrate personality, curation and presentation. This is the year for the mobile applications and the online experiences to evolve and provide a competitive advantage for ABC Airlines. ABC may be able to enjoy the experience and have fun (CRM Trends, 2014).
It is important to personalize and customize the client experience. ABC Airlines needs access to more information about its clientele. ABC Airlines can apply the insight that it has acquired in order to interact, engage and communicate with their clients in innovative and new ways. This is considering the unique characteristics of mobile proactive service.
5. Omni channel Marketing In the circumstance of many of the Air passenger organizations marketing has been messaging. The messaging can be accomplished by incorporating display and email with a minimum of two channels. It now rests upon the marketing divisions of ABC Airlines to communicate with the subscribers on a regular basis (CRM Trends, 2014).
Other considerations would be to improve the customer service in order to attract and maintain the client base. An evaluation of the rewards program is necessary in order to permit that there is more frequent flyer mileage that is accumulated per flight, and a smaller number of blackout days that approximate the holidays. The connection possibilities could be made easier for members and a greater number of reward redemption programs would be convenient. The number of routes that are available to the business flyers have the option of being enhanced (CRM Trends, 2014).
Assessing the Alternatives
Every solution can have the outcome of assertive or negative outcomes. The integration of the CRM channels will provide a comprehensive perspective of the clients. The other consideration is that an investment will be required. It is possible that the expense will surpass the 15% organizational cost that has been set for ABC Airlines? In the event that the costs exceed the allocated budget, would it be prudent to enhance the client satisfaction. The increased number of satisfied clients will have the outcome of sending more volumes of passengers to ABC Airlines (Eid, 2012; Wirtz, 2005).
The reduction in the size and the number of reservation centres may help ABC airline’s budget. The employees and unions may not agree. ABC Airlines has constructed one of the most effective rapports with the employee union and the downsizing could have an impact. Diminishing the number of reservation centres could have the outcome of creating discord from the rewards members and the loyal customers who perceive that the service that is being delegated to them by ABC Airlines is less than optimal. An alliance with one of the other air passenger carriers may be the most viable option. The strategic alliance would diminish the costs. An alliance would be feasible with one of the European carriers. This is attributed to the regulatory setting that limits the scope of operation within the European national borders (Lawton & Solomko, 2005). The most feasible option is to offer the loyal clients who are members and reside or travel frequently in the Miami airport area a special membership. This membership would give the clients preferred status and enable them with frequent air miles (Eid, 2012; Wirtz, 2005).
This enhanced program would involve that the present members would pay an additional $100 per month for the platinum memberships, $ 75 for the gold membership, and $55 per month for the silver memberships and $35 per month for the basic memberships. The additional revenues that would be generated would enable ABC Airlines to provide its members with a top of the line service. The revenues from the membership fees would enable ABC Airlines to reconstruct its CRM systems and be able to interface with the Uber systems (Goode, 2012). In addition, the frequent flyer miles would be increased and the ABC Airlines has considered branding a specialized Visa card with its own logo for the members who would be willing to incur the additional membership fees in the Miami international airport. Access to Uber’s VIP service would only be accessible for ABC Airlines Visa card holders. These additional membership fees would resolve the situation of downsizing that is one of the last recourses for ABC Airlines. Once the renewed membership plan is established for the loyal clients in the Miami area, the management will emit surveys to all of the members.
Methodology
The surveys were sent to all of the middle managers and the middle level managers in the NBA Miami Heat, Burger King, Carnival Cruise and IKEA Furniture organizations. The survey was a questionnaire that was composed of ten questions. The ten questions were composed in order to gauge whether the present members would have objections to a special membership fee for Miami International airport that would provide them with superior service and increased frequent flyer miles. The questionnaires were sent to one thousand upper level managers in order to determine if they would agree with the proposal of an increased membership fee for Miami International Airport
Questionnaire
The responses were coded. The respondents were able to respond with the letter SA for strongly agree, A for agree, N for neutral, D for disagree and SD for disagree. The questionnaire was distributed to 1000 executives who possessed gold and platinum memberships with ABC Airlines.
Results
Of the 1000 participants, 682 answered SA to seven or more questions on the questionnaire. Two hundred and sixty eight respondents answered SA to eight of more of the questions and forty three answered SA to all ten questions. Five respondents answered SA to six or less of the questions on the questionnaire.
Conclusion
In reviewing the results of the questionnaire, the majority of the one thousand executives in the NBA Miami Heat, Burger King, Carnival Cruise and IKEA Furniture organizations would agree on paying extra fees in order to receive a better quality of service, increased frequent flyer miles and a Visa credit card with the ABC Airlines logo on it. The proceeds from the membership for the Miami residents could be used in order to upgrade the communications systems and the CRM website. In addition, a text messaging service is an option. Arrangements will be made with Uber in order to provide the limousine calling and texting service. These upgrades will enable the client base to grow. As the clients that have been lost perceive the extent of the upgrades, they will return as loyal customers. The returning clients would cause an increase in revenues that would enable the ABC airlines stock to regain its value. It is apparent from an evaluation of the ABC airlines of the Miami International Airport membership that ABC airlines possesses competitive advantages over its competitors in the context of competitive cost administrative strategy. ABC airlines has the most expansive fleet and routes of the airlines in the South-eastern U.S. Area. As a result, the larger fleet enables ABC airlines to administrate domestic and international flights that include Europe, Asia and South America. A strategic alliance with one of the European air passenger carriers and the Australian air passenger carriers would be recommended.
Consequently, ABC Airlines has the ability of taking advantage of less over head expenses, increased volume negotiating and procurement benefits in comparison with other carriers that operate at Miami International Airport. The regulatory setting of the Asian airline routers has had the outcome of a slower index of progress. This outcome had been detrimental for the airlines that originate in smaller nations. In order to be able to compensate for this disadvantage, ABC Airlines was able to form strategic alliance with connecting routes with many of the smaller Asian carriers. The establishing of connecting routes to the Philippines, Indonesia and Thailand has had the outcome of being able to increase the viability that many of the business travellers that originate with ABC airlines would use ABC airlines for their normal travel. The connections with these airlines from the routes that originate in Miami International Airport are difficult at best for the other airlines. As a result, the increased capacity for connectivity and the new Airbus 320 planes have provided ABC airlines with a competitive advantage with regards to routes and aviation equipment.
Uber is a limousine ridesharing service that is headquartered in San Francisco. They have recently discussed plans of forming a strategic alliance with ABC airlines if ABC would provide one of the rooms in the passenger terminal for them to operate the dispatches. In return, Uber will grant the Miami international Airport members who pay for the care service with the ABC airlines Visa card discounts and enhanced services. The enhanced services that will be offered by Uber at Miami International Airport include the use of Hummer limousines, Corvette limousines, Cadillac Escalade limousines and Rolls Royce limousines. These limousines initially will be available in Miami only for the clients who pay for their trip using the ABC airlines Visa card. The other passengers will have access to the VIP service after two months. The price of the service will be different for ABC Airline passengers than it will be for those who are outside of the ABC airlines membership club. This characteristic should provide additional incentive for the passengers to become members at the Miami International Airport. These implementations in addition to the upgrades to the communication system, CRM online systems and the implementation of regular text messages should enable ABC Airlines to enhance its customer base and regain profitability.
Appendix
Visual Aid #1
Visual Aid #2
Visual Aid #3
Visual Aid #4
Visual Aid #5
(CRM Trends, 2014)
Visual Aid #6
(CRM Trends, 2014)
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