Marketing Concept

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A CASE STUDY OF MARKETING CONCEPTS PUT INTO PRACTICE
AB Airways, a reputed international airline with head quarters in an advanced country has a customer relation department which took more than 12 weeks on an average, to respond to customer grievances. It lost 60% of calls from customers on any given day and the cost of compensating customers was rising rapidly. A dynamic senior executive was inducted into the organization as the Chief of the department and formed a new team. He immediately set himself the task of reducing the response time of 12 weeks and also to have more satisfied customers. The new team in customer relations, decided to take a proactive role in retaining customers. The new motto was to champion the customer as opposed to defending the company. Actions and amendments in the working of the customer relations started in the following manner, Find out why customers defected:

Making quick amends when a service failure occurred and eliminating the operational weaknesses behind them. The team had to first improve the understanding of why customers defected. Some customers left AB though they had no complaint; their reasons ranged from a job change to another airlines new frequent fliers programs. As for customers who had some grievances, 50% chose not to tell anything; they simply defected to other airlines. Out of those who did contact someone at AB about their grievances, 87% did not defect. Make customers into champions:

The conclusion by the chief and he team was that those who wished to tell about the service they had received could be turned around. More was found out about these customers and ultimately developed a model˜ Making Customers into Champions. Transforming AB’s traditional defensive role:

It was decided to first transform AB’s culture and methods. All along, customer relations had served as an investigator and adjudicator and had pursued four basic objectives: 1. To insulate the company from unhappy customers....
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