Problem Solution: Classic Airlines
Classic Airlines commands a fleet of more than 375 jets and serve 240 cities with more than 2300 daily flights and is the world’s fifth largest airline. (University of Phoenix). In today’s market sharply rising and declining stock prices; in addition to the uncertainty about flying, Classic Airlines is finding more difficult to sustain expenses and profitability. The challenge in maintaining working capital to an acceptable level is becoming harder; fuel cost and labor are increasing rapidly which limits the ability to provide an advantageous frequent flier program. Classic Airlines with its 25 years of operation has grown to an organization of 32,000 employees and earned$10 million on $8.7 billion in sales. With the September 11 terrorist attacks the economy went down and Classic Airlines went down with the economy. Its share prices decrease by 10% and its employees’ morale went down due to the negativity from Wall Street. Classic Airline customer’s loyalty declined Classic’s Rewards Program decrease 19% in the number of members and 21% in flights per remaining members.
In an effort to turn around the present situation, Classic Airlines wants to use its CRM system to identify the areas inside its customer’s base that need immediate attention and focus more on customers’ satisfaction. Amanda Miller, CEO focus more in cost reductions than customers’ satisfaction. It seems that the whole operation is based on how to reduce overall cost bypassing the customers’ wants and needs. Classic Airlines needs to re-engineer its customer service operations and must set high standards to provide exceptional customer service to gain customer’s loyalty back. Amanda Miller has requested the marketing team to work on the improvement of the frequ ...