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Assessing Classic Airlines' Loyalty Marketing
As the financial analysis of Classic Airlines shows, the focus on pricing and off of relationships is causing the company to lose more ticket sales and growth than it enables. The customer loyalty programs also indicate how rapidly Classic is losing customers as well. All of these factors point to how dissatisfied their customers are with their service. Customer loyalty programs have an amplification effect; when relationships are good the programs soar and when relationships are bad, they come plummeting down (Dekay, Toh, Raven,.2009). What Classic must do is turn around the perception of their service as being below the expectations of customers, and embrace choose to begin auditing their performance to see where the shortcomings are (Dekay, Toh, Raven,.2009). Only by doing this can they attain a roadmap to recovery for the most loyal customer bases they have.
Conclusion
Like many service businesses, Classic Airlines sells not only the transportations service from one location to another; they are also...
The approach of dropping prices and attempting to win customer back purely through the fundamental aspects of the marketing mix continues to fail. It is because Classic has not looked at the relationship as the catalyst of trust in their services. Once Classic realizes that investing to exceed customer expectations is the best strategy out of the problem, they will continue to languish and keep a price war alive in their industry.
References
Dekay, F., Toh, R., & Raven, P.. (2009). Loyalty Programs: Airlines Outdo Hotels. Cornell Hospitality Quarterly, 50(3), 371.
John C. Driver. (2001). Airline marketing in regulatory context. Marketing Intelligence & Planning, 19(2), 125-135.
Jordan L. Le Bel. (2005). Beyond the friendly skies: an integrative framework for managing the air travel experience. Managing Service Quality, 15(5), 437-451.
AVM Oliveira. (2003). Simulating revenue management in an airline market with demand segmentation and strategic interaction. Journal of Revenue and Pricing Management, 1(4)
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