Customer Value Marketing Critical as Airline Executives Lose Focus

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Customer Value Marketing Critical as Airline Executives Lose Focus

  1. 1. Customer-Value Marketing Critical asAirline Executives Lose FocusGiven the turmoil in Indian aviation sector, read the issuesraised below for American Airlines and Customer ValueMarketing Expert, Charles Gaudet, Says the Airline Executives MisguidedStrategies Offer a Good Lesson for Business Owners Wanting to Grow TheirBusinessAs American Airlines and US Airways take steps toward a merger, the companiesare looking at creating the nation‟s largest airline. Partially an effort to save jobsand rescue American Airlines from bankruptcy, the two airline giants are alsopositioning themselves to better compete better. Marketing expert, Charles Gaudetbelieves that the merger will only provide temporary financial relief unless theseairline executives shift their focus from profit to customer valueGaudet says, “Many corporate executives operate their business under the popular(and misguided) notion that „the purpose of business is to increase shareholdersvalue‟ - therefore the focus is on shareholders - instead of „the purpose of businessis to increase customer value‟ - the latter results in great profit. In fact, your profitis in direct proportion to customer value.”Gaudet argues that a focus on customer relationships, like those being damaged bythe airlines stripping away customer benefits, baggage charges and inflexiblepolicies can make or break any business, large or small. As a part of his PredictableProfits Methodology, he provides business owners with framework forsuccessfully creating a customer focused marketing philosophy
  2. 2. As such, Gaudet suggests the following questions for airline executives to considerin order to build a more customer-focused business:  What does your ideal customer expect from a good flying experience?  What are more ways can we create a good customer experience for our passengers?  What ways can we make the reservation process easier, more convenient, and enjoyable?  What process, information, and training needs to be in place for our pilots, airline attendants, and employees to make sure an enjoyable customer experience is the number one priority?  How can we make our customers feel special, valued, and appreciated?  What methods are in place to communicate with our customers and make sure that their needs are being addressed?There are more questions to ask and even more to answerContact us for creating value for you customers OR FOR FULL ARTICLE.Regards,Gautam MahajanPresidentCustomer Value FoundationTel: 011 2683 1226, Fax: 011 2692 9055Mobile: +91 9810060368Email: mahajan.g@customervaluefoundation.comWebsite: www.customervaluefoundation.com

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