FORECASTING AND TRENDS MBA 580

Essay by iheartbeansUniversity, Master'sA, March 2009

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External Force: Social Changes impacting Customer Relations -British Airways was successful in acknowledging social changes that was greatly impacting customer service levels. British Airways utilized various techniques (internally and externally) to improve customer service quality.

A disgruntled and dissatisfied customer is an ordinary part of every business. It does not matter which industry, there is no product or service that is perfect. This holds true with British Airways. During the 1990s many airlines, including, British Airways, were experiencing high levels complaints and dissatisfied customers. According to Avinash Narula, the way an organization responds to customer dissatisfaction determines the relationship the company has with its customers (2008). First, airline management took evasive action and implemented an effective Service Recovery System to handle complaints and information needs of the passengers. "Service Recovery is a term that refers to the art of turning customer disappointment into a more positive experience.

Research has shown that 82 percent of customers who have had bad experiences will return if the complaint is quickly recognized and resolved," (Narula, 2008). British Airway employees have be trained and educated on taking ownership of the problems and resolving the customer's complaint, to retain that customer's business. The airline is currently investing in a detailed, ongoing customer satisfaction survey, which measures the reaction to all the aspects of their service throughout a passenger's travel experience. The purpose of these surveys is; "it is vital for British Airways to understand what the passenger thinks about the product and services provided in different markets, on different routes, at different airports, different days, in order to make informed decisions about efficient, cost-effective product development," (www.britishairways.com, 2008). Other customer relationship techniques British Airways perform include: installing video point booths at Heathrow Airport in London so that travelers can tape their comments, simply...