Customer-Value Marketing Critical as Airline Executives Lose Focus



Customer-Value Marketing Critical as Airline Executives Lose Focus

Given the turmoil in Indian aviation sector, read the issues raised below for American Airlines and Customer Value

Marketing Expert, Charles Gaudet, Says the Airline Executives Misguided Strategies Offer a Good Lesson for Business Owners Wanting to Grow Their Business

As American Airlines and US Airways take steps toward a merger, the companies are looking at creating the nation’s largest airline. Partially an effort to save jobs and rescue American Airlines from bankruptcy, the two airline giants are also positioning themselves to better compete better. Marketing expert, Charles Gaudet believes that the merger will only provide temporary financial relief unless these airline executives shift their focus from profit to customer value

Gaudet says, “Many corporate executives operate their business under the popular (and misguided) notion that ‘the purpose of business is to increase shareholders value’ – therefore the focus is on shareholders – instead of ‘the purpose of business is to increase customer value’ – the latter results in great profit. In fact, your profit is in direct proportion to customer value.”

Gaudet argues that a focus on customer relationships, like those being damaged by the airlines stripping away customer benefits, baggage charges and inflexible policies can make or break any business, large or small. As a part of his Predictable Profits Methodology, he provides business owners with framework for successfully creating a customer focused marketing philosophy

As such, Gaudet suggests the following questions for airline executives to consider in 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?

Customer Value Foundation (CVF) helps companies create and capture value at all levels, leading to increased shareholder wealth
Gautam Mahajan
President-Customer Value Foundation

Explore posts in the same categories: Business & Management

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