American Airlines Customer Satisfaction Strategy

American Airlines 20 Customer Satisfaction Strategies

Today almost every country measures the level of customer satisfaction in one way or another, American Airlines is no different. It measures customer satisfaction both directly by asking its customers and indirectly through various data points in the customer journey experience.

20 Customer Satisfaction Strategies that American Airlines can use are -

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Quality, Reliability, and Customizability Performance Matters

Quality perception of customers is rooted into two factors – reliability and customizability of the product. Reliability is how long the product will last, customizability is how a customer can adapt the products to meet needs. Focus on reliability and customizability also depends upon the product market fit and stage of evolution the product is at. For example earlier in the product evolution, customers give high score to quality then customizability. But once the product reach the maturity stage then quality becomes reliable across the board and customers value customizability or design elements.

Be helpful

Customers want to feel like they can get help when they need it. Make sure American Airlines employees are knowledgeable and that they're able to answer customer questions and resolve problems.

Know the Ecosystem with Scientific Metrics

Covid 19 has certainly slowed down the globalization process. Companies today are looking for diversified supply chain. The war in Ukraine has also raised the concerns about globalization and global standards. The on-going trade war between US and China will certainly impact the globalization process in coming years. It will also create a scenario where companies have to adhere to different standards in different sphere of influence. For example TikTok is extremely successful product where customer satisfaction is driven by the suggestion algorithm success. But the US China tussle may result in either tinkering of the algorithm, erosion of talent across the board etc.

Appreciate Complaining Customers

In the Airline industry, most companies treat complaints as annoying that take time and resources to manage. But research has shown that customers who complain are often more invested into the future of the company. Secondly if the firm successfully handles the complaints of the customers then the customers tend to more loyal to the firm in long run. Third resolving complaints can help the company to fine tune its offering, build better value proposition, innovate, and increase the rate of future success.

Value and Price

Managing value perception independent of price is extremely difficult. Customers perceive value proposition through the prism of price. If the product is having premium features then the customers are expecting to pay premium price. If American Airlines doesn’t position the product accordingly, then it is leaving money on the table. On the other hand if the product is priced too low then customers perceive it as a low quality product and customer satisfaction is highly correlated with the quality perception.

Be fair

Customers expect to be treated fairly, regardless of their circumstances. Make sure American Airlines policies are clear and that it enforces them consistently.

Stick Around and Be Loyal

Customer loyalty has increased across the board over the last decade and half. According to research millennials, customers born between 1981 and 1996, are comparatively more loyal to brands than the previous generations and the later generations. So if companies stay longer in the game, actively resolve customer complaints, and inculcate suggestions in the product and services development then the customer satisfaction grows gradually.

A Understanding What American Airlines Customers Expect

Customer expectations are often grounded in the value proposition that American Airlines is offering to its customers. The key to keep high customer satisfaction is to provide a customer with slightly better offering than what she is paying for. Customers are intelligent to assess when they are getting more than what they are paying for. If they perceive that they are getting more for what they are paying for then the satisfaction level is higher than a scenario where customers are paying premium prices for premium offerings.

Be positive

A positive attitude can go a long way in customer service. Make sure American Airlines employees are friendly and helpful, and that they make customers feel welcome.

Satisfied Customers Drive Financials

Customer satisfaction is highly related to the financial performance of the companies. According to ACSI research the companies that consistently feature on higher customer satisfaction compare to its competitors deliver better financial returns. Based on ACSI research between 2000 and 2014 the stock portfolio of high customer satisfaction delivering companies outperformed the S&P 500 more than 17 times.

Customer Satisfaction as a Strategic Asset for American Airlines

American Airlines needs to treat customer satisfaction as a stragetic asset. Customer satisfaction is infact more critical than all the other factors in the VRIO analysis, a strategic tool to assess the importance of resources, imitation ability of the competitors, and organizational competence.

The strategic goal of the company should be to optimize the customer satisfaction level, not to maximize it. Customer satisfaction requires certain trade-offs. For example when the company is small it initially attracts customers who are looking for specific features and who become brand evangelists if they like the products. So the customer satisfaction levels at this stage are high. But once the brand attract heterogeneous customers then the satisfaction level come down as different customers have different requirements.

Be proactive

Don't wait for customers to come to American Airlines with problems. Reach out to them regularly to see how things are going and to offer assistance

Be transparent

Customers want to know what to expect from American Airlines. Be transparent about your pricing, policies, and procedures.

Fixing Company Customers Disconnect

Companies today actively measure, monitor and manage customers’ experience. American Airlines needs to map the whole customer journey and look for areas where it can improve the customer experience. Fixing the company customer disconnect can help the American Airlines to fix smaller bumps on the customer journey rather than doing the big ticket items such as product innovation, product re-development, building new distribution channel etc

Listen to your customers

The best way to find out what American Airlines customers want is to ask them. Set up surveys, focus groups, or simply ask for feedback after a sale or service interaction.

Satisfaction is always comparative

Customer satisfaction is also highly correlated with the macro economic growth and a nation’s economy. If the economy is doing well then customers have higher spending power and they have more scope for diverse spending. In such a scenario, customer satisfaction across the board is comparatively higher if the economy is going through a recession. So American Airlines should focus on customer satisfaction in a comparative sense – how the American Airlines is doing compare to its competitors. And secondly how satisfied customers are with the players in an industry that it operates in. For example customer satisfaction with oil brands overall is not positive but among brands customers still show loyalty in the whole sector.

Be responsive

When customers contact American Airlines with a question or problem, be sure to respond promptly. A quick response shows that American Airlines value their business and that it is committed to resolving their issue.

Be personal

Customers want to feel like they're dealing with a real person, not a machine. Use their names, personalize your communications, and make them feel like they're valued