Classic Airlines needs to decide what options work best for them and the risks involved with those options. Their rewards program although not carrying too high of a risk could still potentially hurt them if they can not find a way to restructure it enough to gain back not only their past customers but bringing in new ones as well. Classic has in the past been built on their customer satisfaction and since the fall of that, they have been running the risk of failing miserably.

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This restructuring of the rewards program is what Classic needs in order to pull back ahead of the competition and regain all the customers that they have lost to their competitors. Another risk they are taking is the possible formation of an alliance with another airline. Although the Chief Marketing Officer is very good friends with one of the execs that help run this airline, he is still taking a risk by trusting in his friend enough to join forces in hopes that with their help they can bring back the customer satisfaction that they have always been known for without going back budget. A large risk in doing this is if the other company fails in anyway, Classic could fall prey as well. Not only that but they could lose a lot more customers which in turn could be the doom for Classic. This business venture needs to be treaded on very lightly and all pros and cons need to be weighed by both partners.

Make the Decision The best solution for Classic is for them to take all of their alternative solutions and combining them with their end state goals and working off of that. Classic can use their CRM system to help with the restructuring of the Rewards Program and use the possible partnership with Latin Airways to help gain back their customer’s loyalty and trust. Develop and Implement the Solution Classic needs to use their CRM system and gather all the data to understand their customer wants and needs. With the usage of this data, they can start to develop the new rewards program and when everything is finished, with the help of the team, Kevin Boyle can start to create a campaign to reintroduce the program.

Classic can also start implementing and developing a plan to join Latin Airways and test to see if this joint partnership will be in the best interest of both Classic Airlines and their customers. Evaluate the Results If Classic Airlines sticks by their motto of providing the best customer service they can and the new restructuring of both the Rewards Program and partnership goes over well, they should see excellent results.

Shareholders should remain happy, Investors should start trusting in the company again, a major improvement in employee satisfaction should be seen, the board of directors will still keep within their budgets and most importantly the customers will start to trust and come back to the company they always held a high belief in but just had few hesitations in due to the economy and lack of customer service.

Conclusion

Classic has a lot going for them. Even though they may be facing budget cuts and have Executives that don’t truly believe in the power of customer service, they still are one of the best airlines in the country. With the strong team of marketers, customer relationship reps and employees, Classic still has a strong chance of being able to live back up to their reputation of being one of the best customer service organizations in the country.

Budget cuts affect all types of businesses and Classic Airlines is no exception. A strong team of dedicated employees and management is all it takes to take a once thriving organization and bring it back to life. The team at Classic Airlines is doing just that. They may be facing problems, but they stand by their strong customer service motto. As long as they continue to live up to that motto, Classic Airlines will be seen and heard about for many years to come.

References

University of Phoenix. (n.d). Classic Airlines. Retrieved from University of Phoenix, Marketing website.

Kotler, P., & Keller, K. (2007). Creating Customer Value, Satisfaction and Loyalty (3rd ed.). Retrieved from The University of Phoenix eBook Collection.