Classic Airlines Marketing Solution
A study of the Classic Airlines scenario reveals problems within the organization including customer dissatisfaction with customer service, a decline in customer loyalty and problems with employee job satisfaction and retention. Without resolution to the problems faced by Classic Airlines which have resulted in finanacial losses bankruptcy may be inevitable. Resolution or at the very least improvement for some of the customer service issues identified within Classic Airlines including limited redemption options for frequent flyer miles earned by Classic Club member, limited direct flights, and the timeliness of scheduled flights can is possible. The enhancement of departments within Classic Airlines such as integrating their IT department with the customer service department would prompt improvement in the CSM system. In addition to improving customer service, this change would also serve to empower employees providing increased job satisfaction and employee retention. Declines in customer loyalty can be addressed by Classic’s partnering with other airlines and travel service related providers allowing more direct flights, improved flight timeliness and increasing the Classic Rewards member’s frequent flyer miles redemption options.
The decrease in the redemption of the frequent flyer miles earned by Classic Rewards members indicates a decline in customer loyalty. As shown in Classic Airlines Exhibit A (3), [Classic Rewards members earn miles by purchasing eligible tickets on qualifying flights. Members earn one point per flight-mile with a minimum of 500 miles per roundtrip, and a maximum of 2500 miles per roundtrip. Members can also earn miles by staying with one of Classic’s six hotel partners, by renting cars from one of their three car rental partner companies and by using their Classic Rewards co-branded credit card]. According to Classic Airlines Exhibit A (3), [miles earned in Classic Rewards will not...