CUSTOMER RELATIONSHIP 3
Running head: CUSTOMER RELATIONSHIP 1
Customer Relationship
Student’s Name
Institution
Customer Relationship
What is the essential element of this case study in terms of customer relationship management and the lifetime value of customers
The critical component of this case study is that the united Airline should learn how to maximize the customer’s lifetime value. To do so, the company needs to use the customer lifetime value of acquisition, retention, and attrition (Hughes, n.d.). With precision about the economies of which customer a company acquires and retains, United Airlines can maximize the lifetime value of its customers. Besides increasing the value of the customers to the company’s portfolio will increase its productivity and profits.
Research the customer service policy of United Airlines at the time of this incident. Were the customer’s reactions justified? Provide a rationale for your answer
Basing on the many conflicts that link United Airline with large numbers of highly publicized customer incidents from threatening their customers to mishandling their pets, the customer’s reactions in the guitar incident were justified (Matousek, 2018). With all these incidents of poor customer management, the airlines ought to lack good policies regarding the customer relationship. Since the Airline accepted that, they witnessed the guitar being thrown by United Airlines baggage handlers in Chicago; they could have compensated the owner. Despite owning their mistake, they refused to compensate the owner. Therefore, the customer was right in composing a song for the world to see and hear since they refused to hear him out. Writing the song was an excellent move to take because it could be significant for both the Airline and the customers. For the Airline, it will be a reminder of the poor customer relationship that they once had, which will help them to improve while for the customers, it will be a warning to them.
If you were the CEO of the United Airlines, what would your response have been? Provide a rationale for your answer
If I were the CEO of United Airlines at the time of the incident, I would have compensated the owner of the guitar, keeping in mind the power of songs and social media. For example after the song going viral for the whole world to see the Airline
Will lost more money due to lack of customers because of the poor customer relationship. Therefore for me, it could have been easier to explain to my shareholders how I lost $3500 on a damaged guitar than vice versa ( Sons of Maxwell, 2009). Therefore I could have immediately compensated the man when he mentioned composing a song to express his experience with the Airline.
References
Hughes, A. M. (n.d.). How Lifetime Value is Used to Evaluate Customer Relationship Management. Database Marketing Institute. Retrieved from http://www.dbmarketing.com/articles/Art194.htm
Matousek, M. (2018). United Airlines has a long history of infuriating customers — here are its worst customer service incidents. Business Insider. Retrieved from https://www.businessinsider.com/united-airlines-worst-customer-service-incidents-2018-3?IR=T
Maxwel, S. O. (2009). United Breaks Guitars. (Sons Of Maxwell, Performer) Retrieved from https://www.youtube.com/watch?v=5YGc4zOqozo